2.4.1 How companies collect and use data ?

Objective 

1. What is data?
2. Explain why information about them and their behaviors is valuable to companies.
3. Analyze how certain types of data are used by companies

1. What is data?

In general, data is a set of text, number or multimedia that is collected for observations. It is usually gathered and translated for some purpose, such as analysis.

Nowadays, web-based eCommerce has spread vastly, business models based on Big Data have evolved, and they treat data. And there are many benefits of Big Data as well, such as reduced costs, enhanced efficiency, enhanced sales, etc.

What is data?

         2. Why information about them and their behaviors is valuable to companies?

Every year, businesses have created and used very tricky techniques to find out more about customer behavior and most people don’t even notice. Those are preferences, activity, location, and personal information is generated daily. 

With user data, companies can improve customer experiences, refine marketing strategies, conduct hyper-targeted advertising, and even create new revenue streams by selling data (if they collect enough of it) to data companies. 

        3. Types of data that are used by companies and how they collected them.

The customer data that companies collect can be divided into four main categories:

• Personal data

This data type includes personally identifiable data, such as name, gender, date of birth, etc. 

• Engagement data

Engagement data informs how customers interact with social media pages, paid ads, e-mails, mobile apps, business’s website, and consumer service routes.

• Behavioral data

Behavioral data comprises transactional information, including qualitative data, product usage info, and purchase histories.

• Attitudinal data

Attitudinal data involves metrics on customer satisfaction, product desirability, purchase criteria, and more.

They use some of the common methods companies use to collect information to improve their business performance and customer experience.

• Asking for It

When someone subscribes to a service, registers with a website for the first time, a form usually needs to be filled out. In register form, the company will ask for a name, email address and date of birth as a minimum, though.

Source: colorlib

• Website tracking via Cookies

Cookies are small files that websites send to your device that the sites then use to monitor you and remember certain information about you — like what’s in your shopping cart on an e-commerce site, or your login information. 

Source: boom visibility 

→ Learn more about Google Cookies: https://www.youtube.com/watch?v=TBR-xtJVq7E

• In-Store Wi-Fi Activity

People share any information businesses ask for in exchange for open Wi-Fi. Free Wi-Fi not only collects data from the customer’s email address but also tracks their activity whenever a customer visits a brand’s localized shop. Companies evaluate customers’ most common purchasing and adjust their product/service offering based on the findings.

source : we see now 

• Email Tracking, apps tracking 

Companies often use email tracking to learn that someone has opened an email, in what location and on what type of device. Similarly, apps are often embedded with SDK’s supplied by third party data trackers that are used to source consumer data.

Source: Google chrome  

Summary: Data collection and use