Working In The Data Mines…

It’s been discussed and debated around the world and the question still remains: Is data mining ethical?  For those who know me, my answer won’t be a great surprise.  I think data mining can be unethical but that is not inherently so.  The collection of information is a harmless act if the person whose information is being collected has given their consent and they are aware of the manner in which their information will be used.  And that’s where the controversy begins.

According to a study by Cyber Dialogue, 69% of American internet users were unaware that they had given their consent to be included on various email lists.  All one has to do is frame the question just so and add a default check mark in an unobtrusive place and *PRESTO!* you’re on a direct email list.  Hooray!  What is really disturbing about this kind of tactic is that an organization that is collecting email addresses in such a manner is doing such an ineffective job.  So what if they have an email list of thousands of addresses?  If 69% of those people don’t want to be on the list in the first place they aren’t likely to be a good sales lead.  And what’s worse is Return Path has found almost 20% of email marketers continue to send messages even after the receiver requests to be unsubscribed.  It, unfortunately, gives credence to the argument that those who make a living in marketing and sales have cloven hooves for feet and would sell their children for a buck.

On the other hand, data mining can be done in an ethical manner.  Firstly, more and more research is being done that will allow data collection while keeping the consumer anonymous.  Secondly, if consumers were educated regarding why ethical data mining could benefit them in the long run they may be more willing to cooperate.  Data mining can, amongst other things, can analyze buyer behavior.  When an organization uses information discovered using data mining they are certainly going to benefit from it.  But so is the customer.  In the example provided by Bill Palace, both parties had the potential to benefit from data mining:

 

“For example, one Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy beer. The retailer concluded that they purchased the beer to have it available for the upcoming weekend. The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the beer display closer to the diaper display. And, they could make sure beer and diapers were sold at full price on Thursdays. “

Certainly the grocery store will benefit by not offering a discount on Thursdays but the consumer will benefit also by the convenience of having the two items they most often purchase together near each other.

In short, it’s not data mining that is wrong.  It is the way the information is being used and the underhanded way many marketers are going about doing data mining that is labeling it unethical.