Facebook, Mobile Phones and the Future of Shopping
Forget the mall. Retailers are tapping Facebook and mobile phones to get closer to customers wherever they are.
CIO — At least 22 retailers have been driven into bankruptcy protection during this recession, including RedEnvelope and Eddie Bauer, or gone out of business altogether, like Circuit City. Blockbuster, Virgin Megastores and many more have closed stores. Survivors, suffering deflated profits and slow sales, warn of bleak holidays: The National Retail Federation predicts a 1 percent sales decline for the season compared to last year. Even Wal-Mart feels the slump, with same-store sales down 1 percent in its second quarter—its first such drop in years.
Baby, it's cold outside.
But smart retailers are going where it's warm: the hot little hands of cellphone—and laptop—toting consumers who want to shop right now, wherever they happen to be sipping their lattes or watching their kids' soccer games. Technology-backed projects to increase revenue include mobile e-commerce, coupons by text message, even storefronts on social networks. As enablers of these projects, CIOs are moving ever closer to the customer.
To read more on this topic, see: Mobile Commerce Apps Gaining Ground in U.S. and Banking Services Aim to Help Gen Y Manage Money.
Out of recession develops one picture—finally—of what true business-IT alignment looks like, says Drew Martin, CIO of Sony Electronics. "IT is becoming part of the product offerings." Whether that's hotel kiosks, mobile banking, hospital patient portals or retail, CIOs are getting their IT groups to the front line in the competition for consumer dollars. When a customer logs on to his new Sony e-book reader, for example, the device automatically connects him to his existing customer profile, from which he can start buying e-books. This feature is thanks to Martin's efforts to connect product development with Sony's internal customer relationship management system.
As exciting as it is to live on the progressive edge of the CIO profession, though, it's a new world to navigate at a time when wrong moves can severely hurt a company. "The challenge is that now you're entering into the revenue space," Martin says. "You need to commit to delivering your part of what needs to be delivered."
Social Shopping
E-mail marketing is in full swing now; the number of messages expected to be sent this holiday shopping season will far surpass last year's four billion, according to Experian Marketing Services, a consultancy. Of course, just a fraction of these will be opened. Even fewer messages will coax recipients to visit a website and buy something.
"Websites and e-mail—that's just too many steps now," says Brett Michalak, CIO with Tickets.com, which sells tickets to games, concerts and other events as well as its own ticketing technology.
