jeudi 25 juin 2009

Does the Long Tail concept fit in the 'customer in charge' environment?

The long tail concept theory developed by Anderson in his article supports the fact that online business has put the traditional marketing concept (demand/ Offer) upside down.
Indeed, the Long Tail Concept refers to the business model exploited by companies like Amazon.com, Netflix… These companies have developed a new business based on the selling of goods not necessarily looked or explicitly needed by customers. This new model gives some goods the opportunity to be known, and others a second life. It changes the way business is made traditionally due to physical limits (space, geographical limits…) and also modifies the understanding of marketing. It put the stress on the ineluctable difference between traditional marketing and e-business marketing.
Websites like Amazon.com give the customer the illusion of being in charge. The website of course appeals the customers through the delivery of well-known goods, hits and best-sellers, and thanks to a unique and strong algorithm is able to propose him/her other goods similar to the one looked for. These goods are exactly what “Long Tail” refers to; these goods that are judged not sellable enough for the traditional businesses.
In my opinion, the Long Tail concept fits in the customer in charge environment. On the net, any web visitor has the choice at anytime to click or not on a link and access to the page it refers to. People are more and more seeking for goods that correspond to their personality, their tastes and preferences.
The online business has that particularity of being “immaterial”. This particularity means no physical limits, and unlimited possibilities. Companies like Amazon have understood that and through their propositions, “people who bought that also bought that”, “if you like that, you will like that”, etc. they give the customers to opportunity to explore the wide universe and find the object which correspond the best to them.
Another website exploiting this kind of strategy is deezer.com, on which you arrive looking for a hit, but from which you leave with unknown artists and songs in ears!
Cdiscount.com also takes advantage of this strategy. They have also developed the algorithm that allows them to identify the common behavior of customers when buying things. This gives them the chance to “advise” customers who came for ONE product, and make them leave the website after buying 2 or 3 products. Not only they propose similar goods, they also advise additional goods, which you do not necessarily think of. For example when you buy a TV, they advise you to buy the wire, the batteries, etc…

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