Every time someone downloads an app on their phone, there is usually a Terms of Service. Most people click Accept without a second thought, but in doing so, they can opt themselves in to have their information collected by the app and released to companies that purchase the data to study — companies like Fort Worth-based analytics group Buxton.
The concept may be slightly unnerving for some users, but for businesses, the information gathered can be a useful tool in understanding customer demographics. Using detailed information through phone and credit card data, companies now can pinpoint where their guests are traveling from, how long they stay, what else they do while in town and more.
These demographics go beyond just age, gender and location, however. They also include individual lifestyles and behaviors, allowing companies to better understand not just where they shop at, but why they do. With this data, businesses don’t have to shoot in the dark when it comes to marketing — they know exactly what kinds of people they are looking for.
Local companies are taking full advantage of Buxton’s platform, like the Fort Worth Stock Show & Rodeo, which has been working with Buxton since 2012. The Stock Show has been able to focus on demographics for off-peak times, like midweek activities and matinee shows. By finding out more about the groups of people coming during these events, the Stock Show can better market to similar individuals to boost activity.
“There are always questions about how guests are enjoying their time at the Stock Show/Rodeo, so historically, data available has been limited to ticket purchasers,” says Jeff Davis, a vice president at Buxton. “We now have the ability to understand the real guest experience — to be able to fill in the blanks we really didn’t have the visibility to previously without the paper trail.”
Using this form of data analysis, Buxton was also able to figure out that between 23% and 40% of people visiting the American Airlines Center in Dallas came from the Fort Worth area. Now that Fort Worth has its own Dickies Arena, the operators have a better understanding of what types of events the city should attract. For example, Buxton pinpointed that Fort Worth’s audience typically prefers country and rock music over genres such as pop or hip-hop.
As helpful as this could be for business, Davis says Buxton understands the concerns of the general public when it comes to gathering their personal information. Jodi Philbrick, a senior lecturer in the Department of Information Science for the University of North Texas, says the main issue is that people are not more conscious of what they are agreeing to when accepting a Terms of Service agreement.
“If more people were aware that this data is being shared, they would be more cautious,” Philbrick says. “The fundamental issue is how do we educate people to be more aware of the privacy issues surrounding the sharing of mobile data and have them be more cognizant of their terms of conditions of apps.”
Still, the data that Buxton provides is granular and considered very accurate, meant to help companies best serve their client base using important behavioral patterns and biases. Other local groups that use Buxton for their customer analytics include Cook Children’s Health Care System and TCU’s Neeley School of Business.
“We call it the decoder ring of being able to view and unlock the keys to the map of mobile data,” Davis says. “We use all of the experience to actually be able to apply that data in a way that is extremely accurate.”