Revenue from Customer Data
The Story
I recently bought a new HD TV from “ABC TV Maker” and registered at the point of sale for warranty. Within a week, my satellite provider had phoned to see if I wanted to upgrade to their HD service and also tried to sell me their movie package. They had bought the data on HD TVs and they were using it to target users, perhaps in a certain income bracket, perhaps with a certain family size, who had recently bought a HD TV. They were using data analytics for marketing.
The data analytics
“ABC TV Maker” has recognised the revenue opportunity in selling information on their customers’ behaviour to other businesses. They have sold details of customers who have recently bought a HD TV either directly to the satellite provider, or to an intermediary data provider. The satellite provider has then cross-matched the list of customers who bought a new HD TV from “ABC TV Maker” (and probably other electronics providers) against a list of their own customers. They have then removed from the list any customers who already have a high-value package , and targeted the remaining customers with a phone call. It is possible (and in fact probable) that the data analytics used was more sophisticated than those described above. The data analytics described above involves the following processes:
- Matching of customers’ and prospects’ identity information across possibly disparate and unreliable data sources
- Data integrity checking
