Globally, consumers will own more than six billion mobile phones by the end of 2014, and about two billion of them will be smartphones. With this penetration comes the mobile mind shift - the expectation to be able to access any information or service on the mobile device, in the moment of need.
What’s more, consumers reach for their mobile phones 100 to 200 times a day. In these mobile moments, they expect companies to understand their context and offer relevancy as well as both curated and streamlined experiences on mobile devices. They want to see if their children are home from school, buy coffee, access coupons, check in for a flight, check stock prices, use Skype to call Singapore, and play Candy Crush. Enterprises must learn how to, and then serve, customers in these mobile moments. Otherwise, they will lose – an entrepreneur like Uber’s Travis Kalanick will disrupt their business just like he did with taxis.
Mobile moments extend all of the way through the customer’s journey.
But while mobile has definitively become the most important digital platform for most companies to engage with their customers, too few enterprises have embraced this opportunity. Too many view the mobile phone as simply a smaller screen or another channel.
Only a few businesses, like Starbucks, have been able to curate and own mobile moments with their customers. More than 10 million customers engage with the coffee chain each week through its mobile payment app. Starbucks owns what we call Loyalty Mobile Moments. For them and others like Citibank, USAA, and United Airlines, they must strive to excel in those moments of truth.
When it comes to mobile banking, customers' expectations are growing faster than the hair on a Chia Pet. So every year, Forrester reviews and scores the mobile banking offerings from the largest retail banks in the US across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:
Here is a sampling of some of our findings:
Chase and U.S. Bank tie for the top spot. With scores of 69 out of 100, Chase and U.S. Bank received the highest overall scores among the five banks we evaluated. Chase delivers the basics superbly, with a wide range of transactional features for transfers, bill pay, and P2P payments as well as strong cross-channel guidance for customers to contact Chase and find ATMs and branches. By contrast U.S. Bank stands out for more advanced features, including marketing and research for additional products, the ability to take a picture of a paper bill to enroll in bill pay, and the ability to pay another person using the contact list in a mobile phone.
In Canada, mobile banking is growing up faster than Justin Bieber. So from March 21 to April 9, 2014, Forrester reviewed and scored the mobile banking offerings from the five largest retail banks in Canada across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:
Here is a sampling of some of our findings:
CIBC earns the highest overall score with BMO and Scotiabank on its heels. With an overall score of 71 out of 100, CIBC received the highest overall scores among the five retail banks we evaluated, continuing the firm’s leadership in mobile banking since it launched its first iPhone app four years ago. But the other large Canadian banks are hot on CIBC’s trail: BMO and Scotiabank each earned a score of 70 out of 100 with impressive – and recent – overhauls of their mobile offerings. Scotiabank lets users apply for new products via mobile with pre-filled, mobile-optimized applications. BMO, meanwhile, ensures that all mobile money movement task flows are clear and consistent -- incorporating the same progress meter at the top of every screen.
It’s a very enlightening way of seeing digital disruption in action. When my wife and I bought our current house over a decade ago, we found it on a property website, but that’s where the digital engagement ended. We physically went to the estate agent to book a viewing. We were given a printed brochure about the house. Our mortgage application was done in person. We took photos of the house, printed them at the local Boots and stuck them in an album. When we moved we had to call our friends and tell them we’d moved.
I just got back from a couple of days at eTail Latin America in Miami — it was my third year at the event and I always come away having learned an enormous amount from the other attendees. This year, some of the takeaways included:
Everyone’s talking about mobile, but the real shift is coming. The online retailers I spoke with had all either rolled out or planned to roll out smartphone offerings, but mobile investments overall are still quite small. Tablet commerce initiatives are few and far between. Retailers’ mobile revenues, while growing, are not typically at the same levels seen by many leading eCommerce players in Asia. This dynamic will shift significantly as both smartphone and tablet penetration increase: Across the region, penetration of both types of devices will shoot up over the next few years.
Payback periods on new eCommerce offerings remain long. A theme we write about frequently is the fact that businesses often assume short payback periods on new global digital offerings. The unfortunate reality, however, is that eCommerce initiatives often take many years before becoming profitable. This challenge is front and center in Latin America. There are some profitable businesses — the founder of Brazil’s Beleza na Web talked about how he got his company into the black — but many large online retailers continue to suffer losses. Businesses jumping into any of the Latin American eCommerce markets must be patient.
Why do we use Facebook on our mobile phones? Because when we are out and about doing something fun, we want to tell our friends about it.
If I were posting from home, my posts would be:
“I am working.”
“I am watching TV.”
“The cat just sat on my laptop.”
“My cat just knocked over my water cup.”
Yawn. Boring. It is much more exciting to post updates to our friends about the latest sashimi we’ve eaten or the last run we skied on Val d’Isere. These are the mobile moments we want to share with our friends. This is part of the mobile mind shift, the expectation that we can get what we want, in our immediate context and moment of need.
GoPro takes the capture and sharing of mobile moments to new heights. We (yes my family owns one) not only use our GoPro at cool, exciting outdoor places like Yosemite and Tofino to capture HD images, but also use it when we are in motion – fast motion down hills on skis, snowboards, and bikes, or in the water.
But rather than waiting until the day’s adventure has ended, GoPro enables the consumer to share these moments in context with friends and family, thanks to wifi enabled cameras and the GoPro mobile app. It’s immediate proof and boasting rights for some of the most exciting mobile moments.
Here’s one of my favorite mobile moments GoPro has enabled:
What is it like to free fall from a space capsule?
If I had a dime for every time I heard the question “Isn’t eCommerce taking over retail?”, it wouldn’t make me wealthy, but I’d certainly have a few hundred dollars more than I do now. Nonetheless, it’s a question that is unfortunately misguided and has permeated our zeitgeist. The truth is that yes, eCommerce is growing - but physical retail is far from doomed. Let me take the two parts of that last sentence and address them each separately.
First, the fact that eCommerce is growing. Forrester just released the latest five-year online retail forecast and to no one’s surprise, the numbers are big. We’re projecting $294B in eCommerce sales across 30 retail categories in 2014, expected to grow to $414B by 2018. The web keeps doing what it has always done well: it provides huge assortments of products, at comparable, often lower, prices than physical stores, with 24/7 access and often free shipping. For many categories like media products or electronics, we’ve already observed a heavy shift to the web channel away from physical stores. Add to that the ubiquity of mobile devices and that drives even more shopping in more instances and places. In fact, we’re projecting that $87B of that $294B will happen on phones and tablets in 2014, and that doesn’t even include another $28B in additional mobile transactions on sites and apps like Uber and Domino’s Pizza that aren’t even in that aforementioned mobile commerce number.
But all this growth certainly doesn’t mean that stores are dying. Here’s why:
Ok, well, some of them will. Those customers who are mobile-savvy enough (they are the shifted as part of what we call The Mobile Mind Shift) and engage with your brand frequently will. You own those mobile moments with your customers. They reach for their phones to engage with your brand. You will still need to work hard to keep them engaged, but it's a good start that they downloaded your app. It's even better if they allow you to send push notifications - that gives you the opportunity to create mobile moments with them.
If they don't download your app, borrow moments.
Let's face it. Lots of your customers won't download your app. They won't invest the time or energy. With these customers, you must borrow mobile moments - that is, you must engage with your customers on third party apps (really platforms).
We see more and more brands embracing this strategy. What is your strategy to engage with your customers through borrowed moments?
Google Maps released a new app version this week. Uber is integrated into the Map app if you are already signed up for Uber (and in this implementation have the Uber app on your phone.) Uber already owns mobile moments with thousands if not more consumers. Exposure through Google Maps gives them more upside. First, it will help them to acquire customers through exposure. Second, it puts Uber in the mix of transportation options I have as I evaluate how to get from point A to point B within my Map app that also shows me traffic and parking availability. Highly contextual.
If they do download your app, don't assume they will actually open it - kind of a hassle for quick tasks, right?
The first email I received at work in 2014 was from a bank; along with a festive new year’s greeting, the email touted the bank’s new mobile app and a new feature that let customers set up travel notifications directly from the bank’s website. Later that day, I was in an airport reading a friend’s Facebook post about how she wished “more apps were like Uber.”
These are just a few small anecdotes about ongoing digital trends impacting businesses and banks both large and small. I recently spoke with a banking executive who put it simply: “Digital is what we do now.” (This quote is now the header of my Twitter feed.)
Forrester recently published our Trends 2014: North American Digital Banking report, in which we identify major forces impacting banks and lay out five actions that we recommend digital strategists take to prepare for the future of digital banking. Here’s a sample of some of our findings:
Banks will face a sustained – yet unclear – regulatory environment. In both the US and Canada, banks are confronting an uncertain regulatory future. The Dodd-Frank Act was signed into US law on July 21, 2010, but a large number of the rules and regulations remain unwritten. It's unclear when they'll be finalized, and the fact that 47% of deadlines have already been missed – according to the law firm Davis Polk & Wardwell – doesn't bode well.
Social lending, or peer-to-peer (P2P) lending, is not even ten yet, but it has caused a great deal of commotion already. Consumers, regulators, and banks continue to be perplexed by a business model which is so emblematic of the digital economy, or of digital disruption. Thanks to digital tools, potential lenders and borrowers can interact with each other online without the involvement of banks, credit unions, and other traditional financial institutions. And nothing epitomizes the confusion about how banks should respond to the phenomenon better than the initial ban of Wells Fargo on its employees investing in P2P loans, lifted only a few months down the line. So is P2P lending a threat to banks or not? We think it is.
Forrester first wrote about peer-to-peer lending in 2006, soon after the launch of the first P2P lending marketplace Zopa. We argued that lending would never be quite the same again and indeed, it hasn’t been. As we write in our new report, a lot has happened in those eight years: