Online Data Capture Chapter 6 Chris Bralczyk Gayle Bradshaw Michelle Guthrie Rachel Donovan Jason Kniebel Bridget Locke Introduction Chapter 6: Understanding the Internet Consumer Online Data Capture 2 types of data Nature of the data How it is acquired Third-Party Internet Usage Data Variables include: Length of time on a website Pages visited Destination site after leaving Number of Internet sessions per day/week/month Average length of each session Average number of sites in each session Watch Out, Google! Amazon Gets Search A9.com is a powerful search engine, using web search and image search results enhanced by Google, Search Inside the Book, results from Amazon.com, reference results from GuruNet, movie results from IMDb, etc. Provides a unique set of powerful features to find information, organize it, and remember it all in one place Transactional Data Customer account data Customer name Billing address Acquisition source (catalog, banner ad, search engine) Ship-to address Purchase-specific data SKU numbers for each product Date of purchase Total number of items Total value of purchase Channel (retail, catalog, Web, etc.) Method of payment Who Captures the Data? The Enterprise itself Limited by enormous amount of data which must be extracted from operating systems and analyzed Very expensive Marketing Data services Specializes in click stream data capture Acquires site-specific statistics for only the company website; not for competitors How much is too much? Level of detail at which the data is captured depends on the enterprise’s current and future marketing plans Tempting to capture the largest possible number of variables at the finest level of detail (“granularity”) the marketer doesn’t know exactly what he will need possible to aggregate very detailed data but usually impossible to break out data that was collected at a higher level of aggregation How much is too much? Cont. Collection and maintenance of data is a significant marketing expense item; unnecessary detail is expensive to store and cumbersome to handle “The IT shop usually has a kind of pack-rat mentality, where they want to collect data by default:’If storage is cheap, let’s go ahead and collect it.’ The IT unit generally has no sense of how the line-of-business manager needs to use that data.” PeopleSoft aligns business strategy with operations to help companies react quickly to unexpected changes in business conditions. www.iwon.com People register and customize a personal home page iwon.com tracks people’s behavior and sells the information iwon.com gives away $10,000 every weekday, $1,000 on the weekend and $1 million every tax day The Dark Side of Online Shopping Internet investigator Don Garlock’s story Thieves held web development jobs in Thailand Debit card number stolen from Amazon.com or randomly generated Avoid using debit cards Transactional data is NEVER 100% safe It CAN happen to anyone!!!! Conclusion Used to understand consumers better Provides ways to segment consumers through their online behavior Next Step: implement marketing strategies based on captured information Provides edge in competitive marketplace Imposes vulnerability on consumers’ personal information Beware!!!! Nothing is completely secure!!!!