Get ready for the barrage of bad speculation about Twitter and its imminent dominance of online retail. If you didn’t hear already, Twitter hired Nathan Hubbard, a former Ticketmaster exec, to figure out its commerce revenue stream. Interesting yes, but game-changing, no. Here’s why: startups tend to look for smart people first and figure out their jobs later. The mentality often goes like this: “We need to figure out what we’re going to do in X, this guy has a rock star background in it, let him build a team and see what happens.” And even if the person doesn't succeed, it's OK. They move on. These people have great resumes. That said, here are the biggest reasons for my question marks around Twitter’s success in commerce:
What works best in commerce is something Twitter already gives away for free, which is its tweets. For example, some of the most successful users of Twitter in a retail context are companies looking to liquidate inventory or send notes about limited supply of promotions, like the Dell Outlet or Groupon — all done effectively via a tweet. In many ways, a tweet is like an email title — it draws people into a click with a few sexy words. The challenge is that tweets have the same problem as emails: they don’t make their technology parents any money because everyone gets to use the tools for free.
The online registration page has always been a necessary evil. Despite the obvious need to collect customer information online, 11% of US adults have previously abandoned an online purchase either because they didn't want to register online or the site they were visiting was asking for too much information. Many websites make it downright difficult to register, with seemingly endless input fields, complex password requirements and even annoying captchas all conspiring to make the process of buying online incredibly frustrating. To put this in context, a retailer with $200m of annual online revenues could be leaving a further $22m on the table simply due to the complexity of the registration step in their checkout process. But this is old news. For years eBusiness professionals have obsessed with optimizing the registration process, using A/B and multivariate testing to try and find the right balance between collecting enough customer information and exasperating their customers.
However, the days of optimizing the registration process may be fast coming to an end. In fact the playbook on customer registration tactics is being completely rewritten as a new and increasingly familiar button takes hold across the web: