ARTICLE

Only the Paranoid Survive
by Sean Francis

Ever hear of a company called Verbind?  Verbind's claim to fame is software system called LifeTime.  LifeTime is a database marketing tool.  Okay, nothing interesting so far.  Database marketing tools are designed to predict consumer behavior based on the habits of a statistically similar group of people.   According to a Wall Street Journal article, LifeTime differs from these other tools because it is able to keep tabs on individual customer transactions.

A company purchases Verbind's LifeTime system and integrates it with its transaction tools, whether it be a credit card system, phone system, or retail systems.   Everything from calls to technical support to purchases made with preferred cards can be tracked, per individual.  The basic idea is a pattern of behavior might indicate the customer is "ripe" for some sort of communication from the company.   Banks will be able to predict when you are about to close your account and prompt you with loan opportunities.  Catalogs will be able to see you normally make one purchase every six months and target you with mailings in the month you normally make your purchase.

Essentially, Verbind's LifeTime software system, according too Jeff Caplan, vice president of marketing at Verbind, to so help its corporate customers avoid wasting costly discounts and premiums on people who woudl have kept buying anyway. 

LifeTime has a future on the internet with e-commerce.  Traditional modeling of consumer behavior looks at combined purchases.  Consumers who like the book Hannibal also liked the book Silence of the Lambs thus when a customer buys one from a website, the website automatically prompts the consumer with the other.  Thus far, this modeling has produced less than amazing results.  The Wall Street Journal says "LifeTime would know more about the individual's past purchases -- including those at the retailer's brick-and-mortar stores.  It also keeps track of merchandise that customers researched online but never bought." 

In Verbind's opinion, customers won't see this as an invasion of privacy if the software only enhances the communication with a company the customer already does business with.  I disagree strongly.  I don't want anyone trying to predict my behavior even if it is in my best interest, because normally it will be an attempt to get me to spend more money.

Reel.com, an e-commerce site that sells movie videos, is signing a contract with Verbind to start using LifeTime to track it's customers.  Soon more will follow suit. 

The reader is encouraged to draw their own conclusions.  But in my opinion, Verbind is part of the Technocracy.  Thus, any company that is known to use LifeTime to discover my buying habits is now going to be actively avoided. 

Just because you aren't paranoid, doesn't mean they aren't after you.