A business model for IoT retail(Beacon) : ‘Datalogix like’ insights which tie the social to the physical through Data Science and IoT?

 

 

 

 

This post is a part of my Data Science for IoT course

Note: In this post – I am not interested in the Datalogix – store card model. More to the implications of what it could mean for IoT .

Late last year, Oracle acquired a company called Datalogix ..

A Christmas gift perhaps for Larry Ellison – but with profound and disruptive implications

Datalogix does something very unique .. and had been on my radar especially for it’s relationship to facebook

The EFF describes this process in more detail which I summarize (Deep dive facebook and datalogix – what’s actually getting shared )

Datalogix is an advertising metrics company that describes its data set as including “almost every U.S. household and more than $1 trillion in consumer transactions.” It specifically relies on loyalty card data – cards anyone can get by filling out a form at a participating grocery store.

Data from such loyalty programs is the backbone of Datalogix’s advertising metrics business

What data is actually exchanged?

Datalogix assesses the impact of Facebook advertisements on shopping in the physical world.

Datalogix begins by providing Facebook with a (presumably enormous) dataset that includes hashed email addresses, hashed phone numbers, and Datalogix ID numbers for everyone they’re tracking. Using the information Facebook already has about its own users, Facebook then tests various email addresses and phone numbers against this dataset until it has a long list of the Datalogix ID numbers associated with different Facebook users.

Facebook then creates groups of users based on their online activity. For example, all users who saw a particular advertisement might be Group A, and all users who didn’t see that ad might be Group B. Then Facebook will give Datalogix a list of the Datalogix ID numbers associated with everyone in Groups A and B and ask Datalogix specific questions – for example, how many people in each group bought Ocean Spray cranberry juice? Datalogix then generates a report about how many people in Group A bought cranberry juice and how many people in Group B bought cranberry juice. This will provide Facebook with data about how well an ad is performing, but because the results are aggregated by groups, Facebook shouldn’t have details on whether a specific user bought a specific product. And Datalogix won’t know anything new about the users other than the fact that Facebook was interested in knowing whether they bought cranberry juice.

This is very interesting and powerful

But lets think beyond store cards .. Think IoT / Beacons

Substitute ‘store cards’ with ‘Retail IoT’ and you have a very unique models that could power IoT in Retail powered by IoT analytics

Beacon based shopping alredy exists via companies like estimote

So, my point is .. the model(independent  of Datalogix the company) could be used to close the loop between the Physical and the social. IoT / Data Science / Data analytics will pay a key role here

Comments welcome on twitter @ajitjaokar