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How Companies Learn your Secrets: Must Read List


Habits found in a human being are tough to vary as they are implemented in the brain circuitry.

When you realize there is a big change happening such as going to a new town, getting married, graduating from college or some other aspect, habits starts changing. This period is advantage for retailers and they utilize it in the correct manner.

The habits are mentioned in a cycle which has Cue, routine, and reward. Predictive analysis is also a method which is utilized in tracking habits of an individual.

Here are a few hints about how companies learn your secrets.

how companies learn your secrets

How Companies Learn your Secrets:

1. The latest news:

How companies learn your secrets’ is hottest gossip whirling around these days.

Author and journalist Charles Duhigg brings about behavioral science and retailing analytics.

The article whirls around a father who cries out at target shop for sending her high school daughter vouchers and offers on baby related merchandise. But later on, the father apologizes to target manager as he found afterwards that her daughter was pregnant.

The sad part is that the father did not know that her daughter was pregnant but target knew it before.

The smart predictive analysis followed by the target has made it possible to find out if a woman was pregnant or not. By this method target was able to understand their customers.

2. Evolution of new habits:

When an individual passes through a major life change, then their shopping habits are changed and a number of retailers are profited.

Researches has supported the similar phrase that when one gets married, then a new brand of coffee is introduced and will get start to use it .

In the same manner when any family moves into a new house, then varied types of cereals are bought.

Some other mode which demonstrates the evolution of new habits within is when a couple gets divorced. It is the moment, that a man start buying varied brands of beer.

3. Goal of the company:

The companies learn the secrets by initially collecting information of the clients.

To collect the information company makes use of customers shopping habits, personal habits and also their demographic data.

They accomplish efficient marketing, by offering clients what they desire and also in making them to purchase more merchandise. They try to analyze data of the customers and in turn enhance their sales.

4. Exploiting habit mechanism:

The habit mechanism travels in the way to cue, retain and reward as its entities. With any habit evolving, a cue pops up with it.

The cue is responsible for triggering the behavior within the individual. By this way the habit is made ample and also rewarded.

There are a number of examples which follows the cycle. Few of them are weight loss, marketing, house cleaning and more.

The routine is made perfect and accustomed as rewards are presented in the same and brains usually starve for rewards.

5. Challenges for companies in knowing secrets:

Identifying and getting advantage of customers’ change in habit is a big challenge which can be carried out. Predictive analysis can be applied at this point to analyse their purchases.

For example the customer can be predicted if she was going to be pregnant. With this in mind and free birth records available, coupons related to baby and ads can be transmitted to new mothers.

Andrew Pole was a statistician, who worked at target came out with 25 products which were beneficial for young mothers.

By this methodology Pole was able to lure in most new mothers and their husbands to visit the shops and purchase baby related merchandise. This helped in knowing secrets and sales were boosted.

6. Method to know secrets:

By taking advantage of customers’ existing habits, the cues and rewards are unaltered, but new bits are taken to grabs the attention of the customers.

By this methodology sales are boosted and the companies are benefited. For companies to learn your secrets, it is significant to gather big data.

Once gathered it is likewise important to analyze the data. Sales are enhanced and business growth is attained by knowing the secrets of the customers.

Retailer target collects data on a number of customers who is a steady client. They also made a new way and provided each customer with a unique code called guest ID number.

With this ID everything from buying, mail, usage of credit card, survey and more are supervised.

The client ID is too allied with other data like demographic data such as marital status; age, whether you have children and a heap more. By this way products are advertised according to ones preferences as the customer is well analyzed about their shopping habits.

Eric Siegel, an expert in predictive analytics states that by Target’s smart methodologies, effective analysis is achieved. Using these ways companies can know the secrets of customers easily.