Consumer Rating Algorithms Score Big with Businesses, Governments

A growing number of organizations are turning to algorithms to "score" their customers. Understanding customers and rewarding the best has always been at the center of running a successful business. However, thanks to big data and analytics, the concept is changing. A growing number of organizations are turning to algorithms to "score" customers and determine what price they pay, how long they must wait on hold, and whether they can return items they have purchased. "Digital technology has enabled consumers to be more knowledgeable about prices, and online shopping has made it easier for them to hunt for bargains," explains Sunil Gupta, Edward W. Carter Professor of Business Administration and chair of the General Management Program at Harvard University.