A Strategy at Your Convenience

A Strategy at your Convenience

It is surprising to know that large companies gather numerous amounts of information to succeed in today’s business. In The Power of Habit, Charles Duhigg explains that many business firms use data tracking of consumer’s habits and apply it to how they advertise. Now that we are entering the 21st century, it is a standard for businesses to collect data about who their customers are and what exactly they are purchasing. After acquiring knowledge on how the consumers behave, corporations use the information to give leverage for the consumers. This influence on human behavior continues to be a very controversial topic because some believe it falls under the line of unethical business practices. The reason behind this belief is because many are under the impression that it is an infiltration of privacy. Data collecting by companies is ethical even without a person’s consent because the gathered information is strictly used as a business strategy that provides a mutual benefit for both the buyer and the seller.

Say for instance, your job is to market a product; do you believe that it will keep selling if you use the same tactics over and over? Eventually, your sales would diminish due to possible competition. This is why you have to seek new strategies and that is exactly what Target did! Selling a product using the same methods won’t help because competition will always arise. As competition got fierce in the retail marketplace, Target looked for new ways to help boost their sales. They began building an extensive data warehouse. Every shopper is assigned an identification code also known as the “Guest ID number”. Its purpose was to keep tabs on how each person shopped. With this method of storing data, Target began to thrive. According to Duhigg’s The Power of Habit,

“Almost every major retailer, including Amazon.com, Best Buy, Kroger supermarkets, 1-800-Flowers, Olive Garden, the U.S. Postal Service, Bank of America, Capital One, and hundreds of others, have ‘predictive analytics’ departments devoted to figuring out consumers’ preferences” (190).

It is customary for large corporate businesses to gather data and use it; otherwise it would be a difficult task to create adjustments to marketing schemes. In order to generate value for both the customers and the corporation, the increasing data has to be utilized strategically. Creating any functional strategy helps a company flourish and improve continuously. Improvement, of course, will lead to an increase in profits. The Power of Habit provides an instance in which mail directed to customers is used as a service for the company. It explains, “as database tools grow increasingly sophisticated, Target Mail has come into its own as a useful tool for promoting value and convenience to specific guest segments” (210). Promoting value and serviceability are bound to help the company in the long run since positive acknowledgment from customers travel from one to the other. Positive evaluation for a company obviously means that both the buyer and seller are happy.

Imagine taking a seat at your favorite restaurant and right away, your server asks if you would like to order your usual favored dish. You appreciate that they remember