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55 win- win- win Helping retailers move fast Customer data empowers retailers to make decisions and change tactics fast. For example, a few years ago in Hungary, Tesco was concerned that it had lost 1% market share. The management speculated that it could be for a number of reasons: either because of the World Cup football tournament, the weather, or because they were losing upscale customers to a more premium supermarket called Interspar. The data revealed that the retailer was losing price- sensitive customers to the heavy discounters. This insight immediately shaped their tactics and Tesco focused on a series of ' bomb promotions', big price reductions, to win back and engage these customers again. Which they did. The customer data empowered Tesco to make an impactful, short- term decision. Richard Brasher, Commercial Director of Tesco has said that one highlight of the new Clubcard insight was being able to recognise value, knowing exactly how much a customer had spent with Tesco in the previous year. For Richard, this represented a paradigm shift in the organisation: customer data was empowering Tesco's management with the knowledge and tools to look after and reward their best customers. No longer was every customer an average customer. Customer insight enables any business problem to be described in terms of customers as well as in terms of revenues. Sales talk Results for dunnhumby's clients speak for themselves. Today, Tesco has earned a leading share of the UK grocery market, and the supermarket has experienced sales growth without fail every year since the launch of Clubcard in 1993. Kroger too is benefiting from its focus on customers with consistent sales growth since 2003. Casino's 2008 profits were up 7.3% on 2007. This success has not gone unnoticed by the investment community. In 2005, investment bank J. P. Morgan Cazenove wrote that the Clubcard is " Tesco's most potent weapon in the ongoing battle for market share." The report went on to highlight 10 areas where Clubcard gave Tesco competitive advantage: identifying customer trends, targeting communications, better promotions, basket building, defence against competitors, ranging, negotiating power, cross- selling, site selection, driving footfall to the store. We have shown how customer data can drive benefits for customer and business alike

56 What's important about this list is that many of the categories, like location of stores or negotiating with suppliers, are not areas that have traditionally been linked to customer insight. And therefore, customer- friendly companies are overhauling the very foundations of business. Most organisations feel the pressure from financial institutions to focus on making profits above all else, but Tesco, Kroger and Casino are proving that putting customers at the heart of everything they do also reaps financial rewards. We've shown how customer data can drive benefits for customers and businesses alike. In the final chapter of ' Any Colour You Like As Long As It's Any Colour You Like', we look to the future, a golden age of personalisation, mass intimacy and marketing. any colour you like as long as it's any colour you like