Bringing the Corner-Store Service Online: Challenges and Promises of Online Personalization

One salient feature of the Internet that distinguishes it from previous technologies for mass communication is it’s bi-directional nature: just as a myriad of firm and product information is available for consumers, so is an abundance of consumer information accessible to firms. This feature allows for firms to use consumer information to define and create value, thereby more accurately personalizing the customer service experience provided to a user, based on information acquired through user interaction. Online personalization mechanisms harness the information-richness of the Internet in order to provide automated customer service. Personalization is emerging as a promising alternative to traditional means of customer conversion, such as branding, telephone customer service, and price discounts. In this and other ways, the role that information technology (IT) plays in business is evolving. IT is becoming the single interface for sales, service, and postsales support. Thus, the concept of customer acquisition and retention, which has traditionally fallen within the area of marketing, is permeating the realm of information systems design. How companies manage customer service is not highly reflected in their use of IT. However, the correct means through which to transform consumers into a contributing part of the evolution of products and shopping experiences is still largely unknown.