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secret weapon 1 Customer data is changing the competitive environment monochrome world 9 What did the world look like before customer data? the dunnhumby journey 15 dunnhumby's quest to help business use customer insight the power of personalisation 23 Insight empowers companies to innovate custom experience 31 A return to old- fashioned retailing the end of irrelevance 39 Customer data banishes junk mail global market 47 How loyalty programmes translate around the world win- win- win 53 Businesses are profitable and customers are satisfied a golden age 59 The dawn of a new future for marketing contents 01 02 03 04 05 06 07 08 09

Prologue " Any customer can have a car painted any colour that he wants so long as it is black." Henry Ford, My Life and Work ( 1922) The roads were painted black at the beginning of the last century in the US. The reason for this monochrome world? By 1918, half of all cars in America were Henry Ford's Model T and as the car founder said, " Any customer can have a car painted any colour that he wants so long as it is black." The colour black was quicker to dry on the assembly line and Mr Ford was focused on driving efficiency to grow profits for his business, rather than analysing what his customers might really want. The world of business has changed. Today, consumers really do expect a rainbow- coloured offering and companies must decide how to best match customers' needs with their own. To borrow from Harvard academic Michael Porter's generic strategies, brands tend to fall into three camps. There are those which follow a market segmentation strategy ( narrow in scope and specialised), those which follow a cost leadership strategy ( broader but focused on low cost) and those which follow a differentiation strategy ( broad and focused on relevance). Put simply, for mass market businesses there are two choices of strategy. Do you win by being the cheapest or by being more relevant to your customers? Today's harsh economic climate may lead to the conclusion that the only means to survive is to slash prices, but this is not the case. Mr Ford's monochrome strategy was reconsidered some time ago. Today, some savvy organisations have overhauled their entire business in order to listen and respond to customer's wants and needs. How? By collecting, harnessing and analysing real- time customer sales data, dunnhumby is helping companies like Tesco, Casino, Kroger, Macy's and The Home Depot become more relevant. It's led us to be described as, " a retailer's secret weapon" by Citigroup analysts. any colour you like as long as it's any colour you like