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Data Atrophy


January 20, 2016

By Stephen H. Yu, Target Marketing

Not all data are created equal. There are one-dimensional demographic and firmographic data, then there are more colorful behavioral data. The former is about how the targets look, and the latter is more about what they do, like what they click, browse, purchase and say. On top of these, if we are lucky, we may have access to attitudinal data, which are about what the target is thinking about. If we get to have all three types of data about the customers and prospects, prediction business will definitely get to the next level (refer to “Big Data Must Get Smaller"). But the reality is that it is very difficult to know everything about anyone, and that is why analytics is really about making the best of what we know. Predictive modeling is useful not only because it predicts the future, but also fills gaps in data. And even in the age of abundant data, there are many holes, as we will never have a complete set of information (refer to “Why Model?”).
 
Among these data types, some are more useful for prediction than others. Behavioral data definitely possess more predictive power than simple demographic data for sure. But alas, they are harder to come by. It could be that the target is new to the environment, so she may not have left much data behind at all. May be she just looked around and didn’t buy anything yet. Or she is very privacy-conscious and diligent about erasing her behavioral trails on the net or otherwise. Maybe she explicitly opted out of being traced at all, giving up much of the convenience factors of being known by the merchants. Then the data coverage comes into the equation, and that is why analysts rely on demographic and geo-demographic data for their readily available nature. Much of such data can easily be purchased and appended on a household or individual level, at least in the U.S. If we get to have some hint of identity of the target, there are ways to merge disparate data sets together.

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