Technology Bit by Byte
Oct 1, 2007 12:00 PM
Consumers use handheld electronic devices to search for products and sales.
By Beth Mattson-Teig
Mall patrons are taking advantage of a technology that makes racing through the shopping list a whole lot easier.
NearbyNow Inc. offers a Web-based service that allows consumers to search everything in their local mall — by product, brand and items on sale. Shoppers can “pre-shop” the mall Web site before visiting the property or conduct an online search while at the mall by text messaging via a cell phone.
“We like to think of it as a search and concierge service, and we're going to try every piece of technology that users want,” says Scott Dunlap, CEO of NearbyNow, based in Los Altos, Calif.
The virtual shopping service debuted at Eastridge Center in San Jose, Calif. in August 2006. Since then, NearbyNow has signed up 178 shopping centers across the country. The hosted service is specifically designed to enable consumers to access local information either before or during their shopping excursion. This is no simple list of a handful of items in each store. The average Web site includes data on up to 700,000 items.
Inland Real Estate Group of Cos. signed a contract with NearbyNow to introduce the technology to 15 of its shopping centers. The first will be up and running by 2008.
“What we really like about the technology is that it is making shopping more convenient for our customers,” says Cherilyn Megill, vice president of marketing at Inland U.S. Management in Oak Brook, Ill. Equipping consumers with information on where to find brands and learn about sales, Inland is hoping the technology will provide a competitive edge and drive more shoppers to its retail properties.
A feature of the NearbyNow technology is a search service on the mall's respective Web site. Shoppers can log on to the Web site of their local mall and search for a specific item, such as Nike Air Jordan Retro 5 sneakers, or conduct a more general search for flip-flops. The search results list the mall stores that carry the items, as well as a map indicating the stores' locations in the mall.
Also, shoppers can check the availability of a product, as well as reserve the item so that it will be waiting. “We actually coordinate with the retailer to check the inventory, often making a phone call to a sales associate to verify that (the product) is there,” Dunlap says. “We then send an e-mail or text message back to the shopper, usually within 10 minutes, saying that ‘yes, it is available, and it's waiting for you.’”
Almost a year ago, NearbyNow launched a mobile service that allows shoppers to use text messaging to search the mall while shopping. Each mall has a unique two-letter code, such as “MI” for Midland Mall in Midland, Mich. When shoppers at Midland text that code to 632729 (NEARBY), they can search all available products and sales, as well as receive exclusive offers.
CBL & Associates Properties Inc. introduced NearbyNow at Midland Mall this past June, and it is expected to be available by June 2008 at all 79 of the Chattanooga, Tenn.-based developer's regional malls and open-air centers. CBL expects the technology will be integral in attracting online shoppers to come to its malls.
The service costs about $150 per month per mall property, with discounts available for owners that sign up multiple properties. NearbyNow shares the advertising revenue it makes from the service. According to Dunlap, most of the malls make enough through revenue sharing to pay for the service within nine months, and at that point the service produces revenue for the mall.
The technology also provides valuable information on consumer shopping patterns. “What you really get is a snapshot of what everybody is looking for in your mall,” says Dunlap. For example, mall managers pay close attention to NearbyNow's report that shows which requests generated zero store results. “That report tells the mall operator what products or services people are searching for that are not provided by any of the current mall tenants,” he adds.
Some mall queries have shown that a number of shoppers are looking for a dentist, while other properties have turned up frequent requests for a particular brand, such as Puma shoes. Dunlap says, “It really helps mall owners think about what kind of retail mix they would like in the future.”
At least one other company is attempting to roll out a service similar to what NearbyNow offers. New York City-based LBDS (which stands for Location Based Directory Service), in March announced a similar business plan and promised technology enabling shoppers to search malls via cell phones. The company, however, did not return calls for comment and had not announced partnerships with any retail real estate firms.
