First, I'd like to thank John Battelle for writing an in-depth analysis of Google Checkout. His blog is at battellemedia.com.
I had some questions about Google Checkout and customer data. I recently had lunch at the Googleplex with a good buddy of mine (note: yes, it's a fancy, free cafeteria, but it is still a CAFETERIA) and I wanted to ask. Yet, the conversation kept going on more important topics.
Luckily, Mr. Battelle did some work for me. Of course Google Checkout HAS TO share what you bought and how much you paid for it with the retailer. How else is the retailer going to ship it? But, if you read deeper in the notes, it's optional whether the retailer gets an email address or not. Ok, how is the retailer's customer going to know if you are out of stock or if the product has shipped?
What's clear to me is that Google understands two things very well. One, keeping the relationship between Google and the customer is paramount. It is Google Checkout's customer. The retailer is lucky to get an order through it and the retailer will get what it gets in the way of customer data and like it. The value of the relationship accrues to Google, not the retailer. Two, the amount and quailty of conversion data that Google is gathering will be invaluable. And, once again it will accrue to Google Checkout, not the retailer. Currently, through a combination of adwords and analytics, Google can track conversions pretty well. It knows what keywords convert to purchase at what price and what the customer ultimately spends. Now, if the retailer runs it through checkout, Google gathers retail segments, brands, items, and quantities. Imagine the brains that developed the world's leading search engine mining the retailer's customer data FOR THEIR BENEFIT.
That's probably the most paranoid thing I'll ever post. But, if you are a retailer and you are thinking about giving up that data to a partner who would rather own the customer than use the data to help you grow your business, think again.
