Financial Consequences For Obese Employees In Singapore: Another New Business Model Enabled By Mobile

Julie Ask

I showed up at a business meeting in Singapore today and each member of the company within the meeting was wearing a Jawbone. I thought, "Wow, that's unusual ... and statistically very unlikely." Turns out, the company gave the devices to the employees. And ... added some teeth to the program. Approximately one week's compensation each month is linked to the employee's BMI. The formula is a bit more complicated than that, but that is the general idea. 

This offers one powerful example of the new business models that mobile enables. (See my research report from this winter that outlines the possiblities.) 

Despite the links between wellness and productivity at work, there are many reasons why this model wouldn't fly in the US - at least at a public company. Studies show that healthy employees are more productive, have higher energy levels, etc. However, there are always nuances, pre-existing conditions and laws in the US that protect employees from employers increasing or decreasing compensation based on their perceived health. Genetics come into play. Healthy - fresh, organic, slow cooked, local -  foods can be expensive and beyond the research of the average family in the US. 

Insurance companies in the US are piloting programs to reward members for good behavior (e.g., exercise, eating healthy foods, sleeping well). Rewarding members with discounts on premiums or vouchers for goods is very different though that linking compensation to an employee's BMI. 

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Amazon Fire: Winning In Its Customers' Mobile Sales Moments

Julie Ask

I had the opportunity and privilege to get an early look at the new Amazon Fire phone. It delights in many ways, but I’ll focus on the shopping experience enabled through Firefly.

For those who may not remember, Amazon put a dedicated physical button on the left hand side of the phone that launches directly into image recognition. If the image is recognized, then a web-based mCommerce experience launches. The user can then buy the product or it on a wish list, among other things. From there, the experience is more ‘traditional Amazon.’ The ‘new’ is the image, email, URL, etc. recognition.

Why is selling mobile phones important for Amazon? mCommerce in the US alone will add up to nearly $100M by the end of 2014. The new battleground for retailers is in the mobile moment – the point in time and space when a consumer pulls out her phone to get something she needs immediately and in context. Amazon’s FireFly service facilitates two core types of mobile sales moments:

  • Impulse Sales Moments – these are often flash sales (e.g., WTSO.com, SteepAndCheap, etc.) or spontaneous purchases (e.g., Groupon). The opportunity for Amazon here is in minimizing the friction between consumers seeing something they want, and enabling them to buy it before they forget about it, or find it later in a store nearby.
  • Replenishment Sales Moments – the phone (or something like an Amazon Dash) is with me when I realize a shampoo bottle or milk is empty or I need more toothpaste.
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How PURE Insurance Built A Customer-Obsessed Business

Sam Stern

My latest report, "Case Study: How PURE Insurance Built A Customer-Obsessed Business," is a case study of a company using its customer-obsessed business model to stand out in the insurance industry. Since its start in 2006, PURE has grown more than 40% each year and has one of the highest Net Promoter Scores in any industry.

Entering the crowded competitive insurance industry was no easy task. PURE knew it would need to stand out. That’s why the founders decided to go with a member-owned business model (called a Reciprocal Exchange) that would help differentiate the insurer from other insurance companies owned by shareholders. For PURE, owners as members means alignment between business and customer goals. The company deepens and reinforces this commitment in several ways:

  • Targets a select group of customers. In addition to creating a member-owned business model, the founders of PURE also focused on a market niche with a distinct and attractive profile. The insurer targets responsible high-net-worth customers. For its homeowners insurance policies, for example, the homes of potential policyholders must have a reconstruction cost of at least $1 million. The company selected this segment because high-net-worth customers represented a favorable risk profile. This, coupled with the fact that the niche lacked significant competition, created an opportunity for PURE to offer highly competitive premiums and still be profitable.
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Sales Enablement Is Coming Of Age And Becoming Clearer

Peter O'Neill

These are exciting times for me, Peter O’Neill, as I ramp up my new position here at Forrester.  I must say, my Research Director predecessor was very visionary to use the sales enablement (SE) term at all over three years ago - the first thing I’ve learned is that our sales enablement clients are hardly ever called that .  As Scott Santucci writes in his new report: Clarity Is Key To Sales Enablement Success, “The number of sales enablement positions and interest in the topic have exploded over the past five years, yet many questions remain about what it is or which organization should own it “.  Even at the SE Forum this March, only 25% of the attendees had SE in their job title - other job titles that appear in the attendees list include various marketing positions, strategic roles such as CEO, CIO or chief strategy officer, and even sales management themselves.  Ultimately, we are helping all business people involved in enabling their client-facing employees to have valuable conversations with various sets of customer stakeholders.  I am sure that the attendee list at next year’s Forum will also be mixed: it is early days but I suggest you block your calendar now. Colleague Mark Lindwall  has just published the first of several reports on the topic of sales force development activities such as hiring, training

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The Social Users Marketers Want To Reach Are On Mobile

Thomas Husson

With Facebook announcing its earnings today, it will be interesting to know more about the performance of video ads and Facebook's teen usage, following my colleagues’ research that showing young people are using the site more rather than less.

I’ll be curious to hear if there is a business strategy update, but I don’t think we’ll have more insights on what “unbundling the big blue app” really means. I think one possible option is that social data and contextual identity will be the layer on top of Facebook’s new social conglomerate.

I personally will be looking more specifically for an update on mobile app installs. There's no doubt that Facebook has disrupted the app marketing space by becoming a key player in app discovery — which is the key driver behind its mobile ad revenues.

A growing and significant part of this business comes from direct marketers looking to drive app installs, primarily from gaming and other businesses that are increasingly dependent on mobile, such as travel and retail companies. These players know the lifetime value of their apps and have calculated how much they can spend to drive each app download and still have a positive return on investment (ROI). But marketers in more-traditional businesses or who are pursuing other marketing goals should pay close attention to the unique attributes of their mobile social users and optimize their social strategies to engage them.

Why?

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Is Your Agency Or SI Trying To Sell You A Digital Experience Delivery Platform?

Anjali Yakkundi

We recently published our digital experience delivery platform wave (you can find the blog post and accompanying report here).  These platforms have emerged to help solve customer needs around integration between digital experience technologies and data management.  

Over the past year, many agencies and systems integrators (SI) have also gotten on the digital experience platform bandwagon. These partners have been white labeling and directly licensing/selling digital experience platforms-as-a-service (PaaS). These solutions are typically built on the backbone of proprietary web content management (WCM) and eCommerce solutions (usually Adobe’s toolsets, though we found some notable exceptions built on Oracle and SDL), and are meant to provide an “as a service” model to delivering multichannel content- and commerce- driven experiences. Many, many services firms from both agency and systems integrators backgrounds have started to promote these solutions including well-known names like: SapientNitro, Publicis Groupe, Wipro, Infosys, Cognizant, Deloitte, and Capgemini.

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Digital Experience Delivery Platforms: Oasis Or Mirage?

Mark Grannan

To answer this question, we compared 13 digital experience delivery vendors across 29 criteria in our recent Wave report, "Digital Experience Delivery Platforms, Q3 2014." Overall, we found many areas of differentiation, but client adoption and usage is a mixed. While some organizations have made strides in contextual, omnichannel delivery, many fail at customer data management. Almost all of the vendors focused on customer acquisition but many haven't begun to support the entire customer life cycle. In the end, no vendor achieved Leader status.

Despite no Leaders, these 13 vendors are definitively tracking toward the goal of an integrated platform for enterprise digital customer experiences. Specifically, Adobe and hybris outpaced the competition as an aggregator and all-in-one, respectively, but IBM and Sitecore also placed as Strong Performers. Each of the Contenders in our evaluation  -- Acquia, Demandware, Digital River, HP Autonomy, Intershop, OpenText, Oracle, salesforce.com, and SDL -- have strengths and bring an enterprise track record around their core differentiation, but most vendors' platform efforts are still building credibility among enterprise clients.

Earlier this year, Forrester asked 148 digital customer experience decision-makers from across enterprise technology, marketing, and commerce roles, "What are the biggest technical barriers to creative and effective customer-facing systems?" Systems integration and data management solidly led as today's top challenges. Our Forrester Wave analysis aims to uncover which platforms address these top technical barriers and additional priorities such as contextual delivery and bridging content and commerce-driven experiences.

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Apple Shores Up Its Enterprise Position In Asia With IBM Partnership

Tim Sheedy

You’ve probably already seen the announcement of the partnership between IBM and Apple; Forrester clients can read more about it here, along with our deeper analysis.

While I can’t comment on the trends in North America and Europe, I know that there are some interesting dynamics in the enterprise mobility space in Asia Pacific at the moment. The penetration of technologies like BYOD, customer mobility, and employee-facing mobile apps has been relatively low in many Asian countries, putting the region’s companies behind their North American peers for the most part. I still speak with CIOs and marketing leaders about why they should have a mobility strategy or how they can help their employees stay productive regardless of location.

Don’t get me wrong: There are a lot of smartphones and tablets — particularly iPads — in businesses across the region. But many of these devices, especially the tablets, were personally acquired by employees — so they’re an “accessory tool,” not a core productivity tool; often, corporate tech management doesn’t support them and app-dev teams don’t develop for them.

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Visionary Chinese Banks Show How Customer-Oriented Architectures Support Innovation

Charlie Dai

Five of the top 10 companies in the latest Forbes Global 2000 company list (published in May) are from China, and four of them are commercial banks. If you think this is only due to China’s massive consumer base, and that you can easily apply your global innovation strategy to the Chinese market, you’re almost certainly wrong. Enterprise architecture (EA) professionals at companies doing business in China should take a look at what the country’s banking and financial services industry (BFSI) is doing to enable customer-centric innovation.

I recently published two reports focusing on China’s BFSI. In these reports, I analyzed the Chinese banking landscape and the business challenges banks face, described a systematic approach to innovation that EA pros should consider when planning their transformations, and shed light on how they use both mainstream and emerging technologies to unleash the power of innovation around products, operations, and the organization. Some of the key takeaways:

  • Chinese banks suffer from their own customer experience issues. As a longtime monopoly, China’s BFSI has suffered from inefficiency, quality problems, and an uncompetitive ROI — and thus can no longer meet the high bar for customer satisfaction in the age of the customer. EA pros must find innovative ways to resolve these issues.
  • Internet companies and regulatory changes are challenging BFSI players. Visionary Internet companies like Alibaba and Tencent have launched financial services products, including innovative products like Yuebao, that are disrupting China’s BFSI with higher profits, lower barriers to entry, and better flexibility. The government is also making regulatory changes that will open up the market and intensify competition.
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Yahoo! Acquires Flurry: Inexpensive Audience Acquisition For Yahoo!

Julie Ask

Today Yahoo! announced its acquisition of mobile analytics and ad platform, Flurry. TechCrunch and Kara Swisher on re/code both reported the deal, with a $300M minimum price and $1 billion on the upper end. According to the press release, Flurry sees app activity from 1.4 billion devices monthly and 5.5 billion app sessions per day.

A little math: 1.4 billion devices does not equal one billion active users. However, a user could have one or many apps on his phone with the Flurry software embedded. Apps do not tend to have exclusive arrangements with one mobile analytics provider – let alone the free ones. They tend to have one or more. The code is small and there aren’t many compelling reasons to limit the number of buyers for your inventory unless there is unique value. It becomes hard to compare to the price tags of Viber ($900M) or WhatsApp ($17B to $19B). This is as much a play for audience as it is analytics. Flurry’s scale makes it interesting as an acquisition more so than what they do.

What does the acquisition mean?

No doubt, it’s a huge financial payoff for Flurry and its investors. When we interviewed Flurry a year or so ago for our research, they had 150 employees. 2014 will be known as a year of phenomenal mobile exit events – especially for those companies buying audience. It’s a good time to sell. A few thoughts:

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