I'm more impressed with the number of ways 2 becomes 5!
On a more serious note, I worked (until recently) for an Australian bank in CRM. Two separate projects I was managing were to integrate outbound telemarketing with the analytical marketing system. The other to cross match customer data with publicly available telephone data to verify details of existing customers and flag potential lost customers. Due to the number of possible legal risks relating to outound calling from revisions to or proposed legislation at the time ie DNC list, Privacy Act review, ACA usage of public telephone database (IPND) (all running concurrently), I recommended that the project I was running to verify customer data be put on hold until the legislative environment was more certain.
Neither did they go ahead with plans to expand to non customer outbound telemarketing. At the time I was there at least.
So the legislation will quite possibly have some effect. Maybe not to a few rogue telemarketers prepared to run the risk. But certainly some businesses will take notice.
Generally speaking the various pieces of legislation and the change in the climate re privacy are a disincentive to invest in the capability at the moment- for some organisations concerned with reputation at least. Yes the irony of a bank and concern for reputation!
As you suggest from your experience recommendations were made to be more precise in analytical marketing efforts and compliance with the substantial legislation re contacting customers(particularly in financial services) and to make better use of the inbound telemarketing channel ie when the phone is ringing
Hey, why not give the customer what they want when they've actually gone to the effort to call and tell the company anyway.
On another note the paper is a proposal at the moment. You can be sure there will be some serious lobbying from the industry in the next month or so.
A database isn't needed for this. If the two Tescos were instead simply two unrelated corner shops, they'd still be selling different things.
Thats the point. Tesco is not a corner shop. Its a huge corporation that buys massive quantities of goods and ships them to multiple locations to sell in different markets. In order to exploit their buying capacity and basic all round size they do need some serious tech to get it right.
Sure unrelated corner shops would stock a diverse range of items and possibly meet market demand based on the local knowledge. Tesco wants to meet all demand in all markets where it can make a possibly profit.
Absolutely they need a database to compete with local knowledge.
In that regard not having a loyalty card is like not having a voter registration card.
Well kind of.
You will find that an appropriate sample size can quite accurately predict the population. Even though the politicians will have you believe each individual vote counts. Statistically it doesn't. (Except perhaps in some US presidential election cliffhangers)
The same applies for this type of analytical marketing. In order to influence the purchasing officer you'd have to buy a lot of peanut and goats cheese dip before they started ordering extra shelf space. Even so they would know it was the one customer anyway.
Statistically one individual customer is usually insignificant when it comes to segment based marketing. 1:1 marketing is starting to become more prominent and uses data warehouse capabilities to identify and satisfy individual customer demands but with the economies of scale that a large organisation can exploit. Similar to the principles of mass customisation.
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I'm more impressed with the number of ways 2 becomes 5!
On a more serious note, I worked (until recently) for an Australian bank in CRM. Two separate projects I was managing were to integrate outbound telemarketing with the analytical marketing system. The other to cross match customer data with publicly available telephone data to verify details of existing customers and flag potential lost customers. Due to the number of possible legal risks relating to outound calling from revisions to or proposed legislation at the time ie DNC list, Privacy Act review, ACA usage of public telephone database (IPND) (all running concurrently), I recommended that the project I was running to verify customer data be put on hold until the legislative environment was more certain.
Neither did they go ahead with plans to expand to non customer outbound telemarketing. At the time I was there at least.
So the legislation will quite possibly have some effect. Maybe not to a few rogue telemarketers prepared to run the risk. But certainly some businesses will take notice.
Generally speaking the various pieces of legislation and the change in the climate re privacy are a disincentive to invest in the capability at the moment- for some organisations concerned with reputation at least. Yes the irony of a bank and concern for reputation!
As you suggest from your experience recommendations were made to be more precise in analytical marketing efforts and compliance with the substantial legislation re contacting customers(particularly in financial services) and to make better use of the inbound telemarketing channel ie when the phone is ringing
Hey, why not give the customer what they want when they've actually gone to the effort to call and tell the company anyway.
On another note the paper is a proposal at the moment. You can be sure there will be some serious lobbying from the industry in the next month or so.
Thats the point. Tesco is not a corner shop. Its a huge corporation that buys massive quantities of goods and ships them to multiple locations to sell in different markets. In order to exploit their buying capacity and basic all round size they do need some serious tech to get it right.
Sure unrelated corner shops would stock a diverse range of items and possibly meet market demand based on the local knowledge. Tesco wants to meet all demand in all markets where it can make a possibly profit.
Absolutely they need a database to compete with local knowledge.
Well kind of.
You will find that an appropriate sample size can quite accurately predict the population. Even though the politicians will have you believe each individual vote counts. Statistically it doesn't. (Except perhaps in some US presidential election cliffhangers)
The same applies for this type of analytical marketing. In order to influence the purchasing officer you'd have to buy a lot of peanut and goats cheese dip before they started ordering extra shelf space. Even so they would know it was the one customer anyway.
Statistically one individual customer is usually insignificant when it comes to segment based marketing. 1:1 marketing is starting to become more prominent and uses data warehouse capabilities to identify and satisfy individual customer demands but with the economies of scale that a large organisation can exploit. Similar to the principles of mass customisation.
Tesco use a Teradata data warehouse analytical/relationship marketing. They're a division of NCR.