Posted on: Sunday, April 25, 2004
Few shoppers flattered by request for number
By Margaret Webb Pressler
Washington Post
It can be a bit disconcerting to wander around a store, pick out what you need, stand in line and then be asked: "What's your phone number?"
Or even "ZIP code, please."
These encounters pierce the zone of privacy we expect when we shop — most often with no sales help. The request/demand for personal information are frequently the first words you hear from anyone in the store, and more than a few people recoil from such presumption — though responding is purely voluntary.
Why do retailers want this information, anyway? Is it worth the irritation factor?
Apparently it is. The marketing research that can be extrapolated is rich, and some companies even use it for security purposes. For many retailers, the opportunities are irresistible.
"It is very helpful," said Toni Vardiman, a spokeswoman for Linens 'n Things, which asks customers for their phone numbers.
Linens 'n Things used to ask shoppers for their ZIP codes, but that wasn't as useful. Typically, retailers use ZIP codes to determine which neighborhoods a store is drawing from and perhaps track shopping trends.
By and large, ZIP codes are pretty easy to wrest from customers. Most don't object because ZIPs aren't especially personal. But some shoppers are unnerved by the idea of giving up any details about themselves. One wom-
an said she always gives the ZIP code for Guam, and another said she never surrenders any information, because "I don't get paid to help them with market research."
That's why it can be especially tricky to ask for a phone number. Retailers really want what they call a "reverse appendage" — that is, the address that goes with it, easy to get from public databases.
Most retailers use the addresses to send coupons and catalogs to shoppers. Toys "R" Us uses them to mail special offers. Other companies are finding more consumer reluctance and figuring out ways to deal with it.
At RadioShack, for many years shoppers were asked to give their phone numbers before transactions started. But the chain discontinued the practice in late 2002. Now it asks for contact information only from customers who have bought long-term contracts for service or maintenance.
"At one point in time, it was no big deal for most people, but in recent years we had found more and more resistance from people wanting to give that kind of information," said Charles Hodges, a spokesman for the chain. Eventually, RadioShack found the quality of information was going down. A customer might say his name is Joe Smith and lives at 123 Main St., for example.
When the company stopped taking phone numbers, Hodges said, "we got nothing but praise from our customers and our sales associates, because they're the ones who took the heat."
Linens 'n Things, too, is trying to figure out how to respond to the negative feedback it sometimes gets. One possibility, Vardiman said, is to ask for a ZIP code and just the first three digits of a shopper's phone number, which would give more detailed information about shopping patterns than ZIP codes alone.
Data collection at the point of sale has many uses beyond direct marketing. Most chains now take the shopper profiles they gather at checkout to their real estate departments to determine what areas might be ripe for new stores based on the travel patterns of existing customers. Other chains are finding security uses for the data they gather. For example, Stride Rite, the children's shoemaker and retailer, follows up on any customer return with a phone call to confirm that the person actually returned the item.
"At times you find out you have a dishonest associate who was putting through a refund in (a shopper's) name," said Jay Nannicelli, senior vice president of operations for Stride Rite.
The security uses for personal information are expanding, too. Dan Butler, vice president of operations for the National Retail Federation, said some credit-card companies are using ZIP code information to catch fraudulent credit-card purchases, by matching ZIP codes with cardholder information on file.
There may be ways to keep customer invasion to a minimum.
At the Container Store, sales associates go out of their way to ask shoppers if they need assistance. The chain doesn't ask for a customer's phone number until the end of a transaction.
"We do think it's very invasive right up front," said Colleen Monroe, director of direct marketing and advertising. "At least at the register you have an opportunity to build a relationship with the salesperson so you don't feel like it's as much of an invasion."
The chain's "capture rate" for customer phone numbers is "wildly successful," Monroe said.
