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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

Sounds like Big Brother? No, it's personalisation. And this book will show that proper analysis of customer data helps companies offer what customers want, reduce unwanted marketing messages, as well as reward customers for their loyalty. And isn't that what good marketing should be all about? We believe it's the only sustainable valid strategy for the future. Chapter One begins by explaining how customer data is changing the secrets of competitive success. In Chapter Two, we'll step back to the past when marketing was very different, before telling the story of dunnhumby's journey in Chapter Three. The next section of the book reveals the three main benefits of customer insight - empowering innovation in Chapter Four, a return to old- fashioned retailing through mass intimacy in Chapter Five and the welcome end of junk mail in Chapter Six. Chapter Seven illustrates that being more relevant to customers is not a strategy restricted to the Western world, with success stories of loyalty programmes from Asia. Chapter Eight provides robust financial evidence of the benefits of this strategy for business, before gazing at the future in Chapter Nine. Could this revolutionary approach of nurturing and transforming customer data into business insight to better serve our customers lead to a golden age in marketing? We believe so. prologue