The marketing professionals in a company are responsible for selling the brand or the image of an organization. They use the most suitable communication techniques to shape the perception of the consumers towards the company. Due to the ease in access to information, the buying behavior has been completely transformed. Many organizations including Google and Amazon too are focusing on the personalization strategy; the customer gains a personal experience that is more convenient and relevant. The consumer expects the websites to be more intelligent, customized and more user friendly. Both Amazon and Google use the customer database to provide a more personalized service. The purchasing and the viewing history is used to gain information about the user’s preferences (Hannak & Sapiezynski et al., 2013). By using this strategy, the websites suggest the relevant content and customizes the experience of the buyer.
At Tesco, the information is gathered about the customers through the Clubcard and their online experience is personalized; not only their shopping habits are used for this purpose but also the information regarding their wealth is helpful (Ashraf & Thongpapani, 2014). As the online choice is too wealthy these days, retaining a customer and winning loyalty has become far more difficult. The chief executive of Tesco, Philip Clarke said, “We’re in a new era of retailing-the era of mass personalization” (Emily, 2012). All the data collected from the Clubcard loyalty scheme about the customers is used to identify what kind of promotions should be offered to an individual. Further, the payment methods and even the social networking information is correlated with this customer data. So, the customers who are price-sensitive, receive the offer for cheaper products while the wealthy customers are offered the luxury products.
Ashraf, A. R. & Thongpapani, N. (2014). ENHANCING ONLINE PERFORMANCE THROUGH WEBSITE CONTENT AND PERSONALIZATION. Journal Of Computer Information Systems, 52 (1).
Emily (2012). How Tesco is using big data to keep customers loyal - Total Customer. [online] Retrieved from: http://www.totalcustomer.org/2012/06/26/tesco-big-data-customers-loyal/#sthash.8EzfQCws.dpbs [Accessed: 31 Mar 2014].
Hannak, A., Sapiezynski, P., Molavi Kakhki, A., Krishnamurthy, B., Lazer, D., Mislove, A. & Wilson, C. (2013). Measuring personalization of web search. pp. 527--538.