The Dirty Secret Behind Coupons!
25th April 2010
I cannot restrain my vampire nature. When the Internet went mainstream in the late 1990s, I was working in the Federal government. I immediately saw the persuasion implications of computer interactivity, tracking, and instantaneous modification for behavior change. For the first time in human history, I had access to a mass communication system that permitted me to dangle messages in front of people, save and obtain their immediate response to the message, then dangle a new message based on that response. And, given how people use the Internet, surf, baby, surf (which means Low WATT, baby, Low WATT), I have a compelling advantage in the persuasion exchange: I’m thinking and you’re not.
Yet, if you read most investigative journalism you get pedestrian insights like this. Here’s the Big Deal:
Coupons.
Yeah. When you obtain an Internet coupon either from your iGizmo or your computer, the barcode on it contains a lot of Extremely Personal and Revealing Information about you that the store can use. For example, they learn your Internet address, Facebook page information, and even the search terms you use to get the coupon! Holy Privacy Invasion! The store then sends your coupon and the sales information to a marketing company that then aggregates all of this data to refine their Internet coupon marketing.
Consider this exciting insight,
“You can really key into who they are,” said Don Batsford Jr., who works on online advertising for the tax preparation company Jackson Hewitt, whose coupons include search information. “It’s almost like being able to read their mind, because they’re confessing to the search engine what they’re looking for.”
And this startling revelation.
“Wherever we provide a link, whether it’s on search or banner, that thing you click can include actual keywords,” said Rob O’Neil, director of online marketing at Tag New Media, which works with Filene’s. “There’s some trickery.”
Trickery? Come on now. These disclosures are so pedestrian that even the United Nations knows about it.
This cannot possibly be the limit of persuasive computing. Little old me as a dweebie Fed in 1999 had more . . . ahhh . . . nuanced thoughts. For example, Internet marketers are usually at pains to declare that no individually identifying information is collected, just that aggregate group data. That sounds reassuring, but I’d offer two concerns.
First, this cannot possibly be true. Marketers have a tidy file of several hundred bits of information about all of us at the individual level of an email address or a telephone number (probably cell) and certainly a mailing address. While they may claim to not collect such data, they are playing word games about the meaning of Individually Identifiable. No, they may not have a file with your name, fingerprints, and DNA sample. But, they do have an email address for Gopher69@hotmail, a cell phone at 507-888-8888, and an address in Edina, MN, plus 10 years of collated Internet activity at Amazon and Apple, Google and Facebook, and your voter registration, driver’s license data, and whether you prefer Straight or Gay at Redtube.
Second, if it is true that they have no Individually Identifying information on you, they have enough group characteristic data on you that makes your DNA sample irrelevant except in paternity cases. They know so much about your life that they don’t care what your name is.
Stated simply, they do know who you are, the same way the IRS, the DMV, and your Mother knows who you are. Yet, they claim they don’t have that Individually Identifying information. So, what else are they not saying?
I’d suggest that they are creating both group and individual psychological models of your behavior. Sure, it’s nice to know what search terms you used to acquire a coupon and then what store you took it to and how quickly you redeemed the coupon, but better still I’d like to understand the psychology behind all of this. If I had access to the kind of data these fellas already had, it would be as easy as falling off the persuasion log to create models based on the Big Five personality model, a persuasion model like the ELM or HSM, complex Standard Models linking reception to processing to response to behavior, and on and on. And, I could model this in real time.
Beyond that, I’d be creating what I call Persuasion Engines. A persuasion engine offers messages to receivers in real time, then modifies them based on receiver feedback, and offers a new message more closely aimed at that receiver. This feedback loop continues throughout the Internet session and is, of course, saved for future session and can be aggregated to create better models.
It would be almost impossible to see this persuasive modeling from your point of view. You’d navigate into your favorite website, make a couple of clicks on stuff you found interesting, not realizing that you’re becoming more interested and closer to a buying decision with every click until finally you’re at the Checkout. The website would look normal to you at all times. I could hide all the persuasion monitoring I’m doing from you.
Journalism is missing all this in part because they are trying to do the same things on their websites. All media forms that had once been major Cool Table players are now on the eve of destruction from the climate change called the Internet. Survivors will stay at the Cool Table while the others will be writing Want Fries With That copy. Survivors must master the Internet and thus have a vested interest in not saying too much about marketing uses of persuasion through the Web. A biting ethical dilemma, isn’t it? Journalism wants to speak Truth to Power, but when that Truth involves their Power, then, well, let’s find another Truth, Inconvenient or Otherwise.




