Question 1 - Given the enormous amount of data that Walmart captures, do you think they have been successful at converting into an experience that serves as a competitive advantage for them?
The enormous amount of data that Walmart is able to capture is definitely successful in serving as a competitive advantage for the company. I think the example of how Wal-Mart prepared for the second hurricane is a great way of showing their competitive advantage. In using the data that was made available to them from Hurricane Charley that hit a few weeks earlier, they were able to bring in more of the products that were the top-selling items or products they may have run out of during the last storm. Using their database to learn this buying habit about customers is not only powerful but it also creates an enormous profit for Wal-Mart. The company will soon be able to control what and when people buy as they gather data and make predictions that may eventually turn into persuading people to buy. It is interesting to me that the article mentioned that Wal-Mart lives in a world of “supply and command, instead of a world of supply and demand.” If you think about all the information Wal-Mart is able to gather based on consumers buyer behavior it is easy for them to gather information about what products to bundle, offer discounts for, etc. This leads me to the next question about privacy issues.
Question 2 - What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?
When I first learned of all this information being gathered by companies about their customers (not just Wal-Mart) I was a little bothered by it. I thought it was in fact an invasion of privacy for the store to know everything I have purchased in the past and to use that to their advantage. Thinking more about the data companies are able to capture about customer buyer behavior I have found that it can be extremely helpful for my personal buying decisions. Companies can offer coupons that will most likely persuade me to purchase something I need versus a wasted coupon on something I will never purchase such as men’s clothing or hygiene products. I really like how amazon.com has capitalized on this idea and offers a box entitled “you may also like” as to catch my attention based on previous purchases I have made.
Though I know companies are legally required to keep the wealth of information they obtain private it does sometimes bother me that they have access to all of my credit card numbers, driver’s license, social security, etc. If these numbers were to get in the wrong hands someone could lose a great deal of money or even fall victim to identity theft. Though this is highly unlikely, as a company that uses this information in a negative manner will be persecuted, it is still important for consumers to be cautious of the information we give out. After reading about the policies Wal-Mart has implemented to protect personal information it puts me a little more at ease to let them acquire all the information through my buying behavior. I can say that I do trust Wal-Mart with my information and I really believe that the information they gather will be of value to me versus having a negative effect.
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