1. Social Media
Social media platforms give marketers access to information on their consumers’ interests, purchases, and demographic traits. This type of marketing is known as customer relationship management (CRM). Marketers use CRM tools to keep tabs on consumers' online activity and tailor their advertising strategies accordingly. As social media grows in popularity market researchers have begun collecting consumer-related data from websites and mobile devices as well as traditional offline channels.
2. Emails
Email
marketing allows businesses to create and send emails to customers to
promote products and services. According to the Direct Marketing
Association, email marketing generates $10 billion annually. Email
marketing is highly targeted; companies can segment their targets based
on demographics, behavior, and interests. Businesses can even target
specific geographic locations or people who work at certain
organizations. Consumers receive millions of commercial messages daily
through email and research shows that the number of spam and unwanted
mail emails continues to rise. To avoid being labeled a spammer,
marketers should keep their messages relevant, original, and
professional.
3. Credit Card Information
Credit
card information is valuable to merchants because they can track
consumer spending habits. If a buyer goes over his credit limit, a
merchant can notify him before he spends any additional money.
Additionally, retailers can determine what items shoppers want to
purchase. By knowing their preferences, merchants can increase sales by
tailoring product offerings to meet customers' needs. When purchasing
goods, consumers provide their billing information. Companies collect
this information to facilitate future transactions between buyers and
sellers.
4. IP Addresses
IP
addresses identify computers on the internet. Companies gather IP
addresses to help route traffic efficiently, monitor network
performance, and protect against security breaches. Private home
networks often share the same local IP address space. Customers may be
asked for their IP address when setting up a new modem, router, or
computer. In some cases, ISPs sell IP addresses to advertisers or resell
them directly to web servers. These transfers take place without the
consumer's consent. Advertisers can then use IP addresses to track
online shopping habits.
5. Deleted Text Messages
Deleted
text messages are commonly referred to as “blanks.” The Federal
Communications Commission says blank texts cost carriers 30 cents per
message. Most wireless providers offer free blanks if consumers buy
extra minutes or text messages. Mobile device users regularly delete
these blanks to save storage space or to clear out old messages.
Researchers estimate that Americans send about 500 million text messages
daily.
6. GPS Data
GPS
data helps people find places and navigate streets using maps and
satellite imagery. A location database company called Datalogix sells
consumer GPS data to law enforcement agencies and corporations. The
company maintains a database containing the real-time location of
vehicles and individuals across the United States. Consumer GPS data is
collected via smartphones, cellular tracking devices, and automobile
systems (infrared, Bluetooth). Many devices transmit user location
automatically to social networking sites and other applications.
7. RFID Tags
Radio
frequency identification tags or transponders are tiny chips embedded
under labels in items to track merchandise inventory. Retailers use
transponders to control access to stores, prevent theft, improve supply
chain efficiency, and reduce shrinkage losses. In addition to tracking
physical assets, transponders can be linked to databases to store
information on a product, its price, date purchased, and where the item
was sold. Transponder manufacturers claim that their technology does not
violate privacy rights because data transmissions occur only after
permission has been granted. However, some critics say the technology
lacks adequate safeguards and could potentially lead to identity theft.
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