Do you agree with this statement? why or why not?

1. How can companies collect 'good data' (what constitutes good data) and how does this lead to positive outcomes for the customer?

The online digital age has enabledmarketing information systemsto become robust. Individuals and programs are diligently sorting and analyzing information store indata warehousesbased on our internetbehavior. Throughdata mining, companies are able to extract useful information about individuals to expand theiravailable market. For example, an individual may ddigital search for motion detector lights after learning about break-ins in the neighborhood. The individual may have searched but did not complete the purchase that day. However, after scrolling their Facebook newsfeed they see an advertisement for motion detector lights reminding them that they still need to make the purchase. This is data being used as it was intended, benefitting the consumer and company. All data is good, but as a consumer you should be aware that this type of thing is happening every day. Consumers should also have the ability to opt-out of tracking and be able to amend or have other information about them deleted should they want to do so.

1. Based on the video case study, do you believe that all forms of data collection are in the best interest of the customer.

As I said above, all data is good data. However, based on the video case it is clear to see that all the data that is being collected can become quite personal.Behavioral dataandobservational dataare ways for marketers to gain insight into the customer. However, as mentioned in the case study video much of the data being collected is being done without the knowledge of the consumer (CBS News). More surprisingly and quite alarming, is that the marketers who are collecting will not show consumers what is in their data profile (CBS News). All thissecondary dataabout individuals being sold to organizations who use and manipulate it to their benefit is scary. The video also mentioned about this data possibly being sold to potential employers (CBS News). There is no way to know what these marketers have in your profile, therefore much of it may be inaccurate, incomplete, or unreliable. Thissecondary dataor evenprimary data, if out of date, could be potentially harming to the consumer, which is in direct conflict of the AMA statement of ethics of doing no harm (Codes of conduct).

1. What really IS the value of a customer? Is it lifetime? Should marketers look at a sale as more than just one sale?

Although all customers are important, it is important for business to realize that not all customers are equal. Some customers provide a business with more revenue and fewer costs than others. Businesses can usecustomer lifetime valueto help determine which customer groups are expected to generate the most business over a long period of time. Once the business has determined which customers are expected to generate the most revenue, the business can focus its marketing efforts to build strong relationships with these profitable customers. Throughcustomer relationship managementbusiness can customize theirtouch pointsandfrequency programsto buildloyalty.Sales should always be looked at as a possibility of creating repeat business. If organizations are focused on lowering theircustomer churnthrough exceptional customer service and listening as much as possible to their customers to gain their point of view, organizations will be ensuring that customer's will choose them over competitors.

1. How can marketers cultivate a strong relationship with customers? And how does the data collection method affect this relationship?

Marketers can develop strong relationships with customers throughcustomer relationship management. Through CRM programs, organizations can introducepersonalized marketing, permission marketing, and/or participatory marketingall of which can assist building and maintain the organization's customer base. There is a range of ways that organizations can collect data on customers to help in profitability but also in buildingbrand loyalty. Frequency programshave the ability to not only reward customers for buying frequently but also give the organization insights into what the customer buys. Throughdata mining, marketers can target these individuals with upcoming sales, special promotions, and other offerings that can draw the customer back into the store. Collecting data on consumers throughcustomer profitability analysiscan assist organizations in determining which customers are more profitable than others. Organizations can monitor their performance through themarketing dashboardand thecustomer-performance scorecard.Through these up-to-date metrics, organizations can pivot if something is not working and make more informed future decisions.

References

CBS News, 60 Minutes (2014).The end of privacy "The Data Brokers: Selling your personal information".https://www.youtube.com/watch?v=qAT_ina93NY

Codes of Conduct: AMA Statement of Ethics. American Marketing Association. (2019, October 24). https://www.ama.org/codes-of-conduct/.