As a follow up to the previous article on Target's use of predictive analytics. This Forbes.com article describes how Target started sending pregnancy related advertisements to a teenage girl they "predicted" was pregnant. Her father, who didn't know why she was receiving these ads, complained to the local store manager. Turns out the predictors were correct, guessing that the sudden purchase of things like "cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc and magnesium supplements and a bright blue rug" would presume an impending pregnancy. The more shocking statistic from this article is that estimates suggest that use of advanced analytics has raised Target's revenue growth $23 billion in the last 8 years.
Read the article.