Posts tagged with 'Wharton'
It may be antithetical or even sacrilegious to say so, but companies may have too much customer data for their own good. With internet marketing focused on generating even more of that data through behavioral targeting and social media, it may be time to consider a new theory out of Penn's Wharton School of Business. It's called "data minimization."
According to Wharton marketing professors Eric Bradlow and Peter Fader "data minimization" is a simple but radical concept: keep the customer data a company needs for competitive advantage, and purge the rest. "I think there is a fear and paranoia among companies that ... if they don't keep every little piece of information on a customer, they [can't function]," Bradlow told the Marketing @ Wharton newsletter. "Companies continue to squirrel away data for a rainy day. We're not saying throw data away meaninglessly, but use what you need for forecasting and get rid of the rest."