Ch7 Personalization
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The document discusses personalization in internet marketing. It explains that personalization reflects customers' individual needs and wants. Mass customization allows for truly unique and personalized websites by incorporating individual preferences. The personalization continuum shows increasing levels of customization from mass markets to collaborative relationships between companies and customers. Implementing effective personalization requires understanding customer needs and having software that can deliver customized experiences.
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- 13. Personalization & Benefits Personalization is a rich area for augmenting the product and finding ways to achieve the potential product Use the Wells Fargo example to illustrate Levitt’s framework Figure 7.6: Increasing Amounts of Differentiation
- 17. Types of Customization Present a uniform representation & let users filter out most possibilities to create personalized service Possible to create personalization online via use of frames & cookies Observe users’ behaviors (implicit model) Dialogue with customers to help articulate needs, then create custom product Change No Change Change Cosmetic Adaptive Collaborative Transparent Product Product: attributes create unique functionality Representation Representation: how a product or service is portrayed to a customer Reflect.com Smart Ads Smart Offers Smart EPG’s NYTimes.com Sybase.com
- 22. Customization / Personalization Q: When is one-to-one marketing worthwhile?
- 23. 1:1 Matrix Highly Differentiated Uniform Highly Differentiated Quadrant II Quadrant I Quadrant IV Quadrant III Customer Valuations Valuations: How different are your customers in terms of their value to your enterprise? Customer Needs Needs: How different are your customer needs?
- 24. When Is Personalization Profitable? II I IV III Customer Needs Similar Highly Differentiated Customer Valuations Wide Range Uniform 1:1 Marketing Niche Marketing Target Marketing Mass Marketing Frequency Marketing Key A ccounts Figure 7.11: The 1:1 Matrix
- 26. Determining the Correct Personalization System Customer Needs, Product Space Quantitative Few Highly Differentiated Qualitative Complex Uniform Figure 7.12 Key Product Attributes Collaborative Filtering CASE Rule Based Endorsement Mass Marketing Price Brand
- 31. Personalization Flowchart Q1: Do customer lifetime values vary significantly? Q2: Do customer needs vary significantly? Q3: Are product attributes qualitative or complex? Q2 Q3 Q3 Collaborative Filtering CASE Endorsement Rules Based Q1 Don’t Personalize NO Q2 NO YES NO YES YES NO NO YES YES