Walmart has used the talent of one of its acquisitions, Kosmix, to develop @WalmartLabs which is their arm for putting together apps like this one called ShopyCat. All Things Digital reported
Wal-Mart has launched its first Facebook application that helps people buy better gifts for their friends.
The application, called Shopycat, makes product recommendations based on the items people have liked or talked about in their news feed.
It is not particularly flashy. The logo is a picture of a cat sticking its head out of a shopping bag. The tagline reads “the right gift every time.”
This is an interesting approach to taking social signals to get information that will help shape a decision by a customer. There are two questions that come up, at least for me. First, is about permissions. The article says
The application is available to Wal-Mart’s 10 million fans on Facebook if they give permission to install it.
OK, so if I were to give permission to install the app where is the permission by my friends for the app to scan their news feed come in? Am I able to give permission to an app to scan , scour and collect data on my friends without my friend opting in as well? Seems a bit presumptuous doesn’t it? My friends are my friends but I am not so sure that part of being a friend is allowing a large retailer access to your information just because I am too dense to really know what my “friend” might want as a gift? If I am missing something here please explain it to me (anyone at @WalmartLabs reading and / or listening?!?).
This is where Facebook and privacy gets a bit dicey. As soon as my information shows up in a friends’ feed (which is the only reason you post anything anyway, right?) have I then given up the right for that data to just stay between me and my friend? Is that information about me now fair game to anyone my friend has given permission to? A slippery slope indeed considering the latest rulings by the FTC as it relates to Facebook’s privacy practices.
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I admit that I could be playing the role of an online paranoid here but how else can an algorithm, which is all that Shopycat is, know ANYTHING about me unless there was some permission granted by someone? In this case, however, it’s not granted by me implicitly for this app but I suspect that deep in the recesses of the Facebook terms and conditions I have agreed to this kind of thing. This is why people are suspect of Mark Zuckerberg, Facebook and advertisers in general.
The second area I wonder about is one that ATD’s Trciai Duryee points out in her piece
The technology also sometimes fails. When Harinarayan (of @Walmartlabs) viewed gift ideas for me, it recommended a number of Sony products. Months earlier, I liked Sony’s fan page in order to gather information for a story — not because of any deep admiration I had for the company’s products. An algorithm would have a hard time knowing that.
This kind of result speaks to the reliability of Facebook likes. I know of several occasions where I have done the same thing just to get some information. If I don’t go back and clean up by unliking the page then it appears as if I care about what’s there when it’s likely that after the initial need is met, I don’t.
Marketers need to be very cautious as to how much faith they place in the reliability of so-called “social signals” especially Facebook likes. One of the downsides of the ubiquitous nature of these likes is that it has watered down the meaning of the term “like” the same way that Facebook did with the word friend. Just because something is liked on Facebook doesn’t mean that it matters to the user at all, especially in the way that marketers might hope for.
So while this kind of experiment is interesting it also brings up many questions about the two things that marketers should be most concerned about: privacy and data reliability. Is there a perfect solution for business problems like this? Not now and there may never be. As all of this gets hashed out over time it is likely that we see and experience today will play out much differetnly in the future.