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How Personalization Works in Online Businesses


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Personalization is seeing a clearer version of the metrics of activities for every client's visits thus knowing which area needs improvement.

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How Personalization Works in Online Businesses

  1. 1. In the world of internetbusiness, personalization is one of thecommon methods nowbeing practiced in orderto target one’s potentialcustomers. Often timesknown as behavioraltargeting, this processinvolves customizingwebsite’s pagesaccording to user’scharacteristics orpreferences.
  2. 2. Moreover, personalization is targeting each individualvisitor of your website in order to meet their needseffectively and providing fast interaction.Thus, increasing customer satisfaction andconsequently elicit potential sales.
  3. 3. This type of approach has actually been put to usedecades ago where sales are done one-on-one.This has been proven effective by many salesagents, direct selling businesses and the like wherepersonalized service is often times the keytechnique in gaining sales. Today, online marketingis using the same technique in capturing thedesires of their visitors.
  4. 4. So how does personalization works in online business?Collaborative FilteringFiltering is applied to the information gathered from the different sites,then select relevant data that is applicable to the e-commerceexperience of an individual or group of visitors.User ProfilingThis is done by collecting the data from various sites and using themto create a personalized web page.Data AnalysisThis is a tool used to be able to predict the activities or futureinteractions in your website.One big concern with regard to this method is the privacy issue.Remember that the core approach in personalization is the gatheringand the using of personal information of the person. Hence, it is vitalthat the privacy of this information should be kept securely.
  5. 5. As such, the Personalizationof Consortium, aninternational advocacygroup was organized topromote and provideguidelines in one-on-onemarketing practices. Thiswas founded by thefollowing, PricewaterhouseCoopers, DoubleClick andAmerican Airlines.
  6. 6. They have established ethical information and privacymanagement objectives. One example is thatenterprises must inform visitors about the informationbeing gathered and for what purpose such data willbe used.As of March 2000 survey, results show that out of4,500 users, 73% gave positive response saying thatwebsites retaining their personal information prove tobe helpful. Only 15% were not willing to participate orprovide their personal information online.
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