Google Is Raiding Retailers
I predicted that Google would start tracking purchases via credit card numbers a year ago. I’ll bet some of you thought I was crazy. Reporting for Engadget, Chris Ip wrote a story about how Google is indeed tracking credit card purchases.
First, Google followed you to the store using location data, much like Foursquare. Then its launched its Express shopping service. Now, it will track billions of credit and debit card transactions in an even bigger effort to prove its online ads push users into brick-and-mortar shops.
First, Google followed you to the store using location data, much like Foursquare. Then its launched its Express shopping service. Now, it will track billions of credit and debit card transactions in an even bigger effort to prove its online ads push users into brick-and-mortar shops.
I predicted this would happen last year because this is the kind of analysis that retailers do with their own databases. I did it when I was working for the Cabela’s Corporation. I tracked customer behavior via their credit card numbers to try and quantify trends. I was more interested in quantifying the financial impact of a large investment than peeking into people’s habits.
It’s interesting that Google is treating all Android users as their customers in the same way as a retailer would. Sure BestBuy, Amazon, or your local grocery store do it. They’re already recording all transactions in order to forward your sales tax to the government or send you your merchandise. Retailers have been collecting customer data for decades because they don’t have an option not to.
But Google isn’t the one selling you anything. And yet, they take the same liberty as if they were the first party retailer selling you the merchandise. This is kind of like the owner of the mall that leases space to Dillard's sifting through all of Dillard's sales info. Furthermore, this is valuable data to the retailer. They don’t want anyone else seeing it let alone profiting from it. And yet, Google walks in and takes their data like mafia goons.
There’s a whole new class of privacy victims that no one is talking about. Retailers. Cabela’s regarded their customer sales data from their catalog sales as the crown jewels of the company. We could use this data to decide where to place our bricks-n-mortar stores with a high level of success. This gave Cabela’s an advantage over Bass Pro which didn’t have a robust catalog arm. The last thing Cabela’s would want is for Google to study their customer’s credit card sales and use this data to help any of their competitors. But that is exactly what Google aims to do.
Nothing that Android users do is technically off limits to Google. The same is true in regards to iOS users and Apple. But Google makes their money via connecting customer habits to advertising and Apple doesn’t. So Apple has the option of leaving customer data alone. Google can’t.
It’s interesting that Google is treating all Android users as their customers in the same way as a retailer would. Sure BestBuy, Amazon, or your local grocery store do it. They’re already recording all transactions in order to forward your sales tax to the government or send you your merchandise. Retailers have been collecting customer data for decades because they don’t have an option not to.
But Google isn’t the one selling you anything. And yet, they take the same liberty as if they were the first party retailer selling you the merchandise. This is kind of like the owner of the mall that leases space to Dillard's sifting through all of Dillard's sales info. Furthermore, this is valuable data to the retailer. They don’t want anyone else seeing it let alone profiting from it. And yet, Google walks in and takes their data like mafia goons.
There’s a whole new class of privacy victims that no one is talking about. Retailers. Cabela’s regarded their customer sales data from their catalog sales as the crown jewels of the company. We could use this data to decide where to place our bricks-n-mortar stores with a high level of success. This gave Cabela’s an advantage over Bass Pro which didn’t have a robust catalog arm. The last thing Cabela’s would want is for Google to study their customer’s credit card sales and use this data to help any of their competitors. But that is exactly what Google aims to do.
Nothing that Android users do is technically off limits to Google. The same is true in regards to iOS users and Apple. But Google makes their money via connecting customer habits to advertising and Apple doesn’t. So Apple has the option of leaving customer data alone. Google can’t.
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