Even at the turn of the 17th century, Francis Bacon had it right: knowledge is power. Today, we are in the midst of the information age and, in relation to customer management and relationships, in the beginning stages of an age of invention. The challenges of managing your business include knowing your customer. Knowledge is gathering data, turning it into meaningful information and mining the data to create a competitive advantage.
The recently launched “Google Analytics” program provides a plethora of valuable information about your visitors and your site performance. But, these tools don’t use personally identifiable information to evaluate specific customer performance. There is still much to be developed and made available to the masses in terms of customer relationship analytics at the personal user level.
Database marketing a forerunner
Back in 1994, my first ecommerce company focused on developing data-capture systems and analytics for the banking industry, a technique that would become known as “database debt collecting.” The forerunner was “database marketing,” developed by Capital One in the early 1990s, which involved the use of advanced data analyses to more effectively target, acquire and manage credit-card customers. It would be years before the traditional credit-card issuers would figure it out, and inaction led to their ultimate demise. Today, some online merchants have mastered the use of information to drive business to new heights. Others are sitting on the sidelines, unaware of the competitive edge they are losing as every day passes.
The most misunderstood website legal document
Federal privacy-policy legislation likely in years ahead
The information in this article is not intended to be legal advice. Always consult your attorney when faced with legal issues.