E-retailers have opportunities to personalize products and services for customers. Many online stores already use personalized ads, displays, and suggestions for registered users based on their browsing history and purchases. Personalization is an effective method for increasing customer lifetime value and loyalty as it allows retailers to tailor recommendations and minimize browsing time to find desired products. To take advantage of personalization opportunities, e-retailers must understand customers’ individual needs and guide their interactions accordingly. As customers share more information, retailers will be better able to offer intimate, real-time personalization of both site content and customer service.

1. 1) It has beenarguedthatfor effective e-retailing,opportunitiesare available forpersonalization
of productsandservices.Doyouagree?Chapter8
Online storeshave beenservingpersonalizedadstoprospectionuserssince years.Manyonline
storesalso use personalizedproductdisplaysandsuggestionforregisteredusers.Asusers
become more comfortable withsharingsome personal informationwithbrandsandtrusted
online stores,we will see store ownersmake more effortstoofferamore meaningful
personalizationtousers.
The most significantbenefitof the electronicchannel isthe abilitytouse the Internet’s
interactive capabilitiestoeconomicallypersonalize information.Service-orientedretailerssuch
as departmentandspecialtystoreshope theirsalesassociateswill provide thisbenefit.They
wouldlike theirsalesassociatestoknow orfindoutwhattheircustomerswantand then
recommendappropriate merchandise.
E-retailermustgive customerreasonstochoose themovertheircompetitors.Theymustoffer
customersshoppingexperiencesthatare relevanttowhomtheyare and guidedbywhatthey
need.Inshort,e-retailermustpersonalizetheircustomerinteractions.Recentstudiesshow that
personalizationisahighlyeffective methodforincreasingconsumerlifetime value foronline
sellers.Itcanhave a directand positive impactonthe core metricthat make up e-commerce
success:loyalty,conversion,retention,andaverage ordersize.If the companyisable to
accuratelytailoror narrowchoicesfor individual customers,itcanminimize the timecustomers
spendbrowsingthroughanentire productassortmenttofindpreciselywhattheywantand
these advantagesmake itappealingforcustomerstovisitthe site againinthe future.
Understanding what personalization has to offer in business, and how and when to implementit,
isto takingadvantage of the opportunitythatliesinthe “LongTail,”a conceptthat the industry
isrecognizingasa growinge-commerce opportunity.Monitoringcustomers’ actionsinreal time
can bringpersonalizationtothe trulyintimate level.Now we canpersonalizenotonlythe
contentwe displaytocustomersbutalsothe type of service thatcompanyoffer,eitheracross
whole site orjuston sectionsthatcustomertendtoabandonor findtrickyto navigate