World Retail Congress and kicking the discounting habit

George Lawrie

McGarrigle, Chairman of the World Retail Congress, makes his keynote opening address. © World Retail Congress

 

 

If you follow me on Twitter or if you attended WRC at the beautiful Cavalieri hotel in Rome  you’ll know that I had the privilege to moderate a panel of distinguished retailers to discuss the subject of discounting, specifically selling for less than the planned margin.

One of the event’s sponsors JDA had earlier presented data from a survey of retail leaders showing that their top foiur risk concerns included : increasing competitive threats (41%); margin erosion and cost reduction (39%); data security threats (25%), and attracting and retaining customers (24%).

Our panel, hosted by Congress sponsor and price optimisation software vendor Revionics, tackled the margin erosion issue asking: ‘How do we kick the discounting habit?’. The panellists, ranging across wholesale, fashion and apparel and general merchandise sectors, established a consensus view that discounting for its own sake, without a clear strategic goal and tactical execution, could be more damaging than beneficial to the bottom line – as was also arguably seen more recently with some of the more negative sentiment generated around Amazon Prime Day, as well as Black Friday.

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MROCs Are The Missing Piece To The Research Puzzle

Kristopher Arcand

This past summer, we at Forrester continued to explore new and innovative methodologies. One of my highlights was visiting the IIeX conference in Atlanta back in June. And although I was impressed by the variety of new (qualitative) methodologies, it’s rarely a matter of choosing one or the other. The recent GRIT report by GreenBook shows, for example, that many market research online community (MROC) vendors dropped a few places in terms of innovation, but I agree with Andrew Leary from Ipsos SMX that these online communities will continue to play a relevant (and innovative!) role thanks to their flexibility and variability when it comes to size, duration, integration, and scale.

I recently researched the MROC space, interviewing all the major players to understand their capabilities and how they support organizations. I found that there are a number of ways that MROCs aid customer insights professionals, including:

  • Creating a better understanding of consumers’ drivers. MROCs allow us to ask consumers in an open-ended way to describe their experiences across the purchase journey, anywhere from the point they learn about or research the company to when they follow up for customer support. In turn, these findings can have an impact at any level of the organization. These insights become even more valuable for ongoing communities.
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Some Thoughts On Shippable Software And Microservices

Ted Schadler

Stop reading now if you don't care about the machinations, architectures, and human reality of software. This post is for software philosophers and architects.

Dries Buytaert, the founder and core committer in chief of open source Drupal (according to Built With, the second most popular content management system software among the top million web sites) posted thoughtfully on keeping his open source software always in a shippable state. He writes this after a 3-year delay in releasing Drupal 8:

"We [will] create a feature branch for each major feature and only core committers can commit to feature branches. . . . Once we believe a feature branch to be in a shippable state, and it has received sufficient testing, we merge the feature branch into the main branch. A merge like this wouldn't require detailed code review."

This is sensible and now standard practice: Develop new features as decoupled components so committers and software managers can add them to the application without breaking it. That keeps the application always in a shippable state.

But the future of software is more than decoupled components. It also requires highly decoupled runtimes. That's called a microservices architecture: decoupled components available over the Internet as decoupled services. Think of it as a software component exposed as a microservice -- a microservice component. 

A microservice to place an order is decoupled from a microservice to alert you that your shoes have shipped. A microservice to display an image sized to your phone or computer is decoupled from a microservice to paint the page.

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Sales Enablement Sense Of Urgency Applies To Buyers And Vendors Alike

Peter O'Neill

My report “Develop Your Sales Enablement Charter Or Run Into A Perfect Storm” for Forrester clients, and the associated blog for all, has prompted many inquiries — from business decision-makers in B2B marketing or sales management; from technology decision-makers; and, of course, from the sales enablement vendors themselves. Some have questioned my sense of urgency — “Will things come to a head in sales enablement so quickly?” Well, here is an email that I received from Forrester’s own VP of sales operations that echoes most every sentiment I’m hearing from the sales enablement buying community:

I get contacted multiple times per week with vendors who have technology around streamlining and/or improving some part of the B2B sales process. I (and my team) have taken a number of these calls, and there certainly is some interesting technology out there, however it feels like there is a huge market inefficiency going on that is manifesting itself in two different ways:

  • There are many vendors that are attacking a small piece of the B2B selling process — i.e., forecasting, or gamification, or content distribution, etc. Because of this, each of these vendors [is] somewhat of a niche player, and it becomes harder to justify the ROI of any specific player. In addition, you have to go through a separate sales cycle with each one, with a separate procurement process, and if we do decide to purchase, completely separate integrations that likely leverage the same [scarce] Forrester tech management resources.
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Creating Security Conscious Developers

John M. Wargo
I recently completed preparing a presentation for the Forrester Digital Business Forum in Chicago this fall. The session I’m delivering is on delivering mobile app quality, and through my research, I’ve learned that security is an important part of app quality. My colleagues Michael Facemire and Tyler Shields recently published a report on The Future Of Mobile Security Development and that, plus some experiences I had working with a development team in a previous position, started me thinking about what it takes to make a developer that understands how to code apps securely. The report I listed above covers the security topic well, and makes some recommendations on how the security aspect of app development is likely to change, but beyond security capabilities and tools, how do you ‘create’ the type of developer that understands exactly what to do to build security into their apps?
 
I know trial and error works, but that’s expensive. Tools exist that can validate security aspects of an application, even tools that enforce security on apps, especially mobile apps, but those are last mile solutions – what do you do to help developers implement solid security into their apps in advance of those tools? If you have insights into this topic, can you reach out to me and let me know? I think this would be an interesting report to write.

CRM is Fragmenting. It's A Controversial Topic

Kate Leggett

CRM purchasing is undergoing a sea change. I see that companies are no longer purchase heavyweight, end-to-end CRM solutions that have had the reputation of being complex, expensive and hard to implement - even if they have great industry specific capabilities. They itend to mpede user productivity with a bloated set of capabilities that many users can't leverage. A number of dynamics driving this change in purchasing behavior:

  • CRM purchases are moving to the cloud. Companies are replacing legacy CRM with SaaS solutions at a higher rate than before.  Cloud CRM has gained traction, as it provides lower upfront costs, better flexibility, and faster time-to-value compared with traditional on-premises applications. It also shifts the burden of software maintenance to the vendor.

  • Cloud CRM extends the life of legacy CRM. Modernizing legacy CRM to support omnichannel customer journeys is a critical priority. Companies are using cloud CRM  to complement and extend on-premises implementations. Cloud  CRM provides the systems of engagement while legacy CRM provides business process support and data management capabilities.

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Go Native To Strengthen Your Brand Engagement

Clement Teo

Digital advertising is akin to a carpenter’s toolbox. Each tool in the box serves a different purpose and was made to accomplish a specific task. Similarly, native advertising, or sponsored content, is a marketing tool that marketers can use as a complement to other forms of digital advertising to achieve a specific purpose.

Forrester defines native advertising as: Any form of paid or sponsored content that directly and transparently contributes to the experience of the site or platform where it appears by aligning with the format, context, or purpose of that site or platform’s editorial content page.

While Asia Pacific marketers have yet to invest in native advertising in a big way, native advertising provides them with an additional avenue to better engage with customers and win their preference. Native advertising is more engaging than display advertising and is also showing early success on consumers’ mobile screens. For example, content marketer Contently saw a clear 10% rise in brand opinion among its engaged subscribers, while Virgin Mobile USA claimed that native ads led to a 200% uplift in the likelihood to consider its brand. Taboola, Virool, and Skyword are examples of companies that can help marketers drive discovery of their content and improve engagement. I discuss how marketers can work with them in my latest report.

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Data Digest: Announcing Our Annual Benchmark On The State Of US Consumers And Technology In 2015

Gina Fleming

In 2015, consumers of all ages are extremely connected — the average US online adult uses more than four connected devices, and 70% use a smartphone. Marketers today want to know who the early adopters are, how far behind the laggards are, and what types of technologies they need to incorporate into their marketing and customer interaction mix.

Our annual report on The State Of Consumers And Technology: Benchmark 2015, US answers these questions. This data-rich report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for US consumers’ level of technology adoption, usage, and attitudes. Our annual benchmark report is based on Forrester's Technographics® online benchmark survey that we've been fielding since 1998.

Because of sharp differences in technology adoption by age, we analyze our findings through a generational lens, including Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation. So what did we find this year? Not surprisingly, younger generations lead in technology uptake, with Gen Yers leading the way — showing the highest uptake of Internet-connected TVs, smartphones, and tablets. Older generations lag behind, but even members of the Golden Generation use more than three connected devices, on average.

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Where Would The Wearables Market Be Without Smartphones?

Julie Ask

Few consumers categories have seen the explosive adoption that wearables have - especially fitness wearables.The category has gone from zero to tens of millions in sales in less than five years.

Without smartphones, however, the wearables market is likely nothing more than a fad for devoted athletes and passionate (or overzealous) weekend warriors. Smartphones have fueled growth in two core ways:

  • Mass adoption of smartphones made the components cheap.
  • Apps allowed for and created the engagement (e.g., gamification, competition, support, coaching) consumers need to meet their goals.
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Which French, German, And UK Brands Create The Most Loyalty With Their Customer Experience

Joana van den Brink-Quintanilha

Don’t miss the latest in a series of reports we've published about the state of customer experience around the world. We have told you how companies in India, Australia, China,the US, and Canada perform. It’s time to shed some light on the European CX landscape, by looking at which French, German, and UK brands create the most loyalty with their customer experience. There’s good news and bad news in this latest CX Index report. Let's get the bad news out of the way first: 

  • The majority of brands in the UK, Germany, and France deliver mediocre experiences. In an era where customer obsession is the best strategy for winning and retaining customers,the unfortunate reality is that no brands in the UK, Germany, or France achieved excellent scores, and only 12% and 14% received a good score in the UK and Germany, respectively.
  • Not a single brand’s CX in France achieved even a good score. Adding to the bad news, 5% of French brands ranked in the very-poor category. 
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