How important is personalization in today’s content-rich communications market? For a number of network providers, it is the key to driving long-term, sustainable revenues and growth. The network providers who continue to rely solely on traditional access business models to drive revenue risk losing relevancy, commoditization and increasing churn.

Personalization is enhanced through the development of apps and other service delivery that appeals specifically to the unique individual. As much promise as there is in personalized apps – or apps in general, Alcatel-Lucent (News - Alert) research reveals that 71 percent of current network operators launch less than 5 apps per month. At the same time, 75 percent of app developers are willing to pay for subscriber preferences and locations.

End-user research into personalization conducted by Alcatel-Lucent discovered that as long as privacy was protected, there is significant promise in personalization. In fact, 81 percent of respondents reported it is important for companies to gain information before sending out ad-supported messages, but that 76 percent wanted the ads to be based on their interest and preferences.

In order to build out personalized apps and ads, however, information has to be gathered from the user. Alcatel-Lucent research found that 76 percent of users are willing to answer three or more questions in an effort to provide a foundation for personally relevant ads. At the same time, 80 percent believe it is acceptable to update their preferences at least once a month. The message: these users want dynamic data. 

The exciting news is that when permission is sought for ads and apps and they are delivered according to stated user preferences, nearly two-thirds of young consumers indicate that they are happy to receive at least two ads per day from a single brand. Such acceptance ensures that personalization can be applied, advertising can launch and buy-in skyrockets for those who get it right.

Even as this much promise exists in personalization; there is still the issue of privacy. Personalization is definitely sought, but not at the expense of privacy. In fact, privacy issues stalled personalization and mobile delivery in the past. Fears can easily be overcome when users are asked to provide permission, granted controls over that permission and have the ability to delete their information at any time.

Network operators simply need to find the balance between privacy and personalization in order to deliver the preferences and content the end user wants. When this is achieved, satisfaction is delivered and loyalty is born.