Using statistical software, Target identified 25 products that, when purchased together, could indicate that the purchaser is pregnant. In an attempt to offer increased value to its customers, Target opted to send pregnancy-related coupons to the expectant moms.
While this may seem like a clever example of data analytics, in February last year, the software caused quite a stir after accidentally alerting a father that his teenage daughter was pregnant.
According to Karin Kruger, an associate director at KPMG Risk Consulting, and Juan Foster, a manager at KPMG Risk Consulting, retailers, insurers and other institutions know more about us than we realise. This data can be used to better market products to appropriate audiences, or, in the case of the above-mentioned US teen, it can get a company into a lot of trouble.
How companies store, secure and use data is important, and the rise of big data means there must be very tight governance around the use and distribution of this information, noted Kruger.
Kruger and Foster were speaking at the South African chapter of the annual ISACA conference, held at Emperors Palace this week. While you were sleeping last night, your bank and your retailer of preference processed your information before submitting it to credit bureaus; your credit information was updated and redistributed; and your cellphone dutifully reported your location, Kruger said.
But it isn't all bad, noted Foster. This data is being used by big brands and manufacturers to make our lives a little easier, he said, adding that retailers and large corporations are increasingly analysing social media sentiment to better understand what consumers want and to tailor offerings to their needs. As an example, Foster mentioned that new Ford vehicles allow people with their hands full to open the boot of their cars via a foot-activation feature.
For those who are concerned about the security of their information, there are guidelines governing how an individual's data can be used, said Kruger, mentioning the soon-to-be-implemented Protection of Personal Information (POPI) Act.
The huge stores of data that businesses have at their disposal have changed how an organisation identifies its customers, she concluded. This information can be used to the business' advantage, but she stressed that this use should always be in line with data use guidelines.
"There is no such thing as bad data, only bad data users."
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