Wednesday, December 22, 2010

Geocompare: When Geolocalization Benchmark Prices

Geolocalization and mobile applications will change the way we decide which store to visit and which others not to. I have heard about a new Iphone application which is on the edge to be launched: Geocompare. Geocompare is a French application which allows users to find out of 4 700 products where to buy it in a 10K wide perimeter. Products are grocery products, either from brands or private label.

Now I believe the application is great on a customer point of view. That means you will be able to get the best prices thanks to the application. Now the downside is that retailer pricing strategy is complex, and when you are grocery shopping, you want to do them all in one place. So far, it does not seem that this application will allow you to compare karts, instead of products.

It remains unknown how much interest it will get from customers, but as the real first application being able to go mainstream, you should look after it.

But also, it will impact the way you interact with customers. More than that, it will change the way you conduct your customer relationship management strategy. Indeed, if your customers are only making their decision on who is the cheaper, then there is no way you will be able to keep them loyal. They will change stores whenever they get the chance to.

So how will we able to do? I believe that customers are not only focusing on prices, and are paying also attention to different factors:
  • Services: Do you deliver a good service, is your staff available to respond customer needs.
  • Shopping experience: Does the store look great?
  • Added value: It could either be shopping fast (hard discount), having a wide range of products (hypermarket), having quality products (organic stores)...
  • ....
Also, customer relationship management is also about appreciation, on both sides. If you are able to show your gratitude to cusotmers, and to keep a high emotional relationship, then you will be able to retain customers.

Therefore I believe these kinds of applications, will bring the price comparaison to the brick and mortar businesses, but will complexify the way to manager CRM. What is for sure, is that mobile will be a key customer relationship management in the future, and this kind of tool should also grow your interest for it.

What do you think about it?