Posted by Rob Brosnan on October 14, 2011
David Streitfeld at The New York Times' Bits blog comments on Representative Edward Markey's (D-MA) letter to Amazon. Streitfeld says:
But if you use the tablet to post reviews of Italian restaurants on Yelp, Amazon would merely collect that data, bundle it with the fact that a lot of customers in your community seemed to be favorably reviewing Italian restaurants, and then strike a deal with one restaurant to offer discounts, which it would e-mail to you. Some customers might feel tracked; others might not even notice.
David's example is certainly worthy of consideration. Building a database of targeted offers and triggered campaigns from aggregated browse behavior is one way for Amazon to extract value from Silk. It's clearly a striking example for privacy advocates, but it's not the whole story.
Aside from the Customer Intelligence advantages, Amazon's Silk browser also provides the retailer with competitive intelligence (the other CI?). Amazon can watch for products or product combinations purchased on competitor websites, then optimize its merchandise to match or beat those competitors. Besting other retailers doesn't require it to track individual Kindle Fire users or target them through seemingly creepy direct marketing. Instead it can continue to do what it does best -- optimizing its supply chain and catalog -- without appearing to overstep customers' privacy expectations.
The competitive issues raised by Silk are as critical as the individual privacy concerns.
Are you a retailer who competes with Amazon? What should CI professionals do to combat Amazon's move?