Know-How Exchange : Research/Metrics

I hate to be the one to reply negatively, but I forsee many problems with this venture (both practical and moral).

Lets start with practical, but do bear in mind that I have't done any research and it's all based on hunches...

To ensure that the data collected is useable, it will need to be input into the system (scans obviously will not do, unless you rely on OCR). This will be a huge drain of man hours. In addition to this, information is often quite difficult to gather from reciepts - short codes might be used for products, or after time it may simply become illegible.
Even considering this, you will have to make sure that you have a good size collection of data before using any research and I suspect that this downtime might be far too long.

Next is the fact that you're working on local establishments. Segmentation is great, but perhaps you might need to specialise further as it appears to me to be far too large a range of potential products that could be categorised (and that your data inputters might have to be familiar with, given the above). Also consider the growing role of the Internet in consumer purchasing and how this might impact your future business model.

I think those are really the main practical issues here - it does seem like a rather labour intensive way to get the results you're after. Saying that, though, the idea is good - SMEs, often without the time or resources to do it themselves, can benefit from the data analysis that large organisations use as the bread and butter basis of their research.

Morally, of course, it's a different kettle of fish. Of course, operating an opt in scheme, the problem lies in motivating people to join. Viewing their own expenditure might be useful for some, but many ordinary users would probably lack the volume of transactions that would make this a valuable tool. Perhaps discount cards could be arranged with the stores they shop at, or other incentives like it?
I don't know how it is in the states, but in the UK people are ever more worried about where there personal data is being held, and what it's being used for (although, admittedly, this is largely the result of many instances of data theft and loss in the media lately) so it would need to be a great incentive...

From a legal standpoint, you need to claim compliance with the US version of the data protection act (if there is one...) and use this as a tool to promote to potential customers.

Anyway, to answer your direct questions:

1) Electronic submission of data is a great idea - cost effective and convenient. Without great incentives, people will be much less interested. A great way to up the interest would be to offer mystery shopping assignments - people will often sign up and participate in a programme because of the percieved value of an assignment and not actually get around to doing them, but still submit reciepts. Definately something to look in to, especially if it fits with your clients demographics.

2) Data protection certification, client testimonials (working with/on behalf of xxxx) etc. Clear and honest explaination of how the data is held and used (but nothing to give away its physical location... Any clues to the data servers physical location is like a neon sign saying "steal me").

3) Obviously, you need something unique. In an ideal world, you'd have something explaining what you do too.. but this will be popular, so it's a trade off. Without knowing more about you guys, it would be hard to offer suggestions. However, considering you are segmenting geographically, you might want to use your location in part of it for a bit more differentiation. Consider something that stresses the essential nature of your work - that businesses need you in order to keep up to date. The information they need without the huge cost point.

4) Again, data protection needs to be qualified and referred to.

I hope this helps.

Good luck!