March 11, 2009
Retail TouchPoints: Taggle Brings Mobile Bids to Brick & Mortar Stores
By
Amanda Ferrante
Through a special arrangement,
presented here for discussion is an excerpt of a current article from the Retail
TouchPoints website.
Taggle is a new concept designed to allow
consumers in a brick-and-mortar retail store to bid on items in a no-hassle
way via the mobile device. While designed to work optimally for the iPhone
and iPod touch, Taggle can also work for owners of other phones via SMS
messaging. In September 2008, the Consumer Electronic Association selected
Taggle as one of 15 finalists worldwide as one of the most innovative applications
of 2008.
“Haggling is a reality of the retail
environment,” said Michael
Brophy, vice president of product
strategy for Sysgain Inc.,
the developer of Taggle. Mr. Brophy
introduced an
“elastic pricing” concept, which, he said, will ultimately mitigate
margin loss. The retailer with Taggle controls the entire promotion, messaging,
what SKUs are available, description image, quantity the store is willing
to sell and at what price. Mr. Brophy said the Taggle application is not
limited to the elastic pricing scheme, and can be extended to support a feature
similar to eBay’s “Buy it Now” feature, so consumers can purchase
on the spot at a designated price.
Without integrating with a POS system, data
warehouse, UPC databases, etc., the core offering for Taggle is the piece
that sits in the store. Sysgain brings in a wireless infrastructure, or
can override the store’s existing one, depending on the type of existing
wireless technology. An installed VPN appliance allows secure connectivity
back to the Taggle data center where bids are evaluated and sent back to
consumers. A back office workstation within the store is necessary for
nightly reporting and to create and maintain marketing messaging. Sysgain
provides in store signage consistent with each retailers’ style and guidelines.
In November 2007, Sysgain conducted a consumer
survey with input from over 2,100 consumers. Those that did haggle had
an average 70 percent success rate at saving $50 or more. Nearly 40 percent
felt so uncomfortable about the idea of haggling that they never even tried.
Sysgain recently finished taking applications from pilot retailers to develop
a user base and generate buzz. “Retailers know people are using their
phones in the store for purposes that are working against the retailer’s
objectives,” said Mr. Brophy. “A lot of people are price
shopping other retailers… let’s try to influence their behavior by giving
them a network to join once they’re in the store so you can deliver your
messaging.”
Discussion Questions: What do you think of
the potential for Taggle or other devices promising to bring eBay-like
bidding to the brick & mortar level? In what different ways could
the application be utilized? What hurdles do you see in the technology’s
adoption?
BrainTrust
Recent Discussions
Discussion Questions
Poll
Just like with purchases for cars, which have been transformed through increased transparency, other retailing types will be as well. It’s now easy to shop competitors without leaving a store (or without going to a store in the first place) and merchants in competitive markets will see this as a way to avoid lost sales, albeit at the cost of lost margin.
This is fascinating. I love the seamlessness between digital space and bricks/mortar space.
Could it transform ordinary retail experiences? Probably not in the short run. It would probably work best for higher ticket items. It could also become a mechanism for retailers to unload excess inventory; which could be useful if the recession deepens.
Terrible idea. The vast majority of shoppers want their trips to be as easy and efficient as possible. This adds a degree of complexity and tension that will be very unpleasant for the shopper. Mark my words on this one: it will never succeed.
Bad Idea. Sounds complicated and confusing for the customer. No real value add for the retailer as far as I can see, but many negatives including customer service issues and degradation of trust in your pricing strategy. From what I can tell, it turns your bricks store into a Turkish bazaar.
Who has time to stand around a store waiting to see if they have the high bid on an item? What sounds good in theory seems like a bad idea in reality.
Even if they move to an all “buy it now” format, will consumers stand around and wait for items to pop into their mobile phones?
I’d never heard of Taggle, so I checked out their website and a few articles. But I’m not convinced. If consumers want to bid on something, do it from the internet. If they want an item without hassles, buy it in the store. I don’t see consumers wanting this, and I doubt retailers want it either.
While the idea intrigues, haggling over the price of more expensive items is going to undermine the trust the shopper places in a retailer.
Thinking about cars, appliances, electronics, etc. where lower prices are nice, there are issues of service and warranty in the purchase decision. For fashion and furnishings, purchase involves choice, colors, selection–not on-the-spot the decisions.
And with the previous writers, Taggle sounds like work for our regular purchases, where we value our time and convenience as part of the transaction. Sorry, I just don’t get this one as the way ahead.
My initial reaction after reading the articles is that this is a terrible idea. I can’t imagine wanting to ‘bid’ in a store environment. However, I think this technology will appeal to the current teen and twenty-something techno-savvy population which tries every application offered on Facebook and on their iPods.
I would be concerned as a retailer to be an early adopter, but it could be something interesting to pilot in an environment like Best Buy (technology is already assumed in the experience) or Urban Outfitters (concentration of ‘cool’ young shoppers). Taggle should offer to install the technology with a high-profile retailer in a few doors as a pilot–at no or low cost–and test the waters.
The message: don’t be too quick to judge a new technology innovation, but be prudent in how it is tested.
More Discussions
As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…Is Supply Chain Volatility Here To Stay?
Can we expect an ongoing volatility to remain in terms of retail supply chain?Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?
Just like with purchases for cars, which have been transformed through increased transparency, other retailing types will be as well. It’s now easy to shop competitors without leaving a store (or without going to a store in the first place) and merchants in competitive markets will see this as a way to avoid lost sales, albeit at the cost of lost margin.
This is fascinating. I love the seamlessness between digital space and bricks/mortar space.
Could it transform ordinary retail experiences? Probably not in the short run. It would probably work best for higher ticket items. It could also become a mechanism for retailers to unload excess inventory; which could be useful if the recession deepens.
Terrible idea. The vast majority of shoppers want their trips to be as easy and efficient as possible. This adds a degree of complexity and tension that will be very unpleasant for the shopper. Mark my words on this one: it will never succeed.
Bad Idea. Sounds complicated and confusing for the customer. No real value add for the retailer as far as I can see, but many negatives including customer service issues and degradation of trust in your pricing strategy. From what I can tell, it turns your bricks store into a Turkish bazaar.
Who has time to stand around a store waiting to see if they have the high bid on an item? What sounds good in theory seems like a bad idea in reality.
Even if they move to an all “buy it now” format, will consumers stand around and wait for items to pop into their mobile phones?
I’d never heard of Taggle, so I checked out their website and a few articles. But I’m not convinced. If consumers want to bid on something, do it from the internet. If they want an item without hassles, buy it in the store. I don’t see consumers wanting this, and I doubt retailers want it either.
While the idea intrigues, haggling over the price of more expensive items is going to undermine the trust the shopper places in a retailer.
Thinking about cars, appliances, electronics, etc. where lower prices are nice, there are issues of service and warranty in the purchase decision. For fashion and furnishings, purchase involves choice, colors, selection–not on-the-spot the decisions.
And with the previous writers, Taggle sounds like work for our regular purchases, where we value our time and convenience as part of the transaction. Sorry, I just don’t get this one as the way ahead.
My initial reaction after reading the articles is that this is a terrible idea. I can’t imagine wanting to ‘bid’ in a store environment. However, I think this technology will appeal to the current teen and twenty-something techno-savvy population which tries every application offered on Facebook and on their iPods.
I would be concerned as a retailer to be an early adopter, but it could be something interesting to pilot in an environment like Best Buy (technology is already assumed in the experience) or Urban Outfitters (concentration of ‘cool’ young shoppers). Taggle should offer to install the technology with a high-profile retailer in a few doors as a pilot–at no or low cost–and test the waters.
The message: don’t be too quick to judge a new technology innovation, but be prudent in how it is tested.