Got Data?

Data is a valuable asset for businesses. It can be used to enable business processes, improve operations, and increase customer switching costs. Data alone isn’t useful; how it is leveraged is what can create a competitive advantage for a business. There are various methods used to collect data. Among these are surveys, point of sale systems (POS), and loyalty cards. Information is gathered and a company can use it to make decisions and address concerns. For this to happen data must be sorted into data warehouses and data marts so that data mining (searching for patterns, trends, and new information) can occur.


Loyalty Cards:

Businesses that sell directly to consumers can utilize loyalty cards to gather data. Loyalty cards are an incentive for the customers because they receive special deals and discounts. They benefit the business because, through card registration, it gains demographic information on the consumer. It also shows how often the consumer visits and spends their money. Important information can be drawn from this data, and can help shape a good business strategy. Remember: “if you don’t have data you’re guessing”.



Starbucks has a loyalty card system that’s also tied to its phone app (IT Complementarity). First you register a gift card online, which then gives you Green Card status. A Green Card gets you free refills on coffee and free flavor shots. 30 drinks later you upgrade to a Gold Card. Starbucks actually sends you a golden card with your name on it. For example mine says Briana Redzeposki, member since 2011. With the Gold Card you get all of the Green Card benefits in addition to a free Birthday drink and a free drink every 12 purchases. The app is tied to the card so that if you don’t physically have the card on you, you can scan the barcode on your phone and it will make the purchase. The app sends you messages with rewards, promotions, and free song downloads. You can refill your card with money online or have your credit card automatically add money periodically. As a customer, you get exclusivity, benefits, and convenience. As a business, Starbucks gets all of your purchase information and data. A worth while trade off for most consumers.

Data Data on my Wall, will you look at my most personal information of it all?


Facebook- Be Careful With Your Data:

Sometimes we share a little too much data with businesses.  Facebook may have a little too much information on us. Facebook puts ads on our profiles based on the pages we have “liked”. It uses the information we provide on our Facebook profiles extensively. Having so much data makes Facebook very valuable and makes companies want to advertise on it. Some people have their addresses and phone numbers on their profiles. There’s a lot that people put on Facebook that they don’t realize is really public information that can be used however Facebook wants it to be. Sometimes we think our information is being used one way but it is really being used another. We have no control over how our information is being used once we give it up, and we need to be careful.

These civilians thought they were taking a survey for a store and volunteered personal information for a gift card. Instead, they got more than they baragained for: public humiliation. Turns out most people will pretend to recognize a stranger if the stranger seems convincing enough. Guard your data!


4 thoughts on “Got Data?

  1. Great post, it relates directly to what we just talked about in class. These value cards really are one of the best strategies that these companies have taken on. The cards both add switching costs, making customers want to stay and also these companies gather all this data that then allow them to be more effective. The part about facebook is scary because nobody wants there privacy made public. Also, when I see this ads specifically tailored to me on facebook it is creepy because I realize that they are tracking everything I’m doing. It has a eerie big brother feel to it. Data seems to be one of the most integral parts in determing whether or not a business will be successful these days and companies are getting better and better at gathering it. I liked the use of videos too.

  2. Good job! I really enjoyed watching the videos you attached. I have to admit that I love to have rewards cards for everything. The one I use the most is AMC’s. Every time I go to the movies, I swipe my card, pay for my friends’ tickets, and then have them pay me back. I do this because every time you spend $100 in AMC, AMC will give you back $10.

    Nevertheless, despite the fact that I am really happy with rewards cards, I prefer stores which offer rewards without the need of having an actual card. Sometimes I just wish I had all my rewards cards together so that I do not miss any chance I have to gain points.

  3. This blog is very well-written and discusses many of the things that we have gone over in class in terms of security and the value in collecting and utilizing data. Also, I like how both videos help in describing your point. However, I feel like each of your paragraphs only doesn’t go into a lot of detail and are very different from each other, so it feels like your jumping around from point to point rather than sticking to one topic. Finally, although you did a good job summarizing it, I thought that everything in the blog was something that we have already learned in class rather than adding something new to the topic.

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