UPDATE ON: Mobile Payments: Where is the market going?

Sometimes it is helpful to look back at where we have been to understand where we are going.  This awareness became apparent to me as I was reviewing a few of my previous blog posts and the blog posts of a fellow blogger.

As you will recall my recent posts have focused on mobile payment systems and facial recognition technologies.  In the case of mobile payment technologies, I discussed the how moving from traditional “money” to “mobile money” simply reflects the next logical step in how society uses its currency.  No major innovative breakthrough here; just a move to a more electronic form of payment.  It is interesting; however, to see competitors from apparently different industries competing in the mobile payment space.  From individual companies like Starbucks, to the mobile phone carriers themselves, to the advertising giant Google; each firm representing different sectors and each is trying to establish a foothold in the mobile payment space.  While I think it will be some time before a given market leader is crowned, it is very interesting that Starbucks’ recent mobile application has reportedly attracted over 3 million customers within a few short months.

In the case of facial recognition technologies, you will recall I discussed one way in which this technology could be used in a Customer Service 3.0 capacity.  For sure, this technology could definitely be put to good use.  However, its uses must be balanced with a healthy dose of privacy controls.

Again, looking back at my posts I made a connection that I didn’t see when originally writing either post.  In both cases, the domain of each topic can be boiled down to electronic data.  With mobile payments, currency is shifting more and more away from traditional, tangible forms of money to an electronic form of money.  With facial recognition technology a camera is used to covert an image into an electronic form and then that electronic data is associated with a real person.

Admittedly, this “electronic data” connection and its potential impact has not been completely fleshed out in my mind yet, but one word just keeps popping into my head over and over.  The word is: GOOGLE!

From the demand-side, many consumers trust Google and store a large portion of their digital life on Google’s servers.  On the supply-side, Google offers low-cost ways for businesses to get in front of potential customers; including its new Groupon-killer Google Offers.  Given that Google has strategically placed itself as a trusted intermediary for so many on both the demand-side and supply-side, it seems logical that they will become the trusted intermediary for mobile payments.

So social entrepreneurs, since so many of us rely on Google’s low/no-cost services to run our organizations, it seems logical to move in the Google direction for your mobile payment systems.  All we have to do now is wait for Google’s mobile payment offering to our respective markets.

Name recognition, facial recognition, and Customer Service 3.0

In a world where many firms offer similar or substitute products, outstanding customer service could be the competitive differentiator that sets your business apart.  And one compelling practice in effective customer service is to know your customers name.  It has been said that “Nothing is sweeter than the sound of a person’s own name.”

So what if you are a business owner that has difficulty remembering people’s names?

 One solution is to learn some memorization techniques or follow some name recognition techniques.  But that is so Customer Service 1.0. 

Another solution is to faithfully use a CRM (customer relationship management) database to keep track of your customer’s names, purchase history, and other relevant data.  To be sure, this is a good idea and should be a tool in every social entrepreneur’s toolbox.  But let’s face it, CRM databases can be difficult to maintain and they don’t travel well.  In short, using a CRM database to help with remembering your customer’s name is so Customer Service 2.0.

Get ready for the arrival of Customer Service 3.0 technologies.  Imagine being able to look up your customer’s name, their social networking information regardless of where you are.  This is one of the many promises of mobile facial recognition software.  Using this technology one could simply use their mobile phone’s camera to immediately pull-up the relevant client data.  Firms such as Viewdle already have products on the market and Apple recently purchased the facial recognition software company Polar Rose, a facial recognition software company.  It won’t be long before additional software applications arrive on the market that are specifically designed with a small business marketers in mind.  These applications will usher in the Customer Service 3.0 era.

Despite the many positive uses of facial recognition software, we at Social Entrepreneur’s Toolbox also recognize the potential negative uses of such applications.  Consumer privacy needs to be addressed by both industry and civil society and best practices need to be developed.  Fortunately, organizations such as Tagmenot are surfacing in the marketplace to help address such concern.

So readers, what do you think are some of the positive ways facial recognition technology can be responsibly used in your businesses?  And equally important, what steps would you take to make sure you protected the privacy of your customers?