A market of one
Henry Ford once said that people could have any color car they wanted as long it was black.
The car industry has evolved greatly since Mr. Ford’s days. Buyers now have a number of options: color, interiors, electronics, etc.
We have yet to reach a time when auto manufacturers engineer a car from concept to production for just one person.
This example illustrates our evolution from mass production to mass customization to personalization. A vast majority of businesses fall into the first two categories. A group of intrepid businesses –- especially service and ecommerce companies -– are taking the next step toward true personalization, a.k.a. a market of one.
Amazon.com is at the tip of personalization spear. Back in 2000, founder Jeff Bezos said, “If we want to have 20 million customers, then we want to have 20 million ’stores’ … . Our mission is to be the Earth’s most customer-centric company.” Today, the site recognizes returning customers; makes recommendations based on the customer’s purchase history and items similar to ones they are perusing; and encourages two-way dialogue through customer reviews. It’s not an accident that Amazon.com has a high customer-satisfaction rating.
Here are three criteria to help determine whether and how far an organization should pursue personalization.
- Is personalization a viable strategy for your company? Most companies segment by markets and customize products to those markets. Personalization demands a one-to-one approach that requires a further investment of time and resources.
- Do you have adequate customer data? A personalization program requires higher level of details and an ability to analyze the impact of customer relations on behaviors.
- Are you willing to involve the entire organization? Everyone must own a personalized approach to customer relations – not just marketing, not just sales, not just customer service. The goal is relevant, two-way dialogue centered on the customer’s needs. Everyone has to have access to customer information to make this goal achievable.
The Peppers & Rodgers Group are leading scholars and thinkers on personalization. Read more about their work here.
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