1. Personointi - Elektronisen liiketoiminnan kulmakivi Vesa Halonen Director of Sales BroadVision Finland OUGF, Helsinki 31.5.2001

2. 1:1 Marketing/Selling # Customers Reached Mass marketing/selling Customer Needs Satisfied Market share 1:1 marketing/selling Share of customer’s assets

3.  Get customers:  Focus on attracting the “right” customers  Keep customers:  Focus on retaining your “most valuable” customers  Sell them more:  Focus on increasing the “share-of-wallet” of your “most growable” customers What it’s all about: Profit can ONLY be increased in 3 ways... Dr. Martha Rogers Don Peppers

4. Serving the Extended-Enterprise Enterprise Extranet/Internet Customers Partners (Supplier/ Distributor) CRM (Customer Relationship Management) Intermediary-assisted service Non-specialist employees Intranet Front Office Sales force Call center Help Desk (70-80%) (20-30%) ERM (Extended-Enterprise Relationship Management) Self service

5. Self-Service = Personalization 3. Matching 4. Transactions 1 2 3 4 2. Content1. Profiling Rule-based matching Taxonomy-based matching Targeted editorials, ads, recommendations, products, incentives Alerts Commerce -- Shopping cart -- Pricing/tax/shipping -- Payments Finance -- Balances, transfers -- News, stock feeds Legacy system integration Existing customer data User profiles Observation Engine Page templates Editorials Products Incentives Advertising Discussion groups

6. Own Customer Experience …. Personal Stock Watch List External quote User Selected News & Fin. Planning Personal Account Summary w/ Link to Details & Fund transfer Personal Bills Summary, New and Paid Personal Greeting & Weather Personalization Control Links Account- based Alerts In-house Community Chat

7. Targeted Marketing Personalized Cross-Sell Ad Personalized Ad Up-sell message Relevant Co. Product News

8. Configurable Desktop Target the right information Admin configurable area Used to target department or community level information User access only the information they need User configurable area Configure topics, layout, and color Access the right applications or other areas of the site Access information channels Access alerts and bookmarks User targeted messages Targeted messages and information to larger community Self configuration tools Integrated Search

9. What are the benefits of personalization?

10. Common forms of personalization Forrester Research, Inc.   Tailored email alerts   Customized content   Account access   Personal productivity tools   Wish lists   Product recommendations   Saved links   Express transactions   Targeted marketing / advertising   Custom pricing Peppers + Rodgers Group   Recognize returning customers   Organize site around customer needs   Customer service knowledge base   Individualization / Customize look and feel   Collecting customer preferences   Multiple profiles / billing & shipping   Integration of all known customer data   Online product configuration

11.  Recognition/Identification  Welcome  Account History/Previous Transactions  You bought a lawn mower last summer, would you like new blades?  Current Product/Purchase Based Recommendation  Would you like an extra Ink Cartridge with your Printer?  Source/Campaign-Based  A special offer for customers from the Yahoo campaign  Geographical/Location Based  The blizzard’s on its way, do you need galoshes? Common forms of personalization

12. Personalisation Methods 1. Rule-based matching matching (Business driven) 2. Taxonomy Matching Matching (Recommendation Agent) 6. Community Rating Rating (Based upon other visitor’s recommendations) 10. Personalised Navigatio (Dynamic Channels, Programs and bookmarks) 11. Personalised Presentation (Configurable Page Presentation) 3. Behaviour Based Based (Moment-to-moment personalisation) 9. Collaborative Filtering (NetPerceptions and MacroMedia LikeMinds) 8. Personalised Alerts Alerts (User defined alerts for new or updated content) 14. Menu Select Select(Browsing) 15. Playback 12. Full-text Search (Search Engine) 13. Parametric Search Search 7. Targeted E-mail E-mail (Outbound email campaigns) 5. Community Based Based (Visitor segmentation) 4. Feedback & Learning Learning (Update a user’s profile based upon their behaviour) Explicit Implicit Push Presentation and Navigation 1 - 8, 10 – 11: High Value 9: Niche 12 – 15: Low Value Personalisation Methods User driven

13. How has personalization evolved? Static Sites Personalized Information Sites Personalized Account Sites Personal Sites Level of Interactivity Time Dynamic Sites Generation 1: “Brochureware” Generation 2: “Easier content management” Generation 3: The Personalization Feature Set Wars (e.g., Yahoo, Excite) Generation 4: Web Marketing for Competitive Advantage Pull-based personalization Pull-and Push based personalization

14. Where is personalization needed?  For all web sites to increase relevance and efficiency  B2B  B2C  Intranets  Extranets  Portals

15. What technology is needed for personalization?  Scaleable architecture  Scaleable architecture for generating dynamic Web pages  Tools for business managers  Tools for business managers to create personalization rules  Tools for editors and content creators  Tools for editors and content creators to create and manage content  Profiling system  Profiling system for recording user preferences  Architecture for observing user actions  Architecture for observing user actions and learning based on those observed actions

16. Personalization is a learning relationship AnonymousCommunity-BasedProfile-Based Stage 1 Stage 2 Stage 3   Develop simple relationships   (e.g., cross-sell based on items in shopping cart)   Provide incentive for registering   Identify click-through patterns   Group users based on common needs   Collect additional information about user   enough to tailor treatment   Present focused array of   products   content   features   Build slowly using dynamic profile   Reward loyalty   Develop One-to- One targeting strategies based on   account information   past purchases   observations   interests   communities

17. Customer relationship stages Customer Value Time Identified Purchaser Most Valued Anonymous Stage 1 Anonymous Registered Stage 2 Community Repeat Stage 3 Profile-Based

18. Next steps  Inventory customer data sources  Sources relevant to identifying and understanding users  Identify customer touch-points that should be integrated  Develop segmentation strategy

19. Result: Personal, One-to-One Sites  Designed for customer needs  Dynamically generated content based on account information and community/ individual profile  Interactive/dynamic dialogue  Simulates personal agent - asks relevant questions - filters information - recommends - remembers and learns  Customer is always in control