1. How Companies
Learn Your Secrets
by Joe Lovell
?
Maria Stylianou
Ioanna Tsalouchidou
Georgia Christodoulidou
34330 EEDC - Execution Environments in Distributed Computing

2. Overview
• Companies’ Goal
• Data Collection & Predictive Analytics
• How Companies Exploit Habit-Mechanism
• Companies’ Challenges, Solutions & Result
2
34330 EEDC - Execution Environments in Distributed Computing

3. Companies’ Goal
• Collect information on customers
• Shopping habits
• Personal habits
• Demographic information
How to
figure out if a
customer is
• Efficient marketing pregnant!
• Offer them what they want
• Make them buy more products
3
34330 EEDC - Execution Environments in Distributed Computing

4. Data Collection &
Predictive Analytics
BIG DATA
magazines
ethnicity
political leanings
Guest ID number per customer
4
34330 EEDC - Execution Environments in Distributed Computing

5. Data Collection &
Predictive Analytics
BIG DATA
magazines
Meaningless
ethnicity
political leanings
Without Predictive Analytics!
5
34330 EEDC - Execution Environments in Distributed Computing

6. 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”
6
34330 EEDC - Execution Environments in Distributed Computing

7. How Companies Exploit
Habit-Mechanism
• 3-step loop process
• If identified  you can control it
Routine
Reward 7
34330 EEDC - Execution Environments in Distributed Computing

8. How Companies Exploit
Habit-Mechanism
8
34330 EEDC - Execution Environments in Distributed Computing

9. How Companies Exploit
Habit-Mechanism
• Creating a new habit is difficult
• Changing an already-existing habit is easier!
• i.e. Febreze – true story!
9
34330 EEDC - Execution Environments in Distributed Computing

10. Companies’ Challenges
1. Identify & Take advantage of the moments that
customers are most vulnerable on changing
habits
Solution
Analyze their purchases  Predictive Analytics
10
34330 EEDC - Execution Environments in Distributed Computing

11. Companies’ Challenges
2. How to advertise specific products
without
being suspected
Solution
Make ads look random!
11
34330 EEDC - Execution Environments in Distributed Computing

12. Result
• Took advantage of customers’ existing habits
• Keep the cues and rewards the same
• Insert a new routine
 Habit kept looking familiar to customers
$67
Target’s Mom & billion
Baby sales 2002 2010
exploded! $44
billion 12
34330 EEDC - Execution Environments in Distributed Computing

13. Conclusions
• Collection of Big Data  Important
• Proper Analysis of Big Data  Essential
Business Intelligence Department
Sales Increase & Business Growth
13
34330 EEDC - Execution Environments in Distributed Computing

14. 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
14
34330 EEDC - Execution Environments in Distributed Computing

15. How Companies
Learn Your Secrets
by Joe Lovell
?
Maria Stylianou
Ioanna Tsalouchidou
Georgia Christodoulidou