The Word - Surrender to a Buyer Power

  • Aired:  02/22/12
  •  | Views: 55,588

By using predictive analytics, Target doesn't just track when customers buy sheets, they know what customers are doing between the sheets. (6:05)

( APPLAUSE )

MOVING ON.

FOLKS, YOU KNOW, THERE WAS A

TIME WHEN AMERICANS LIVED IN

SMALL COMMUNITIES.

NEIGHBORS WOULD LOOK OUT FOR

EACH OTHER, LEND YOU A CUP OF

SUGAR, HELP YOU PAINT THE HOUSE,

BAND TOGETHER TO DRIVE OUT THE

IRISH.

THESE DAYS, WITH BIG CITIES AND

THE INTERNET, WE FEEL

INCREASINGLY ISOLATED,

ESPECIALLY IF YOU JOIN GOOGLE

PLUS.

OF COURSE, OF COURSE, WE HAVE

FAITH THAT GOD IS LOOKING OUT

FOR US, BUT YOU DON'T KNOW FOR

SURE UNTIL YOU DIE.

LUCKILY, THE FREE MARKET

PROVIDES AN ALL-KNOWING POWER

THAT'S A LITTLE MORE TANGIBLE,

AND IT BRINGS US TO TONIGHT'S

WORD

( CHEERS AND APPLAUSE )

SURRENDER TO A BEAR POWER.

AS HUMAN BEINGS, WE ALL CRAVE TO

BE KNOWN AND NOT JUST IN THE

BIBLICAL SENSE.

( LAUGHTER ).

THANKFULLY, THERE'S SOMEONE OUT

THERE WHO KNOWS ALL ABOUT US

HERE ON EARTH, RETAILERS.

FOLKS, YOU SEE, THEY KNOW US

BECAUSE WHEN WE'RE CHECKING OUT,

THEY'RE CHECKING US OUT.

FOR INSTANCE, A COMPANY CALLED

INFOSYS MAKES SHELVING UNITS

THAT HAVE SENSORS THAT CAN TELL

HOW LONG A CUSTOMER LINGERS AT

THE DISPLAY.

SO, MEN, FOR THE FIRST TIME, A

RACK MAY BE STARING AT YOU.

( LAUGHTER )

( APPLAUSE )

BUT NO ONE-- NO ONE REALLY

UNDERSTANDS--

( CHEERS )

NO ONE REALLY UNDERSTANDS THEIR

CUSTOMERS BETTER THAN TARGET.

ACCORDING TO THE "NEW YORK

TIMES," TARGET'S DATABASES KNOW

YOUR AGE, WHETHER YOU ARE

MARRIED AND HAVE KIDS, WHICH

PART OF TOWN YOU LIVE IN, HOW

LONG IT TAKES YOU TO DRIVE TO

THE STORE, YOUR ESTIMATED

SALARY, WHETHER YOU'VE MOVED

REAM, WHAT CREDIT CARD YOU CARRY

IN YOUR WALLET, AND WHAT WEB

SITES YOU VISIT.

YES, TARGET KNOWS WHAT WEB SITES

YOU VISIT.

AND IF YOU'RE WATCHING THIS ON

THE WEB, THEY NOW KNOW YOU KNOW

THEY KNOW.

( LAUGHTER )

( APPLAUSE )

BUT GATHERING THE INFORMATION IS

ONLY PART OF THE EQUATION.

THE REST IS EQUATIONS.

USING SOMETHING CALLED

PREDICTIVE ANALYTICS, TARGET

DOESN'T JUST TRACK WHEN YOU BUY

SHEETS.

THEY KNOW WHAT YOU'RE DOING

BETWEEN THEM.

>> TARGET LOOKS AT EVERYTHING

THAT WOMEN BUY.

AND WHAT THEY HAVE FOUND IS IF A

WOMAN ALL OF A SUDDEN STARTS

BUYING UNSCENTED LOTION AND THEN

STARTS BUYING CERTAIN TYPES OF

VITAMINS LIKE ZINC AND

MAGNESIUM, THOSE ARE ALL SIGNALS

THAT THAT WOMAN IS PREGNANT.

USING THEIR COMPUTER ALGRISMS,

THEY'LL BE ABLE TO DETERMINE,

WITHIN A TWO-WEEK WINDOW, WHEN

SHE'S DUE.

>> Stephen: THEY CAN SENSE

YOU'RE HAVING A BABY WITHOUT

EVEN MEETING YOU.

THEY'RE LIKE AN OBGYN KENOBI.

TARGET KNOWS WHEN YOU'VE MISSED

YOUR PERIOD, PERIOD.

( LAUGHTER )

FOR EXAMPLE, A FAWGTHS RECENTLY

STORMED INTO A TARGET ANGRILY

WAVING COUPONS FOR BABY SUPPLIES

THAT WERE MAILED TO HIS TEENAGED

DAUGHTER.

NOW, A FEW DAYS LATER, WHEN THE

MANAGER CALLED TO APOLOGIZE, THE

MAN SAID, "I HAD A TALK WITH MY

DAUGHTER.

IT TURNS OUT THERE'S BEEN SOME

ACTIVITIES IN MY HOUSE I HAVEN'T

BEEN COMPLETELY AWARE OF.

SHE'S DUE IN AUGUST."

( APPLAUSE )

JUST IN TIME FOR

NOT-GOING-BACK-TO-SCHOOL SALES.

THE POINT IS-- PLAWZ.

( CHEERS )

( APPLAUSE )

THE POINT IS, TARGET KNEW THIS

GIRL BETTER THAN HER OWN FATHER,

AND EVERYBODY KNOWS THAT

KNOWLEDGE MEANS PROFITS.

PEOPLE TEND TO SHOP AT THE SAME

PLACES EVERY WEEK, AND IT'S HARD

FOR STORES TO CHANGE THOSE

HABITS.

BUT DURING PERIODS OF

TRANSITION, LIKE HAVING A BABY,

THE CUSTOMER IS RIPE FOR RETAIL

CONVERSION, AND THE MARKETER WHO

KNOWS THEY'RE IN A WEAKENED

STATE CAN SCOOP THEM UP LIKE THE

GENTLE LOVING HAND OF A

PREDATORY CULT.

( LAUGHTER ).

NOW, AS ONE--

( APPLAUSE )

AS ONE TARGET MARKETING ANALYST

EXPLAINED, "WE KNEW IF WE COULD

IDENTIFY WOMEN IN THEIR SECOND

TRIMESTER, THERE'S A GOOD CHANCE

WE COULD CAPTURE THEM FOR

YEARS."

YES, THE MISSION IS TO IDENTIFY

AND CAPTURE.

THEY'RE LIKE A MARKETING STRIKE

FORCE.

AND, FOLKS, IF I HAVE JUST ONE

QUIBBLE, IT'S THAT TARGET, LIKE

GOD, IS RELUCTANT TO REVEAL

ITSELF IN OUR LIVES.

>> TARGET FOUND IF THEY SENT

PREGNANT WOMEN A BUNCH OF ADS

FOR BABY STUFF AND THAT WOMAN

HAD NEVER TOLD TARGET SHE WAS

PREGNANT, A CERTAIN PERCENTAGE

OF THOSE CUSTOMERS WOULD STOP

GOING TO TARGET ALL TOGETHER.

THEY DIDN'T LIKE BEING SPIED ON.

BUT IF TARGET CAMOUFLAGED WHAT

IT KNEW, IF IT, FOR INSTANCE,

PUT ADS FOR CRIBS NEXT TO

LAWNMOWERS, THEN THE CUSTOMERS

WHO OFFED THOSE COUPONS JUST

ASSUMED THAT THEY WERE RANDOM.

>> Stephen: YES, TARGET WORKS

IN MYSTERIOUS WAYS.

( LAUGHTER ).

BUT, FOLKS, ONCE YOU ACCEPT--

ONCE YOU ACCEPT TARGET INTO YOUR

HEART, YOU'LL FIND THEY'RE

EVERYWHERE, WATCHING OVER YOU

DURING THE MOST IMPORTANT

PASSAGES OF YOUR LIFE.

NOW, TRUE, THEY MAY NOT BE ABLE

TO STOP YOUR WIFE FROM CHEATING

ON YOU, BUT THEY CAN NOTICE

SHE'S BUYING PERFUME AND

LINGERIE AND THEN SEND YOU A

COUPON FOR A HOT PLATE FOR YOUR

NEW STUDIO APARTMENT.

AND THEY CANNOT KEEP YOUR SON

FROM BEING GAY.

WHEN THEY FIGURE OUT BEFORE HE

DOES, THEY CAN SEND HEM A COUPON

FOR A FREE DVD BECAUSE I BELIEVE

SEASON TWO OF "GLEE" IS NOT A

CHOICE.

( LAUGHTER )

( APPLAUSE )

SO RETAIL NATION, TAKE SOLACE IN

THE FACT THAT TARGET WILL ALWAYS

BE THERE FOR YOU IN THE MOST

TROUBLED TIMES.

WHEN YOU LOOK BACK ON THE BEACH

OF YOUR LIFE AND SEE ONLY ONE

SET OF FOOTPRINTS, YOU WEREN'T

ALONE.

THAT'S WHEN TARGET WAS SELLING

YOU FLIP-FLOPS.

( LAUGHTER )

( APPLAUSE )

AND THAT'S THE

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