Sunday, March 27, 2005

A Medium Sized Brother

I was just reading an article about A9.com, a search engine company that happens to be a wholly owned subsidiary of Amazon.com. The focus of the article was on the information gathering abilities of Amazon and how well they use them. And they certainly are good at it! Normally, I don’t like to give out any more information than necessary while visiting new websites, but with Amazon, it’s as if I’m visiting a friend and my reservations are soon forgotten. They greet you by name, (a simple “cookie” trick) and then they recommend some books, some films and perhaps something exotic, like a new 3/8” drill motor from Skil. Amazon is no longer just an on-line bookstore; it’s evolved into an on-line department store as well. And they know where you are in that store at any time while shopping and they remember it. They also remember everything you bought; so if you are looking once more at a book you purchased in the past, they will remind you of that fact. I also like their product reviews and I like the fact that I can choose to buy used books and CD’s at a greatly reduced price. And they have my address and my credit card information, so I can use their 1-click shopping technology to speed a book on its way without any tiresome filling out of forms.

OK, I’m hooked. So what’s wrong with that? Here’s some pro’s and con’s…

Technology that can accurately anticipate a customer's greatest desires is going to be crucial in the growing competition with Internet-based upstarts and traditional retailers moving online, said analyst David Garrity with Caris and Co.

"One would argue that this is the basis on which a great relationship with a customer was founded," Garrity said. "If only our significant others were like this."

But Amazon must build that relationship without alienating the customer. As customer tracking gets more detailed, Garrity said Amazon and other companies should start asking customers for permission to gather certain information.

To some privacy experts, Amazon has already crossed the line.

Most recently, Amazon tangled with privacy advocates over a patent on technology that aims to track a shopper's gift-giving habits, including the recipient's age and preferences.

Karen Coyle, a member of Computer Professionals for Social Responsibility, worries that the technology would be used to gather information on children, perhaps violating a federal law that limits the gathering of information on kids under 13.


Amazon spokesman Craig Berman says the company hasn't yet used the technology, and he insisted it would not violate those federal guidelines.

Even some of Amazon's biggest foes say customer tracking can make shopping more convenient.

Despite the benefits, however, government-backed restraints are needed as technology gets smarter, said Jason Catlett of the privacy advocacy group Junkbusters.

"People need legal rights to see the profiles that are built about them and to change or delete what they want," Catlett said.

I would have to agree. I would like to be able to edit my Amazon profile. But as far as privacy goes, I think we all gave that up a long time ago.

So visit A9.com and see what's in the future...and don't be surprised when they greet you by name.

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