Nothing Personal... It's just business... But please give us your personal information...
Photo by Blake Wisz on Unsplash
It has been said in the past that "Nothing in this world is free" and it seems that we are seeing that more often than not in today's world. If something doesn't cost money, find a way to charge for it. If something does cost money, find a way to charge more. How much can an individual or business stand to make if they push the limits just right?
While it would be a fun time for me to type out a multi-section rant on how much things cost these days (and maybe shake my fist in the air while I'm at it), now is not the time. I personally would feel better after writing it, but there is another side to this coin to cover first... what about things that don't cost money? You could be hard-pressed to find something in the 2020s with real world value that comes at no cost. We are in an age where we have monetized features in cars (that were previously just part of the car for free), drink refills (literally the worst thing ever, my day is ruined), and little blue checkmarks on social media (at least for a while). If it can be charged for, it's being charged for.
Or is it?
Go make an account on Facebook. How much did you pay? Sign up for a newsletter on a website. Did you get charged? Enter your local mall and pick up a loyalty card at the first store you see. Did they want money for it?
There is plenty of things that you can get for free both digital and real world! Things is... they're not really free. To get that account, newsletter, or card, you needed to give something in return. It wasn't money, it was information. For businesses these days, that information is arguably more valuable than the few dollars they would have otherwise charged. There's a reason that you can't go anywhere or do anything without being asked (borderline harassed) for your name, email address, and phone number. I mean this quite literally; there are businesses that will prevent you from using their service without providing a profile's worth of personal information. Payment has changed forms, but it's still there all the same.
So why do companies want your information so badly? What tactics are used to get that information? And how much information is truly out there on...you?
Photo by Van Tay Media on Unsplash
Nice email address you got there
If at any point in the last while you paused and though to yourself "Really, you need my name and phone number for that?", you are not alone. Businesses have become downright aggressive as far as trying to get your personal information. Want to be part of a loyalty program? Name and phone number required. Want to use a website for free (with an account)? Name, birthday, and address required. Buying a single one-off item at a random store? Not without giving your name and email you're not! While some things will understandably need some form of information to properly function, there appears to be an increase in the number of businesses poking around in your personal information when it isn't necessary.
But why? Why do they care so much? As it is, they tread a fairly thin line asking for some of the information they ask for. If a person walked up to you in the street and demanded to know your email address, you'd likely be walking the other way (and getting ready to call the police if they persist). The reason we tolerate it is because the person asking me for the information is standing between me and my new pair of jeans and won't let me complete the purchase without it. That doesn't stop it from being weird. (Pro Tip: Make an email account to give out if you're asked for it and use it for nothing else. Best. Thing. Ever.)
The reason businesses want your information is two-fold. First and foremost, they use it in a large variety of ways. Ever get a newsletter in your email inbox? That newsletter was released to a mailing list that includes your information in a database somewhere. You likely (if you're like me) immediately deleted it, but there are a good number of people that don't. The success rate of those sorts of marketing tactics is notable enough that this sort of thing continues.
It's not just newsletters either. Text messages (if you gave a phone number), birthday offers (if you gave your birthday information), or personalized deals (if your purchases are tracked) are all marketing tactics that use your information as fuel. Companies want your data so they can sell to you better and track you. How's that for a creepy tagline!
The other side of things is the re-sale value of your data. Data has value, and your data being included in a large release of personal information via a sale is nothing personal. For a small bag of money, companies will sell data for the purpose of circulating information such as active phone numbers and email addresses. It has gotten to the point where some places have begun putting controls in place to prevent it from happening. So yeah, if the business you gave your info to isn't using your data, it's because they sold it to someone who is. Wonderful.
Photo by Stephen Phillips - Hostreviews.co.uk on Unsplash
Gatekeeping at its finest
As I mentioned above, your data has value. Maybe not in the conventional sense, but there is money to be made in the use and sale of your information. Getting this information can be tricky though. It's not like everyone is walking around just waiting to hand out their phone number and home address to anyone asking. And really, this data is the driving force behind targeted advertising, dynamic pricing, and personalized promotions.
So how do you get that info? There are two general ways to go about it...
Incentive
The arguably more popular of the two options is incentivizing people to willingly give up their information in exchange for some form of reward (likely because you don't come off as a gatekeeping jerk to your customer base). How many times have you been offered a discount on a "first purchase" in exchange for your email address to "Create your account"? I'm willing to bet this has happened at least a couple times, but have you ever wondered why they don't police the "I'll give you another email account next time" strategy? It's because the email address is more important! The company has another account it can sell (or sell to) and all it took was a proverbial carrot on a stick.
People love getting things for free or for cheap. Stuff is increasingly expensive and getting a better deal is always an enticing draw, but it's not the only incentive used. Exclusive offers, memberships, rewards programs, and more are on the table as options. Oh, and be sure to refer a friend for ten dollars off your next visit so they can give us their information too.
Punishment
The less fun side of the equation, this has the potential to be just as effective if used correctly. Punishment is used to penalize someone for not giving up their personal information and is the primary method used by websites. Whereas stores can generate revenue through sales, this can sometimes be difficult for web-based entities. As a result, they look to restrict access and leverage "Fear of Missing out". Ever wonder why you can't read something without making an account? It's because they are punishing you for not giving up your information. Many accounts are free to make, but bonus points to those places that ask for credit card information on signup (and by bonus points I mean that in a bad way, don't do that).
Punishment as a method is a risk. For every person that hands over their information and makes an account with that business, two more are turned away and likely made to be frustrated with the lack of access. Using this sort of method also negates any good-will that may come with incentives in play. There's a reason it's not used as frequently, but it may also become the more popular method as more businesses move operations (and advertising campaigns) online.
Photo by Steve Lieman on Unsplash
They know who you are
With all this information flying around, it's important to make sure that only those you trust end up with yours. You can be as selective as you want, but at the end of the day, is it really possible to know who has what information? Yes, you may have only given out bits and pieces of information, but if that information is sold, you have very little control over who gets that data.
So what do they do with it? It's not likely that they're going to attempt anything wild like identity fraud. Businesses tend to only sell to other businesses, and not many businesses are willing to hedge their reputation on mass amounts of criminal activity. More than likely, the information will be used to track things such as location data, spending habits, and response rates as far as phone and email are concerned.
You may think that this is all shady and underhanded in the first place, but you likely gave companies permission to do this without realizing it. In a time where digital safety is paramount and you need to be more careful than ever on the internet, I ask you this... when is the last time you actually read through the terms and conditions when signing up for a newsletter or membership card? I'm willing to bet probably not a lot of you have done that in the past year (if ever). No one has time to read those things and they can be overly long. There is tons of opportunity to sneak weird stuff in there (as has been done before). Using your personal information for resale purposes seems tame to the possibilities.
So really, how much data is out there that leads back to you? Likely anything you've ever entered into an online portal or relayed to a cashier at a store. It's not used to be evil or creepy or anything, but the reality is that you are not as anonymous as you believe. Will anyone go and put together all the pieces and assume their place as the "Second you"? No. They will, however, likely phone you to see if the phone number is active (and if you're me, they'll try to convince you that you live in a city about two time zones over and make a fool out of themselves while trying to sell you furnace cleaning. That was an interesting day.). All jokes aside though, being aware of what information you put out into the world and who may end up with that information is important. Once more for good measure, your information is valuable.
Photo by May Gauthier on Unsplash
You are now personally informed
As marketing continues to become more data driven, expect the push for your personal information to be increasingly noticeable. It already feels like it's everywhere, but places that don't already mandate your data being collected... well... let's just say the next step in this chain of events is obvious. It will leave no choice. Don't want to give your information away? That's fine, but where will you go if everyone is requiring you give out that information? The best thing you can do is be aware of what's out there and how to best protect yourself in the event your data gets out.
In the meantime, do what you can to limit the personal headache of it all. Don't sign up for things you don't need. Give out information that is made for the purpose of being a "Junk Sponge" (again, I recommend an email account that only exists to be given out for these sorts of things). If you haven't yet, password protect your stuff and do the annoying two factor authentication thing (it's a pain but it's better than having ACTUALLY critical information like bank account stuff get released).
And if you're the one running the campaigns that use this data, please, I beg you, don't email me daily. You are not that important and you will get unsubscribed.
*Mic drop
~IR
How many places have you given your personal information out to? Have you noticed an increase in the amount of places asking for your information? Or maybe you just have a comment to add? Check out the Facebook, Twitter, Instagram, or LinkedIn page and let everyone know. Don't forget to follow or like the page for updates! And share this article if you feel others should give it a read!
Return to Home
Return to Technology
Comments