Forget Big Government: How big retailers can learn intimate details about your life

Can you imagine being a teenage girl in high school who gets pregnant and having your father learn that fact from seeing coupons for baby goods in his mailbox one day? Thanks to the power of today’s marketing technology, that recently happened to a Minneapolis high schooler who shopped at Target.

The New York Times had a piece last week on what big box retail giant Target – and presumably other, similar merchants with the means – are doing to learn more about their customers. Using data on their demographics and purchase history – tracked using credit card numbers or e-mail addresses, they make educated guesses on what people are looking to buy and their marketing team can target them accordingly.

This concept of one-to-one marketing is nothing new – Amazon.com has thrived on it for years. But what made the New York Times story so interesting, as this analysis on Forbes.com notes, is how it can lead to you being targeted so specifically that details about your personal life get out to people you don’t necessarily want to know them, at least not that way.

As Forbes‘ Kashmir Hill and the Times’ Charles Duhigg describe, Target used a mathematical formula based on products purchased and even the colors of those products to calculate a “pregnancy prediction score” – a number indicating the likelihood that you’re expecting. Target’s statisticians have even developed a means of guessing how close you are to your due date. And this data can be remarkably accurate.

Duhigg reports that Target sent coupons for baby clothes and cribs to the aforementioned Minnesota teen based on her “pregnancy prediction score.” When her father saw these coupons, he angrily went to the local Target and demanded to speak to a manager, who apologized. But said father was the one apologizing a few days later when he found out that his daughter was indeed pregnant.

I don’t intent this to be a rant against one-to-one marketing. Businesses are out to make money and the more finely you can tune your marketing to the needs and desires of specific customers, the more likely you are to get sales.

But it does illustrate the power of the data merchants like Target have at their disposal. And it also illustrates the need to be careful with what information you give out.

Have any of you had an experience where a merchant started targeting you with offers based on information you didn’t want out in the public domain?

Don’t like devoting Social Media resources to Google+? You may have no choice

I’m not a big fan of Google+, the web search engine giant’s new Social Media tool. It tries to be an all-encompassing Social Media utility like Facebook while not offering anything unique that I find useful. And the numbers show that I’m not the only one who is reluctant to warm up to Google+: while a BrightEdge Survey in December found that while 61% of the top 100 brands in the United States had Google+ pages, none of those pages have more than the 65,000 fans  of Google’s page. Contrast that with Facebook, where dozens of top brands have more than 1 million fans. Ford has 5 million fans on Facebook compared to only about 27,000 on Google +.

But businesses may have no choice to devote marketing resources to this still fledgling platform. And there are two key reasons why:

1. SEO and Google’s incorporation of Google+ results into its search results

Superior page rank in web search results is critical for businesses today. Consumers increasingly are turning to the web to obtain information, and the higher you are in search results, the better the chances of consumers finding you.

Google is using this fact to its advantage by, according to Huffington Post, incorporating Google+ pages into its search results. Its search algorithm will now recommend Google+ pages for you to look at based on your search and web browsing history.

This makes good business sense for Google – by making its social media platform appear more prominently in its own search results, it can drive people to Google+ pages. Even if they don’t adopt the tool themselves (and some will adopt it upon seeing the pages), they’re still going to view the pages. And the consequence for businesses is that they then have to use Google+ – and use it thoroughly – to maximize their SEO.

2. Google’s powerful brand

When we think of web search engines, we think of Google. It is the most popular web search engine; I personally rarely use any others. But the Google brand portfolio now includes email, document storage and writing, a financial information product, a now-defunct health product and, of course, the Google+ Social Media product.

Given the size and influence of the Google brand, it stands to reason that more consumers will look to Google+ as a source of information and that adoption will continue to increase even if Google does nothing to improve the product.

In a perfect world, Google would do more to improve Google+ and use a better product to drive more adoption by businesses and consumers. But for the reasons above, consumers will flock there regardless of the quality of the product. While businesses may not want to devote increasingly scarce resources to a Social Media tool they consider to be inferior to others, reality says they may not have a choice.

Editor’s Note: This piece was originally published on Lauren Proctor Internet Marketing, a blog on web marketing strategy. Please visit this blog to see this post in its original form.

The sins of Marketing, PR and Communication

Yom Kippur begins at sundown this Friday. By translation, it’s the Day of Atonement. It’s the day that the 13 million or so Jews in the world (including yours truly) fast and spend the day praying in synagogue to be forgiven for sins against God (I believe the day should be about much more literally than asking God for atonement for our sins, but that’s another story). Not surprisingly, at the heart of the Yom Kippur prayer liturgy is a series of confessional prayers that list sins that some Jew, somewhere, committed over the course of the previous year; all Jews recite them as a sign of solidarity.

With this day fast approaching, I was thinking about what mistakes people in my field commonly make. What are the “sins” of Marketing, Public Relations and Communication in general? Here are several that I thought of:

1. Giving your customers the message you think they SHOULD want: The most important element of a successful business is providing a good or service that your customers want. Many aspiring business owners and marketers make the mistake of trying to force feed their vision to consumers rather than serving their customers. If you own a Ford dealership and car buyers in your area prefer driving pickup trucks and SUVs, make sure you stock a lot of Ford Explorers and F-150s and convey to your potential customers why Ford’s products in these classes are better than the competition. If you stock a lot of Fusion Hybrids and tell your customers that they should buy them instead because they’re more fuel efficient, the dealership probably isn’t going to last very long. The ideal business should know what its customers want so thoroughly and have an offering so finely tuned to those desires that the product sells itself.

2. Letting your opponents define you and your brand: If you don’t aggressively define yourself and your message to your audience, your opponents will, and not to your advantage. Many businesses, celebrities and politicians make the mistake of not being proactive, particularly in crisis situations. Get your message out there early and keep repeating it.

3. Not being up-front and transparent in crisis situations: Many businesses make the mistake of thinking they can hide bad news from the public. You can’t, especially now with the web. And the cover-up is always worse than the crime itself. If you don’t come clean yourself and do so right away, someone else will do so on their terms, not yours. Now in addition to the consequences of the bad news itself, you have the added image damage that comes from not being forthright with your consumers.

4. Using Social Media as just another means to shout at consumers: The most valuable characteristic of Social Media are that they allow for two-way communication. This provides businesses opportunities to actually engage consumers and build relationships with them. A business that simply uses Facebook and Twitter as another channel to send out the press release announcing their new Chief Financial Officer is not going to get the most out of those tools.

5. Using a one-size-fits-all approach to marketing: This somewhat goes back to #1. No two businesses are exactly alike, so no two sets of marketing and communication strategies should be exactly alike either. What works for Amazon.com won’t necessarily work for Southwest Airlines. Know who your audience is and where it is, THEN design the strategy.

What about you? Can you think of any other “sins” of marketing, PR and communication?

And to my fellow Jews, G’mar Chatima Tovah – may you be sealed for a good year ahead.

Car Buying 2.0 – Going online for a new ride

I’m in the market for a new car. And all of you who have done it before are familiar with the process – researching, test driving, haggling with salesmen eager to part you from as much of your money as possible and tons of paperwork. Unless you are really interested in cars or enjoy bargaining, it can be a very stressful and unpleasant process.

Over the last decade, however, a new method of car buying has emerged, one that is much more consumer-friendly. Welcome to the world of online car shopping – or, as I prefer to call it, Car Buying 2.0.

As websites like KBB.com (Kelly Blue Book) and Edmunds.com emerged to provide car buyers with more information to get better deals, car dealers found themselves having a harder time getting uninformed customers to overpay for their cars. Rather than fight this trend, however, they adjusted. Many dealers now have Internet Sales Departments, which, unlike traditional salesmen, tend to emphasize selling more cars rather than maximizing profit on individual cars. Consequently, you are more likely to get a better deal, and get it in a far more pleasant manner.

Basically, here is how it works: you go onto a dealer’s website, search their inventory for the car you want with the specifications you want and fill out an online form to request a quote on that car. You’ll usually get a response within 24 hours, if not sooner. Do this for several dealerships, take the offer you like best and go to that dealership to see the car. If you like it, sign the papers, pay the money and away you go.

The key to making this work is that you need to know EXACTLY what car you want. You’ll need to visit some dealerships beforehand to test drive cars to make this decision. Once you make this decision, research the car thoroughly so you know what rebates are being offered, how to identify the color and equipment options you want and what is a fair price. Once you do this, then you can start requesting quotes.

Car Buying 2.0 requires customers to do a little more homework, but all of the online resources out there make this relatively easy anyway. And you’re likely to get your car for less money and with less agitation.

 

 

 

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