Western Europe is one of the largest online markets for cross-border trade: In 2014, Western consumers spent €26 billion on cross-border trade, representing 17% of eCommerce sales in Western Europe. Our recently published Forrester Research Online Cross-Border Retail Forecast, 2013 To 2018 (Western Europe) shows that cross-border trade depends on sales flowing into a country from domestic cross-border purchases and sales flowing out of a country from nondomestic shoppers. Cross-border trade gives retailers an opportunity to expand outside of their domestic markets with minimum upfront investment. To succeed, retailers must understand the cross-border shopper and how to compete internationally.
Online cross-border shoppers:
Are looking for the best price. Price-sensitive online shoppers drive cross-border sales. The price of domestic goods in countries like Luxembourg, Switzerland, and Ireland make the consumer more likely to shop cross-border to find a bargain.
Are looking for the best choice. The consumer choice offered by large online retail markets in countries like the UK, France, and Germany make the consumer less likely to shop outside of their domestic market.
Spend more online, have higher incomes, and are younger than domestic shoppers. Retailers need to know the types of categories bought online to better target the cross-border shopper.
A few years back, FedEx learned that "the leaning tower of packages" at its retail locations was making many customers uneasy. Store employees would take a customer's package and place it on the messy pile. Based on that simple visual cue, these customers worried that their package might very well get lost in their seemingly haphazard shipping process. FedEx had run into a problem that plagues many companies, and that is the subject of my latest report, co-written with Tony Costa: CX Pros Are Blind to the Line of Visibility.
Most companies don't understand all of the complex interdependencies that shape their customer experience outcomes. Forrester surveyed CX professionals last year and found that while nearly two-thirds of them use customer journey maps to understand their customer experience, only one in five maps the CX ecosystem. So most CX pros do not understand how employees, business processes, technology systems, partners, and the operating environment come together to enable their customer experience.
And to make matters worse, this lack of understanding blinds them to what elements in their experience are visible or invisible to customers as they interact with the brand. This lack of visibility can lead to problems such as companies unintentionally exposing undesirable ecosystem elements to customers, hiding elements that could add value, or corrupting the experience through counterproductive policies and processes.
Recently we’ve had a chance to look again at two very conflicting views from HP and Facebook on how to do web-scale and cloud computing, both announced at the recent OCP annual event in California.
From HP come its new CloudLine systems, the public face of their joint venture with Foxcon. Early details released by HP show a line of cost-optimized servers descended from a conventional engineering lineage and incorporating selected bits of OCP technology to reduce costs. These are minimalist rack servers designed, after stripping away all the announcement verbiage, to compete with white-box vendors such as Quanta, SuperMicro and a host of others. Available in five models ranging from the minimally-featured CL1100 up through larger nodes designed for high I/O, big data and compute-intensive workloads, these systems will allow large installations to install capacity at costs ranging from 10 – 25% less than the equivalent capacity in their standard ProLiant product line. While the strategic implications of HP having to share IP and market presence with Foxcon are still unclear, it is a measure of HP’s adaptability that they were willing to execute on this arrangement to protect against inroads from emerging competition in the most rapidly growing segment of the server market, and one where they have probably been under immense margin pressure.
Wow! It may have taken place eight days ago, but I am still exhausted — and also exhilarated. In all modesty, we held a greatSales Enablement Forum in Scottsdale, Arizona last week. Nearly 350 attendees enjoyed presentations from 34 different speakers, including many industry practitioners, as well the opportunity to meet 21 sponsoring companies. As I promised you a few months ago, the agenda was equally strong around B2B marketing topics. For those of you who did not make it, here is a short recap on the Sales Enablement landing page of what we covered in the two days.
The move shouldn't surprise anyone. Remember Rakuten and Viber? Retailers need to expand their reach to acquire more customers. The more contextual the better. The investment is small relative to Snapchat's valuation and Alibaba's worth. I would view it more as an option to make a future, larger play than a clear indication of a new strategy.
Two things matter the most in mobile:
1) Audience. Snapchat offers a new audience to Alibaba - one in the US and one that is described as being younger. Consumers spend more time in communication and social media apps than in retailing apps - in aggregate. Accessing consumers - marketing to consumers, letting consumers engage with brands or letting them make purchases where they already spend their time is an important strategy for brands looking to engage consumers on mobile devices - we call this "borrowing mobile moments." Alibaba's recent moves including products, acquisitions and investments clearly signal that they intend to make a strong play in mobile. They acquired a mobile OS player a few weeks back. An investment in Snapchat is another strategic asset.
2) Data. Insights generated from mobile, social, sensor- etc. data will fuel the next generation of mobile experiences. This data will also give retailers insights into the needs and motivations of their consumers - especially in real time, on the go, what is trending. Consumers love flash sales, for example.
Neither the valuations nor the velocity of deals should surprise anyone. Mobile phones are more akin to islands with limited (valuable) real estate than ever-expanding universes. Smart players like Google, Facebook, Amazon, Apple and Alibaba know this. Expect the trend to continue.
A = Analytics (or more precisely, customer analytics).
At its Summit in Salt Lake City this week, Adobe unveiled new analytics functionality for its Marketing Cloud. Taking a granular view of real-time analytics, Adobe is differentiating requirements for live stream (instantaneous) data vs high frequency metrics (10 seconds) vs current data (90 to 180 seconds) and more traditional customer analytics, such as segments (20 minutes), site visits (30 minutes), data feeds to a warehouse (1 hour), and long-term reports (days). The goal is to shift today’s reporting paradigm via more ad hoc analysis, while adding machine learning capabilities for continuous optimization.
One week previously in San Francisco, Salesforce launched Predictive Decisions for its Marketing Cloud. Focused on personalized campaign execution, the enhanced Salesforce functionality promises to empower marketers by harnessing the power of data science. The primary components are a collect beacon to stream real-time content updates and user behavior to marketing apps, new workflow automation to trigger data-driven campaigns, and predictive decisions to personalize offers based on conversion propensity.
Wow! It may have taken place eight days ago, but I am still exhausted — and also exhilarated. In all modesty, we held a greatSales Enablement Forum in Scottsdale, Arizona last week. Nearly 350 attendees enjoyed presentations from 34 different speakers, including many industry practitioners, as well the opportunity to meet 21 sponsoring companies. For those of you who did not make it, here is a short recap of what we covered in the two days.
Day One: Challenge Thinking
Rowena Track from TE Connectivity kicked off our presentations on the main stage, discussing how to establish an infrastructure to help sales be successful. She focused on how customers were already well on their way to digital self-sufficiency, which means that the buyer’s journey starts well before your sales team is aware of them.
Forrester analyst Andy Hoar took the stage next and presented a wealth of data that revealed customers’ growing preference for engaging via self-serve eCommerce portals; this data led to him to predict that this will displace 1 million B2B salespeople over the next five years. Andy’s prediction and analysis resonated with attendees throughout the Forum.
Joanne Moretti from Jabil joined us next to talk about the evolution of sales enablement over the years, including her own experience creating HP’s Sales University, integrating Dell’s various software businesses, and in her current role at Jabil.
This year, organizations across industries show strong interest in revamping the technologies that they use to engage with customers. Our recent data indicates that over half of enterprise organizations have already implemented a CRM solution — and a high percentage are investing more to upgrade and expand their tool sets in the next few years. But even in this improving economy, senior business leaders are closely scrutinizing the ROI they expect from overhauling customer-facing processes and supporting technologies.
You need to build a business case correctly or risk launching CRM initiatives with a low chance of delivering clear business results. Almost as bad, poor communication of anticipated payback can prevent you from gaining funding for projects that would provide strong benefits.
So, what does a solid business case do for you?
It speeds up the project approval process. Clear communication leads to fewer passes through the funding process as everyone understands the goals and benefits of the project.
It increases project success. When everyone knows the reasons, goals, and bounds of an initiative, project success improves. The business case serves as the North Star that keeps the project focused on key business goals and outcomes which are measurable and quantifiable.
It takes (some) emotion out of decisions. Decisions that involve a choice among competing platforms of large and powerful technology vendors often turn into emotionally charged battles between opposing camps within the organization. Moving the discussion to one of metrics and numbers minimizes the emotion and returns some level of objectivity back into the process.
Up to a couple of years ago, healthcare technology executives advocating the use of managed services, cloud, and other off-premises uses of data were mavericks. Management told us that cloud presented too much risk. One leading doctor in a prestigious institution said to me, “I would rather see my institution’s name on the front page of the New York Times because of a data breach on premise. Seeing adverse publicity because we released our data to the cloud and a bad thing happened will destroy our reputation.” Management insisted that we keep the data under the control of our institutions by keeping it in a data center. In the age of health information exchange and value-based medicine, the rising cost of that infrastructure paradigm is no longer feasible. Today we hear healthcare CIOs telling us that the preference for solutions is cloud first, and on-premises solutions must be justified: Cloud-based solutions are becoming the default choice.
This seismic shift is due to several factors:
Building and operating data centers is complex, expensive, and resource-intensive.
The network is fast and strong.
The removal of capital costs of hardware and infrastructure from budgets releases a great deal of capital for other more pressing needs.
The enactment of the HIPAA Omnibus rule, finalized in January 2013 and effective as of September of the same year, forces the vendor community to accept the responsibility for PHI and thus changed the paradigm around the feeling of regulatory protection granted to healthcare organizations when contemplating a "loss of control" of their data that was feared as they anticipated moving functions and capabilities to the cloud (http://www.hhs.gov/ocr/privacy/hipaa/administrative/omnibus/).
eBusiness leaders are under tremendous pressure to deliver in the face of aggressive business growth plans, competitive threats and digitally-empowered consumer demands. When you add evolving sales and services channels and ever-more global markets on the road map to the mix, even eBusiness leaders with hefty budgets and a do-it-yourself attitude acknowledge they could use a little help.
Some retailers, CPGs and branded manufacturers are outsourcing all or parts of their eCommerce operations to full-service eCommerce solution providers. However, the days of 10-year contracts and one-size fits all solutions are long gone. Full-service commerce providers have undergone quite a few iterations as the eCommerce market has matured. Today, these solutions are:
Becoming more modular. They are unbundling their full stack offerings into modules so firms can pick and choose elements of their eCommerce operations to outsource or keep in house.
Being more transparent with pricing. They have evolved away from obfuscated revenue share models to à la carte, transparent pricing per service, with usage- or per-transaction-based pricing models commonly replacing or acting in tandem with revenue share.
Opening technologies up for flexible integrations. As these providers unbundle their offerings, they’re also making their technologies easier to integrate with through flexible APIs.
Focusing on omnichannel. These providers are developing their technologies to enable better data transfers, consistent user experiences, and enhanced fulfillment flexibility for their clients to keep up with the pace of change in the marketplace.