Different Metrics for Different Folks

By Evan Schuman  |  Posted 2008-01-13 Print this article Print


A slide presentation obtained by eWEEK, however, did identify Best Buy, the Gap, Nordstrom and Target as "already engaged."

Calls and e-mails to those retailers were not returned at press time.

Those slides said that all of those retailers-except for Gap-were being recruited in a "joint effort with the Microsoft Retail Group."

StoreXperience has been selected as a member of a Microsoft marketing support program that has yet to be announced, according to officials working with StoreXperience. The vendor will have a booth at the National Retail Federation's tradeshow within Microsoft Alley.

Other companies said to be involved in these talks are the Simon Property Group, French telecommunications company France Telecom and Epson.

The financial return-on-investment picture is complicated. Pluche said pricing for retailers will range widely, depending on the number of stores and average revenue. But he will insist on the retailers paying enough "to rule out companies that wouldn't be committed to the endeavor." He said for retailers that are among the largest 50 in the United States, he'd want to receive anywhere from $250,000 to $450,000 to participate in a trial.

The complicated part is that different companies being talked with have very different goals for the kinds of results they want. Best Buy and other specialty retailers, for example, are focused on delivering a strong purchase-to-visit ratio.

According to the slide presentation, Best Buy and the other specialty retailers intend to use the 2-D bar codes to "effectively compete with online shopping" and to prevent the store from "becoming a simple showroom." Whether the intent is to help their brick-and-mortar operations lose fewer sales to their online arms, or to compete more effectively against the online operations of other retailers is not clear.

The goals are different for brands and franchises such as Epson and the Gap. For them, the performance metrics are average spend per visit and creating "new upsell and cross-sell opportunities," the StoreXperience document said. They also intend to "create competitive advantage by transforming the customer experience."

For companies including Simon Property, Nordstrom, Target and France Telecom, the performance metric is simply consumer adoption and usage, along with delivering to the consumer "contextual advertisings [sic] and promotions."

After the April rollout, the company expects to have a next-phase series of rollouts in the fall, most likely in September, Pluche said.

 Retail Center Editor Evan Schuman can be reached at eschuma@earthlink.net.

Check out eWEEK.com's for the latest news, views and analysis on technology's impact on retail.


Evan Schuman is the editor of CIOInsight.com's Retail industry center. He has covered retail technology issues since 1988 for Ziff-Davis, CMP Media, IDG, Penton, Lebhar-Friedman, VNU, BusinessWeek, Business 2.0 and United Press International, among others. He can be reached by e-mail at Evan.Schuman@ziffdavisenterprise.com.

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