Is Jon Stewart’s recent online success in China a sign of new opportunities for non-Chinese brands? In China, the demand for global brands and content continues to grow - to the point that it has spread into new industries like comedy shows, where cultural cues are paramount to success. Jon Stewart is just one of many western icons with newfound success in China, all in part to the accessibility of new consumers through the internet.
Online businesses selling anything from humor, makeup, or shoes to baby formula can’t ignore these demands for their products in China: More and more consumers are exposed to global brands of all kinds through online offerings and travel. There are huge advantages to being one of the first brands to be noticed in the market, but just showing up isn’t enough. To be successful, learn from Jon Stewart and:
Localize your offering. Give your consumers things they can relate to and use. Jon Stewart did this by coming up with culturally relevant jokes about China’s culture. For retailers this could mean offering products that respond to needs specific to consumers in China, like Godiva’s Chinese New Year Chocolates.
Develop a fan base online. By giving your very social Chinese consumers a platform to talk about your brand, you can generate free marketing and new insights. Jon Stewart’s fans aggregate his videos in one place and work together to translate and upload subtitles on his video clips.
Chief Digital Officer (or CDO) is the latest in a long line of snazzy C-level titles to emerge over the last few years. At Forrester we’ve been watching this trend for a while now and have made a few comments, but I think it’s time to put a firm stake in the ground.
Don’t hire a Chief Digital Officer!
There. I said it.
Now, why might I say this when a number of high profile firms are in fact hiring CDOs? Well, to put things in perspective I want to look at a tale of three brands, all of which I’ve spoken about in the past:
Last week Forrester published a report on the state of online retail in Canada. We surveyed 1,103 adult online shoppers in Canada to understand what challenges the Canadian public face when shopping online. We found that Canadian online shoppers have many complaints; among them high shipping costs and lackluster product assortments. Furthermore, Canadian online shoppers are acutely aware of the gap between the online experiences of domestic sites versus those in the US. Canadian sites are missing key online capabilities like free shipping, flexible pickup options, a stress-free return policy, and omnichannel payment options in addition to the obvious price discrepancies.
Some of the reports highlights include the following facts:
Shipping costs are too still too high. Despite the eventual arrival of Amazon Prime in Canada and the increasing commonality of free shipping thresholds, sixty-eight percent of Canadian online shoppers we surveyed cited that delivery costs are their primary concern when shopping online.
Product assortment online in Canada is lackluster. Thirty-seven percent of Canadian online shoppers say they can't find the products they are looking for online in Canada. Consequently, 32% of these frustrated shoppers ultimately end up buying instead from US or International sites and incurring the cost of shipping, custom duties and Canadian taxes.
Mobile banking success is a moving target: Customers needs and expectations are changing rapidly, and eBusiness teams at banks are sprinting to get ahead of their customers’ expectations. To achieve this, firms are rolling out new features, optimizing existing services, and enhancing mobile experiences.
To understand which firms are leading in mobile banking — and to better gauge the mobile banking landscape overall — we used our Mobile Banking Functionality Benchmark to evaluate and rank the mobile banking efforts of 15 of the largest banks in North America, Western Europe, and Australia.
Highlights of this research include these findings:
Chase takes the top spot overall. Chase received the highest overall score among the banks we evaluated, netting a score of 71 out of 100. The bank offers mobile banking services across a range of touchpoints ranging from smartphone apps, strong mobile websites, and two-way SMS. In addition, Chase also has strong mobile money movement features such as bill pay – including the ability to add a payee – and mobile transfer capabilities.
Ten years ago, Forrester published some research with the slightly awkward title of ‘New Payment Systems’ Survival Guide’. One of our findings was that many successful new payment systems have some kind of ‘must-have’ transaction that encourages customers to go through the hassle of learning how to use a new system in the first place. Good examples of ‘must-have’ transactions include eBay’s auctions for PayPal, travel to work for Transport for London’s Oyster, and online shopping for iDeal.
Ever since, I’ve been seeking the ‘must-have’ transaction that will spark consumer adoption of mobile payments in developed economies. But what if there isn’t one? (And, after 10 years, it’s probably time to admit that there isn’t). The answer is to focus relentlessly on both lowering the barriers to mobile payment by making it as easy as possible for customers to use a new system and to increase the benefits by maximizing the number of ways and places customers can use a system.
Banks get a bad rap for not being innovative enough. But at least one provider is proving the haters wrong: Early this year, U.S. Bank launched Mobile Photo Bill Pay, a feature that lets mobile bankers add a new payee simply by taking a picture of a paper bill or statement.
This mobile feature – powered by technology solutions company Mitek – goes beyond “nifty” With it, U.S. Bank offers customers an easier, more convenient, and more elegant cross-channel experience for a common activity. It helps the bank by increasing the number of customers who use digital bill pay – and deepening relationships with customers. According to Niti Badarinath, SVP and head of mobile banking at U.S. Bank, “Getting people to become active users of bill pay is key to our digital strategy, because we recognize the value and stickiness of the relationship when people pay bills." (taken from a recent article in American Banker)
How it works
When U.S. Bank launched mobile photo bill pay, I immediately pulled up my U.S. Bank iPhone app and took this new feature for a test drive (see screenshots below). Put simply, this is an innovation that delivers: A customer can go from opening a bill he got in the mail to enrolling a brand new payee to paying that bill in under 150 seconds (a.k.a. less than 2 minutes and 30 seconds). This is without setting up any bill payment options in advance, or entering any information manually – the mobile photo bill pay feature even corrects for image distortion, reads relevant data and auto-populates all the information.
Which regions of the world are top of mind for brands today. The idea of a globally connected world is appealing, yet we are very much at the early stages of international expansion when it comes to eCommerce.** We look at typical global expansion paths and which regions are seeing an influx of new eCommerce initiatives. US and European retailers have tended to expand into each other’s regions first with an eCommerce offering – increasingly, however, both US and European brands are taking a much more Asia-centric approach. Coach, for example, only offers eCommerce-enabled sites in the US, Canada, China, and Japan.
Over the past month, I’ve had the great fortune of taking part in three fantastic events: Forrester’s own Marketing & Strategy Summit in Shanghai, Demandware’s XChange Conference in Las Vegas, and Borderfree’s (formerly FiftyOne) Global eCommerce Forum here in New York. Several themes around global eCommerce came up in conversations at all three events:
Consumer online spending is driven by more than price in emerging eCommerce markets. In markets like China, it’s well established that consumers use the online channel to bargain-hunt. Yet there’s much discussion of the fact that consumers are moving beyond chasing the lowest prices online – instead, they are looking to trusted online retailers that provide a superior customer experience and guarantee authenticity.
International expansion involves a mix and match of different approaches. It’s now common to see companies taking a variety of approaches to global markets. Brands may operate a series of country-specific websites with local fulfillment, offer a branded store on a marketplace such as Tmall in China, and serve a large number of other markets through an international shipping model. The one-size-fits-all approach has given way to a more complex set of different global options.
With mobile and tablet usage now mainstream, a big hurdle for eBusiness professionals is how to scale digital experiences across consumer touchpoints without dragging development momentum to a near halt in the process. But how?
In previous research, we’ve highlighted the advantages of responsive web design and how it can simplify the development of web experiences across multiple consumer touchpoints. In our latest report, we explain how one company, SunTrust Banks, began an initiative to simultaneously improve its internal web project delivery processes while expanding its digital presence across new consumer touchpoints.
SunTrust, like many enterprise organizations, was expereincing a painstakingly slow, and costly, rollout of its digital platform. Demands from the business for digital experiences were on the rise, resulting in a 200% year-over-year growth in project requests. At the same time, SunTrust’s total traffic coming from mobile reached almost 10% of total digital traffic and tablet traffic was on the rise. With more and more devices emerging at a breakneck pace, the digital team at SunTrust knew they had to rethink their approach to web development. The team landed on responsive web design as a solution to their problems. Reponsive design enabled the digital team at SunTrust to focus resources on building and maintaining a single web platform instead of maintaining and optimizing multiple fragmented user experiences. They call it “The Power Of One.”
If you're an eCommerce technology decision-maker, we would love your help with our annual eBusiness technology investment panel survey. The survey is built to help eBusiness & Channel Strategy Professionals determine where priorities lie in terms of eBusiness technology investments. Additionally, it will shed light on how your firm’s tech spending compares across industry, employee size, and company revenue.
You just have to share with us your own perspective, and we’ll aggregate the answers. The survey will take less than 10 minutes to complete, and responses will be kept strictly confidential and published only in an aggregated and anonymous manner. To participate, please follow this link.
We'll be publishing the results in our forthcoming "2013 Online Retail Technology Investment Outlook" report, where we'll compare what's changed since we last ran this same survey in 2011.