Despite the growing range and sophistication of leading (US) insurance companies’ mobile offerings, consumer adoption of mobile insurance services is still low. What makes the mobile solution relevant to the customer? Forrester has identified three elements that determine the convenience of a service or product:immediacy, simplicity, and context.For insurance, the mobile channel offers all three: 1) the immediacy of instant access to your insurance company when it matters, such as when an accident occurs; 2) the simplicity of completing tasks in just a few steps, such as filling out a claims form via your smartphone on location and accompanying it with photos of the incident; and 3) context, as mobile can give customers near-immediate directions and relief when a stressful event occurs. However, a big challenge remains: Do customers feel compelled in the first place to download an app for an event they probably don’t want to happen. We looked at data from Forrester’s North American Technographics® Financial Services Online Benchmark Recontact Survey Q3 2011 (US) and found that:
As Amazon.com has grown aggressively in recent years, expanded into diverse businesses, and achieved profitability, its impact on the eBusiness and retail sectors is greater now than ever before. For many businesses, Amazon is simultaneously a sales channel, a potential service provider, and a competitive threat. To explore this complex relationship and to understand Amazon both today and where they are going next, my colleague Sucharita Mulpuru and I conducted many interviews with retail industry leaders, former Amazon leadership, and industry thought leaders – culminating in our latest report.
In the report we look at Amazon’s significant influence on retailing in the US today, the key factors driving Amazon’s amazing growth, what we can expect from Amazon next, and how retailers can effectively compete and coexist with Amazon. We also look at Amazon’s vulnerabilities, including:
We just published our new Latin American Online Retail Forecast, 2012-2017 which forecasts growth in Brazil, Mexico and, for the first time, Argentina. In the report, we analyze the B2C and C2C online retail markets in these three countries, and note that:
Brazil remains the largest eCommerce market in Latin America by a wide margin. Despite the economic slowdown in Brazil, eCommerce continues to charge ahead in the country, surpassing USD 12 Billion this year. Unlike the other two markets we forecast in the region, Brazil’s eCommerce market is heavily driven by mass-market consumers: Our surveys indicate that over half of metropolitan online users whose monthly income is less than BRL 4,000 (around USD 2,000) shop online in Brazil. Online shoppers in Brazil are also starting to diversify their purchases beyond early adopter categories such as books and media, consumer electronics and computer hardware.
eCommerce revenues in Mexico are growing rapidly off a small base. In contrast to Brazil, eCommerce in Mexico remains at an early stage, with small but growing revenues. Online buyers tend to be relatively affluent, but per capita online spending remains quite low. As the online buying population expands and starts to encompass a broader demographic, eBusinesses will need to take into account the large percentage of consumers in Mexico who do not have credit cards and who access the Internet outside the home or office.
Engaging with users via mobile is now unavoidable - no surprise there. By 2016, smartphone subscriptions in the US will likely outnumber people and in Europe, almost 70% of the population will own smartphones. Consumers want simple, immediate, and contextual mobile services.
Mobile offers additional contact options that go beyond the traditional touchpoints you have with a consumer, further embeds your brand into your customers' lives, and, perhaps most importantly, can serve as the central connector between all your touchpoints. The flexibility and immediacy mobile provides enables you to drive customers across and within channels and, at the same time, comes with greater complexity and more need for speed.
eBusiness professionals are at the forefront of this evolution. In order to drive value for your business and your customer, it is critical that you have a systematic, end-to-end approach to support and connect with customers through this critical touchpoint.
The longer we spend researching mobile banking, the more convinced I become that mobile banking is the most important innovation, or cluster of innovations, in retail banking in years, arguably in a century. Here’s why I think mobile banking is a much bigger deal than cash machines (ATMs), credit cards or home-based online banking:
In developing economies that lack a dense infrastructure of branches, ATMs and fixed-line telecoms, mobile banking and payments are bringing millions of people into the formal banking system for the first time.
In developed economies mobile banking will become the primary way many, perhaps most, customers interact with their banks. Banks need mobile banking to provide a platform for mobile payments and to protect their retail payments businesses from digital disruption as mobile payments start to replace card payments in shops.
If you’ve been chatting with your web development team recently, you might recall them talking about responsive design. But, what is responsive design and why should eBusiness professionals be taking it seriously?
First, responsive design is not a technology, it’s a development philosophy - an approach to web development that forces user experience developers to design and optimize from the outset for multiple touchpoints including (but not limited to) the desktop, tablets and mobiles. Until now, many eBusiness teams have either developed their mobile site by coding a separate set of templates, or outsourcing to a 3rd party vendor or agency whom in many cases scrapes or proxies existing content from the desktop site. As many retailers and other eBusiness teams start to develop optimized tablet sites, there is a distinct concern that supporting 3 different sites for desktop, tablets and mobile is becoming increasingly expensive and is causing a drag on innovation momentum.
With a responsive site, developers use a single set of front-end code to build a site that responds within the constraints of the device to deliver an experience that is contextual to the size and orientation of the screen. Responsive design allows eBusiness leaders to consolidate their teams (UX designers and developers) back into a single ‘web’ team aligned around a single technology (CSS3 & HTML5) and writing a single set of code. Some eBusiness leaders are referring to this consolidation as back to “one-web” and are increasingly intrigued by the potential cost and efficiency benefits that moving to a responsive site has to offer.
One of the topics I’ve spoken about at recent industry events is how global eCommerce markets evolve – more specifically, how markets shift from an early stage to one in which consumers spend lavishly online and buy across a wide variety of categories.
After interviewing dozens of companies about their experience expanding into different global markets, and after reviewing internal and external data, we’ve noted that markets tend to go through four phases as they reach the stage of well developed eCommerce. We identify these four phases as the following:
Phase 1: Connecting and Entertaining. In this phase, consumers are starting to go online and connecting with others through the online channel. Some 10-15 years ago, consumers were likely to go online and engage through email or chat; today, social networking has joined the ranks of one of the early activities of online users. Socialbakers’ estimates of Facebook users by country indicate that the network’s top five markets outside the US are Brazil, India, Indonesia, Mexico and Turkey – in such markets, the number of Facebook users today often surpasses the total number of online users just five years ago.
Over the last three months I’ve presented at 4 different European events on the subject of Mobile Commerce in retail, and in every other speech I’m called on to do, mobile is increasingly at the heart of what I talk about when I discuss the key trends impacting European eCommerce. Its unavoidable.
The growth assumptions are based on the existing Forrester Research Online Retail Forecast, 2011 To 2016 (Western Europe), with simplified category groupings to reflect mobile characteristics. Mobile purchasing behavior and mobile Technographics sophistication are overlaid onto the country-by-country eCommerce growth forecasts to reflect the way in which mobile commerce will grow differently from online commerce across Europe. What this gives us is a picture of how we believe that mobile commerce will evolve for some of the key European markets.
So what are we forecasting?
· Mobile Growth Will Be Rapid, But Adoption Will Be Niche For Some Time Yet. Mobile commerce will represent 6.8% of all online eCommerce sales across Europe by 2017 (mobile only – we exclude Tablets from this figure). This is a significant portion of online sales, with the most rapid growth in the south of Europe.