Amazon Patent Shows Why Data Will Dominate in 2014
Amazon.com Inc. (NASDAQ:AMZN) has developed a system premised on the idea the corporation knows customers better than it knows itself. In the patent filing, Amazon calls it “anticipatory shipping,” a scheme, which is simply the latest development in retailers using compiled data to gain insight to the mind’s of shoppers. The Amazon patent uses an algorithm to determine what a consumer is likely to buy. This item is then sent in the general direction of the customer, so when it is ordered, the delivery time is minimized.
At the first glance, Amazon, or any company, guessing what someone will want to purchase appears one Orwellian step above what other companies are doing. However, is it really all that different from a company sending advertisements to customers based on past buying habits, or using an third-party to analyze customer behavior?
On its website, dunnhumby labels itself the world’s leading customer science company. Using data, the company provides consumer insights to a number of diverse retailers. Clients include grocery giant The Kroger Co. (NYSE:KR) , beverage maker The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).