Fort Worth company uses data mining to locate donors for Romney
08/24/2012 11:42 PM
08/25/2012 12:09 AM
WASHINGTON -- Building upon its fundraising prowess, Mitt Romney's campaign began a secretive data-mining project this summer to sort through Americans' personal information -- including their purchasing history and church attendance -- to identify new and likely wealthy donors, The Associated Press has learned.
The project employs strategies similar to those the business world uses to influence the way Americans shop and think. Now they're being used to sway presidential elections. The same personal data consumers give away -- often unwittingly when they swipe their credit cards or log into Facebook -- is now being used by the people who might one day occupy the White House.
For Romney's data-mining project, which began as early as June, the Republican candidate quietly turned to a little-known but successful analytics firm that previously performed marketing work for a colleague tied to Bain & Co., the management-consulting firm that Romney once led.
The head of Buxton Co. of Fort Worth, chief executive Tom Buxton, confirmed to the AP his company's efforts, which help Romney identify potentially wealthy and previously untapped Republican donors across the country. The Romney campaign declined to discuss on the record its work with Buxton or the project's overall success.
There are no records of payments to Buxton from Romney's campaign, the Republican National Committee or a joint fundraising committee. Under federal law, companies cannot use corporate treasury funds or resources, such as proprietary data analysis, for in-kind contributions to federal campaigns.
The effort by Romney appears to be the first example of a political campaign using such extensive data analysis. President Barack Obama's re-election campaign has long been known as data-savvy, but Romney's project appears to take a page from the Fortune 500 business world and dig deeper into available consumer data.
Buxton said he's working for the Romney campaign because he wants "to be on the winning team."
He once worked with a former Romney business partner to provide insights, for example, about where Petco should open a new pet-supply store to maximize profits. In addition to Buxton, the data-mining project was described to the AP by a Romney fundraiser who spoke on condition of anonymity because the fundraiser did not want to face repercussions for describing internal campaign processes.
Businesses use those kinds of analytics firms to answer key questions for clients, such as where to build a retail store or where to mail pamphlets. The analysis doesn't directly bring in campaign contributions, but it generates the equivalent of sales leads.
The project relies upon a sophisticated analysis by powerful computers of thousands of commercially available, expensive databases that are lawfully bought and sold behind the scenes by corporations, including details about credit accounts, families and children, voter registrations, charitable contributions, property tax records and survey responses. It combines marketing data with what is known in this specialized industry as psychographic data analysis, which tries to ferret out Americans' consumer behavior and habits.
An early test analyzed details of more than 2 million households near San Francisco and elsewhere on the West Coast and identified thousands of people who would be comfortably able and inclined to give Romney at least $2,500 or more.
An AP analysis this week determined that Romney's campaign has made impressive inroads into even traditionally Democratic neighborhoods, collecting more than $350,000 this summer around San Francisco in contributions that averaged $400 each. High-dollar donors have been essential to Romney's election effort, unlike Obama, who relies on more contributors giving smaller amounts.
Romney and the GOP have out-fundraised Obama's re-election effort for the past three months.
The fate of the presidency may depend on who raises more money in the campaign, whose cost for the first time is approaching $2 billion. That figure includes hundreds of millions of dollars spent by super political action committees that accept unlimited and in some cases effectively anonymous contributions from millionaires, companies and labor groups.
Buxton confirmed that the data-mining project began with the help of Dick Boyce, Romney's former Bain & Co. colleague, after Romney joined fundraising forces with the Republican National Committee. Buxton expressed such confidence in his business and analysis methods that, in nearly two decades of running his firm, he told AP he has always been able to answer essential questions for customers.
"I can look at data of any kind and say, 'I want to know who that $100 donor could be,'" Buxton said. "We look at data of any kind."
Obama's campaign employs its own form of data analysis to lure potential supporters, via Facebook and Twitter, to fine-tune messages for supporters and potential donors. The Obama campaign declined to comment on its internal fundraising practices.
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