How Companies

Learn Your Secrets

?

Maria Stylianou

Ioanna Tsalouchidou

Georgia Christodoulidou

by Joe Lovell

34330 EEDC - Execution Environments in Distributed Computing

Overview

• Companies’ Goal

• Data Collection & Predictive Analytics

• How Companies Exploit Habit-Mechanism

• Companies’ Challenges, Solutions & Result

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2

Companies’ Goal

• Collect information on customers

• Shopping habits

• Personal habits

• Demographic information

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3

• Efficient marketing

• Offer them what they want

• Make them buy more products

How to

figure out if a

customer is

pregnant!

Data Collection &

Predictive Analytics

34330 EEDC - Execution Environments in Distributed Computing

4

ethnicitypolitical leanings

magazines

BIG DATA

Guest ID number per customer

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5

ethnicitypolitical leanings

magazines

Without Predictive Analytics!

BIG DATA

Meaningless

Data Collection &

Predictive Analytics

• Statistical techniques

• Analyze gathered data

• Find patterns

• Understand how daily habits influence decisions

• “habits shape 45 percent of the choices we make every day”

34330 EEDC - Execution Environments in Distributed Computing

6

Data Collection &

Predictive Analytics

• 3-step loop process

• If identified you can control it

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7

Routine

Reward

How Companies Exploit

Habit-Mechanism

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8

How Companies Exploit

Habit-Mechanism

• Creating a new habit is difficult

• Changing an already-existing habit is easier!

• i.e. Febreze – true story!

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9

How Companies Exploit

Habit-Mechanism

Companies’ Challenges

1. Identify & Take advantage of the moments that

customers are most vulnerable on changing

habits

Solution

Analyze their purchases Predictive Analytics

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10

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Companies’ Challenges2. How to advertise specific products

without

being suspected

Solution

Make ads look random!

Result

• Took advantage of customers’ existing habits

• Keep the cues and rewards the same

• Insert a new routine

Habit kept looking familiar to customers

34330 EEDC - Execution Environments in Distributed Computing

12

Target’s Mom &

Baby sales

exploded!

$67

billion

2002 2010

$44

billion

Conclusions

• Collection of Big Data Important

• Proper Analysis of Big Data Essential

Business Intelligence Department

Sales Increase & Business Growth

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13

Web Reference

• How Companies Learn Your Secrets,

http://www.nytimes.com/2012/02/19/magazine/sh

opping-habits.html?pagewanted=all

• Business Intelligence,

http://en.wikipedia.org/wiki/Business_intelligence

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14

How Companies

Learn Your Secrets

?

Maria Stylianou

Ioanna Tsalouchidou

Georgia Christodoulidou

by Joe Lovell