SCENARIO II
Please use the following scenario to answer the next THREE questions.
A U.S.-based national retail store chain is looking to expand its business and has recently hired its first chief privacy officer (CPO) and a new chief marketing officer (CMO) to help it drive greater marketing efforts in a way that protects privacy.
The company already operates in several states but currently does not operate in other countries. In addition to its brick-and-mortar retail locations, the company has a website where people are able to order items for home delivery.
The CPO has been asked to review the company’s existing practices related to personal data and to remediate any significant issues they identify. One of the first areas that the CPO reviewed was practices related to marketing to existing and potential customers.
The organization used to rely on non-personalized marketing techniques, such as TV and radio advertising and physical billboards, as well as personalized marketing to individuals who have joined their loyalty program. The new CMO is looking to develop and deliver more personalized marketing experiences using personal data to target specific groups and individuals, with the goals of increasing both the customer base and increasing the total amount that existing customers spend per year.
The CMO meets with the CPO and relays that the marketing team has several analyses they would like to run to assist with the marketing efforts:
First, they would like to identify potential new store locations to meet the needs of online customers who might prefer to shop in-person. The sites must meet the following criteria: (a) they do not have an existing store within 20 miles, and (b) there are a minimum number of people with similar demographics to their existing customers. Before they commence this analysis, they would like to gain a baseline understanding of where their current online customers live.
Second, the CMO would like to run a joint marketing campaign with another company. To do this, they would like to identify customers the two companies have in common so they can target them for this campaign.
After the meeting, the CMO emails the CPO and tells them that as part of their analysis, the marketing team has identified an old customer dataset which has not been updated for several years and does not appear to be in use.