What's the Holdup?

The number-one cited business challenge for retailers right now was "improving customer service while holding the line on payroll costs," according to the RSR survey. In addition, Rosenblum notes that "garbled technology infrastructures have become the chief organizational inhibitor to new technology initiatives," such as wireless.

Those two roadblocks are contributing to slow adoption of wireless systems inside retailer environments today. In addition, while Rosenblum understands the "natural reticence" to wireless given the rash of data security breaches at retailers, "just eschewing wireless is not a guarantee of data security." (See "How TJX Avoided Wall Street's Wrath" for more on one big retailer's experience with a major customer data breach.)

In fact, many managed services providers will create service level agreements (SLA) to help ensure compliance to standards and on-going review of procedures, policies and threats, Rosenblum writes in the report.

Even so, only 23 percent of the RSR survey respondents have wireless available throughout their entire stores; nearly half (44 percent) have no wireless available at all in their stores. RSR "expected far higher usage by this time," Rosenblum writes, "but all retailers still lag in this fundamental requirement."

Of course, Rosenblum makes it clear that "wireless for wireless's sake" is not the point. To that end, she encourages retailers to start with small pilot programs. One area is in using SMS (short message service) to deliver messages to customers' handheld devices. This service "should be an arrow in every retailer's quiver," Rosenblum claims. "It's the easiest way to get personal with your customer, provide information to her that she might hold onto and use later, and drive promotions and other offerings." (See "How IT Systems Can Help Starbucks Fix Itself" for more on IT's ability to help retailers.)

Rosenblum says the onus is now on retailers to catch up to their customers' mobile habits and needs. "Consumers are using these types of devices in their daily lives," she writes. "Isn't it time retailers did the same?"