Target Corporation: Predictive Analytics and Customer Privacy
A father complains about pregnancy related coupons addressed to his teenage daughter. Target’s predictive analytics had determined his daughter was pregnant and targeted her as a customer before she broke the news to her father. Target must react in the face of a largely publicized article about the incident.
- To raise awareness about how companies use analytics tools to serve their customers;
- To highlight possible conflicts when companies use predictive analytics to increase their revenues and potential profit margins;
- To encourage discussion about a customer’s right to privacy and a company’s right to collect information about its customers;
- To encourage analysis of how companies and customers can mutually benefit from using predictive analytics to increase customer satisfaction and retention.