Have you heard about how Target, a large US retailer, discovered that a teenager was pregnant even before her father did? The retailer attaches a Guest ID to credit cards, allowing it to subsequently track consumption habits.

Said teenager purchased a combination of products that (when analysed against consumption data previously stored on customers who had signed up to its baby registries) suggested she was expecting. This prompted Target's systems to send her baby-related coupons, much to her father's dismay. Having adamantly complained to a store manager for 'encouraging' his daughter to get pregnant, he subsequently apologised for his mistake - turns out he had no idea she was already pregnant when she received the coupons.

Digital technology offers media organisations similar capabilities - no credit cards required. Traditionally, a cookie stored on our web browser by a website we've visited in the past sends that website information on our previous activities every time we revisit the site. Today, cookies are accompanied by a variety of snacks, from social sign-in (the act of signing up to a website using social network sign-in credentials, usually allowing that website access to profile data) to advanced analytics tools capable of connecting seemingly unrelated sources of data (think in-house marketing preference data stores with electoral registers) to create a more holistic customer view. The motivation is not necessarily 'money-grabbing' in nature. Often, the primary objective is to improve products and services through personalised content and recommendations – revenue is secondary.

These efforts have not gone unnoticed. Arguably more reactive than proactive, law makers are cracking down on potentially inappropriate use of user data. Additionally, customers are increasingly informed of their rights and vocal of their griefs. This has posed a unique challenge to media organisations:

How do you find the right balance between improving customer experience through personalisation, and damaging the relationship by falling short of ethical (and legal) responsibilities around the data acquired to deliver that experience?

One approach I have seen working well is capability-driven. Don't store data for the sake of storing - instead:

  • Cross-reference business requirements with existing (or realistically near-term) analytics capabilities, and store what is necessary and usable to that end.
  • Tackle capability before investing in ever-popular 'big data' solutions that add little value without the people and processes required to capitalise on them.
  • Don't be afraid to proceed in stages - a customer should always be able to identify the benefit of giving you their information.

The right balance will not be obvious, and varies not only across the media industry but also between teams within even the best intended organisations. Product teams can be driven by the prospect of offering the most innovative services to their customers - the more data the better the service. However, their vision can be stunted by a legal standpoint of 'less is more', looking to minimise the information gathered to the bare minimum so as to maintain trust, facilitate compliance and reduce risk. There is also the technology team, trying to identify the best processes and technologies required to deal with the quantities of data coming in, alongside recognising all the security and compliance requirements. Add a pinch of organisational culture and a dash of bad press and one can see why we reach a bit of a conundrum.

All this so that the organisation gets as responsibly close to personalising the ME in MEdia as it possibly can.

What are your thoughts?

References

1 Hil, 2009, How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did, Forbes

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