Customer data is readily available thanks to Web analytics, third-party data warehouses, and better customer tracking software. But how much is too much?
According to IDC, the world created 487 billion gigabytes of information in 2008, up 73 percent from 2007. Not all of that is customer data, but too much of it is, according to Eric Bradlow, professor of marketing, statistics, and education at the Wharton School of Business and editor-in-chief of the journal Marketing Science.
"Firms are buried under data, a lot of which they don't need," Bradlow says. "By looking at data minimization, they could save time and money by storing and tracking fewer pieces of information about customers."