The e-Volution of Retail [8:53 am]
a couple of articles on the opportunities tying of digital data collection with aspects of retailing - some new, and some not so new:
IF you try on a sweater in a department store dressing room, but choose not to buy it, a persistent sales clerk won’t pursue you into the street yelling, “Hey, are you sure?” Nor will you receive a call at your home the next day to check again if you want to complete the purchase.
But in the online world, visitors to Web stores who touch the goods but leave without buying may be subjected instantaneously to “remarketing,” in the form of nagging e-mail messages or phone calls.
A new Web service, called Abandonment Tracker Pro, is in beta testing and scheduled for formal release next month. [...]
“I think I can do something for you, though,” [credit card bill collector Rudy] Santana continued, glancing at his screen. It was filled with information about the man, including the fact that he had recently sold his home at a loss. Some of this information had been sent by the man’s bank to Santana’s employer, Sunrise Credit Services, which collects delinquent debts for companies like Citigroup, Bank of America and HSBC. Santana’s company had added notes, too, including helpful tips — he is easier to reach in the mornings, for example — and new ways to contact him.
“Look,” Santana said. “I know you’re angry at your wife. One step to ending that anger is putting this debt behind you. It will really help you find peace. You owe about $29,000. How much do you think you can pay?”
“Well, how much are you gonna help me?” the man shot back. “These banks got all this taxpayer money from the government, and they’re the ones who ruined the market for my house! I helped bail them out. I think the banks should be paying me, instead of trying to suck all the life out of us they can!”
[...] Luckily for the industry, small groups of executives at most of the large firms have spent the last decade studying cardholders from almost every angle, and collection agencies have developed more sophisticated dunning techniques. They have sought to draw psychological and behavioral lessons from the enormous amounts of data the credit-card companies collect every day. They’ve run thousands of tests and crunched the numbers on millions of accounts. One result of all that labor is the conversation between Santana — a former bouncer whose higher education consists solely of corporate-sponsored classes like “the Psychology of Collections” — and the man from Massachusetts. When Santana contacted the man last month, he was armed with detailed information about his life and trained in which psychological approaches were most likely to succeed.