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How Companies Learn Your Secrets

from the New York Times (Registration Required)

Andrew Pole had just started working as a statistician for Target in 2002, when two colleagues from the marketing department stopped by his desk to ask an odd question: "If we wanted to figure out if a customer is pregnant, even if she didn't want us to know, can you do that?"

Pole has a master's degree in statistics and another in economics, and has been obsessed with the intersection of data and human behavior most of his life. His parents were teachers in North Dakota, and while other kids were going to 4-H, Pole was doing algebra and writing computer programs. "The stereotype of a math nerd is true," he told me when I spoke with him last year. "I kind of like going out and evangelizing analytics."

As the marketers explained to Pole--and as Pole later explained to me, back when we were still speaking and before Target told him to stop--new parents are a retailer's holy grail. Most shoppers don't buy everything they need at one store. ... But Target sells everything from milk to stuffed animals to lawn furniture to electronics, so one of the company's primary goals is convincing customers that the only store they need is Target. But it's a tough message to get across, even with the most ingenious ad campaigns, because once consumers' shopping habits are ingrained, it's incredibly difficult to change them.

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