Messaging Apps Are Thriving In The Age of The Customer

By now, you've surely heard of the second-largest acquisition in tech history, with Facebook acquiring WhatsApp for $19 billion.

However, you may be less familiar with other messaging apps like LINE, KakaoTalk, KIK, Nimbuzz, SnapChat, Vibes, Whisper, and many others.

If you think messaging apps are just a free way to communicate, you’re missing their potential: They are Mobile’s Trojan horse, as explained by my colleague Julie Ask here.

Messaging apps are mushrooming.They illustrate perfectly the age of the customer, which Forrester defines as a new business era where your customers are now empowered through social, mobile, and other technologies giving them the power to disrupt your business. Why? Because they are mastering the four key market imperatives Forrester has identified as critical to differentiate in the age of the customer:

■  Transforming the customer experience over SMS and other messaging tools. Messaging apps offer differentiated and seamless experiences over SMS and other mobile communication tools. For example, they offer advanced group messaging functionalities, multimedia features, constant innovation, and ability to opt-in or follow brands at consumers’ convenience. They are now morphing into marketing platforms redefining social media.

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If You Are CEO Of A Consumer Organization, You Have A New Job Responsibility -- Security

On May 5, 2014, Target announced the resignation of its CEO, Gregg Steinhafel, in large part because of the massive and embarrassing customer data breach that occurred just before the 2013 U.S. holiday season kicked into high gear. After a security breach or incident, the CISO (or whoever is in charge of security) or the CIO, or both, are usually axed. Someone’s head has to roll. But the resignation of the CEO is unusual, and I believe this marks an important turning point in the visibility, prioritization, importance, and funding of information security. It’s an indication of just how much:

  • Security directly affects the top and bottom line. Early estimates of the cost of Target's 2013 holiday security breach indicate a potential customer churn of 1% to 5%, representing anywhere from $30 million to $150 million in lost net income. Target's stock fell 11% after it disclosed the breach in mid-December, but investors pushed shares up nearly 7% on the news of recovering sales. In February 2014, the company reported a 46% decline in profits due to the security breach.
     
  • Poor security will tank your reputation. The last thing Target needed was to be a permanent fixture of the 24-hour news cycle during the holiday season. Sure, like other breached companies, Target’s reputation will likely bounce back but it will take a lot of communication, investment, and other efforts to regain customer trust. The company announced last week that it will spend $100 million to adopt chip-and-PIN technology.
     
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