Today Amazon launched full force in Mexico with items ranging from baby products to electronics to sporting goods—for the past two years, the company has sold only eBooks on its localized site in the country. Why Mexico now?
Mexico’s eCommerce market has risen on global brands’ priority lists. When it comes to eCommerce, Mexico is the India of Latin America: a small, early-stage market that has been overshadowed by rapid eCommerce growth in a much larger neighbor (Brazil in the case of Latin America, China in Asia). However, Mexico’s time has come. As Brazil’s economy has slowed to a halt, Mexico’s continues to grow—at the same time, the cost and complexity of operating in the Brazilian market has become apparent, leading many US and European brands to turn their attention north to the region’s second largest economy. In 2014 alone, Orange, Zara, Home Depot, Lowe’s and Williams-Sonoma all rolled out eCommerce offerings in Mexico.
Driven by a variety of different categories, the online retail market is growing rapidly. We often talk about eCommerce markets evolving in four phases (see graphic below). Mexico has very much followed this trajectory. Early-stage online purchases were largely in the travel sector—then as consumers started to make physical product purchases online, they gravitated to categories such as consumer electronics and computer hardware. Going forward, these categories will continue to grow but they will be augmented by later-stage categories like apparel, beauty and grocery. We expect Mexico’s total online retail market to grow by a CAGR of 19% between 2014-2019, reaching almost $7 billion by 2019.
Each Congress considers over 10,000 bills, and virtually none of them ever explicitly focus on customer experience (CX). However, some bills do have implications for federal CX. And although just 3% of bills ever become law, federal CX advocates should stay informed of proposals from the start. That way, we can suggest improvements, help good ideas become law, and plan for what happens when they do.
That’s why I’m starting this new weekly blog series. Every week while Congress is in session, I’ll take a look at a few new bills that could affect federal CX and offer my initial thoughts on each. I hope my views start a weekly conversation about which bills seem most promising for federal CX and the overall role Congress should play in improving the federal customer experience.
Let’s begin by taking a look at two bills that House leadership recently assigned to committee:
A few months ago, I had a horrible customer experience around test-driving a new luxury car. The company's marketing department invested a lot of money on different campaigns to get me to make an appointment for a test drive. They succeeded, But once I got to the showroom for the appointment, the experience was a complete 180-degree turn from the red-carpet marketing experience. In fact, I was told they were too busy for a test drive and they requested I come back in two weeks. Needless to say, the experience was a #BIGFAIL on the part of the carmaker.
Contrast this with the experience I had while visiting a Tesla Motors store recently. While I was in the store browsing different car models and speaking with a Tesla spokesperson, a steady stream of existing Tesla owners popped into the store to rave about how great the brand was and how much they loved driving their cars.
Twenty months have passed since Forrester last published our Wave evaluation of the leading B2B commerce suite vendors. During that time much has changed. B2B eCommerce transactions in the US have grown 40% from $559b in 2013 to reach an estimated $780b by the end of 2015. Furthermore, 74% of B2B buyers now research and 30% now buy at least one-half of their work purchases online. Manufacturers, distributors and wholesalers alike are investing heavily in next generation enterprise B2B commerce technology to ensure they are delivering world-class online buying experiences that are able to scale for anticipated growth. As a result of this wave of investment, manufacturing and wholesale trade firms will spend more on commerce technology by the end of the decade than their peers in B2C retail.
As eBusiness teams look for solutions in the market, not only are they benchmarking their future state online buying experience against B2B peers like Grainger, but also against B2C leaders like Amazon and Wal-Mart. This means they need solutions with a best-in-class foundation of B2C features such as robust marketing, merchandising and experience management tools upon which unique B2B capabilities such as contract pricing, quotes pricing lists, eProcurement, product configuration and customization, guided selling, bulk order entry, dealer management, and account, contract, and budget management are then layered on top.
I saw it coming last year. Big data isn’t what it used to be. Not because firms are disillusioned with the technology, but rather because the term is no longer helpful. With nearly two-thirds of firms having implemented or planning to implement some big data capability by the end of 2015, the wave has definitely hit. People have bought in.
But that doesn’t mean we find many firms extolling the benefits they should be seeing by now; even early adopters still have problems across the customer lifecycle. Can your firm understand customers as individuals, not segments? Are analytics driving consistent, insightful experiences across channels? Does all that customer insight developed by marketing make a bit of difference to your contact center agents? If you're like most firms, the answer is, “Not yet, but we're working on it.”
What’s more, firms expect that big data will deliver the goods. In fact, about three in four leaders tell us that they expect big data analytics to help improve and optimize customer experiences. That's a huge expectation!
I think big data is going to be a big letdown when it comes to customer engagementand experience optimization.
Here's why – big data is about turning more data into insight. In fact, our latest data and analytics survey tells me that big data plans are still overwhelmingly an IT department thing. As such, they have fallen victim to supply side thinking – just furnish the data and the technology, “the business” will do the rest. Really?
Big data will not help you:
Ensure insights are tested for value against business outcomes.
Deliver insights at the point of decision in software.
Close the loop between actions, digital reactions, and learning.
We just published my latest research, the Forrester Wave: SaaS Web Content Security, Q2 2015. Forrester categorizes web gateways/forward proxies into this web content security category. I did something different with this evaluation, instead of looking at on-premise appliances; I only evaluated the SaaS deployment model. If a vendor didn't have a SaaS delivery model, we didn't include them in the Wave.
The decision to focus this wave on the SaaS model, wasn't popular with some of the vendors we evaluated. The majority of vendors who sell web proxies lead with the on-premises delivery model and relegate SaaS to a niche deployment option. As users, their endpoints, and their applications move outside the perimeter and into the cloud, the traditional web gateway model is being disrupted; yet many vendors are still very attached to their appliances. Instead of evaluating a very mature on-premise market, I wanted to focus this Wave on the future.
“Business buyers don’t buy your product; they buy into your approach to solving their problems.”
Most B2B marketers need to position their firms as thought leaders on the issues their buyers face. This is easier said than done, because marketing mindsets focused primarily on brands, products, and offerings makes it difficult for marketers to develop interesting content that captures their buyers’ attention.
A lack of skills and experience in developing customer-focused content make it difficult to produce engaging content. Our benchmark study showed 87% of marketers struggle to produce engaging content. (subscription required) And most firms don’t have a process or framework for managing thought leadership marketing initiatives, so they push out product brochures and white papers thinly disguised as thought leadership content.
As a result, buyers don’t find B2B content engaging because the digital world gives them more power to form buying decisions alone. To intercept these buyers when they begin to discover issues and start to explore options; marketing and sales teams need to put your firm’s points of view out there for prospects and customers to see. Really provocative or forward-leaning points of view help to not only attract an audience, but build interactions. Doing this is thought leadership marketing.
In a world where OS and low-level platform software is considered unfashionable, it was refreshing to see the Linux glitterati and cognoscenti descended on Boston for the last three days, 5000 strong and genuinely passionate about Linux. I spent a day there mingling with the crowds in the eshibit halls, attending some sessions and meeting with Red Hat management. Overall, the breadth of Red Hat’s offerings are overwhelming and way too much to comprehend ina single day or a handful of days, but I focused my attention on two big issues for the emerging software-defined data center – containers and the inexorable march of OpenStack.
Containers are all the rage, and Red Hat is firmly behind them, with its currently shipping RHEL Atomic release optimized to support them. The news at the Summit was the release of RHEL Atomic Enterprise, which extends the ability to execute and manage containers over a cluster as opposed to a single system. In conjunction with a tool stack such as Docker and Kubernates, this paves the way for very powerful distributed deployments that take advantage of the failure isolation and performance potential of clusters in the enterprise. While all the IP in RHEL Atomic, Docker and Kubernates are available to the community and competitors, it appears that RH has stolen at least a temporary early lead in bolstering the usability of this increasingly central virtualization abstraction for the next generation data center.
A few weeks back I published a report entitled New Tools Make Hybrid Apps A Safer Bet. It’s my first report at Forrester, a brief on some of the changes happening in the hybrid application space and what they mean for application development and delivery (AD&D) pros. The topic is something I was noodling on before I joined Forrester and it was a natural topic for my first report.
I’ve been a contributor to the Apache Cordova project and written 4 books on the topic, and while a lot of developers are building hybrid apps using Cordova, broad adoption of the approach has been lacking. Don’t get me wrong, a lot of developers are using the framework, and there are a lot of apps out there, but we haven’t seen a lot of big name adoption. Developers eschew the hybrid approach for reasons both valid and invalid; recent changes in the hybrid space address some of those issues and should set the stage for broader adoption of hybrid. Check out the report and I would love to hear your feedback.
The Social Security Administration’s (SSA) Supplemental Security Income (SSI) program had a problem: It was paying out way too much in unearned benefits to program participants. This was happening because participants weren’t reporting their income often enough. As participants’ incomes went up, their SSI eligibility went down — but they continued receiving SSI benefits based on the lower income they had previously reported.
SSA used fundamental customer experience (CX) techniques to solve this problem. As a result, it ended up fixing not one problem, but three.
First, SSA and its contractor performed basic quantitative and qualitative customer research to discover why people weren’t reporting their income. The reason wasn’t fraud — it was convenience. SSA had made it too difficult for beneficiaries to report their income, so they weren’t doing it as often as they should. But how to make it easier? Solid CX design methods presented the solution: a mobile app.