databasics; Mystery Shoppers - Todd & Holland Tea Merchants

American Demographics, Dec, 2000

But this doesn't mean retailers should forgo attempts to add this piece of the puzzle to their data-gathering efforts. Credit cards, loyalty programs, warranty registrations, gift registries, and in-store kiosks present the opportunity to collect customer data.

Eddie Bauer, for one, is planning to test a novel data-collection method in its stores by placing a kiosk with a barcode scanner within dressing rooms. Customers who enter their e-mail address can scan items and then later be notified if and when that particular item goes on markdown. This will provide a valuable service and an incentive for the customer to exchange information with the retailer, while Eddie Bauer creates an opportunity for personalized communication and a ready-made audience with whom it can liquidate overstock.

But the biggest barrier to data integration may be the investment of time and money that is required. A full-scale implementation of CustomerCentric for a major retailer will cost around $1.2 million, and take about five to six months to get up and running. (CustomerCentric is designed for large chain retailers, and Todd & Holland was a prototype installation.) The retail sector has long lagged behind other industries in the adoption of new technology, and many retailers have been hesitant to implement cross-channel solutions to help manage relationships with customers.

Moreover, Steven Dull, a partner with Andersen Consulting, points out that investments on this scale may, in fact, be put to better use in upgrading Web site speed or brand selection. But Kingstone of the Yankee Group and Sinha of Gartner believe those retailers that ignore the integration issue will be left behind as competitors move to update their systems.

The retail industry is rapidly moving in new directions, as technology innovations permit new ways to communicate with and sell to customers. Kiosks, wireless devices, and PDAs all offer retailers new opportunities to interact with consumers. "But all this data will also need to be integrated into the big picture," says Cindy Baum, global marketing executive at IBM.

While this may sound daunting to companies still struggling with integrating online and offline data channels today, there is little choice but to adapt. That's the cost of doing business in the Information Age.