Corporations spend a lot of time and money to ensure their employee- and customer-facing technologies are compliant with all local and regional data privacy laws. However, this task is made challenging by the patchwork of data privacy legislation around the world, with countries ranging from holding no restrictions on the use of personal data to countries with highly restrictive frameworks. To help our clients address these challenges, Forrester developed a research and planning tool called the Data Privacy Heat Map (try the demo version here). Originally published in 2010, the tool leverages in-depth analyses of the privacy-related laws and cultures of 54 countries around the world, helping our clients better strategize their own global privacy and data protection approaches.
The most recent update to the tool, which published today, highlights two opposing trends affecting data privacy over the past 12 months:
Increased government surveillance continues to impede the free flow of information. Corporations worry that storing or processing data within the borders of a country with high levels of governmental surveillance could place their intellectual property at risk. Notable additions to the tool's growing list of countries with lowered barriers to government surveillance include the US, Germany, and the UK.
An agency head told me how he was on a call between the European head of marketing for a US brand and that brand’s board of directors. The chairman asked the marketing honcho, “How is the European market?” The marketer answered, “There isn’t one.” Awkward silence. “That is, there is no European market. There is a French market. A German market. A British one. And so on. I can tell you about those.”
In no other sphere of marketing are these national differences magnified more than in social media. Social media is, by its nature, participatory and thus takes on the form, tone, and color of its users. Social media in Germany is German social media. In France, French social media.
Then brands enter the picture. That social media strategy hatched in Dallas or Dublin, with a sum earmarked for translations, will not cut it.
Three reasons cookie-cutter strategies will fail in Europe:
Europeans as a broad group are less likely to engage with brands on social media than, say, in the United States or metro Hong Kong.
Europeans’ usage differ significantly country to country; Italians usage is not comparable to German usage.
Each market boasts strong local players that excel at the intricacies of their market’s social media usage.
Every business and industry faces digital disruption today. Digitally empowered customers demand a much higher level of customer obsession to win and keep their business, and they are forcing firms to redefine their business models. Whether you are in banking, insurance, financial services, education, media and entertainment — essentially, in any industry — digital technologies will disrupt your business. Nevertheless, our research shows that firms currently favor a bolt-on digital strategy over digital transformation, but this will drive only limited value from their digital investments. Digital strategy is not about adding a new mobile app or building a social media presence. It requires a fundamental shift in business strategy, responsibilities, technology capabilities, and organizational structure.
Against this backdrop, Forrester is holding its third series of CIO Summits across Asia Pacific in August and September. The India summit is on August 21, 2014 in Mumbai with the theme of: "Beyond IT: Empower Digital Business In The Age Of The Customer." Just like last year, we expect around 150 CIOs to attend the event. The Summit will focus on the significant shift we’ve seen in CIOs' traditional focus — from the design and deployment of internal systems focused on process control to digital products and services for their customers. Of particular importance on the digital journey are three domains:
- Customer experience.
- The mobile mind shift.
- The transformation of big data into actionable business insights.
Over the past year, we’ve told banks that some of them would become custodians. We’ve told insurers that many of them would be forced to specialise. We’ve told wealth management firms that many would shrink. We’ve done this to show them how digital disruption could savage retail financial services, just as it has done with the music and publishing industries.
But we don’t want to be just the bearers of bad news: We want to help you deal with new players like peer-to-peer lending platforms and even Google entering retail financial services. And to be fair, it’s not all bad news. There are plenty of companies out there using digital innovation to meet their customers’ financial needs in new and better ways. Take for example BBVA which has brought its customers the virtual assistant Lola, video banking, and the crowdfunding platform called Suma. And BBVA hasn’t stopped here. The Bank is currently running the sixth edition of its Open Talent competition for start-ups most likely to affect financial services.
How does the CI pro responsible for marketing technology buying make an informed decision when faced with so many options? Well, to quote Ron Davies (feel free to summon the voices of Three Dog Night, David Bowie or Shelby Lynne, if you prefer), “It Ain’t Easy!” To help CI pros with their decision-making, my latest brief The Marketing Technology Buyer’s Dilemma provides advice on how to maintain customer focus while navigating market changes.
As customers we’re rarely satisfied with simply buying goods and services. What we really want, on top of the actual purchase, is a great customer experience (CX). This drives us to seek out companies that not only understand our wants and desires but more importantly, understand the role their company’s products actually play in our lives.
Nowhere is this more true than in the hyper-competitive Australian retail banking market. That’s why we invited Louise Long to speak at Forrester’s Summit For Marketing & Strategy Professionals: Australia. Louise is Head of Customer Experience at National Australia Bank (NAB), leading the company’s initiatives to deliver truly great customer experiences to NAB’s clients.
Louise was kind enough to answer a few of our questions about what she’s doing. Read on for insight into how NAB continuously seeks innovative ways to ensure that the customer remains at the center of the company’s business strategy.
Those of you who’ll be with us in Sydney on Wednesday, August 13th, can hear even more from Louise. I look forward to seeing you there!
Q: When did your company first begin focusing on customer experience? Why?
We at Forrester believe Digital Money Management, often referred to as Personal Financial Management (PFM), is the future of digital banking. But as we find in our new report, The State Of Digital Money Management 2014, available here, it doesn't appear to be the present. Fewer than 22% of customers in the US and Europe have used a single money management feature in the last 90 days.
Why? It's simple: most people just don’t want to manage their money. They don’t want to budget, as in doing any work. They don’t want insight, beyond one or two bite size chunks. And they don’t want to save. They may think they want to, so they’ll set up a savings goal, but most won’t stick with it. Even if they do, it's not about the saving. It’s the buying – that’s the thing they actually want to do.
Even with today's money management, I suspect many of the best users actually spend more, not less, as a result. Few banks measure this - and that's another blog - but it's an instinct I know some clients share. When customers have more transparency around their options, they feel empowered to buy more.
Those users who have no choice but to save often find money management too depressing and give up. Efforts to gamify money management, to make it social, or send “you should save” reminders just alienates them further - the digital equivalent of that unopened bill reminder in the post.
Many brands eyeing Latin American eCommerce markets look first to Brazil, and with good reason. Brazil is Latin America’s largest online retail market by a wide margin and growth rates remain high: Our forecast shows the market growing by a CAGR of 18% to reach $35 billion in 2018.
As in every fast-growing eCommerce market, however, companies that compete in this environment face numerous challenges. Issues like complex tax navigation and the long path to profitability are well documented. In addition, companies need to prepare for shifts in what consumers buy online and how they make these purchases. The dynamics of online shopping are shifting.
Our report published today on The Evolution Of eCommerce In Brazil (client access req’d) discusses five trends that will impact the online retail market in the country. While these same trends will play out in many markets around the globe, our report dives into how and when we expect to see shifts in Brazil.
I know it's Friday and I hate to be gloomy just before the weekend but I could not let this wait. Last year, we (George Colony actually) released a report in which we highlighted that 32% of respondents to our Forrsights Business Decision-Makers Survey in 2012 stated that they believe their IT department hinders business success. Unfortunately in 2014, this figure has jumped to 43%!
This is really worrying for me and should be for you also because technology, and specifically digital technologies, are catalysts for commercial success in all industries. This means that I&O should really be a key partner helping drive strategies here but this rising dissatisfaction also highlights a trust issue – and without trust from our business co-workers we have no chance of changing the direction of this stat. This prompted myself and my co-worker Anthony Mullen in the Marketing Leadership role to research and write the report – “Five Ways To Impress Marketing And Support Digital Business Transformation” which has just been released.
The tide is turning on privacy. Since the earliest days of the World Wide Web, there has been an increasing sense that the Internet would effectively kill privacy – and in the wake of the NSA PRISM program revelations, that sentiment was stronger than ever. However, by using our Forrester’s Technographics 360 methodology, which blends multiple qualitative and quantitative data sources, we found that attitudes on privacy are evolving: Consumers are beginning to shift from a state of apathy and resignation to caution and empowerment.