Big business is being taken for a very expensive ride. By whom? By each other. Confidence games are being perpetrated by Global corporations upon
only victims that can afford huge losses -- other Global corporations.How do
crooks get away with this? I submit that it's becoming harder for them to do -- except with each other! Somehow
giant corporations don't get that other giant corporations are scamming them out of huge amounts of cash for dubious deliverables.
CRM (customer relationship management) software costs upwards of $325,000 with additional integration costs of up to $100,000 and according to a recent Interactive Week Magazine article,
http://www.zdnet.com/intweek/stories/news/0,4164,2777006,00.html
that expensive software is so effective that it triggered a direct mail promotion from American Express to a heterosexual man, but that promotion was targeted at gay men, lesbians and domestic partners. His wife was as confused as he at
obvious blunder! That interesting vignette comes from
same article.
Let's see now, I'm going to pay about a half million dollars so that my company can offend and confuse my customers. Not a bad investment! What this means to
consumer is that they may receive appropriate advertising and promotional material if
software can draw logical conclusions based on past purchases, inquiries and page visits. A laudable goal if it worked perfectly but it clearly does not!
What it means in reality is that users of datamining software can send innapropriate promotions to people that may be confused, may be offended and certainly annoyed by their material even when it was requested, as it was in this case. You've taken a potential sale and turned it into a blunder. What does that do for lifetime customer value? How about return on investment figures with that?
I have a hosted application that can provide you incorrect and mixed-up customer data mining which cost only $60,000 yearly to host for you! I'd sure like to see
ROI (Return on investment) generated by that chunk of change! I also have a bridge for sale.
Is it any wonder that corporations are going bust? They're falling for scams that rip them off on a huge scale perpetrated by con artists offering data mining, knowledge management, CRM solutions.
I'd like to offer up a scenario that might illustrate awful data mining results. I also like to suggest that this is probably illustrative of why this expensive software might work but is inherently flawed in
conclusions it draws.
I visit an online book seller to buy a cookbook for my nephew, who is considering attending a culinary college. The confirmation page is prompted by
datamining software to display an advertisement for a recipe site when
purchase is completed, I'm not interested in that so I jump to my favorites and click on Yahoo, where I notice a banner ad for power tools and recall that I need a new reversible drill to help repair my patio deck.