Personalisation in practice: The proven effects of personalisation
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One of the key topics in direct marketing via the Internet is personalisation. In the past this way of communicating meant considerable extra costs. The Internet, however, has considerably lowered the incremental costs of personalising messages. E-mail has enabled companies to communicate with customers in a segmented way, without entailing extra physical costs. Personalisation is, therefore, becoming increasingly popular.
The underlying assumption behind these personalisation efforts is that ‘sending the right message to the right customers will (dramatically) increase the effectiveness of communication’. This sounds logical, but little research has been done on the concrete effects of personalisation. This paper sheds more light on the issue, by demonstrating the effects of personalised communication as opposed to generic communication.
Although personalisation can be based on many things including behaviour, most companies start out with message differentiation based on preferences or characteristics as given by the customers. This paper examines the effects of this personalisation method in more detail.