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Data Mining – Friend or Foe to My Customer Lifetime Value

December 30, 2009

We just had a new Wal-Mart Super Center open about 3 miles from our house in Cincinnati, Ohio.   They built it on land that used to have a “Big 3” automobile factory on it years ago.   Vacant for at least a decade, it was torn down and then up sprang an Arkansas just-in-time building, the Wal-Mart Super Center.   I normally don’t like shopping at Wal-Mart; I do value low prices although not as much as fast entry/exit and knowledgeable clerical sales help.   As an IT Professional, I do admire Wal-Mart for their storied data mining and sales analytics platform.  You know…the stories of just-in-time shipping of more beer to Florida when a hurricane starts to threaten the Sunshine State.   They’ve been written up in almost every IT journal over the last 10 years as well as every national business publication.

So, I decided to venture into the Super Center 3 days before Christmas to specifically buy a popular board game, Risk, for my three boys.   The store greeter told me “left and down 5 aisles or so.”   I came upon the shelves where Candy Land, Trouble, Life, Monopoly and others were located.   No Risk.   There was a stocker, 45 years old, unshaven…reminding me of an auto mechanic…he seemed out of place and I wasn’t sure whether he’d even talk to me.   He was just walking away from the game shelves.   I ran after him stuttering with uncertainty to see if he knew whether they carried Risk and if I was in the right section?  He stopped and said, “well, yes and no.  We don’t sell much so it isn’t stocked very much.”    I then asked about Candy Land, Monopoly, and Life and their stocking levels.  “We sell tons of them.”  So, that’s it.

My question is…does Wal-Mart really do analytics of all of their customers and prospects?   If it’s the normal retail geography of “1-mile, 2-mile, 5-mile, 10-mile”  I should be very near their sweet spot of 3 miles away!  With their new grocery store there, should I be classified as the 40-something guy that wants to buy micro-beers, brie and gorgonzola cheeses, organic crackers and Risk?

Every media company in the country is publishing articles trending the growth of data volumes doubling and tripling!  That includes Wal-Marts data as well.   Business Intelligence and Customer Analytics are going to be key tools for retaining customers, finding new customers, and overall market share strategies.    Leveraging them wisely through intelligence business questions and common sense will still be integral to the overall platform.   Just because you use Business Intelligence doesn’t mean that you are going to be successful…setting specific goals up-front in the process is integral to success.

The Wall Street Journal article this week indicated that Wal-Mart’s web ordering is gaining market share rapidly.   Perhaps they should have offered a web order entry for me with a quick ship program for Risk?  Perhaps next year….for now, I’m going to venture out again and buy the Risk game at another retailer.

Written by John Bostick · Filed Under Business & Leadership 

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One Response to “Data Mining – Friend or Foe to My Customer Lifetime Value”

  1. DataMiningTips on December 31st, 2009 11:45 pm

    Data Mining – Friend or Foe to My Customer Lifetime Value … http://bit.ly/8urgoA

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