advertisement
advertisement

This is page 2 of:

Wal-Mart’s Social Sales Heaven

March 13th, 2012

If no recommendation is made unless it can be supported by at least three distinct information sources, it’s hard for the recipient (or, for that matter, the gift-giver) to know why you suggested a 12-inch sauté pan. Was it because of cooking books purchased? Comments made on Amazon about pans? Will the recipient immediately suspect that it was really the comment posted on Facebook last week that a fire warped and destroyed her beloved sauté pan? As long as that Facebook remark was not the only place Aunt Bertha discussed sauté pans, you’re probably in the clear.

Amazon itself has understood the delicate dance of gift recommendations for years, even using the “creepy” reference back in 2008. (Although you might not know judging by Amazon’s recent effort to guess someone’s religion based on giftwrap and attempts to guess shoppers’ income.

The initial comments from Wal-Mart seem to suggest that it will be tackling this issue without much help from the Social Calendar team. Wal-Mart has confirmed that it has purchased “the technology of” Social Calendar but is not apparently welcoming the team who created and maintained the Facebook app.

Wal-Mart has made no reference to the Social Calendar team, other than CEO/Co-Founder Raj Lalwani. And even with Lalwani, a brief Wal-Mart statement said only that he “will stay on as an advisor to the @WalmartLabs team for the short term.” Short term? Is that Wal-Mart speak for “Don’t bother hanging up your coat?”

Let’s get back to the potential here. By getting in the middle of birthday wishes on Aunt Bertha’s Facebook page, Wal-Mart has the ability to learn about something even more valuable than Bertha’s favorite colors: relationships and, potentially, the nature of those relationships.

Let’s say the gift-giver is Bertha’s niece, Jane Smith. Wal-Mart started this situation knowing Jane Smith, and this birthday has enabled the world’s largest retailer to discover Bertha and to associate her with Jane. But Bertha’s birthday issues on her Facebook page now enable the chain to know the names of quite a few people who might also want to give Bertha gifts. Maybe the database can identify some of them as existing Wal-Mart shoppers. Or maybe it can’t, but you now have the opportunity to change that by suggesting a new apron—which was also lost in the fire. (Remember how Jane knew Bertha’s favorite colors? Here’s where that comes in handy.)

How far Wal-Mart will go down this path is unknown, other than the fact that it is unlikely to go nearly as far down the path suggested by these scenarios. But even experimenting with this approach a little will have huge potential. This is where retail is headed, and Wal-Mart wants to make darn sure it gets there first.

As for everyone else, it’s not all bad letting Wal-Mart get there first. If anyone can afford to eat the costs of well-intentioned pioneer mistakes, it’s Wal-Mart. Just don’t brag about it on your Facebook page.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.