When Big Data Becomes Bad Data, a Rite Aid Story

November 2, 2014

Lisa Apolinski

Lisa Apolinski is a professional speaker, blogger, and digital strategist. With her company, 3DogWrite.com, she works with event managers to get their message to attendees, particularly through digital channels, on and off the show floor.

I was having a great conversation this week on Rite Aid’s decision to disable the ability to use Apply Pay and Google Wallet because of their contractual obligations with CurrentC.  After doing some digging and reading up, this seems to be a case of corporations and big data gone bad.

So, when does getting your hands on that data become an issue, and how do you balance data capture with great user experience?  Let’s examine the Rite Aid story and see what went wrong.

The act of the capture: Many of the complaints about CurrentC are around asking for sensitive data up front (like your driver’s license and social security number).  You haven’t even seen how the mobile pay system will work, and they are asking for personal information.  The question users have is ‘why’?  One comment was “Are these people high? They expect me to give them my social security and driver's license number just to use their <holding back laughter> QR code payment system?  The Target hacking fiasco of last year illustrates exactly why I don't want info like my SSN or DL# on some hacker-tempting server.”   

When you think about your attendees, give them the option of what they will provide and build a foundation of trust before you ask. Provide information on the company and features and benefits of your products and services first. Asking for too much data too soon feels like a scam for many users.

Benefiting the user experience: The second big issue is that the users are feeling they are using an unsecure system just to provide a company with data and using antiquated technology.  The comment about on the QR code echoes many sentiments posted about the system.  One commenter went so far as to say “I would sooner cut my right hand off than use CurrentC!” That seems a bit dramatic, but the sentiment is the same: there needs to be a clear benefit between the user providing data and what the user experiences.  In venue management, the experience has to be stellar and give more than what the attendee expects.  This is where strong demonstrations and lectures in-booth come in, providing that great user experience.

If there is no benefit to the user, why would they provide their incredibly valuable data to you?

Refusing the sale for the data:  I was almost shocked by the last comment I read, which was a review on iTunes.  The comment had all the elements above and then went to the last, and quite powerful, point: “[P]olicies around stores using this payment system lock out any other mobile friendly ways of paying, like anything that uses NFC, for no other reason than that they can't track data on you as well if you don't use their system. That locks out things like Google wallet and Apple Pay. Here's a novel idea, take my money, however I want to hand it you when I want to pay for something. If you don't want my money, well, I guess good luck with that business model.”

While I tout collecting data, I would never recommend data collection over revenue collection. The idea behind data collection is to learn how to get to the sale.  This is where the desire for the Holy Grail of Data may have confused the higher ups at Rite Aid. Because at the end of the day, the sale and the customer’s satisfaction are what matter.  FYI, my sibling texted me that the Rite Aid rewards card doesn’t give you any real discounts, and is probably just another way to collect data.  His final words: “Tear up that card. Now.”

Don’t let big data become bad data and alienating your prospects and clients as a result.

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MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.    Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.    Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.   The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.    MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.     MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.