Data built better businesses
The existence and usage of data offer limitless opportunities and improvements to our society, empowering individuals who have data and exploit them, and offering many benefits to businesses. As a result, our society is a “data-driven” society the data control almost every human action. Nowadays, the number of businesses that use data in their services that they offer to their existing and new clients has increased. Companies have changed their business models to use personal data to focus on the individual’s consumer’s needs. Multinational companies in different sectors have focused on that trend. Social media, web searching, and stores and services sectors use the data with tremendous result improving their services, revenues, and user experience. McDonald’s is a company that has achieved great results.
How McDonald’s Uses Data.
McDonald’s is embracing modern technology in many ways, using Machine Learning and AI to collect and analyze the data that they collect from their customers in an optimal way improving their services and interaction with users. The daily traffic of McDonald’s customers reached almost 60 million in over 100 countries. Japanese McDonald’s customers who use the mobile app to order spend 35% more than the users who don’t use it.
Twenty years ago, if you wanted to order a meal, you had to go to the store. You ordered and then you waited to take it. Later you could order on the phone waiting a couple of minutes online. Nowadays, technology has transformed that type of service, customers can use mobile devices and apps that allow to them to order and pay in a few seconds.
Food companies have the same accessibility to our habits as they did in the past. Digital transformation has improved the ability of companies to collect data in a more efficient way. Mcdonald’s uses the data to suggest side dishes with our main meal, which can be combined according to our habits. Chain restaurant companies can translate the collected data to design and offer new products according to our preferences. Furthermore, Mcdonald’s can use the data in order to roll out a better marketing strategy against their competitors, offering a competitive advantage. Mcdonald’s uses data to optimize food delivery. Predicting customers’ needs and ensuring that they have sufficient inventory for popular menu items, adequate staffing, and on-time deliveries drive them to ongoing customer satisfaction. Without these assurances, the company was concerned about losing control of revenue and consumer brand loyalty. The use of data can create an enormous value for McDonald’s to make decisions.
Data Privacy is Imperative
Technology and data hide dangers and simultaneously offer many benefits for customers. Each coin has two sides. The consequences of Mcdonald’s having data on users depend on customer personality and how intensively they use the applications in their everyday lives. Mcdonald’s gather human eating habits from their customers who use mobile apps to optimize customer’s experience. That data comes from customers, but the same time data belongs to Mcdonald’s because orders are delivered by them. Mcdonald’s collects and analyzes data to offer personalized services to their customers. Customers choose Mcdonald’s because the business understands their needs. Customers want personalized services according to their preferences and needs. The main issue of customers is that they do not have time to spend looking for other new companies and products when they feel happy about their services. Personalized services make the customers choose specific providers. Companies use the data to personalize their promotions to their clients for products they used in the past.
Data ethics is a serious issue for the most companies. Ethics enclose the moral obligations of gathering, protecting, and using personally identifiable information and how it affects individuals. Ethics issues are stimulated when companies violate ownership, transparency, privacy, intension, and outcome. Food chain companies especially do face ethical issues. They use the data with intention to offer personalized experience to users, design new products and promote their services. If they keep the data private and the outcome of offering services is only for the benefits of customers, Mcdonald’s is not aroused serious issue. Second thoughts are aroused when the Mcdonald’s use the data to suggest side plates, drinks and snacks to their customers. That has driven the increase of revenue and customers to buy things that they do not want.
AI and data are helping McDonald’s bring together supply and demand. By personalized recommendations to customers, the fast-food sector has created an innovative way of tracking its needs and promoting key products.
The extensive use of technology has driven the new generation to share their data easily. Using mobile apps to make an order, we accept that we share our data with the service provider. We cannot reject the benefits which the technology and data are offered to us and businesses, but at the same time we ought to be a little skeptical about the data we share with the service providers because we do not know how they can use it in future where they store it.