This post was guest written by Frank Lord, VP EMEA, ATG

The use of cookies and tracking technologies has come under close scrutiny recently with concerns over misuse and threats to personal data widely played out in the media. In addition to this, the Article 29 Working Party - a group of privacy watchdogs from each member state of the European Union - is calling for websites to get explicit consent before they track user behaviour using cookies to serve adverts online.

Cleary, this isn’t an issue that’s going to disappear anywhere soon. Yet despite this it’s important not to get too caught up in the media frenzy about cookies and consider the benefits they offer consumers before making any hasty decisions.

Cookies vs. personalisation
Successful retailing, whether on or offline is about targeting people with the right offer, at the right time; there’s no point offering someone a pair of shoes if what they’re really looking for is a shirt. In an online retail environment cookies can play a key role in delivering this experience if retailers ensure the cookie data is made specific to the individual rather than lumping all data together and segmenting similar user behaviours. When cookies are unique to the user, retailers can offer a truly personalised level of service. For instance, if a consumer searches for a shirt on a Monday and revisits the same site the following Wednesday to look for a tie, they won’t be bombarded with details about shirts for sale. This level of service not only keeps consumers coming back for more but reduces the likelihood of major issues such as shopping cart abandonment.

Consumer empowerment
Although when it comes to cookies there’s a lot of negativity in terms of privacy, it’s worth considering the benefits to the consumer. Firstly, it’s likely most consumers would rather be treated as individuals rather than having their cookie data segmented en-mass by organisations. Obviously, consumers will want to know how retailers are using their data and be confident they’ll keep it safe but are unlikely to want to have to confirm every single cookie placed on their PCs. What this ultimately boils down to therefore is trust. Consumers will be happy if an organisation is using their data to improve the online experience but won’t want it being used for other purposes.

A new way of thinking
It’s time we moved away from the old-fashioned school of thought when it comes to cookies and instead considered cookies in the age of personalisation. Cookie legislation, while necessary, shouldn’t be so stringent that it detracts from the advantages it offers in terms of creating a more personalised experience. The task of retailers today is one of education, awareness and responsibility so it’s important they re-evaluate the way they use customer data in order to enrich the customer journey online. With the technology available to make this happen, now is the time for retailers to make that change.

Interesting blog post by Enconsultancy, looking at the new movie Inception and how it represents a good example of a truly successful and joined up multi-channel campaign that leads customers across channels and encourages them to interact more fully with a brand.

As consumer-facing businesses, retailers live or die by their ability to interpret and respond to the needs and desires of a wide range of customers. Multi-channel campaigns provide an opportunity for them to establish a real-time connection with the general public. But very few are excelling in this area at present. As the Econsultancy blog highlights, the marketing around Inception shows how it should be done.

And on a final note, if anyone can tell me what the hell was going on in Christopher Nolan’s latest movie, please drop me a line. Truly head scratching stuff.

Quick plug for our 2010 awards, which will take place at The Grosvenor House Hotel in London’s Park Lane on Thursday, 28 October.

There’s still time to enter, although deadline is fast approaching (end of next week). It’s free to enter and companies can nominate themselves in as many categories as they wish. Further info here.

Look forward to seeing many of you there. It’s always a good night and, judging by the quality of entries received so far, 2010 should see the strongest shortlist yet.

There’s a joke news story in the latest issue of Private Eye, revolving around the forthcoming Toy Story 3 film. Toy stores are already hard at work making sure they don’t have enough of this year’s must have Buzz Lightyear doll in time for Christmas, it reports. A spokesman is quoted as saying: “It’s a huge operation but we are confident that by December we will be properly understocked.”

First up, I laughed. Secondly, however, I got to thinking that it speaks volumes about where the general public stands when it comes to out-of-stocks. Retailers continue to lose sales due to inventory stock outs or inventory that is on site but not made available for sale. They have been struggling with this problem for decades, with little success, despite the myriad of technology solutions now on offer. My local Tesco Express is one such offender. I can’t remember the last time I went in there and actually managed to get everything on my shopping list - empty shelves are a regular occurrence.

In the past, it was perhaps assumed that customers accepted low levels of customer service. But that’s no longer the case in this brave new world of multi-channel retailing. If a retailer is doing something wrong, they won’t think twice about switching to a competitor. The in-store issue of a customer not being able to find an item can be easily solved with good signage, customer service etc. The out-of-stock issue, on the other hand, is more complicated. It’s such an inexact science that retailers are never going to get it 100 per cent right. But when a company like Tesco has stores littered with empty shelves, something is badly wrong. There are systems and solutions available that help retailers more accurately predict demand etc. So why does this issue continue to be the stuff of spoof articles in Private Eye?

All the hype, the lofty predictions and press releases proclaiming a revolution in the way we shop, are they way off the mark? The question came to mind recently when I received a release announcing the launch of Multi-Channel Matters, a report commissioned by DHL Supply Chain.

One of the findings is that m-commerce is the number one channel retailers expect to enter over the next three years. Makes sense, you would have to say. The report states: “M-commerce was revealed as an emerging channel that retailers plan to enter, with 10 per cent indicating intentions to start selling via mobile applications or devices over the next three years.”

Just 10 per cent? Shome mishtake, shurely? As the report goes on to mention, 90 per cent of the population now owns a mobile phone. How can you have a multi-channel strategy without mobiles in the mix? They provide a great opportunity to seamlessly link the online and in-store environments. It’s an idea whose time has come and this will be a defining decade. Smart retailers know they have to get going on this or hedge their bets and risk playing catch up.

I’m not sure why the research found such a low level of intent - perhaps it’s down to the questions that were asked, the people taking part or good old fashioned retailer fear of giving their strategies away to competitors. Head scratching stuff…

This post was guest written by Gregor Rankin, Marketing Manager Northern Europe, Ingenico

Datamonitor’s recent research which found that card issuers other than Barclaycard and retailers have been slow to invest in contactless technology, puts the spotlight once again on this new form of payment and whether it will be a case of the emperor’s new clothes.

Whilst uptake has been slower for smaller retailers, it has been used to great success in a number of retailers, who have greatly benefited from contactless’ queue-busting benefits. Chains such as Pret A Manger, EAT and Caffe Nero have implemented the technology to great success. These early adopters have experienced an increased average spend of up to 33 per cent, in addition to substantially faster transaction times and higher footfall, which has shown that there are substantial benefits to be gained. With nearly 80 per cent of all transactions under £10, outlets such as these where quick turnarounds are essential to the business, will be a key proving ground for contactless.

The key on both sides of the transaction is education. Retailers need to be further educated about the benefits, and what contactless technology can do for their business. With research by US firm CVS showing that a contactless payment can be completed in only 12.5 seconds, compared to cash and chip and PIN transactions taking an average of 34 and 27 seconds respectively, the opportunity for queue-busting is huge. In parallel to this, as long as both retailers and card issuers collaborate to help customers understand the benefits and how to use their cards, contactless transactions will spike.

The recent announcement that contactless technology will be increasingly used at festivals and similar events, will increase consumer exposure to the technology and the convenience it brings - after all, who wants to carry pockets of change around at Glastonbury?

In May, I blogged about The Social Network, David Fincher’s forthcoming film about Facebook founder Mark Zuckerberg, starring Justin Timberlake, Andrew Garfield and Jesse Eisenberg.

The first trailer for the film, due for release in October, is now online. With lines like ‘a million dollars isn’t cool. You know what’s cool? A billion dollars’ and ‘you don’t get to 500 million friends without making a few enemies’, this teaser trailer certainly does its job - tense, dramatic and leaves you wanting more. But it’s a movie based on a story that we all know inside out, I hear you cry. True, but it’s a great story and with Aaron (The West Wing) Sorkin on writing duties and David (Fight Club) Fincher directing, it could well be one of the films of the year.

Further info here.

Earlier this month, I blogged about EAT and Subway launching in-store marketing campaigns to highlight that customers are able to use contactless enabled debit and credit cards in their outlets. What we have here is a Catch 22 situation - consumers aren’t going to rush to get a card when they think that there are few places to use it and retailers are reluctant to install the technology whilst few people have the cards.

Since then, there have been a couple of interesting developments in this sector. First up, SPAR (UK) has introduced an integrated contactless EFT payment solution for its SPARPoS system. The retailer says that its solution, which is in use in several London stores, is a first in the c-store sector. Secondly, Boots is now accepting its first contactless transactions, using MasterCard PayPass at selected stores including its Canary Wharf outlet.

Interesting to see SPAR and Boots circling this area as take up has, somewhat understandably, thus far largely been confined to sandwich, coffee and fast food chains. Both retailers are, of course, trialling the technology so let’s wait and see if they go company-wide with it.

Once again, we return to the thorny issue of education and awareness. For all the hype and the millions spent on flashy ad campaigns, contactless could ultimately be stifled by confused customers, such as the chap recently overheard by yours truly at a well known sandwich chain.

Customer: Can I pay by contactless card?

Staff member: Sorry, only one of us knows how to use the machine and he’s on his break.

Customer: Erm, OK, I’ll pay by cash then.

Congrats to Martin Newman, multi-channel consultant and CEO at Practicology, who made it onto the Online Fashion 100 this year.

Martin will be chairing the 2010 Retail Systems Multi-Channel Summit, which takes place on Wednesday, 15 September at The IoD Hub in London. Further info here.

Last year’s event was a big success and the 2010 agenda is shaping up nicely. Delegate passes are free for retailers and consultants. Hope to see many of you there.

Multi-channel software solutions provider, Maginus, recently caused a stir at Retail Systems HQ when it sent over a My Genius figurine. For those in the dark, My Genius has joined the company as its multi-channel retail and distribution guru. He is (and I quote): “an invaluable member of the Maginus team.”

The figurine (pictured left) found a home atop a stack of copies of Retail Systems. Alas, a jealous work colleague swiped the little guy when my back was turned. But fortunately the good people at Maginus were able to send a replacement, plus an additional one for the office manager who had taken a shine to him.

On a more serious note, kudos to Maginus for coming up with the My Genius campaign. It’s one of the most effective tech supplier advertising/promotional programmes I’ve seen in some time - distinctive, fresh and inventive. Further details here.