| It is one of the supreme ironies of the Internet that | | | | willingness of the prospective buyer to share this |
| the computer, so long derided as impersonal, is now | | | | needed information with you.As you go through this |
| being used to create highly personal experiences for | | | | process, be aware that we have entered an age in |
| Web site visitors. Because a computer can sift | | | | which consumers want to educate themselves about |
| through vast amounts of existing information | | | | everything from which refrigerator to buy to how to |
| according to preprogrammed rules, computers can | | | | get the best medical treatment. They no longer trust |
| now take company informaÂtion (or special | | | | intermediaries-advice from dealers, brokers, agents, |
| interest information) and combine it with | | | | and even health care providers is being checked and |
| informaÂtion supplied by prospective customers | | | | rechecked by today's consumer. A well-designed |
| and digest it in a way that is meaningful to each | | | | Web site helps meet this need, and the information |
| individual.What are the best ways for businesses to | | | | should be as rich and informative as if the consumer |
| personalize selling and customize products in order to | | | | were meeting with one of your top salespeople.Will |
| build busiÂness. Although many of these | | | | consumers will trust the informaÂtion they |
| methods are still in their infancy, a great deal can be | | | | receive from companies on the Web as much as (or |
| gleaned as to current strategies and technologies and | | | | more than) they trust sales representatives? All |
| techniques and strategies can be implemented.To | | | | evidence to date suggests the answer is yes. People |
| attract new customers, companies can now establish | | | | believe that no trusted brand will risk its good name |
| Web sites that provide highly individualized | | | | by posting misleading information on the Web.As you |
| recommendations based on information provided by | | | | go about creating an online recommendation system, |
| the customer. In this way, it's possible to tell a | | | | your overriding goal should be to make the online |
| prospective customer exactly which product, among | | | | shopping expeÂrience better than what a |
| a plethora of possibilities, is just right for that | | | | customer might encounter in the physiÂcal world. |
| individual or that busiÂness. The strategic idea | | | | Therefore, you need to ask yourself: "What can my |
| behind these efforts is clear: By empowering the | | | | company accomplish using this medium that can't be |
| customer with information about how a specific | | | | accomÂplished in the physical world?"Payment |
| offering meets his or her needs, the company | | | | issues online seemed to have been taken care of by |
| positions itself as a knowlÂedgeable place to buy | | | | the credit card companies as a matter of |
| and also demonstrates how its products are just | | | | routine.What about issues of privacy?Consider |
| right for that individual customer.This information, | | | | gathering data anonymously. Recommendation |
| properly used, gives an existing supplier or retailer a | | | | systems that provide advice to consumers |
| clear leg up on the competition: The Company is able | | | | anonymously are likely to be far more popular and, |
| to use its information to establish itself as the supplier | | | | therefore, more effective. In these cases, you are |
| of choice and to suggest services to existing | | | | able to provide the prospective buyer with value |
| customers before they request them. Companies can | | | | without needing to jump the hurdle of "you can trust |
| maintain effectively private Web sites for individual | | | | me with this information."If you'd prefer to record |
| clients so that they can both provide extraordinary | | | | the identities of site visitors, you are one step ahead |
| service and recommend new products that will be of | | | | if you are a recognized brand. Consumers are already |
| value to these customers.In the past, this type of | | | | predisposed to believe in your company name. In this |
| personalized communication was virtuÂally | | | | case, address the privacy issue head-on with a |
| impossible: Retailers and suppliers lacked the detailed | | | | statement that precedes your online registration |
| inforÂmation necessary to provide these | | | | form: "The information gathered here is to help us |
| recommendations and the ability to cost-effectively | | | | better serve you; we will not share or sell this |
| communicate it to individual customers.However, | | | | informaÂtion to anyone."If you are not a |
| today we have moved into an era where technology | | | | well-known brand, a strong privacy statement is |
| allows firms to cater to the individual needs of | | | | recommended, but you should likely take other |
| customers in a way that have not been possible | | | | measures to more fully establish your legitimacy. |
| before. The value of these initiatives, both in | | | | There are now a number of entiÂties, such as |
| tightening the bonds with existing customers and in | | | | the Better Business Bureau's BBBOnline, that have |
| attracting new customers, is high. | | | | developed certification programs. These programs |
| Another business tool made possible by the Internet | | | | warrant to site visitors that you are a legitimate |
| is something that previously was available only to the | | | | business and agree to follow cerÂtain ethical |
| wealthy: product cusÂtomization, done quickly | | | | business practices. Members of BBBOnline have the |
| and inexpensively.In an era where a single click can | | | | right to prominently display a logo on their home |
| take customers away, leading-edge companies are | | | | page. Comcerned businesses to look into this |
| finding that ongoing, personal relationships can be key | | | | program.Finally, if you plan to share customer data |
| to winning. Personal selling, "marketing intimacy," if | | | | with others, then you need to be explicit about it and |
| you will, deepens the commercial relationship, adding | | | | receive the customer's permission. The worst thing |
| tremendous value for the customer ("This saves me | | | | you can do is fail to inform the customer that some |
| so much time-and it's just right for me!") and making | | | | piece of information you determine about him or her |
| it painful and costly for the customer to leave ("Why | | | | may be used in some way the customer does not |
| should I buy from anyone else? Company X knows | | | | expect.Product customization is possible because of a |
| exactly what I like and need"). Therefore, the more | | | | convergence of two elements: the Web as a |
| your company can "get personal," the more likely the | | | | one-to-one communications technology and |
| potential for long-term retention of customers.How | | | | manufacturing processes that allow for the |
| are companies making use of several levels of | | | | development and delivery of custom |
| "personal" recommendations ?In adopting any | | | | products.Designing your own custom desktop |
| strategy based on personalization, privacy is a central | | | | computer at Web sites such as Dell has become |
| issue. The ability to make the customer feel | | | | "commonplace," but what about designing your own |
| comfortable enough to give you the information you | | | | swimsuit or, perhaps, golf clubs? These customized |
| need to create a tailored product or solution is | | | | services provide several valuable benefits for |
| among the primary challenges companies must | | | | companies: (1) They help to drive new business, and |
| overcome.1) The Web's ability to help companies | | | | (2) cusÂtomers are willing to pay a premium |
| establish marketing intimacy is possible because a | | | | price for an individually designed product, which |
| Web site combines five elements:2) An opportunity | | | | means these products and services someÂtimes |
| to present information in an interactive format, | | | | have higher profit margins than standard |
| permitting customers to express their preferences to | | | | offerings..The ability to interact with customers and |
| the owner of the Web site3) Virtually costless online | | | | say, "I can create the product that is just right for |
| communications between the potential buyer and | | | | you," is one of the most powerful feaÂtures of |
| seller4) A visual component that lets potential buyers | | | | the Web. Expansion of this Internet capability will be |
| see prospecÂtive purchases and how they | | | | the inevitable result of the combination of (1) |
| would appear if personalized | | | | manufacturers creating products that permit |
| The ability to store tremendous amounts of | | | | increasing customization, (2) further advances in |
| personal inforÂmation about their customers5) | | | | computing power at ever decreasing costs, and (3) |
| An unprecedented ability to create systems that | | | | new softÂware that is continuously enhancing |
| configure products so that costly errors are | | | | the options available to busiÂnesses to |
| eliminated, thus reducÂing the expense of | | | | personalize.Smart companies realize that the more |
| creating custom productsPresently, one-to-one selling | | | | involved the relationship becomes with the customer, |
| can be viewed in two general cateÂgories, | | | | the better their rate of retention. They are |
| recommending and customization.Brick-and-mortar | | | | implementing this strategy in a wide variety of |
| companies have long known that for the most part, | | | | creative ways, involving both personalization and |
| either a motivated buyer has done a great deal of | | | | customization, and will cerÂtainly enhance their |
| research on a particular product, or a product has | | | | applications significantly over time:1). Companies are |
| been enthusiastically recomÂmended by a friend | | | | creating extraordinary convenience for customers |
| or business associate. This knowledge leads to two | | | | and establishing systems to speed the fulfillment of |
| keys to establishing a Web site that motivates | | | | custom orders.2. E-mail communications and reminder |
| buying:Ample information (so that the buyer needn't | | | | systems are going to be used increasingly.The |
| do any more research-and, in the process, possibly | | | | ultimate goal of every business is to have a |
| depart your Web site for another)A positive | | | | customer who wants to hear from the business |
| recommendationIn the past effective | | | | about new products that he or she might want to |
| recommendations were generally person to person, | | | | buy. E-mail, for the first time, provides this type of |
| there are several reasons why these | | | | powerful tool, since it's an almost costless |
| technology-based recommendations are valued now. | | | | communications vehiÂcle.3. In |
| One has to do with the dizzying array of choices that | | | | business-to-business selling, smart companies are also |
| now faces consumers. A cosÂmetics firm may | | | | linking tightly to their customers.Leading-edge |
| offer hundreds of shades of lipstick or eye shadow; | | | | technology companies are offering custom |
| financial services companies have become true | | | | password-protected Web sites for their corporate |
| supermarkets filled with choices; well-known cold | | | | accounts and high-volume small business accounts. |
| remedies now have multiple versions that end with | | | | These sites are typically designed to simplify the |
| words such as "plus" and "sinus" and "cough."A | | | | buying process, and they offer(1) cusÂtomer |
| generation ago, the dilemma posed by the array of | | | | online malls offering products preselected by the |
| choices was generally solved through one-on-one | | | | company to be bought by employees at volume |
| interaction (selling, if you will). Someone with a cold | | | | discount prices,(2) elecÂtronic mail links to |
| would have stopped by his or her local pharmacy and | | | | account managers responsible for serving that |
| chatted with the pharmacist about which of the | | | | customer,(3) the ability to track the status of orders, |
| three or four cold remedies carried by the pharmacy | | | | and(4) draÂmatic increases in the speed of order |
| would be best.Today, the pharmacist is hard to find | | | | fulfillment through the elimÂination of paper |
| (and is often employed by a separate entity within a | | | | forms and a reduction in errors.This is a clear way of |
| chain drugstore), and the number of choices of what | | | | providing customers with additional value and of tying |
| to take for the common cold is mind-boggling. Do you | | | | the customer more closely to your company. Most |
| want to take the medicine in the day or night? Do | | | | companies will also see an increase in revÂenues |
| you need an expectorant? A cough suppressant? | | | | from these accounts.When companies first began |
| Decongestant? Antihistamine? Something for fever | | | | establishing Web sites, most feared they would |
| and chills? Normal strength or extra? CusÂtomers | | | | receive an overwhelming amount of e-mail that they |
| could get a headache simply trying to decide! Today | | | | wouldn't be able to handle. In many cases, two |
| cold or allergy sufferers need only click to the | | | | unproductive strateÂgies emerged. Some |
| specific manufacturers "allergy-cold" site, where they | | | | companies designed Web sites that did not |
| are asked to click off their symptoms (itchy watery | | | | perÂmit the visitor to contact them, making the |
| eyes, runny nose, cough, etc.). The site then serves | | | | site little more than a brochure; other companies |
| as a "friendly pharmacist" and recommends the | | | | permitted e-mail messages and then often didn't |
| product that will be right for them. While consumers | | | | respond to them. In either case, this did not leave |
| recognize there is a given bias to any | | | | potential customers with any feeling that their visit |
| company-sponsored Web site, they still welcome the | | | | "mattered" to the company: the exact opposite of |
| guidance because they trust the branded product | | | | the tight relationship a company wants to build |
| provider and they are overÂwhelmed by | | | | between itself and its customers in a HyperWars |
| choices.Depending on your product and customer, | | | | enviÂronment.What was called for, of course, |
| several types of recÂommending functions may | | | | was a new category of employee: "e-mail |
| work best. But first, let's take a moment to consider | | | | respondents"; yet no one wanted to add staff at an |
| how to judge effectiveness.Thanks to the interactive | | | | addiÂtional expense to a project that was in its |
| aspect of the Web, many technological | | | | infancy.Enter "response software."Several intelligent |
| recÂommendations are firmly based on | | | | software systems, are able to routinely handle and |
| consumer feedback. At a Web site for a cosmetic | | | | route questions, so there is no excuse for |
| company (or in-store) visitor provides information on | | | | underserving your customers with the first and most |
| hair, eye, and skin color as well as information | | | | basic customer service-answering their |
| concerning breakouts, response to the sun, and signs | | | | questions.Companies who are successfully managing |
| of aging. Based on this information, specific products | | | | their e-mail via elecÂtronic means are also taking |
| are recommended.To the public, there's little that's | | | | the opportunity to benefit from the Knowledge they |
| more confusing than figuring out what to do with | | | | glean.Companies are finally transforming their Web |
| one's money, so, of course, information and | | | | sites from marketing brochures to vehicles that turn |
| recÂommendations are vital in this area. Financial | | | | visits into sales leads. Those who develop a Web |
| service companies are having a heyday with the | | | | presence and fail to respond to electronic inquiries in |
| possibilities offered to them via the Web.If the visitor | | | | a timely manner run the risk of losing existing and |
| is willing to give a little more information, then the | | | | new customers.Industry research also shows that |
| recommendation can be customized further and will | | | | only 30 percent of Fortune 500 companies respond |
| be that much better.Personalization, like any business | | | | to questions directed to these companies through |
| initiative, should be used judiÂciously. There are | | | | their Web sites, which means a large number of |
| real costs that accompany developing | | | | customers aren't getÂting the personal attention |
| personalÂized applications: They range from the | | | | winning companies need to provide.As you consider |
| hard cost of development dollars to the cost of | | | | the possibilities offered by personalization and |
| disappointing customers or prospects who expected | | | | customization, I suggest that these initiatives be |
| a better experience. It's important to assess whether | | | | weighed against these criteria:Will the initiative |
| a personalization effort will be effective and | | | | enhance relationships with my cusÂtomers by |
| contribute meaningÂfully to new sales or | | | | adding convenience or a better ability to meet their |
| customer retention before investing the time and | | | | needs?Will the initiative result in potentially high |
| money in bringing it to market.The criteria for | | | | cost-savings for my organization (as in the case of |
| establishing an effective recommendation system are | | | | an intelligent product configuration that eliminates |
| different for every product. The system chosen is | | | | costly order errors)?Shaun Stevens |
| dependent upon a balance of the following: (1) the | | | | Senior Marketing Consultant |
| nature of the product, (2) the amount of information | | | | Ace Employment Services Winnipeg |
| needed from the potential buyer to make an | | | | Experience in Marketing in the Human Resource , |
| effective recommendation, and (3) the likely | | | | Training as well as Corrections Fields . |