Technology can be a game changer.June 1, 2010
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.