NYT Magazine - Predictive Analytic Use at Target

The NYT today published an article about how Target used predictive analytics to increase revenue from $44 billion to $67 billion from 2002 to 2010.


Most fascinating is the section on how consumers develop habits and how difficult it is to change these habits. However the most important part of this article is the reaction of Target to the article. Target not only refused to talk to the reporter but did everything in its power to distance itself from the story. 


The article today comes right after the Google Safari fiasco reported earlier this week. It's impossible to compete today without using these kinds of techniques. Target and Google are not doing anything unusual. They just do it better than anybody else. 


As the public learns more about how marketers "watch them" what will be the impact on new business models and practices that rely on the smart use of data to succeed? 


The entire ecosystem of free internet content and services depends on the ability of companies to use consumer data effectively without acting in a manner that hurts their relationship with consumers.