“Users simply capture name from the credit card swipe and request a customer’s ZIP code during the transaction. GeoCapture matches the collected information to a comprehensive consumer database to return an address.” In a promotional brochure, they claim accuracy rates as high as 100%. Fair Isaac Corp., a company best known for its FICO credit scores, also offers a similar service which they say can boost direct marketing efforts by as much as 400%. “FICO Contact Builder helps you overcome the common challenges of gathering contact information from shoppers—such as complicating or jeopardizing the sales process by asking for an address or phone number, or complying with regulations,” it says. “It requires minimal customer information captured at point-of-sale, just customer name or telephone number and the customer or store ZIP code.” Mr. ZIP promoted the use of ZIP codes for the USPS during the 1960s and 1970s. (Photo credit: Wikipedia) Because customers are usually not told that stores are building a marketing database from the transactions, some object. In one high-profile case, the home furnishings and cookware chain Williams-Sonoma matched names from its credit card sales and ZIP codes with a database to obtain addresses and other information for future marketing. One woman sued, saying she provided her ZIP code thinking it was necessary to complete the credit card transaction. In the resulting case the Direct Marketing Association and privacy groups showed sharply different outlooks on the practice. The case eventually made its way up to the California Supreme Court, which ruled in 2011 that stores cannot require patrons to furnish their ZIP code. California later confirmed the ruling in a law that bars firms from collecting personally identifying information during credit card transaction. Courts in other states such as Massachusetts earlier this year have reviewed the issue. As for Ulta, I contacted Cynthia Payne, the company’s senior vice president of store operations, to ask about Jo Anna Davis’s experience. “It is extremely disappointing for me to know that we have lost a valuable customer and that the service in any one of my stores was less than stellar,” Payne said. She added the company seeks to provide an exceptional guest experience and she offered to contact Davis to undo the damage from that visit. Just because businesses ask for a ZIP code does not necessarily mean that they will append data to their files to know where you live, your phone number, email and other information. The process costs money, and unless they have a way to market off the data, there would be no reason to do it. Ashley Misko, the Mob Museum’s director of marketing, did not observe to the code of omerta when I asked what the year-and-a-half old museum does with its customer ZIP codes. She said they do not cross reference names and ZIP codes with other data, but just try to understand where their visitors are coming from. “Ultimately, understanding how our patrons are finding out about us, which marketing/advertising efforts are affecting them, will give us the ability to make important decisions about our advertising resources and ZIP codes play a huge role in identifying that source,” she said. “We strictly utilize the information we receive to better understand the demographics of the market of those specific ZIP codes.”
Posted on: Sun, 07 Jul 2013 22:33:00 +0000
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