My presentation for Com 300 on the topic of E-Commerce - more specifically, on website personalization. Businesses use techniques such as online analytical processing, data mining, and statistical tools to gather information about each consumer. Is this right?

1. The Personalization Equation
How the E-Commerce industry is using your information
productusp.com

2. Important Business
Questions
1. How efficient is our web site in delivering
information?
2. How do the users perceive the structure of
the web site?
3. Can we predict the user's next visit?
4. Can we make our site meet user needs?
5. Can we increase user satisfaction? superstock.com
6. Can we target specific groups of users and
personalize web content for them?

3. Hall, C. (2001, April). THE Personalization = equation =.
(Cover story). Software Magazine, 21(2), 26.
ibm.com

4. “If I have 3 million customers on the Web, I should have 3
million stores on the web”
- Jeff Bezos, CEO of Amazon.com

6. quot;Getting Personalquot; with Your Best Customers
Our Relationship Management solutions personalize
the entire online shopping experience, allowing
retailers to and
to present
assortments, content, offers that reflect
their tastes and preferences, and relevant related items
for and opportunities.

7. Analysis and Segmentation
Techniques
 Online Analytical Processing (OLAP):
performs complex queries on the
customer information store.
 Data Mining: applies pattern-
matching, classification, and prediction
algorithms to segment customers into
categories.
 Statistical Tools: used to perform
complex mathematical operations on
data sets. thomascheah.com

8. Analysis and Segmentation
Techniques
 ClickstreamData: provides a detailed
activity path that is generated when a user
interacts with a website.
 Recommendation Systems
 Content-based Filtering: tracks the user's
behavior and recommends similar items to
those liked in the past.
 Collaborative Filtering: based on other users'
ratings with similar preferences.
 Rule-based Filtering: asks the user questions
and provides services tailored to his/her
needs. superstock.com

9. Customer Response to
Personalization
 57% of consumers would trade demographic information for
personalized content.
 2006 eMarketer study
 77% of customers say they find product recommendations somewhat
to extremely useful.
 Forrester survey
• 59% of online shoppers would
return to buy again if presented
with special offers based on
previous purchases.
•DoubleClickPerformics survey
ana.net heatedmousepad.info

10. Privacy Concerns?
Dr. Amanda Reeve didn't know about data-miner
Choicepoint, but they know all about her... and you!
http://www.youtube.com/watch?v=VrlO8WtZ-
1Y&feature=channel
getentrepreneurial.com

11. Discussion
 Have you ever noticed a website
tailoring their site to you? Do you find
this useful or disturbing?
 Do you believe that website
personalization brings up privacy
concerns?
 What do you see as the future of
website personalization?
corbis.com