Target Corporation: Predictive Analytics and Customer Privacy

Authors
Belock, B., Fasheh, F., McKeever, A., and O'Rourke, J. S. (Editor)
Region
North America
Topic
Strategy & General Management
Human Resources & Organizational Behavior
Length
12 pages
Keywords
Conflict Management
crisis management
customer communication
customer relations
employee relations
privacy
retail
Technology
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

A father complains about pregnancy related coupons addressed to his teenage daughter. Target’s predictive analytics had determined his daughter was pregnant and targeted her as a customer before she broke the news to her father. Target must react in the face of a largely publicized article about the incident.

Learning Outcomes
  1. To raise awareness about how companies use analytics tools to serve their customers;
  2. To highlight possible conflicts when companies use predictive analytics to increase their revenues and potential profit margins;
  3. To encourage discussion about a customer’s right to privacy and a company’s right to collect information about its customers;
  4. To encourage analysis of how companies and customers can mutually benefit from using predictive analytics to increase customer satisfaction and retention.