The desire to collect information on customers is not new for Target or any other large retailer, of course. For decades, Target has collected vast amounts of data on every person who regularly walks into one of its stores. Whenever possible, Target assigns each shopper a unique code — known internally as the Guest ID number — that keeps tabs on everything they buy. “If you use a credit card or a coupon, or fill out a survey, or mail in a refund, or call the customer help line, or open an e-mail we’ve sent you or visit our Web site, we’ll record it and link it to your Guest ID,” Pole said. “We want to know everything we can.”
Back in college one of my favorite class projects dealt with data envelopment analysis. Essentially the aggregation of data to create predictive models. The crux of this type of model is that it requires a ton of statistics, and naturally lends itself to something like sports. Our project was on predicting the performance of golfers based on trends in several statistics.
In the past applying these models to "normal" life was nearly impossible. The data just wasn't there. But almost 10 years later everything has changed. Our data is being collected and aggregated everywhere we go. Most of us carry around smartphones that are collecting data on us everywhere we go. The crazy thing is, nobody is spying on us or prying this data from our hands. We are all handing it over with status updates, facebook likes, and foursquare check-ins. We use plastic to pay for things, which makes it simple for business to track exactly what we are buying, as well as when and where we are buying it. All the Targets across the world talk to one another. They know where you are. It is a little scary. I might start keeping a little more cash on hand.