Friday, February 17, 2012

Expecting? Target Already Expected That!


This week's New York Times Magazine features an article entitled "How Companies Learn Your Secrets" - offering a look inside how retailers like Target track and analyze shoppers habits and lifestyles to produce specific, targeting advertising. Upon reading the article, I realized it touched upon many of the concepts we've been discussing in class, particularly about reaching prime prospects.

Target has developed a computer algorithm to determine not only if a customer is pregnant, but what trimester she's in and when she's due. The equation takes into consideration everything from buying more vitamins, to switching from scented to unscented lotions (common when a woman is nauseated in her first trimester) to purchasing larger purses that can double as diaper bags. Based on past and current purchases, the retailer can then send her timed emails and coupons for maternity clothing, baby supplies, etc. The sooner they can predict and identify these "future mommies," the more likely they are to convert her to a lifelong Target customer for all her purchases. They have even figured out what day to send emails to the customer so she's most likely to spend more money.

How accurate is this complicated formula? The article gives an example of a father angry because his teenage daughter received one of the so-called "baby mailers" filled with coupons for diapers and maternity clothes from Target. He confronted the local store manager, accusing Target of encouraging teen pregnancy, but a few weeks later, returned and apologized to the manager. It turns out Target was right and he was wrong - his daughter was due that summer, she just hadn't told him!

I experienced something somewhat similar to this personalized marketing while planning for my wedding two years ago. The moment my Facebook status changed to "engaged" - I was receiving emails and mail left and right from bridal shops, cookware manufacturers, diet pill companies (because, as I was told by one Facebook ad, "No one likes a fat bride!"), and more.

I can see where retailers are smart to be on the lookout for new customers and more business, within reason. I'm all for sending strategic advertising to parents who have a baby registry through Target - these customers are agreeing to share their info in return for a service Target provides - but something about mailing diaper coupons to a 17-year-old just doesn't sit right with me.

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