Tom Lindmeier’s Blog @ MarketPlanB

When I started to engage in behavioral targeting several years ago, I was quite wary because I had seen so many instances of bad execution. (This topic is in primarily reference to “on-site” targeting, not media buys). Customized messaging based on user activity metrics is a fantastic tool if you are providing value. If you are not providing value the negatives will irreparably damage your customer relationships.

So here’s my list of the three worst mistakes…

1. Collecting consumer information without permission is a sure-fire way to get trashed. You need to build an opt-in program and provide full disclosure of your privacy statement. Don’t even consider a program that is not permission-based.
2. The value of “You purchased this, therefore you may want to buy this” is dubious. Cross-sells and related items when users are on the site are highly effective. But if you return later with product recommendations you are likely out-of-context and therefore more likely to annoy rather than provide value. Case in point: I purchase textbooks for my daughter on Amazon.com. I have been receiving silly book recommendations related to her text books for some time now.
3. “Let me know when this item is on sale.” You need to focus on closing the sale now. If your merchants or product managers find out you’re doing this, they will kill you for degrading margin. Notification of sales and other promotions via RSS and email works, but don’t apply on-site targeting to individual items at the time the user is on your site.

The good news is that improvements in technology and best practices have made behavioral targeting a very lucrative tactic. Enormous co-op databases are waiting to be tapped. Depending on your product line, tactics that focus on 1st time visits, cart behavior, geographic, page views, time on site, and item back-in-stock will likely work for you.

My recommended vendor: Sitebrand.