Its all about the data…

Why would Google want to get into the mobile payment industry? Think about the purchases you make on a daily basis and what they say about you. By compiling a list of a person’s purchases you can tell their geography (where they live and hang out), approximate their demographic and financial data and get a deeper look at their spending habits (what stores do they frequent, what sort of products do they buy etc). Like any other initiative that Google does they will be using your data to target advertisements in the form of offers and loyalty programs.

Further implications:

Without knowing the governance of this type of consumer data (and not knowing Google’s future plans) through the help of Google, companies could potentially have a wealth of data at their fingertips as a result of this initiative. First through the use of loyalty programs companies can link offline user accounts to their online accounts and compare their purchases. This could help them see the recency and frequency of purchases ( good ol’ RFM) but also see how consumer behaviour differs between the two outlets. By having this data they can make a wide variety of changes to what consumers experience either in store or online.

Again if privacy regulations allow it, companies can also get a better view of their customers and the general public on a more macro view. Having access to this wealth of purchase data companies can see what segments of customers are purchasing their products, what other products they are likely to buy and in some instances get a better sense of the purchase cycle. In terms of a supply chain view companies could also see at what times in the year consumers are more likely to purchase products and as a result they could work harder to move customers into their stores at these peak times.

Looking at this from a marketing and CRM point of view this development from Google has a lot of potential for companies to better reach customers and optimize efforts. On the consumer side of things it could get a little scary. Essentially through the use of this app  you could potentially be  giving away all of your purchase data for Google to sell to companies.In the past this hasn’t gone that well in the realm of public opinion ( remember Facebook beacon?). With more companies looking to move into the mobile advertising and payment field this will definitely be a development to watch for as to whether it works for the better or worse.

Interacting with members outside of the site: The creators of this site not only interact with members through social media sites such as Facebook and Twitter ( ex: @ kn0thing)  they have offline meetups!  I’ve met with them personally last year during their Drankkit World Tour where they went to major centers and sat down and had drinks with members ( a few pics of me at that event included)  but they even do it randomly including having dinner with a Reddit member who just asked if anyone were interested in going out for dinner.

They personalize: The Reddit alien is a big part of the personality of the website, almost every day  a new drawing of it is posted up depending on current events or project of the site. From time to time as a result of already mentioned meet ups or requests of members the Reddit Alien is redrawn or the Reddit logo even contains relevant pictures. As well the website is in a constant state of change( much like Gmail its in constant Beta)  if there are enough user requests certain aspects of the site are changed.

Not only are they creators, but they are also users: They don’t passively watch the site or attempt to moderate it , they are fully involved members. They aren’t afraid to get in there and post a comment or link and create discussions with other users. They also start side projects that encourage further member collaboration. Sometimes it can be silly such as Mr.Splashypants  but even in more serious matters such as Reddits Feed A Need campaign where users are encouraged to lend their skills and time in helping out a not for profit organization.

Overall I have a major heart on for this site and its creators. As a consumer I have a choice between Digg and Reddit  as they are essentially the same site and many times have the same links but  as Reddit has worked harder to befriend me my loyalty is pretty cemented in place . I’ve included a few pictures from Drankkit Toronto 07 , some with me included. Enjoy!  

The 2 Reddit Creators , Steve Huffman and Alexis Ohanian with Jenna Landry from Wired Magazine

My attempt at a "C" for Canada.... it ended up pretty lame!

Have any Questions/Comments? Contact me at kevin.richard@ryerson.ca or send me a twitter message.