Data Deluge Creates Privacy Issues
As Bozzutos, a wholesaler in Cheshire, Conn., that has five corporate stores, delves into the intricacies of mobile marketing, the biggest question we are asking internally is Whats the difference between clever and creepy? observed Steve Methvin, the companys vice president of retail technology/e-commerce.
Up until the explosion of mobile and social media, food retailers mainly abetted their marketing efforts with data derived from loyalty card programs that linked itemized purchases to a shoppers identity. Some privacy advocates objected to retailers using this data, but shoppers usually accept this level of tracking as a reasonable trade-off for more relevant promotions.
Now, however, retailers are entering a realm where they may be privy to not only a shoppers prior purchases, but their location in or near the store, their social media interactions, their online activity and their physical image a growing stream of information that goes by the name of Big Data. The ground rules for how retailers should use this data have yet to be written, and they are often left debating where the line between value-added personalized offers and discomfiting intrusions of privacy should be drawn.
Privacy is a massive concern, one that if you dont do it right can cause a tremendous amount of pain for everybody concerned, said John Caron, vice president of marketing, Catalina Marketing, which manages Ahold USAs mobile Scan It! application.
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