Groupon
Banks Exploiting Data Mining
15/07/11 10:39 Filed in: Data Privacy
Much attention has been paid recently to Groupon with its projected IPO value of $20B. Essentially they package up deals from merchants and then retail them out to their users. I remain unconvinced as to how much stickiness they can generate with their users given their only interaction is with cheap deals. In their filing they identify clones as representing a business risk.
The Chicago Tribune reports here that banks are looking to invade the Groupon space. Through tracking of debit/credit spending patterns they have a very rich seam of data to mine. In order to sidestep privacy issues the banks anonymise the data before submitting it to the partners who then submit the deals back. Details can then be pitched directly to customers through email or by being added to statements etc.
UPDATE - O2 have announced they are launching their own scheme. Like the banks they have the in-depth relationship with their consumers which will blow away Gropon and its clones.
The Chicago Tribune reports here that banks are looking to invade the Groupon space. Through tracking of debit/credit spending patterns they have a very rich seam of data to mine. In order to sidestep privacy issues the banks anonymise the data before submitting it to the partners who then submit the deals back. Details can then be pitched directly to customers through email or by being added to statements etc.
UPDATE - O2 have announced they are launching their own scheme. Like the banks they have the in-depth relationship with their consumers which will blow away Gropon and its clones.
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