This week's readings provide three very different examples of the use of predictive analytics. With reference to one or more of these examples,
i) Outline one issue OR one benefit that the growing use of predictive analytics presents you with as a citizen or customer.
ii) What does this mean for you?
ii) What does this mean for you?
I stress that Big Data is and will continue to be a cornerstone in the development of the world, as a driver of innovation, productivity and knowledge. Hence I will argue and adress a benefit instead of a downside such as privacy issues. In the case of Target, the firm tried to customize their offering to fit a certain segment. Target used the predictive analytics to find a specific target group, pregnant woman, and sent them advertisement of products they needed in that stage of their life. This can be perceived as a breach of privacy but also as a way of increasing the value to the customers of Target. The firm highlighted the product offerings that they knew that future families and mothers needed to a good price to attract them to enter the store and buy even more products. I believe this marketing approach, based on correlation and knowledge of what Targets customers preferences are has an upside to me and other customers since it increases the value we obtain. The firm is increasing its competitiveness against others through creating a better service and this can be perceived as a win-win situation.
ReplyDeleteBig data allows for the creation of enhanced customer value through allowing product offerings that are marketed directly to what the consumer wants. Unlike traditional unsegmented approaches, direct marketing with big data allows for such a specific segmentation of consumers that it creates value specifically to the behavior that they carry out on a daily basis habitually without knowledge of being targeted. I agree with Alexander in that it increases the value that I, and other customers receive from products, as it allows for convenience and financial savings. Target showed how to add value to pregnant woman through their system, and mitigated the risks of of potential privacy breaches through displaying baby products among other general products. In my opinion I am not, and never have been, bothered if a particular company has been tracking my purchasing behaviors. While I respect Target's decision to implement the direct marketing on the basis of not making it obvious that they know a woman is pregnant, I would not worry if my data on purchasing was being tracked so closely if it means enhanced value.
ReplyDeleteI agree with the posts above that Big Data creates benefits to consumers by creating better customer services through understanding how certain demographics work and tailoring advertisement to suit each group. As with Target, the use of analytics allowed target to determine what pregnant women wanted before they even knew what they wanted by sending advertisements of bottles, diapers and other baby products based a previous purchase identifying them as pregnant. By sending out this information, women are educated about all the products that they could purchase from Target that they may have not known about or were going to purchase elsewhere. As a result, the women often purchased all their products from Target as opposed to looking at other stores. This shows how analytics create convenience for customers by giving them information about things they want so they do not have to search it themselves which will serve both the customer by saving them time as well as the business by encouraging customers to visit their store.
ReplyDeletePersonally, I feel that analytics will benefit me in that I get additional options to choose from when adverts of products I want are sent to me but ultimately I will still research all the options available to find the best deal possible.
Like mentioned in the above blog posts, big data aims to creates value towards the customer and enhance their experience. It is also about understanding the customer so the company can offer personalised product offerings according to their behaviours, profiles and origins – the company realises what the customer wants and can adapt to the changes in a customer’s life. For example, buying a house, getting married, working full time, etc... Instead of having standard offerings which are directed to a large group, big data allows companies to derive specific offerings which are marketed towards individuals based on their routines and the point they are in their life; however customers do not know they are being targeted. When customers have the opportunity to save conveniently on products which they need / want, it makes the product more valuable (especially in monetary terms). If it is a new product, the customer may prefer it more and switch to using it.
ReplyDeleteTarget is a great example to show this as they targeted women who were pregnant with the aim to make Target their one stop shop as they sell everything they need (they wanted to change their buying habits). But Target ensured that they did not make it obvious they were targeting pregnant women so they would offer baby products among other general products like lawnmowers – this prevented women from feeling privacy breached.
I agree with what the others have said in regards to the Target case and better targeted advertising. This is a great strength of predictive analytics and what benefits it can bring to Targets customers. However there are the privacy concerns that citizens may worry about. Like the Target case highlighted, while they may be within their rights of the privacy laws, customers may still feel uneasy. This is with detailed information being stored about them and specifically targeted advertising, it may be too personalised for some customers. Target doesn’t want their customers to feel uncomfortable with the predictive analysis they do. Personally, I do think the targeting described in the Target case is fine and I don’t necessarily have a problem with the personalised advertising. Target does definitely however need to be conscious of other customers being uneasy of such specific targeting.
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ReplyDeleteA benefit of using predictive analytics is that it enables companies to monitor customer/peoples habits. Giving them an opportunity to tailor make advertisements and coupons made of products a customer’s may prefer or need. Having this ability allows companies to influence people to choose their store and products rather than their competitors. This is shown in Target’s case where they were able to predict those who were pregnant and these customers were sent adverts, coupons for baby products. They successfully were able to attract new parents in using predictive analytics.
ReplyDeleteFor me if I received coupons or discounts I would be more likely to go buy them at that store.
As mentioned above in regards to how Big Data can be used to drive and deliver value for citizens or customers, I agree with this statement, as predictive analytics is increasingly becoming a major marketing tool. However it is not only limited to marketing, as the example from the Crime Analysis Tech article provides examples how predictive analytics allowed law enforcement officials to more easily identify crime patterns by tapping into detailed analytics. From predictive analytics, it enables investigators to spot potential co-conspirators more easily and expedite actions against them, saving both money and time for the county and CalWORKs program. This is beneficial for both police and citizens as police are able to deploy resources more efficiently to areas where higher levels of crime are expected to ensure a safer environment for everyone. This means that as a citizen, officials are always monitoring our actions, which can mean an invasion of privacy. However this ‘invasion of privacy’ is seen as a stepping-stone towards a safer environment for others and myself as a predictive analysis is implemented to study the environment.
ReplyDeleteBig data analytics is generally known to drive customer value and because of this many companies enforced such initiative in order to only drive action through business managers as they are able to tap into their data to exploit new opportunities but also deliver value to both customer and business. One of the major benefits of Big Data analytics is real time insights, in which is known to provide deeper and faster sights on customer specific data to an extent where businesses would be able to anticipate their customer purchases, predict their spending patterns and also analyse their real time customer specific data. In the Target case, we are able to see how they were able to track down pregnant women/parents by observing their shopping habits and their sold out inventories such as the large quantities of unscented lotion or the large amount of calcium, magnesium and zinc. All these inventory information’s gives Target a clear view on what inventories they should perhaps put on sales in order to enhance their customer satisfaction. In this essence, I’d say that analytics offers Target and other business a shifting rules of competition. As it provides them real time accurate data that not only deliver value to customers but also to them considering it lure more customers in turn increases their sales revenue hence granting them the upper hand over the competitors. Due to this, I believe that analytics benefits other customers and myself, as it allows companies to gain insights into what our specific needs and preferences are.
ReplyDeletePredictive analytics gives the business the ability to be more aligned with the consumer’s personal preferences and habits. By monitoring customers, gathering data and analysing it, the company can effectively use the information to draw in customers and thus gain them in the long-term. This is illustrated in the Target case where shoppers who purchased swimsuits in April, would be sent sunscreen coupons in July, followed by diet books in December. Target effectively used business strategies to retain customers and the customers in return benefited through the value gained to them.
ReplyDeleteBy offering discounts and deals customized to my needs in a timely manner this would benefit me as a consumer. I would be more likely to spend my money at this particular store if I was presented with special offers on items that I needed or wanted. It means I would be receiving offers that are more beneficial to me compared to if I was to purchase the identical item at another store.
After observing all of the above comments, I can conclude that most of us here agree predictive analytic is such a power marketing tool that provides value proposition both for customers and organisations. Alexandre especially pointed out that it's a win-win situation as companies gain their competitiveness through big data marketing while customers can have the knowledge sharing experience. The case reading even mentioned the non-commercial benefits of predictive analytic, which is useful to capture web crime activities. From a customers point of view, I like the efficiency benefits that predictive analytic can offer. I spend less time searching for the available options as the information are made available to me when I need it. I have been introduced to new trends and information that's specifically targeted at me based on my historical data. I view the privacy issues around predictive analytic to be very subjective. Usually, customers have the choice towards how much personal information they want to share. For example, customers can disable cookies on their options, delete history of their internet browsing or simply not to provide any personal email and information online.
ReplyDeletePredictive technologies such as Big data can be used to provide many benefits to consumers. Due to the nature of predictive technology, it can let consumers know what they want before they want it. This can be a good thing for consumers and for companies as it provides an ideal situation for both. These technologies can also be applied in many different fields making for endless possibilities, meaning that people can stay one step ahead and make better, more informed decisions. The downside to consumers however is the amount of data these technologies need in order to function and be successful. This means that data is being collected everywhere, with or without the knowledge of consumers. Some might find this a breach of their privacy, but it is needed in order to realize the benefits of predictive technologies.
ReplyDeleteAs mentioned in the above posts, big data allows for the construction of enhanced customer value through allowing product offerings that are marketed directly to what the customer wants. This allows for company’s to offer personalised products according to their behaviours, preferences and backgrounds. The company is able to realise what the customer wants and can adapt to the changes in a customer’s life. For example getting married, having a child, purchasing a new house, etc.
ReplyDeleteIf not clear already I am arguing a benefit rather then a downside to predictive analytics. In the case of Target, they used the predictive analytics to target pregnant woman, and sent them advertisement of products they needed depending on their stage of pregnancy. This can be perceived as a breach of privacy but also as a way of increasing the value to the customers of Target. The firm was able to offer products that they knew future families and mothers needed at a reasonable price to attract them to the store and buy even more products. In my opinion Target’s marketing strategy is of great upside to customers and I since it increases the value we can obtain. The company is increasing its competitiveness against others through creating a better service and this is a clear benefit for both sides of the coin (consumer/supplier).
The benefit that the growing use of predictive analysis presents you with as a citizen or customer. I agree with the above comments as predictive analysis is a benefit as it allows organisations to track clients, as well as business partner’s steps and trends. This enables the organisations to influence potential clients and existing cliental to choose their organisation and products over their competition. This was stated in the Target case that they had the ability to predict those who were pregnant and these customers were sent adverts, coupons for baby products. They successfully were able to attract new parents in using predictive analytics. This was also stated by Letoria. In my opinion for me this means that If the organisation sent me discounts via flyers or coupons I would be tempted to shop at their store, however I would personally still look around incase I was still able to get the product cheaper then the discounted price. As long as the coupons benefited me I would definitely go towards that store however I would still shop around unless I was in a hurry to purchase that good or service.
ReplyDeleteI do agree with the above blog post above, that predictive analytics allows Target and many other retailers out their to tailor their adverts and services for their specific customers. However, a drawback of this method is the morality it plays. Even while adhering to all the state and federal privacy laws, if a retailer decides to use this predictive analytics tool to determine whether their customers are pregnant so they can send out tailored ads, the view each customer on the morality of this is not set in stone. In other words, each and every customer is being monitored, and while Target may technically have every right to collect all that information about each customer, customers themselves will form their own views on whether they too feel this is okay or not. Furthermore, since it's an extremely subjective subject and each and every person will have a different opinion, it is hard to gauge an action to respond to this issue as there will be many different viewpoints to account for. To elaborate, Target found that pregnant women were sometimes uneasy or offended when they were sent advertisements for baby related goods when they hadn't announced they were pregnant yet. So does doing the same thing in a different way make it any better? Or can it be considered deceptive on Target's part?
ReplyDeletePersonally, I think what Target has done is a little deceiving. I don't think it's wrong if the customers were given tailored coupons for everyday items, but sending coupons for baby items to pregnant women who may not have announced it yet, could be considered an intrusive act morally.
Above all the comments, I agree with all of them. Predictive analytics is another marketing tool that enables marketers predict through gathered information. Through the help of this tool, it manages how Big Data can deliver customer value as a citizen. One of the main benefits with this tool was delivering a real-time information. In the case of Target, it was stated that "timing is everything". A good example with this was predicting the needs of a pregnant woman and also before the baby comes. As for this, Target's goal was to be ahead in everything what the customer needs and to "piggyback" to customers' rouitne to become a habitual shopper of Target. Through this, it enables Target to earn customer loyalty and to gain more information for future needs of customers to enhance its product and services. For me, this means that having this marketing tool is beneficial to the organisation and as a customer/citizen somehow. However, my main concern was when they gather information up to the point that they know everything about you. In other words, when they reach your privacy point. As a citizen, holding these type of information is extermely important and should still be secure. Marketers should know what are their limits. As mentioned in Target case, customers does not like to be spied on, I agree with this. I also understand that the competition within the market is really tough. However, if marketers keep everything in neutral in delivering customer value, it would not be an issue for customers.
ReplyDeleteFirstly predictive analytics is the analysis of data to predict future trends or outcomes. Looking at the case of CalWORKS I believe it benefits society in a protective sense. Citizens are aware that the County has a system that allows the detection of fraudulent activity. The technology used to identify child care fraud, is time saving (no longer depend on hotlines or reading of reports) and cost saving. Reducing time and costs can allow these to be better spent on other crimes. For the County I believe it benefits them they can do their job faster than before, closing more cases and keeping children safe.
ReplyDeleteThe growing use of predictive analytics presents many benefits to myself as a citizen. The use of predictive analytics to visualise the 2014 World Cup results has further extensions that currently benefit people around the world as well as potential future benefits. Andrew Yuan used data from 40,000 soccer matches to visually predict what team would win the world cup. Visually representing data is one of the best ways to communicate information to the public.
ReplyDeleteCurrently a very useful result of the analysis of big data is used by google to provide google traffic. By analysing the location data on cellphones google is able to create a visual heat map to display where heavy traffic is occurring during any time of the day. This can be used by commuters to find out whether their route to work in the mornings will have heavy traffic.
The same information can be used to review past traffic levels and predict future levels. This has several applications for transport agencies. Analysis can reveal where traffic is building to provide more reinforcement for the need for more roads in new areas or new public transport routes/alternate forms of transportation to ease pressure on the roads.
For me this means that if this information is utilised by government agencies future development can be planned more accurately, and in the present time I can use online tools that use the information to help lower the chances of getting caught in traffic.
An example that illustrates the use of predictive analytics, is how statisticians such as Andrew Pole - who worked for Target - gathered and analysed information about their customers, to create prediction models which add value to the organisations operations and processes, and overall profits. A large amount of the information gathered by Target is gathered indirectly from customers, meaning they don’t always approach their customers but rather they observe and study what and how customers buy. However, some customers have willing disclosed information to Target which has allowed them to kick start their findings. A combination of psychological and neurological studies has formed the basis of the prediction models, which focus on the habits that influence a customer when purchasing a good or service. This concept of predictive analytics has proved very successful, and difficult to replicate by competitors.
ReplyDeleteDrawing off the pregnancy-prediction model example from the Target case, the concept of predictive analytics is really innovative, however it seems on the border line of spying - without breaking or breaching any privacy laws - but it does have ethical issues. Don’t get me wrong, it’s great that a predictive model can predict what a person might buy for their weekly groceries or, but when a model is able to predict a pregnant women and her due date, isn’t that is a little too much information? – Or maybe that is just a snapshot of the potential predictive analytic technology has.
Using the pregnancy-prediction model as an example, there is huge potential behind this concept. For example, companies will be able to take current information about their customers and develop that data into a wealth of analysis which will allow them to potentially exploit current customers and lure in new customers. Technology has also provided a platform for companies to feed off. For example, through the use of high-user social networking media like You Tube, Facebook and Twitter, organisations are able to monitor their customers (and potential customers) activity to develop further analysis to improve their processes (provided they have the rights to do so). Effectively, this means that companies are replicating the pregnancy-prediction model that Andrew Pole from Target help create, except on a larger scale. Companies can also influence customers by controlling the media which they are exposed to, and therefore control their customers to an extent.
For me this means that the information that organisation have about me is being processed and developed so that they are able to market to me the products which ideally are suited for me. For example, if I watch All Blacks videos on You Tube regularly, it is likely that a Rebel Sports ad will appear next time advertising the next sale they have coming up. In saying this, I am likely to be bombarded with other advertisements which are associated with the All Blacks and sport.
By Kyle Hitchman,
ReplyDeletePredictive analytics have proved to be of great benefit to businesses and customers. Data compiles in massive amounts and it takes a skilled analyst to break it down and turn it into meaningful information to be used as further knowledge in developing the business value, decision making and understanding human relationships. Some claim we have entered the "data age" and that the Information has had its time. Large companies such as Google, Faceboon, IBM and Youtube could vouch as it becomes more and more obvious they are using forms of data analytics to break down the knowledge that hides inside the millions of pieces collected each day. These companies now have the capacity to gather a lifetimes worth of information about their customers and their behaviour.
One smaller, but growing, company called Netflix uses Predictive Analytics very well to improve the users experience with their site. They have millions of user each with their own preferences, but many alike too. Each movie has a range of different attributes, genre and ratings to name the familiar ones. Netflix uses analytics to correlate the movie subscribers and offer a recommendation on your next movie. to do this task in a matter of seconds seems like a daunting task but with analytics it becomes easy. Each user has their own preference of attributes, these attributes are recognised when they watch them and also are compared to other users watching similar rated or genre type movies. With this technology the website is able to make a suggestion to you of your next dilm when you sign on or make a search enquiry, therefore customers experience with the site is a pleasing one and predictive analytics proves a great benefit to the consumer and the business.
This means for me a great deal of time saved when searching for movies on a site like Netflix, but also the use of predictive analytics improves my experience with other site too. I now am able to see wider range of supplements I may be interested in when searching nutrition sites, Facebook shows me more of the sites that I may be interested in and Youtube offers videos that I would want to watch.