- There is no doubt that some companies’ data analysis practices feel more like stalking than strategic business moves. How would you feel if you received coupons indicating someone in your family or household was pregnant or sick?
If I were to receive coupons that were indicating one of my family members were pregnant or sick, I would initially question that persons shopping patterns. Over the years of shopping and receiving coupons, I have noticed that the coupons offered to me pertain to the items I frequently purchase, or the ones that I had just purchased upon receiving the coupon. Considering this awareness, seeing one of my family members come home from shopping and finding the coupons they had received to be that of pregnancy products or products indicating they were sick would be quite alarming. I would be angry at the company from which the products came because this is a direct result from their data driven marketing processes. “Big data allows companies to track how customers interact with their platforms. For example, observing which coupons generate the most clicks or are redeemed most frequently can help identify trends in consumer behavior” (How Big Data Analytics is Revolutionizing Coupon Targeting, iplocation.net, 2024).
2. How does a company determine if its data analysis practices are crossing the data privacy line?
A company can determine if its data analysis practices are crossing the data privacy line by initially ensuring a company-wide understanding of the specific laws and guidelines in place that pertain to data privacy. A company ignorant to the legal requirements that protect consumer data may unknowingly put their business at risk. A company should assess all of it’s current data collection processes to ensure they are up to legal and ethical standard. “When it comes to deciding how your organization will develop privacy policies for big data, there are at least three distinct sets of guidelines to consider. Without consideration for all three of these areas, you will put your organization at risk. What is legal? What is ethical? What will the public find acceptable?” (International Institute for Analytics, 2021, Helpful or creepy? Avoid crossing the line with big data).
3. Do you agree it was a good idea for Target to mix coupons to help ensure customer privacy?
I feel that if these targeting strategies are going to be publicly accepted, the act of mixing coupons to help ensure customer privacy is a respectable decision from Target and a good idea. Mixing other items with the targeted coupons would at least mitigate detection of the consumers activity based on their shopping patterns. It is important that, going forward, Target is also completely transparent in all of their data collection processes. “To inform your customers of your company’s data privacy policies, you can focus on omnichannel formats. In other words, consider providing the full privacy policy on initial contact, and then provide in easy-to-access summarized versions during various touch points” (American Express Business Trends and Insights. 2023, 5 steps to ensure customer data protection and privacy). This can at least show the effort made by a company to protect and inform the consumer of all their methods.
References:
https://iianalytics.com/community/blog/helpful-or-creepy-avoid-crossing-the-line-with-big-data
https://www.iplocation.net/how-big-data-analytics-is-revolutionizing-coupon-targeting
GianniElkinsbLOG 
Leave a comment