Real Time Is Really Essential
Why marketers should use real-time, self-optimizing systems.
By Meyar Sheik
Personalization and behavioral targeting solutions are not new — they’ve been lauded by
marketers for their ability to provide relevant
online content to consumers for some time
now. Yet, most rely on generic demographic or classification information — not on the actual habits of the
user. The conclusions derived from such tactics could be
incorrect or, at best case, not accurate.
In response, leading technology firms are introducing
Web-based “self-optimizing” behavioral targeting and
personalization solutions that leverage real-time user interaction to help companies of all sizes increase conversions, click-thrus, average order value and revenues.
How It Works
These dynamic systems automatically generate representations of visitors, content and products solely from
what the visitor does on the Web site at that moment.
Self-optimizing tools leverage the traffic patterns of users
to provide the most relevant Web experience possible
without the need for any personal information, third-party cookies or special interaction with the individual.
This process is the most effective way to deliver pertinent content because consumers’ present behaviors
on the site are the most accurate representation of their
interests and needs at that time — not the demographic
information that they filled out months ago. These types
of solutions also provide an enhanced Web experience
for the customer by not requiring them to fill out annoying pop-up surveys or lengthy online registration profiles.
A case in point: a leading American catalog merchant and online retailer implemented a third-party,
self-optimizing behavioral targeting and personalization
solution just prior to the 2007 holiday season. Since
then, the company’s E-commerce site has witnessed
more than a 15-percent increase in converted online
visitors and better than an 18-
percent rise in direct revenue
contributions from automated
product recommendations and
merchandising.
Moreover, the system provides higher click-thru rates on
content, as well as increased conversions, site stickiness
and repeat purchases. At the same time, it eliminates the
tedious, labor-intensive task of manually generating numerous relevant product recommendations and personalized promotions to online visitors.
Self-optimizing behavioral targeting and personalization solutions also provide significant intelligence-gath-ering capabilities to any organization, such as shopping
basket analysis, expert systems, content analysis and collaborative filtering algorithms. By actually profiling the
entire individual click-stream behavioral pattern, these
types of systems focus on the person-to-content affinities,
and are not just limited to content-to-content affinity
modeling often represented by “people who bought this
item also bought these items.”
Apply to All Environments
Because of their automated profiling, content neutrality and adaptive content indexing, self-optimizing
behavioral targeting and personalization solutions can
be embedded into almost any environment that can
capture online behavior, including E-commerce, search,
content, E-mail, mobile and streaming media. Moreover,
these tools allow like-minded visitors to be dynamically
grouped together for predictive purposes, providing additional functionality to such applications as community
radio, movie guides, gift registries and social shopping.
Self-optimizing behavioral targeting and personalization platforms can also be combined with other enterprise data to produce even broader predictive models of
customer behavior. Doing so extends benefits to off-line
campaigns, such as direct mail, telemarketing, media advertising and customer loyalty marketing campaigns.
Benefit to Any Organization
Virtually all types of companies can see value from
self-optimizing behavioral targeting and personalization
solutions, and usually implement them in a matter of
days or weeks. Whether an organization sells products,
publishes content or serves ads on its Web site, its online
customers want to see more relevant choices. Companies
that can instantly deliver what their customers need and
like will build long-lasting and profitable relationships. ■
