The Value of
Personalization
From
Melody Vargas,
Part 4 in a Series on Loyalty
Retailing
The concept is simple,
recognizing a customer when they walk through the door
or sign-on to a Web site allows the retailer to tailor
the shopping experience for each customer. By
recognizing each shopper as an unique individual with
their own tastes, needs and desires, retailers can
establish friendships and create customer loyalty.
Where does the information come from to
personalize the shopping experience? Are retailers using
it wisely? Is there any need for consumers to be
concerned about being known as a unique individual
instead of one of countless, and nameless, purchasers?
Where does the information come from to
personalize the shopping experience? Are retailers using
it wisely? Is there any need for consumers to be
concerned about being known as a unique individual
instead of one of countless, and nameless, purchasers?
The information to personalize can come from
different sources. When customers become members or
order from Web sites, or when they sign-up for frequent
shopper cards, information is collected. It frequently
includes name and address. Sometimes salary history,
social security, driver's license, marital and family
data is collected. Then, as the customers make
purchases, their purchase history is added to the
database.
Even Web sites that may not directly ask for
personal data, might track the "clickstream" -- clicks,
time spent per page, items selected, but abandoned, and
similar information -- all in order to find out more
about their customers and their behavior. The
clickstream data becomes a useful resource for data
mining tools that predict gender, age, income,
preferences, and a customer's willingness to purchase.
For the remainder of the article, please press
here.
Tech 
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