Front Lines
fraud intelligence
within loss prevention, but said, the culture of the at the perfume counter is of its use, it is again down to
also across other functions organisation has to change sniffing out a bargain or the culture of the adopting
of the business? In many and everyone must checking out the security for business or how the
cases it is often perceived to understand the technology a quick get-away? technology is used that
be too expensive. With and how it works, but more It analyses CCTV footage, determines its effectiveness.
implementation costs specifically, businesses must and alerts retailers as to For example, if Data
running into more than engage the services of full irregularities or unusual Mining is used as a covert
£250,000 in some instances, time Data Mining Analysts, trends, but it also identifies tool that identifies
some retailers struggle with whose waking hours are customer service and fraudsters and discreetly
the cost v benefit issue. spent analysing and marketing issues, including dispatches them, it will be
However, new versions of interrogating the data that bottle-necks in the store effective in quietly removing
Data Mining, some of which is produced or mined, layout, spillages in the aisles, a few rotten apples caught
are richer in functionality whether it’s for scanning for customer footfall and in the act.
and easier to implement, are shrink or profiling customers queues at tills, all useful However, if it is culturally
now available at more and their consumer habits. data that can potentially embraced and publicised
manageable costs which This is because Data Mining improve bottom line. across the whole business, it
may go someway to is not simply a reactive tool Much of this new sends a broader
overcoming this issue. preventing loss, but it can, technology is readily preventative message –
Another criticism is that and is, used proactively, available but lies untested don’t do refund fraud
some Data Mining tools are under another name, to while retailers scratch their because you will not only
little more than an boost profits by mapping heads over its ROI. Here lies lose your job, but be named
exception reporting tools. customer types and their another quandary for the and shamed in the process.
Data Mining is in essence a behaviours – who they are, industry. The technology Indeed, if used across the
laser precision analytical and what they buy. suppliers themselves often entire business to spot
tool. Yes, it is used primarily In this respect, Data do not grasp the needs of shrink, it is not only retail
for interrogating Mining is the rose by any the retailer and, more staff who face dismissal.
transactional data in order other name - Retail Basket specifically, its loss Head office staff and
to pinpoint profit loss and Analysis, this same laser prevention requirement so suppliers are also in the
its perpetrators at the point precision is drilling down the equipment that could be firing line because Data
of sale, but like all versatile into customer behaviours as reducing shrink and Mining takes a holistic
technologies and jobbing transactions trigger records boosting profits is not approach to the shrink
actors, it can perform many of information that allow introduced properly, or at whether it is found in the
roles well if given the retailers through loyalty all. supply chain, head office or
opportunity. But it is not cards, for example, to profile Here I have been active in in the store.
simply the technology on its and segment their customers trying to bridge this Retailers should work with
own that provides this in order to effectively knowledge gap through the employees to engender the
diversity. The human market products and services Loss Prevention Academy, a loss-conscious approach to
element is also crucial. As to them. teaching module ORIS has work and provide full
Ady Houghton at Iceland Data Mining should developed that helps training to ensure they
therefore be seen in terms suppliers to ‘think shrink’ as maximise the benefits. This
of the wider benefits it well as loss prevention approach allows them to
brings to the business and managers in order to more provide excellence in
the technology is now readily sell the benefits of customer service as well as
moving so fast that more their particular Data Mining ensuring that losses are
generic terms for Data technology more effectively. minimised.
Mining are coming to This is a wider industry and Data Mining is an effective
market. For example Data cultural issue. The retailers tool and can do so much
Mining that effectively want reduced cost solutions more in terms of reducing
categorises shoppers and with proven ROI that is easy loss and enhancing profit,
staff as either potential to implement. Technology but it is in danger of being
opportunities or threats. By and security companies do unfairly typecast as an EPOS
using video analytics, so- not traditionally approach loss prevention tool. You can
called ‘smart’ technology is sales in this way, especially change its name to give it
now available that identifies those where commission wider appeal, but broader
whether the person taking payments are involved. cultural change and business
an extraordinarily long time Consequently, Data Mining buy-in through training
has fallen victim to the needs to be adopted in
cultural misfit between the order to realise its true
“LIKE ALL JOBBING ACTORS, DATA
two sectors as it is often potential at the commercial
typecast as an EPOS-only coal face. RF
MINING CAN PERFORM MANY ROLES
tool that has been seen as
an expensive and blunt and Data Mining is a
WELL GIVEN THE OPPORTUNITY” reactive instrument. In terms
forensic tool
ISSUE 3 DECEMBER 2008 • 13
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