Tag Archives: Data mining

Creepy Or Helpful?

Have you heard that your car is spying on you? Maybe you’re willing to write it off to “oh, so is my phone, my smart TV, my thermostat, etc.” Maybe you’re concerned. If you don’t know anything about it, you can read this piece and learn a little but in a nutshell many late-model cars collect and transmit a lot of information. As the article states:

The information collected includes where drivers have been, like physical location recorded at regular intervals, the last location they were parked, distances and times traveled, and previous destinations entered into navigation systems. A host of diagnostic data on the car is also captured.

This may be a serious issue or it may be just the latest soapbox onto which politicians and others will vault.  Oddly, the concern many people have is less about the cars’ gathering and disseminating data and more about the fact that bad guys could hack into the car and take control from afar.  Nevertheless, I think it raises a good business thought for all of us.  Think this through with me.

  • You get an email from your car manufacturer.  It tells you that based on thousands of other cars  just like yours there is data collected in the past two weeks that says your fuel injection system is failing and to go to the dealer.  You have seen no evidence of problems.  Creepy or helpful?
  • You receive an envelope in the mail from your insurance company notifying you that your premiums are dropping because you have a history of driving near the speed limit and you maintain safe distances from cars around you.  Creepy or helpful?

I think you get the point.  Engineers design these cars, they love data, and what works from an engineering perspective might creep out civilians. We face that issue in marketing with all kids of data gathering.  I think we realize that the data we gather from shoppers – hopefully with their permission and knowledge – are something  shoppers are becoming more willing to offer as long as they reap some benefits.  I think many of us who frequent the web for shopping are long over the creepy factor of personalization although I suspect it’s still pretty prevalent when data from off the web drives marketing messages.

So the answer in my mind is this.  It’s never been easier to track someone and what they are doing.  What we buy, where we drive, with whom we communicate and just about everything else are all readily available data points.  People want promotions and they want emails that are relevant to them.  We can’t, however, allow our desires to be helpful (and to sell something) cross that line into creepy.  We do that when consumers are unaware of what we gather and how it’s going to be used.  I may love my lower insurance rate but I might not be happy when my rates go up if I don’t know the car is sending data to the manufacture who is collecting money from the insurers for the data.

Where do you stand?  Creepy or helpful?

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Filed under Consulting, Thinking Aloud

How Educated Do Consumers Need To Be?

A piece came out yesterday that got me thinking.  The article was a write-up of a study conducted by Harris Interactive for the folks at The Search Agency and you can have a look at the results here.  The highlights are that most consumers have no clue how much of digital works from a business perspective even though they do know how to use the services:

  • 70% of U.S. online adults know how to post to a Facebook wall, but only 54% understand how Facebook makes money
  • More than one-third of U.S. online adults believe search engines sell users’ personal data to marketers
  • Nearly 29% believe that companies pay annual dues for use, while 20% believe that users pay for premium search features

That got me thinking about why that is or isn’t important.  The author of the piece thinks that “it may seem incidental, but a better understanding would produce higher engagement and conversion rates.”  She says this believing that understanding would increase participation.  I’m not so sure.  In fact, it might have just the opposite effect.  Knowing about EdgeRank and how it affects what information passes into your news feed as well as about the plethora of information Facebook has about everyone on the service could bother some folks and scare quite a few others.  Many people don’t understand that the search results they see are skewed (unless they are savvy enough to turn off the personalized results).

Here is a question for you:  do you know how your car works?  What happens when you turn on the ignition?  I can probably answer this for you – you don’t have a clue.  You do know, however, when the car is NOT working.  I think that’s the same with the digital services we use – we don’t need to know how they work as long as we know that they are, in fact, working.  That said, we probably do want to know if our cars are tracking where we’re going and how fast we’re driving (they are, by the way) and I continue to believe that privacy and data collection are big consumer issues that will continue to grow in importance as the details of those activities become more widely known.

What do you think?

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Filed under digital media, Thinking Aloud

Political Polls And Your Business

It’s election season and there are multiple new polls released every day.

Description=Opinion polling by state for the U...

(Photo credit: Wikipedia)

It’s a lot of data and the media jump on each tidbit to proclaim the outcome of an event that’s still many weeks away.  Each new glimpse of the situation is treated as if today was Election Day until the next piece of information surfaces and the cycle begins again.  Sound like your business?

It’s a very instructive situation and points to something I tell my clients all the time.  A data point isn’t really important in and of itself.  What IS important is the trend of that data and what it reflects about your business.  Continuing the political example, Romney’s poll numbers over time have been declining while Obama‘s have been trending up.  Many polls are still within the statistical margin of error about which candidate is winning (a fact often overlooked since these are results based on samples).  Still, the data points to a sense of things, especially when you get past the top-line numbers and dig into segments and qualitative questions such as readiness for job, feelings about the person, etc.

If these were your web analytics, you’d want to do the same sort of thing.  Get past the top line stuff – visits, page views – and dig into segments.  Are visits from organic search up or down?  Are we seeing new and relevant search terms creating visits or is everything limited to searches on your company name indicating a narrow audience?  What are the different usage trends among new and repeat visitors?  How is social impacting your audience?  Are entrances coming to many pages or just one?

Don’t worry about any one day, worry about trends and you’ll be on a much more actionable track.  Rolling averages and trends don’t cause daily fire-drills to fix something that might be a blip.  Panic over a one-time occurrence usually does way more harm than good, whether it’s a poll, an analytics report, or a financial statement.

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