Photo by Darryl Swint | darrylswint.com®
The globalization of transportation was a significant catalyst upon our lives as consumers. It’s subsequent trappings and dangers are well known: cheaper imported goods available (with negative effects upon U.S. trade deficits); continued growth of an interrelated, global economy and a boon in international travel and commerce.
The old buzzword e-commerce, is in metamorphosis. Thanks to a germinating, ongoing merger of mobile smartphones, GPS-based, social media marketing and a tech-savvy consumer base comfortable with broadcasting its whims, movements and activity through satellite social media sites, the new economy is finally taking hold.
Recent efforts by Twitter, Google, Facebook, Apple, Square and Foursquare to connect and share locations, spending habits, activities and user reviews, enable businesses and marketers to take advantage of real-time marketing.
Remember the Minority Report chase scene in which the Tom Cruise character John Anderton’s transplanted eyes are recognized by a local Gap store, asking him about his most recent purchase? Theoretically, it’s no longer fiction.
Businesses with a social-media savvy branding/marketing strategy can advertise on social media sites, create event-related apps and badges and become event partners. The result? The ability to reach socially-conscious consumers in real time with discounts, ads, information and branded games — all for a targeted consumer base whose habits are well-documented.
Here’s an example:
Next year, the City of Houston hosts the NCAA Final Four. In the semi-finals, two teams win and two teams lose. A restaurant/bar owner who has created a Facebook profile can be “friended” or “liked” by local University A’s alumni group, or current (over 21) students. If University A wins or loses, the restaurant owner can send an update, Tweet, posting or challenge through social media to University A’s networked fans, offering a limited 10% discount on food and beverage with a scan-able bar code ad or by wearing team colors.
Let’s say University A loses. The dejected fans likely want nothing more than to sell their Finals tickets and get out of town. Maybe the restauranteur offers a 15-percent discount to keep them around a little longer.
Who doesn’t like a discount?
University A fans quickly relay the offer to fellow friends and fans and before long, the restaurant has increased both foot traffic and sales — all with a minimal advertising investment. And it is this nexus of technology, providers and consumers that has given way to yet another revenue stream and marketing/advertising opportunity.
THE SLIPPERY SLOPE
Though the applications of where this can lead are myriad, the main area of concern is disclosure. As consumers, do we really want an obvious profile of our spending habits, likes, dislikes, travels and tendencies available for advertisers to hawk products to our individual weaknesses?
Do we really want to be dehumanized to the point of conspicuous consumption? Do we want our brand loyalty to be used as an uncompensated de facto endorsement of a product, a good or a service? And to a more ominous extent, do we really want our exact whereabouts chronicled and recorded on a near 24/7 basis? Can we opt out of consumer tracking by one company or will we have to consciously opt out with each and every business or eBusiness transaction?
And if we opt in, will our personal information and spending profile be secure and resistant to hackers (especially considering Google and Twitter have experienced recent cyber attacks)? Will any of our favorite businesses have the ability to sell such information to the highest bidder? If so, will they need our consent or has that consent been ceded at opt-in?
HAVE CELL, WILL CHARGE
Another facet of eCommerce present for years in Africa and parts of Asia is using cell phones for credit transactions. A New York Times story examines how adaptation of this technology by Americans can impact small businesses and the fortunes of companies like Square, PayPal and VeriFone. Are we streaking toward a cashless society?
PATRIOT GAMES
After 9-11, the importance of security, privacy and disclosure changed in the realm of government and in society. The public outcry of ceding privacy rights to appease government officials was initially loud and swift. Then the objections waned. To date, there has never been a groundswell of grass-roots support or opposition to targeted micro-advertising and social media marketing.
The techies are the early adopters. But as the economy slowly improves and more companies seek higher profits with lower overhead, the herd of the business community will surely follow.
