Over the past decade, digital executives and teams at banks have made strides in digital selling by upgrading and improving their public websites — and more recently their mobile apps and sites. But conversion rates on many banks’ websites remain low — in some areas, well below 10% — even as consumers’ expectations for digital experiences rise.
To take their digital selling to the next level, digital marketing and sales teams at banks should look outside the banking industry for fresh thinking. One area to look for inspiration is retail: By adapting digital tactics that best-in-class retailers use, banking digital teams can make adjustments to their websites and mobile apps that boost conversion rates and sales overall. Forrester has just published a new report that outlines “What Banks Can Learn From Retailers' Websites.” Here are just three of the ideas we discuss in the report:
Merchandise around customers’ needs and journeys rather than product silos. Retailers have found success by merchandising entire site sections, and even microsites, around customer journeys and events. Yet our research finds that virtually all banks still use products as the organizing principle on their websites. In 2013, Wal-Mart created a complete "back to college" microsite with digital marketing on key landing pages. As a result of this and other digital merchandising efforts, Wal-Mart increased the number of back-to-school products sold on its website by 30% year-over-year.
The dictionary defines “readiness” as the state of being fully prepared for something. It is easy to compare how well prepared companies are for digital marketing by looking at their digital marketing staff strength as a percentage of their total marketing staff and at their digital marketing spend as a percentage of their total marketing spend. More-prepared marketers prioritize digital in their marketing planning. More-prepared marketers run best-in-class digital marketing programs and communicate with the customers across multiple devices. More-prepared marketers measure how well their digital programs accomplish their business goals and how channels work together to accomplish a desired outcome.
In the past, Forrester has developed tools and frameworks that help firms assess their digital marketing maturity. Forrester has now launched a new research framework: the Forrester Readiness Index (FRI) for digital marketing. This framework is a quantitative assessment that provides insights into the digital marketing environment and available opportunity for 55 countries across the globe through 23 quantitative variables.
In my last blog post I outlined Forrester’s key customer insights (CI) predictions for 2015. Now I’d like to drill down into some of the key barriers to CI effectiveness we’re seeing among Asia Pacific-based organizations. This content was pulled from my recently published report, which Forrester clients can access here.
Core competencies of effective CI pros have typically centered on customer segmentation and campaign performance measurement. When extending these capabilities to digital marketing strategies, the goal is typically to enable more effective customer acquisition and onboarding by extending reach. In other words, digital innovation often simply means “better campaigns.”
But what happens once that process is complete? It’s not enough to have a world-class digital capability for acquiring new customers. Empowered customers expect the same type of seamless experience, improved efficiency, and heightened responsiveness in all subsequent interactions with your brand.
So why so many firms struggling to realize the full potential of customer analytics to effectively serve and retain their customers? I’ll give you four reasons:
The term "selfie" entered our lexicon only recently, thanks to the ease with which they can be taken and distributed via cell phones and mobile data connections. But the practice of taking a photo of oneself is decidedly not a newphenomenon.
Last week, I did something I don't often find myself doing: I watched live TV. I landed on The Voice for a while and caught a Nissan commercial/music video featuring the contestants on the show. This reminded me of the similar ads American Idol used to produce with Ford. While my friend had a visceral reaction to the ad ("It doesn't make me want to buy a Nissan"), I spent less time extolling the virtues and necessity of branding and more time thinking about what these ads are: they're native.
In 2014, Forrester outlined a new approach to marketing that requires brands to harness customer context to deliver self-perpetuating cycles of real-time, two-way, insight-driven interactions. In 2015, we’ll see more marketers obsess over customers’ context. As more interaction data floods customer databases and marketing automation systems, customer-obsessed marketing leaders will strive to orchestrate brand experiences that drive unprecedented levels of engagement. For example, we predict that:
Digital marketing investments will drive brand experiences across the customer life cycle. By the end of 2015, spend on digital marketing will top $67 billion — growing to 27% of all ad spend. In fact, we believe this will surpass TV spend by 2016; there’s more to the story than ad spend. We believe marketers will branch out of expected digital media buys to stimulate more insight-driven interactions with customers throughout the entire customer life cycle. Supported by new streams of situational customer data and powered by the ability to precisely target audiences with programmatic media buying, marketers will deliver highly engaging brand experiences rather than just feed the top of the funnel.
William Hill PLC, one of the world's leading betting and gaming companies and trusted UK high-street brand, has recently undergone a significant strategy review. The strategic changes came in response to the fact that more and more of its customers want to engage with the company via digital and increasingly also via mobile platforms — which at Forrester we refer to as the mobile mind shift.
In this new business context, William Hill now focuses on three main initiatives for expansion: 1) develop a wider product range, 2) encourage greater multichannel usage, and 3) increase internationalisation. To better understand how it is tackling these business priorities and, in particular, how the firm is driving multichannel usage by delivering visible value (and in context), we invited Kristof Fahy, William Hill’s Chief Marketing Officer to deliver a keynote presentation at Forrester's Forum For Marketing Leaders in London coming up on May 13-14.
In the run-up to the Forum, Kristof was kind enough to answer a few questions to provide a sneak preview to the content from his speech. I hope you enjoy his responses as much as I did, and I look forward to seeing many of you in London!
Q. You’ve led marketing efforts at a wide variety of companies, from big and established brands like Orange and BlackBerry to challengers like Yahoo. Are there key things that all brands—regardless of size and industry—should be doing today to stay relevant and top of mind in our hyper-connected, multi-channel world?
Tag management tools are much more than the management of tags. Strategic use can:
give control of digital marketing campaigns to marketers – relieving significant IT burden,
significantly reduce digital marketing implementation and operational costs,
garner support for digital marketing programs – even in highly regulated firms – by offering detailed multi-stakeholder visibility and control of scripts and digital data,
reduce the “stickiness” and dependence on digital technology vendors, and
enable digital data syndication, which in turn drives dynamic segmentation and bottom-up attribution programs.
Forrester is currently assessing the tag management capabilities of top global brands, advising on their strategies and guiding them with their digital marketing road maps. Also; tag management research is ongoing with a few papers due for release later this year.
Over the past 12 months, I’ve taken a number of client inquiries on globalization and multilingual strategies. But in all cases, it turned out that the challenge wasn’t really providing multilingual support. Instead, organizations are struggling to meet demand among customers, suppliers, partners, regulators and others for direct access to core enterprise systems from multiple regions, often through mobile devices or pervasive web applications. So the real question is: How are user engagement strategies affecting our ability to achieve a single, global business and technology platform that supports the increasingly pervasive use of mobile technologies?
This is now a top-of-mind consideration for many companies, especially as emerging markets are an increasingly important part of their global business strategies. The challenge is how best to tailor and adapt their products and services to capitalize on these emerging market opportunities without losing the benefits of economies of scale and the requirements for global transparency and compliance. And it’s not just about global IT service delivery; it’s about how technology can now serve the unique needs of both internal and external users, particularly where major differences may exist across language, culture, law, infrastructure, geography, value systems, and the economy.
After spending opening day at CES, I couldn’t agree more with my colleague Sarah Rotman Epps in her blog post that CES matters more now than ever to every marketer, product strategist, and C-level executive in every industry. Across the CES floor, connected TVs, tablets of all sizes, and a new breed of “phablets,” combining the form factor of tablets and smartphones into one, confirmed the fact that we’ve left the PC-dominated world behind for a mobilized and connected home and work life where content and context will dominate.
What struck me while I walked the floor at CES was that Peppers and Rogers were actually way ahead of their time. Remember them, the ones who wrote The One to One Future way back in 1996, well before the digital age became a reality? Their vision continues to become a technology-powered reality. With CES showing an abundance of new ways to connect with mobilized customers, the ability to target, reach, and effectively communicate with customers one-to-one, customizing and personalizing messages and offers to their unique needs, is increasingly within the reach of the marketer.
Available channels to the customer exploded on the CES floor to include everything from connected TVs and other devices in the home to all types of mobile devices and ruggedly made tablets built for the enterprise and everything in between. All are connected and share content in the right context to the devices consumers or business customers want, when and where they want it — just like Peppers and Rogers dreamed would happen.
Does your brand include Seniors (those ages 65+) in its digital marketing strategy? It should. Here’s why. Forrester recently published a demographic overview of Digital Seniors, and the findings are suggestive: 60% of US Seniors are online — that’s more than 20 million online Seniors in the US.
How are US Seniors using the Internet and technology? While they trail behind younger generations when it comes to device ownership and online usage, they integrate technology into their lives in ways that are relevant for them. For example, they use it as a way to connect with family and friends — 46% of US online Seniors send and receive photos by email, and just under half have a Facebook account.
Seniors aren’t as active on the Web and are less likely to own a smartphone or tablet as younger generations, so many campaign managers don't see them as an obvious target for digital campaigns. But they do have a number of advantages compared with younger consumers, including 1) their size — there are about 21 million online Seniors in the US; 2) their income — they have far more money to spend than 18- to 24-year-olds; and 3) their brand attitudes — they are more brand-loyal, with 63% of online Seniors agreeing that when they find a brand they like, they stick to it, compared with 53% of all US online adults.