Tesco tracks online customer habits

Tesco.com plans to profile its 500,000 online customers using Autonomy's MyWeb intelligent platform as part of an expanded marketing strategy.

MyWeb, an adapted version of the Kenjin intelligent agent, works by scanning the content on the user's hard drive and browser cache.

The online retailer says it will integrate data from its loyalty card database with the profile of users' web activity.

The deal, valued at around £750,000 by Autonomy, was announced days after Tesco.com reported an £11.2m operating loss on sales of £125m.

A Tesco.com spokesman said the business needed alternative marketing strategies as part of its move beyond the food sector, but admitted users may not like the MyWeb system.

"We must make sure MyWeb doesn't become irritating. It's about striking a careful balance," he said. "We intend to develop non-food items because we have an advantage. People buy food at least once a week so the loyalty is incredible - we're looking to tap into that."

The system will work by tracking customers' buying habits online and offering extra and complementary products. When site visitors are shopping it will compare the users' profiles and order requests with products in its database, and suggest suitable items to the client in a pop-up window. If a product is sold out, MyWeb will offer an alternative.

A spokesman for Autonomy said it was the company's first such deal.

First published in Computing