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By Chen J., Zhang D.

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The curiosity is that the technological means exist and can be considered to be reasonably mature. Yet, the drive towards personalization is undeniably stalled as evidenced by a growing, rather then a reducing, volume of undifferentiated marketing communications. It is not simply the SPAM that clogs up every e-mail user’s inbox or the irritating interruptions to everyday life occasioned by telemarketing campaigns; it is also that the vast majority of mainstream business-to-consumer enterprises in banking, retailing and telecommunications have demonstrably failed to convincingly make the transition from mass marketing to mass customization.

This was logical enough in a universe where marketing 14 / C U S T O M E R I N T E L L I G E N C E had no direct communication with individual customers; became inefficient with the advent of direct marketing and now makes little sense at all. Change is a constant condition of organizations in an open market. As soon as the business hones one value proposition the risk is that the rules change and the proposition becomes obsolete or is directed at the wrong audience. External change constantly threatens mind-numbing ferment as firms constantly reinvent themselves.

The counter revolutionaries fear that matching smaller and smaller segments with ever larger menus of options does run the risk of resulting in an exponential complexity; and that complexity equals high costs and uncompetitive prices. What this tells us is that there is considerably less real competition in the marketplace than we might be inclined to believe. For many 26 / C U S T O M E R I N T E L L I G E N C E business executives profit comes from cost-cutting and control of channels which in turn comes from synergies achieved though market share growth which in turn comes from mergers and takeovers.

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