Perhaps you shop at your local co-op. You go in, maybe you pay with a credit card, maybe with cash, but if you are a member, you give them your member number. That membership number is used to authorize the membership discount, but it also gives them the ability to track everything you purchase. They know what kind of coffee you tend to buy, how many fresh veggies or microwaveable organic chicken nuggets you bought last week. Whether they use this data may be a different matter…some might, some might not, but the data is there.
Now take a large retailer like Target. If you shop there regularly, what do you think they know about you? With their large organization, IT and marketing resources, how might they use this information? The NYT Magazine article goes into this at depth, but there is a particularly interesting case study on page 7.
[A] man walked into a Target outside Minneapolis and demanded to see the manager. He was clutching coupons that had been sent to his daughter, and he was angry, according to an employee who participated in the conversation.
“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”
The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again.
On the phone, though, the father was somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.”
While this is an amazing validation of the accuracy of Target’s statistical model, it is also an astounding example of lack of insight into customer experience. Target wisely changed its practices regarding this issue but this should be a cautionary tale to companies that collect customer data. Understanding customers is a good thing and customer data can be used to create relevant experiences, but data is just a tool. It should be used to carefully.
When companies strive to create relationships with customers, we don’t want them to be creepy relationships. “Good afternoon sir and thanks for doing business with Target. According to our statistical models and your high-school daughter’s buying habits, there is a 72% chance she is pregnant…how about a coupon for diapers?” …even if Target were 100% sure, this might be one they may want to keep to themselves.


