Behavior-based personalization : strategies and Implications

Abstract

The personalization of services and products offered to customers is becoming crucial for the success of companies. Firms that can maintain a personalized relationship with their customers will not only gain an advantage from competitors but will also benefit from having more loyal and valuable customers. The recent advances in technology and the associated cost reduction are allowing companies to gather information about their customers and their behavior in an easy and inexpensive way. This collection and analysis of behavior-based information increases the companies' knowledge about their customers and allows a more personalized approach. This thesis studies what has been accomplished in the domain of behavior-based personalization and in more detail what are the techniques and strategies being used and how companies can take advantage of its applications. Moreover, this thesis discusses the critical role of personalization in building effective customer relationships management (CRM) strategies.