Consumers Have Questions About Data Mining

Privacy and identity theft are important issues for all of us. With that in mind, a critical question for data miners is: How do consumers feel about data-mining practices being deployed by companies and other organizations?
Consider these observations from Natasha Singer, writing for the New York Times:
“Should consumers be able to control how companies collect and use their personal data? At a dinner honoring privacy advocates this week in Washington, Timothy D. Cook, the chief executive of Apple, gave a speech in which he endorsed this simple idea. Yet his argument leveled a direct challenge to the premise behind much of the Internet industry — the proposition that people blithely cede their digital bread crumbs to companies in exchange for free or reduced-priced services subsidized by advertising. You might like these so-called free services,’ Mr. Cook said during the event held by EPIC, a nonprofit research center. “But we don’t think they’re worth having your email or your search history or now even your family photos data-mined and sold off for God knows what advertising purpose.”
Now a study from the Annenberg School for Communication at the University of Pennsylvania has come to a similar conclusion: Many Americans do not think the trade-off of their data for personalized services, giveaways or discounts is a fair deal either. The findings are likely to fuel the debate among tech executives and federal regulators over whether companies should give consumers more control over the information collected about them.”
Click the NY Times infographic to read more of Singer’s article.

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Privacy and Identity Theft Issues | Tagged , , , , , , , , | 1 Comment

Increasing Customer Satisfaction — and Profitability

In this era of self-service and online retailing, some companies struggle with providing the level of customer service that shoppers want.
Consider these comments from Zendesk, which offers a customer service platform: 
“Welcome to the age of the customer, where businesses fly or fail based on the customer service they provide. Whether on mobile, chat, social, and self-service, a thoughtful customer service strategy is essential for conversion. A whopping 66% of customers will spend more with a company that they believe provides excellent service. Do you have a winning strategy?”

 

Take a look at this helpful infographic from Zendesk for tips. Click on the chart for a larger version.


 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together | Tagged , , , , , , , , | 1 Comment

The Role of In-Store Technology in Omnichannel Retailing

What is the proper role of in-store technology in this omnichannel world of retailing? Is it typically “cool” or “creepy”?
As reported by eMarketer:
According to April 2015 polling by RichRelevance, creepy is more common than cool. Retailers have a wide array of toys to play with when implementing digital technologies in stores, but figuring out something that makes sense to customers—and fits with the brand — can be a challenge. When RichRelevance asked U.S. Internet users about certain use cases for in-store technologies, they were relatively enthusiastic about more ‘traditional’ tactics. More than three-quarters thought it was cool if they could use their phone to scan a product and find more info, like reviews and recommendations, on the web. And nearly seven in 10 liked the idea of interactive maps to help them get around stores efficiently and find the items they were looking for.”
“But when the location-relevant concept of a map was converted to location-based push messages promoting products or distributing coupons, the cool factor went down. Just 44% of respondents were into this idea, while 39% thought it was getting a little creepy. The creepiness factor went up as RichRelevance examined more sophisticated implementations of in-store technologies. While some high-end brands like Burberry may have success with facial recognition systems that alert sales associates when a high-value customer walks in the door, three-quarters of internet users thought it would be creepy for an employee to greet them by name when they walked in. They were equally put off by facial recognition that would identify demographic characteristics like age and gender and market to them appropriately.
Click the image to read more.

 

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , , , | 2 Comments