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Sitebrand Talks

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Product Recommendations vs Personalization

Posted by Kevin Butler July 30, 2009

I’m fascinated by companies who do the simple things well.  And right at the top of that list is Zappos.com.  It’s everything from how they talk about delivering first rate customer experiences to critical deviations to a massively successful e-Commerce website.  So when I came across an eMarketer.com interview titled Zappos talks about personalization (with Brian Kalma,  Director of User Experience at Zappos.com), I had to read it.

Kalma talks about personalization and its relationship to recommendations and although it’s nothing groundbreaking (Kalma doesn’t reveal ancient eCommerce secrets that’ll boost your conversion rates), he makes a great point about historical recommendations and how they may not jive with new sessions.

Full disclosure: I’m a bigger believer in session based personalization than recommendations.

To Kalma’s point – “It gets tricky when shopping for other people”.  Let’s take it a step or two further: last week you browse women’s dresses and skirts for your wife (at her request).  You look at a few different styles, brands, etc… but leave having not converted.  You come back to the site a week or two later but this time, you are looking for men’s dress shirts for you.  Based on previous browsing history, you could very well be presented with “targeted recommendations” of dresses and skirts.  Some may might find that offensive and most would find it irrelevant.

Another example: if you are anything like me, it’s an enormously difficult task keeping surprises/gifts from loved ones.  It’s a curse, I swear (I’m open to suggestions, too).  Imagine you’ve gone to such great lengths to hide ideas and deny all  guesses, only to have your super secret gift spoiled when your loved one uses the shared computer.  They reach one the sites you recently browsed in search of this gift and the recommendations are all in similar/hinting themes.  Perhaps your loved one isn’t that savy, but that’ll have you sweating bullets.  Or maybe the messaging is that targeted … “Did you still want to buy that engagement ring you were looking at?” … Yikes.  That could be bad.

In more extreme examples like those above, historical recommendations can be hit or miss.  Session based personalization is more reliable, as its all based on real-time actions of visitors.  And it never spoils gifts, either.

All this said, one thing really stands out.  Brian Kalma rolled recommendations and personalization up as one-in-the-same.  Interesting, but I see recommendations and personalization as two completely different entities.  Personalization can mean branding, messaging, calls to action and more via behavioral targeting, referring domains/URLs, unique/specific segmentation, etc…  Simply put, its not limited to relevant up-sell/cross-sell opportunities.  It’s about a session wide dialogue to heighten audience engagement and experience whereas recommendations are driving additional sales or conversions.

It’s well established visitors/customers don’t respond well to constant ‘buy this-buy that’ messaging.  That wears out quick.  The online marketing community has done a good job understanding that customers want an informative relationship that doesn’t push for sales on every tweet, message or email blast.  Under that logic, are product recommendations that different?  Don’t we run a similar risk of burning out visitors by only offering product recommendations?  Clearly it’s a valuable tool or tactic that has its place, however, it’s not the only weapon in your eCommerce arsenal.

You know what side I lean on.  Question is, where do you stand? Recommendations or real-time personalization – which do you see more long term value in?

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Zappos.com Keynote from Online Market World in San Fran…

Posted by Carolyn Gardner October 6, 2008

Fresh back from presenting at Online Market World in San Francisco where I did non-stop tweets you should and could follow at http://twitter.com/sitebrand. One of the highlights was definitely the keynote by Tony Hsieh, CEO of Zappos.com. He spoke very passionately about the culture of Zappos.com especially as it relates to outstanding customer service – just look at their tagline under their logo!

Tony also shared “4 things” to build brand – one of which is all about company culture and core values. I’ll pay these forward to you now:

Thing #1: Have a Vision

Whatever you’re thinking, think bigger. Chase the vision, not the money. And make sure the vision has meaning.

Thing #2: Think Repeat Customers

Great product, great service or low prices. Choose and focus on two of these three.

Thing #3: Be Transparent

“Be real, you have nothing to fear” so go ahead and create a face for your company. At Zappos they have a blog, they have zappos TV and perhaps their most notable personality stage is on twitter…twitter.zappos.com

Thing #4: Create a Culture & Core Values

Zappos is a lifestyle for both employees and customers when you get right down to it. Here are the core values that play into the culture that Zappos prides itself on…

1. Deliver WOW through service.
2. Embrace and drive change.
3. Create fun and a little wierdness.
4. Be adventurous, creative and open-minded.
5. Pursue growth and learning.
6. Build open and honest relationships with community.
7. Build a positive team and family spirit.
8. Do more with less.
9. Be passionate and determined.
10. Be humble.

Tony and Zappos are living proof that all of this pie in the sky type thinking is possible. At the end of his presentation, he said that Zappos has tours at their Vegas headquarters and that if anyone wanted to have a tour, just send him an email. Well it just so happens that myself and 3 other Sitebranders are heading to Vegas for the DMA08 Conference & Exhibition Oct 12-15. After hearing this, I approached Tony at the end of the session saying we would like to take him up on the tour invite…so how do we go about setting that up? He said, just send him an email and he would send a shuttle to the airport to pick us up! I almost fell over…but then doesn’t this type of approach to service totally agree to everything Tony just preached in his keynote! You bet it does!

PS - are you going to the DMA08 show? If yes, be sure to drop by booth 1654 because that’s where Sitebrand will be! We’re part of the Passport to Prizes and we’ve got a Flip video up for grabs. As well, I’ll be hosting an Ask the Experts roundtable called: e-Marketing: Building a bridge from the landing page to conversion – would love to see you there!

DMA08

DMA08

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As Seth Godin points out in his post about this, the company probably didn’t do this for the PR, but it’s a heartwarming story with a very great lesson for online retailers…

A woman orders several pairs of shoes shoes from Zappos for her mother. Intending to return some, but due to a series of circumstances, she misses the 15-day return window. Zappos contacts her to ask why she did not send them back, she tells them her mother has passed away and she isn’t really prepared to deal with it right away. They tell her not to worry, and they arrange for a UPS truck to come pick up the shoes, so she doesn’t have to. AND THEN, they send her a bouquet of beautiful flowers. Read the full story…

Wow! First of all, I’m not certain, but I don’t think Zappos is just some tiny little store–it has tons of inventory, and according to its web site it is “The web’s most popular shoe store.” Secondly, even though they have a rigid return policy in place, they were willing and able to bypass for special circumstances.

It’s definitely true that people are more likely to speak out about a bad customer service experience vs. a great one. And that can be really scary in the online world. However, when you can do something remarkable– like Zappos did– people will talk and it will spread… At the time of this writing, there are 83 reactions to the post

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