A working mother just gave birth to her first child. At least twice a week, during the noon hour, she visits the same retail store, purchasing supplies for the baby. As time goes on, the mother (a marketing professional) begins to think about all the business she is giving the store and wonders why the store is not capturing information about her purchases. Because she always pays with a check, her purchase could be directly linked to her name. As she thinks about this more, she realizes the store should be able to figure out how hold her child is and the gender, what formula she purchases, and her preferred brand of diapers and wipes. Using this information, the store could predict her next purchases and reward her for shopping at this store with coupons or small gifts.

What are the pros and cons to gathering and using this kind of data? How should stores do a better job of targeting promotions?