Others say it's only a fancy term for direct marketing. But whatever its moniker, personalization may represent the best chance for survival by online merchandisers in the ongoing Internet shakeout. Portals have long let users choose the kinds of information they wanted to see when they arrive, be it weather reports, news headlines, sports scores, or stock quotes. And commerce sites have offered wish lists and registries. Today, however, the goal is to anticipate what users want and personalize the content for them in real time rather than making them follow the tedious process of detailing their preferences, which can't be implemented until they revisit the site.
Few sites are doing a good job when it comes to personalization, analysts say.
Another unavoidable obstacle is cost. There's really no such things as getting the basics. Several new companies are working to solve this problem for smaller businesses. Box, sites can also allow their affiliates to add personalization features. Other companies, such as Kurion in Austin, Tex., are developing personalization technologies that combine a site's content with other syndicated material.