Vodafone has been forced on the defensive after an offensive tweet was sent out to its Twitter followers. It read: “is sick of dirty homo’s (sic) and is going after beaver.”

Charming stuff…The mobile operator apologised for the tweet, which was sent by a rogue (and now unsurprisingly ex) employee. A statement read: “We’re really sorry. A severe breach of rules by staff in our building, dealing with that internally. Please keep your faith in us.”

But the damage had already been done with hundreds of people retweeting the homophobic abuse. Social commerce is now a huge driver for e-commerce with retailers doing all they can to harness it and leverage peer pressure to drive sales by implementing user reviews and creating a presence across various sites. But this latest episode shows that the Facebook/Twitter route is fraught with obstacles.

Retailers face a serious risk of customer churn in attempting to sell between channels, according to the 2010 Multi-channel Retail Report from e-commerce provider, GSI Commerce. The company polled the views of a representative sample of 2,043 British adults with research specialist Maximiles.

Further info on the report here.

Two particularly interesting things to come out of this research. Firstly, if customers can’t find an item in-store and decide to look for it online, 69 per cent would compare prices across other websites. I’m surprised that’s not higher.

Secondly, multi-channel retailers could counter the problem of out-of-stock items by making it easy for customers to order online in-store. Eighty one per cent of those surveyed said they would be likely to take this option if it was available to them. I’m surprised it’s that high. Personally, I shop online if I want to buy something and go. I venture in-store in the knowledge that, if I can’t find an item or have a query about something, I can ask a member of staff. I can order online at home.

So, 81 per cent…Have the lines between the online and in-store experience become that blurred?

There’s been a lot of extravagant claims made about smartphones such as Apple’s iPhone and Google’s Nexus One. They’re going to change the retail landscape as we know it. And so on…

But a new survey from Essential Research makes for sobering reading. It reveals that 76 per cent of UK mobile phone users don’t use their mobile to access the internet. Sixty per cent claim to not even own a mobile with internet access and just 30 per cent of these are interested in getting one. Even for upwardly mobile internet users and owners of smartphones, one third have never used their phone to connect to the internet, a quarter use it less than once a week and eight per cent tried it but don’t intend to do so again.

It would seem that there is an enormous gulf between the perceptions that m-commerce gurus hold about mobiles being a big part of our internet lives and the reality. But that’s to be expected. We’re still very much in the early stages when it comes to the mobile retailing channel. However, there has been progress in the last couple of years and, as the aforementioned research also shows, people are interested in potential benefits. Consumers, for instance, gave the thumbs up to the ability to use their phone to access web-based offers, coupons and vouchers while in-store. They also deemed well known brands the most appropriate to provide services for mobile internet spheres with 30 per cent saying that they would like their favourite supermarket to offer grocery-related services.

It’s too early to say if m-commerce will transform the retail landscape. There are undoubtedly significant opportunities here, but as for long-term benefits, I’ll leave it to the gurus to continue making predictions.

Barclaycard has followed its contactless/waterslides ad with a new TV campaign featuring rollercoasters and using the CGI special effects technology employed in the Spider Man movies. In the ad, a Barclaycard user travels (without delays and the wrong kind of snow, natch) to work by rollercoaster.

You can view the ad here.

As with the previous ad, the effects and music (Boston belting out More than a Feeling) are the stars, with contactless payments given a brief mention at the end. In these recessionary times, this will doubtless be pitched by the ad agency as a bold move but I’m not so sure. Contactless hasn’t caught fire in the way that many predicted a couple of years back. I think there is still some confusion and uncertainty amongst consumers as to where they can use their cards, security issues etc. Whilst this ad looks great and raises a smile, perhaps a more direct campaign was needed - one in line with founding father John Reith’s ethos that the BBC should inform, educate and entertain.

The latest figures from the IMRG Capgemini e-Retail sales index are in, providing an overview of the Christmas period and 2009 as a whole. I won’t dwell on the figures but you can find further info here.

What particularly interested me was that the growth levels for multi-channel retailers and their pure play rivals diverged in December 2009 for the first time. The index for online only retailers fell by 7.6 per cent, whereas the index for multi-channel retailers rose by 13 per cent month on month.

This raises the point that consumers place a high value on a multi-channel proposition, particularly in terms of product returns and the human touch, and High Street brands are well placed to trade on the trust advantage if they get their online proposition right. But the fact remains that the sector as a whole is not set up to fully exploit this state of affairs.

To quote an e-commerce specialist in the next issue of Retail Systems: “The problem is that the systems lying behind multi-channel capabilities were designed for single channel use. As a result, these capabilities have only been achieved with the use of string and chewing gum. Until new systems emerge, designed from the ground up for multi-channel, there’s going to be a problem here.”

What is the point of SecureCode, the online protection system provided by NatWest in association with Mastercard? I ask as a recent victim of card fraud.

The fraudster used my card details on the Dixons website to order a digital camera, weighing in at £1,700. Said fraudster didn’t know my SecureCode password, but was easily able to reset it by entering some basic details. An email was fired off to my registered address, informing me of this change and, if I was not responsible, could I contact Natwest asap? Which I did, but unfortunately the transaction had already been accepted, despite the fact that it was an expensive item and the delivery address did not match the card holder’s address. Sadly, this did not set any alarm bells ringing.

When Verified By Visa and MasterCard SecureCode were launched, much was made of how they would provide an added layer of security for online credit and debit card transactions. But what’s the point if, when you can’t remember the password, the attitude is: no problem, just enter your DOB, some card details and off you go. How is that any more secure than standard card details authorisation?

Consumers are often told that a little common sense is required when shopping online. Perhaps the banks etc should heed that advice as well?

Google has come in for some serious flack for only dealing with customer queries about its new Nexus One smartphone via e-mail. And rightly so. When it comes to customer service, there are times when a little human interaction is crucial. There are few things more annoying than having to wait hours for a customer services response to your complaint/query, only to find that the retailer has misunderstood your message, leading to a second email clarifying what was said in the first one. As recently happened to your’s truly…

To quote Frank Lord, VP EMEA at ATG: “It’s surprising not more organisations are deploying live help services such as ‘click to call’, that give consumers the opportunity to request a call from a customer service agent at a suitable time. When it comes to online customer service a little human interaction can go a long way. This is particularly so when new products are launched as consumers often have multiple questions they would like to discuss over the phone with an expert. In our recent survey of 1,000 UK consumers we found 86 per cent said having access to live online help services would be useful when making online purchases.”

Verdict recently announced its latest annual list of the UK’s favourite retailers, based on a consumer poll. John Lewis came top, with two etailers, Amazon and Play.com, in second and third. An overriding theme of the poll was that pure play outfits are ahead of their multi-channel competitors when it comes to customer service for online shoppers. But clearly there is still much work to be done.

Following on from my previous blog re. the High Street being far from a busted flush, here’s a good example of how technology can help traditional retailers gain a competitive edge on their online rivals.

Online shopping continues to boom, but the fact remains that there are still some things that customers prefer to buy in person. And there are many people who shun their computers, drawn to the High Street because they prefer the act of shopping in stores. We often hear about the advantages that e-tailers have over Bricks and Mortar ventures, but it works both ways.

That’s why it’s interesting to see Microsoft announce a strategic alliance with Intel to deliver improved platforms for the digital signage industry. The aim is to provide retailers with digital in-store advertisements that interact with the customer. The two companies say that the Windows 7-based Windows Embedded Standard 2011 operating system, powered by 2010 Intel Core micro architecture, is optimised to address the sector’s need for a more streamlined, high-performance and highly reliable solution. “We look forward to working with industry leaders such as Microsoft to create new design opportunities for innovative device-makers and partners, while giving them the tools and technologies they need to create smarter, interactive retail customer experiences,” says Joe Jensen, general manager at the Embedded Computing Division, Intel.

This technology isn’t new, but the adoption of it by big hitters like Microsoft and Intel means that it could really take off in US shopping centres. In-store technologies such as this give High Street retailers a valuable tool to take on e-tailers and to bolster their multi-channel strategies, helping them engage and interact with consumers in fresh, forward thinking ways.

In a similar vein, iPhone apps are providing people with a wide range of information and offers within the four walls of a store. So forget the rumours of the death of the physical store. It’s not about online vs. in-store. It’s all about providing a highly relevant and personalised customer experience across a range of channels. And the trusty Bricks and Mortar store remains a vital cog in that wheel.

Good quote from Terry Leahy, speaking today at the National Retail Federation Big Show in New York: “Competitors are good for you….They are the best management consultants you’ll ever have.”

Sounds like Leahy was in bullish mood and he has every right to be. Sales at Tesco Direct soared 50 per cent in the six week period to 9 January, with total online sales growth in the period reaching almost 20 per cent, the retailer reports in its Christmas and New Year trading statement.

Overall group sales were up 7.5 per cent in the six week period, with total UK sales up 8.3 per cent compared with the same period last year. The retailer said it had its strongest Christmas in the UK for three years as customers redeemed an additional £34 million of Clubcard vouchers.

Some good news at last! It’s been all doom and gloom since I returned to my desk from the festive break, as demonstrated by a press release received this afternoon, headed: Tumbleweed on the High Street.

Note to PRs. No more press releases featuring the words ‘tumbleweed’ and ‘High Street’, please. In a multi-channel world, the High Street store is not a busted flush, but rather a vital part of an equation that takes in many different touchpoints.

Here’s an interesting one from the contactless cards sector. Best Buy has made good on its threat to Visa to stop accepting its contactless card unless it changed its fees.

Visa has been forcing retailers to accept more expensive signature - as opposed to PIN - authorisation. Best Buy started accepting Visa contactless in August 2007 and had rolled it out by April 2008, but by July 2009 it was kicking against new rules forcing higher signature rates. And now it is Visa contact-less, although Mastercard doesn’t ban PINs on contactless payments and so has not been ruled out.

The contactless card sector is backed up by a well oiled PR machine. Week in and week out I’m sent press releases and offered comment about the latest developments. But nothing thus far on the Best Buy bust up. Funny that.