Monthly Archives: October 2013

Evolution in Advertising or Infringement of Privacy?

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Recently, Bell Canada has announced a new technology for advertising through “[using] information about its customers’ accounts and Internet use to target ads to them”. The information that will be retrieved from customers’ include “Internet activity from both mobile devices and computers, including Web pages customers have visited and search terms they have entered; customers’ location; use of apps and other device features; television viewing habits; and “calling patterns.” Account information shared will include product use including type of device, payment patterns, language preferences, postal codes, and demographic information.” All in all, this data will allow them to profile different types of customers and streamlining specific types of advertisements that will be relevant to the user. This proposal has been closely associated with the big network providers in the US such as Verizon and AT&T where they would also send targeted ads customers emails, texts or on-screen notifications on their mobile devices.

Although this can be perceived as a revolutionary improvement in advertising, this strategy has displeased privacy advocates and many customers.

Canada’s Privacy Commissioner Jennifer Stoddart has announced that they will be investigating Bell’s new scheme of gathering customer data and information that is used for target advertising. They have also been receiving many complaints regarding this issue as it is a possible breach of the Personal Information Protection and Electronic Documents Act.

General reaction from the public may seem very related to recent events, specifically the controversial leak of the NSA Surveillance Program by Edward Snowden where it details the PRISM program in which big companies like Google, Yahoo, Skype, Apple, Youtube, Facebook, and other major companies acted as a gateway for the government to access emails, photographs, and documents from billions of users.

The indiscriminate retrieval of user data is personally troubling. Having big companies possibly know your consumption habits, personal information, conversations, current location, all for the sake of targeted advertising may seem quite infinitesimal compared to its potential of complete government surveillance.

Sources:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/bell-customer-phone-and-internet-data-will-be-used-to-target-ads/article14984876/

http://www.cbc.ca/news/canada/montreal/privacy-commissioner-to-investigate-bell-s-data-collecting-1.2158593

http://www.theguardian.com/world/video/2013/jun/09/nsa-whistleblower-edward-snowden-interview-video

http://www.verizonwireless.com/news/2012/12/verizon-selects.html

 

 

 

Keep Them Coming Back

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In many ways, businesses attempt to expand their customer base by tackling new markets and attracting new groups of people through introducing new services or products; However, to achieve business sustainability and growth, one must implement strategies to retain the most accessible and predictable group of people: your loyal clients. According to Inc., a current consumer spends 67% more in comparison to new customers. This clearly shows how vital it is to maintain the valued relationship that a business has with it’s loyal customers in terms of nurturing that stream of revenue.

One of the most successful loyalty programs are the rewards systems designed by airline companies. The aim of these reward systems is to encourage customers to be “frequent flyers” and to gain benefits by getting more “mileage” in their accounts and moving up different levels. Personally, I am a United Airlines MileagePlus member and I frequently fly across the U.S. so it absolutely is beneficial for me to gain points and take advantage of the benefits. The appeal of these programs stems from the tier-based structure and their achievability; Members are introduced into the most basic level, where they can earn “miles” depending on the distance of their flight and get discounts for things such as hotels and car rentals. Each level has a required amount of miles which allows members to be inducted into more “premiere” statuses that grants them more exclusive benefits (priority check-in, extra baggage, priority baggage handling); customers eventually realise that these levels are achievable, which compel them to travel more and enjoy these benefits.

https://www.youtube.com/watch?v=jv97qoOmv6c

Another reason for my extensive use of my MileagePlus is because United is a part of the world’s largest airline coalition: Star Alliance. Star Alliance boasts 28 member airlines and they also have their rewards program, which seamlessly intertwines with the MileagePlus program. I believe that having this scope of connection, providing an excellent selection of major airlines with just one account, gives a phenomenal value that no traveler should miss out on.

Sources:

http://www.staralliance.com/en/benefits/earn-and-redeem/

http://www.united.com/web/en-US/content/mileageplus/premier/default.aspx

http://www.inc.com/guides/2010/08/get-more-sales-from-existing-customers.html