An Exploratory Study on Customer Responses to Personalized Banner Messages in the Online Banking Context

In the twenty-first century the quantity of research on personalization has grown exponentially. New technologies enable efficient interaction with customers, even on a one-to-one basis, providing the right content in the right format to the right person at the right time. The latest developments wi...

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Bibliographic Details
Published inJITTA Vol. 13; no. 3; p. 5
Main Authors Bragge, Johanna, Sunikka, Anne, Kallio, Henrik
Format Journal Article
LanguageEnglish
Published Hong Kong Association for Information Systems 01.09.2012
Subjects
21st century
Attitude surveys
Banking
Big Data
Communication
Consumers
Customer services
Customers
Customization
Data analysis
Electronic banking
Empowerment
Focus groups
Information systems
Marketing
Online advertising
Studies
Nordic region
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Summary:In the twenty-first century the quantity of research on personalization has grown exponentially. New technologies enable efficient interaction with customers, even on a one-to-one basis, providing the right content in the right format to the right person at the right time. The latest developments with "big data" analytics promise unprecedented opportunities for personalization, even in real-time. Although the technological advances allow fancy enhancements in personalization, it is imperative that the context-specific customer attitudes toward online personalization are taken into account by businesses. Customers are increasingly aware of their privacy, which improper personalization may intrude. This article presents the results of a two-phase study. Focus group interviews uncovered first the perceptions of bank customers regarding personalized marketing communication on online banking. A subsequent exploratory study investigated the online behavior of customers, that is, their genuine responses to personalized messages. In this phase, bank customers were shown personalized banner advertisements when they logged in to their bank service. We studied, among others, the click-through rates and navigational behavior and compared the effectiveness of personalized banners to default banners, and to traditional direct-mail messages. The personalized banners attracted more attention than default banners. In two of the three cases, the actual sales were also higher than in the case of direct-mail promotion. The results offer implications both for research and practice. [PUBLICATION ABSTRACT]
ISSN:1532-4516
1552-6496