Technology can be a game changer.

June 1, 2010

Last week, The Deal quoted me as saying that technology just might give Borders a second lease on life.  Links to the article are available only to The Deal subscribers, so let me explain.

As you may know, financier Bennett LeBow recently invested $25 million in Borders and became its Chairman. That $25 million infusion will buy Borders some time, and a combination of savvy marketing and the savvy use of technology may dramatically improve the company’s prospects.

  • Technology has transformed the marketing battlefield.
  • Although Borders is late to the digital distribution game, the company has a key, not-to-be-discounted asset made valuable through the wonders of current technology: The list of 30-million email addresses they have accumulated through their “free” Borders’ Rewards program.
  • That list is a springboard that will allow Borders to promote its new digital offerings rapidly to a massive, already existing database of customers.
  • Current technology will allow them not only to reach those customers but also to know the book-buying  preferences of those customers.  In addition, Borders will be able to send personalize emailed “pitches” to the 30 million—right away—without delay and at a relatively low cost per customer.
  • As a result, Borders will likely attract digital book buyers quickly at a low cost-per-customer and per-purchase.

I, personally, would not invest in Borders now, but it’s premature to count them out.

Leave a Comment

Your email address will not be published. Required fields are marked *

By submitting this comment, I agree to the Terms and Conditions of the website.