Alan Mitchell

Tesco moves on midata and personal data services moves up a gear

By: Alan Mitchell, Strategy director, Ctrl-Shift
Published: Tuesday, October 9, 2012 - 10:00 GMT Jump to Comments

Alan Mitchell, Strategy Director at Ctrl-Shift, writes about Tesco's recent use of customer data. Ctrl-Shift provides research and consultancy on consumer empowerment.

According to a recent article in Marketing magazine, Tesco are advertising for a Product Manager ‘My Data’.

The successful candidate, it says, “will define the strategy to develop and support the deployment of Group-wide capability to deliver market-leading products and games which give our Clubcard customers simple, useful, fun access to their own data to help them plan and achieve their goals.”

There we have it: the paradigm shift in personal/customer data grasped and understood by the country’s biggest retailer. Not only can customer data be used to help organisations achieve their goals, it can also be used (as Tesco puts it) to help customers achieve their goals.

Clubcard was always seen as a goldmine for Tesco – now it can re-mine the same data to find diamonds of value for customers too.

Watch out as, over the next six months to a year, Tesco rolls out a series of ‘useful, fun’ information services that engage customers and open the door to a new and different information relationship with them.

There are three things to note about this.

First, the control shift as it relates to personal data is happening – much faster than many anticipated. With Tesco’s move, and with midata requirements to enable the release of data back to customers on the statute book due early next year, customer-facing companies now have about a year to get the house in order … before those who are riding the wave and those who are being left behind begins to show.

Second, as Tesco clearly recognises, providing customers with new information services that use their data to add value in a fun way is opening up a new dimension of competition between brands.

Those who successfully provide “customers with simple, useful, fun access to their own data” are well placed to win customer trust, engage attention, elicit further volunteered information and create new, richer, channels of communication and interaction. Those that fail to do so risk finding customers using their midata rights to transfer their data to those who are adding more value. In the first case, the company is welcomed further into the customer’s life. In the second case, the company is effectively pushed into the background, treated firmly as an arms’ length supplier.

Third, Tesco is not talking about releasing data back to customers, only to give them access to their data. Though Tesco officially denies it, this is nevertheless a preparation for the new environment being created by midata. As Marketing magazine observes, “By investing in Clubcard Play [apparently the umbrella term for this initiative] Tesco is raising its personalization game to ensure consumers won’t see any point in passing their data to another brand’s applications.”

Whether that works for Tesco (or any other company for that matter) remains to be seen. For personal information services to really add value they usually require combinations of data from multiple sources. To create recommendation my next best book purchase for example, it’s better to have information about my complete library, not just the books I’ve bought from Amazon. This implies real data transfers – not just the ability to access and use data.

But that’s for next year. Right now, Tesco’s move ups the ante for the market as a whole.

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1. cloud starer (224 days, 17 hrs ago)
Editors' Pick

A few points about Midata.

Firstly it is supposed to allow data sharing between organisations.

However “By investing in Clubcard Play [apparently the umbrella term for this initiative] Tesco is raising its personalization game to ensure consumers won’t see any point in passing their data to another brand’s applications.”, so they are effectively poisoning the well the data will be of limited use to other companies so they won’t need to access it.

Lets face it, if other companies were interested in your activities at Tesco then they would already be collecting this data.

Further the Midata initiative is supposed to allow the consumer to make more intelligent choices and pick better or cheaper brands, from my reading of the above, Tesco are using the data they allow the customer to see in an attempt to lock them in to their own brand.

So that’s pretty much every positive point of the Midata scheme in the dustbin.

So whats left ?

Well there is the granting of near instantaneous, electronic access to a standardised form of data about the individual to the Government.

As opposed to the up to 40 day wait for non standard, paper copies the government has access to at the moment.

What will that do ?

Well it will give the government the ability to track the movement and expenditure of pretty much everyone in the country up to the minute if not up to the second.

This is a capability we have not seen since the now defunct National Information Register from the ID Card fiasco.

And we’ll be paying for it in increased prices to pay for the standardisation work.

And personally I would give articles such as this one that that espouse the benefits of the Midata scheme more credence, if they came from independent sources rather that ones with a vested interest, because as far as I remember Ctrl-Shift are the management consultancy that are guiding the government in their promotion of the Midata scheme and presumably are not doing so out of the goodness of their hearts.

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