Last week, nearly 170,000 business and technology professionals descended onto San Francisco for Salesforce’s annual conference, Dreamforce. The event itself was ripe with discussions on social responsibility and charity, but most attendees, including myself, attended for other reasons. We wanted Salesforce to pull back the curtains on what it saw for the future of sales.
Once things got underway, Salesforce’s Einstein took center stage… quite literally. We’ll get to Einstein in just a bit, but not to be overshadowed by Einstein, Salesforce unequivocally made their keynote about sales. 2016 was a landmark year for Salesforce and their commitment to sales. They closed on their acquisitions of SteelBrick and Demandware, and used Dreamforce as the stage to rebrand them as Salesforce CPQ and Commerce Cloud respectively. So what does all this mean? It means that regardless of sales channel, Salesforce is fighting harder than ever to be your selling platform of choice… and they make a pretty compelling case.
Let’s take a closer look at the case Salesforce is making. To do so, we must understand Salesforce’s pillars of technology supporting sales.
Sales Cloud delivers core CRM functionality for sellers. Sales Cloud is the bread and butter for Salesforce. For many of its customers, Sales Cloud represents the foundation of technology enabled selling processes. From account and opportunity management to pipeline management and white space analysis, Sales Cloud helps sales and sales leaders strategize and prioritize their sales efforts.
The first week of October witnessed the start of the holiday sales season in India as the big three online retailers — Flipkart, Amazon, and Snapdeal — launched high-profile sales. Originally started by Flipkart in 2014 as Big Billions day, this week witnessed a discount-driven war among the top three players.
Online retail in India has witnessed significant growth during the past five years, powered by highly funded online retail companies that bought growth through discounts. This gross market value (GMV)-led growth led to very high valuations and burn rates for retailers, leading some investors to question their long-term profitability. This has led to a slowdown in funding as well as cost cutting by online retailers in the past six months. Before the start of the festive season, Flipkart was looking to maintain its market share; Amazon was looking to take market share from Flipkart, Snapdeal, and smaller players; and Snapdeal was looking to find a place in the changing dynamics of India’s online retail market.
Here are some of the key lessons from this festive sales season for the key players in the online retail market in India.
Marketers have a great arsenal of tools to drive conversions and now short form video needs to be part of that mix. Invest in it now to differentiate your business. Historically, video has been expensive to produce and manage, but that’s changed. It no longer costs a fortune to produce video content. In fact, some retailers added video production to their existing photography process and they’re using the same equipment. Online video platforms can track the performance of videos across multiple sites--not just your own--and how they influence customers. Because of this, video ranks among the top new initiatives where retailers plan to invest in 2016.
It’s been a big news year for eCommerce in Latin America: Brazil’s economic instability has tempered eCommerce growth, elections in Argentina have raised hopes that favorable regulatory changes are ahead, and Amazon’s entry into Mexico has shone the spotlight on the region’s fastest growing market. According to Forrester’s recently published forecast, online retail sales in Brazil, Argentina, and Mexico (the region’s three largest markets) will reach $30.9 billion by 2020, up from $20.8 billion in 2015. Some key findings from this research include:
Brazil remains the region’s dominant eCommerce market. Brazil’s online retail sales today are more than double those for Mexico and Argentina combined. Despite economic (and political) woes, online sales are growing, and the market shows signs of maturity: Online shoppers in Brazil span social classes and buy across categories – with categories like apparel and footwear gaining a larger share of the overall online retail sales pie.
Macroeconomic conditions in Argentina have presented obstacles to eCommerce growth. Tight import restrictions enacted in 2012 made importing products extremely expensive and kept foreign investment in the market at bay. The newly elected government appears to be working towards loosening up these restrictions, though little has changed so far. Local traditional retailers are driving eCommerce growth and increasingly adding omnichannel capabilities for consumers. For example, traditional retailer Falabella offers customers visibility into store inventory, and flexible fulfillment options like multiple pick up sites or buy online pick up in store.
Brazil remains the largest, but slowest-growing, online retail market. The online retail market in Brazil is double the online retail markets of Argentina and Mexico combined. But the ongoing economic crisis in Brazil is hurting its online retail market and causing a slowdown. We expect online retail in Brazil to grow at a compound annual growth rate (CAGR) of 10.5% from 2015 to 2020, compared with the CAGR of 28.3% witnessed from 2010 to 2015. Customers are spending less on both offline and online retail, which affects the overall growth rate and penetration of online retail, particularly in non-metropolitan areas. A lack of regulations and an unfavorable tax regime make it difficult for online retailers to expand beyond metropolitan areas.
In August 2015, the Australian government announced an impending change to their tax structure that will impact online retailers serving the market via international shipping. Today, Australian consumers can import up to A$1,000 duty-free when they buy from a foreign retailer. The A$1,000 duty-free exemption is known as the low value threshold (LVT) and it has driven a large cross-border shopping habit among online shoppers in Australia. But change is afoot and retailers should know that:
Goods and services tax (GST) will be added to cross-border transactions previously exempt. As of July 2017, the Australian government will be expanding its GST collection to purchases previously exempt under the A$1,000 threshold. Additionally, the government stipulates the onus is on retailers to collect and remit the tax: According to the Australian Treasury Department, "For goods with a value of A$1,000 or less, GST is applied at point of sale. Overseas vendors with an Australian turnover of $75,000 or more will be required to register, collect and remit GST on low value goods."*
The answer: In the markets included in our latest Asia Pacific Online Retail Forecast— China, Japan, South Korea, India, and Australia — total online retail revenues will nearly double from $733 billion in 2015 to $1.4 trillion in 2020. For perspective, $1.4 trillion is about the same amount spent online in 2015 in every market that Forrester forecasts across the globe combined.
In our latest report, Asia Pacific Online Retail Forecast 2015 To 2020, (subscription required) we look at the growth in these markets over the next five years and some of the key trends shaping the development of online retail in each one, including the following:
China’s eCommerce market grows despite the economic slowdown. 2015 marked a global eCommerce turning point: China surpassed the US to become the largest eCommerce market in the world, but its economy also dipped below 7% for the first time since 2009. While the days of staggering year over year eCommerce growth in China are behind us, current growth rates are solid and more consistent with other mature markets in the region, like Japan and South Korea.
India is the fastest growing eCommerce market in the region, but is not without its obstacles. The smallest eCommerce market in our forecast, India’s online sales will grow by more than five-fold by 2020 as the number of online buyers and per capita online spending increase rapidly. However, in addition to underdeveloped logistics and challenging last-mile connectivity, India's cash-based culture still poses a challenge for eCommerce firms.
As all organizations operating in Australia understand, the line between brand, marketing, and customer experience (CX) disciplines has blurred as people gain access to companies, services and products on their own terms. How can you thrive in this dynamic environment? Start by effectively coordinating between brand, CX, and marketing teams.
We’ve filled our agenda with senior CX and Marketing professionals from leading organizations across Australia, and beyond. Key topics they’ll cover include:
Driving business results, competitive advantage, and growth by delivering the right customer experience.
Identifying the key practices and behaviours that fuel CX innovation.
Building and maintaining a brand in a digital world.
Instilling an understanding of customer emotions into design experiences and branding strategy.
Systematically improving CX through effective measurement.
Few industries are immune from the digitization of experiences, content, services, and products. In this era of cloud computing, IOT and mobile devices, firms are increasingly testing new product offerings that combine elements of content, software, services, and hardware together. Like the evolution of the products themselves, the rulebook on monetizing them is also evolving: firms are replacing the simple one-time sales models of yore with subscription and consumption-based business models that better sustain a continuous relationship with their customers. But unfortunately, in most cases, firms’ existing technology ecosystem doesn’t support the complex requirements of supporting a subscription business model- from customer lifecycle management to finance management. Enter: subscription billing platforms.
Forrester has identified the eight leading vendors in the space and spent the last four months putting them through a grueling process of due diligence, product demos, capability assessments and customer reference checks. Here’s what we found.
■ Aria Systems, SAP hybris billing, and Zuora lead the pack. These three vendors represent thought leadership and the associated market innovation. All three commonly go head-to-head in opportunities at both midmarket and enterprise firms and in both B2C and B2B monetization scenarios. Each of the three has developed core industry vertical expertise in sectors such as IOT, healthcare, and telco and has established mature partnerships with global management consultancy and system integration firms.
Last year, the number of smartphone subscribers in the world surpassed the number of feature phone subscribers. We expect the share of people using smartphones to grow at a rapid pace through 2020, when 87% of all mobile subscribers will have a smartphone. Several factors will drive this trend, including the falling average selling price of smartphones, the increasing availability of low-cost data plans, greater 3G penetration, and the continued rise of mobile messaging apps, social media, mCommerce, and mobile apps. The majority of new smartphone subscribers will come from Asia Pacific and Africa; the opportunity that developed markets present to handset manufacturers is primarily in the form of handset replacement. According to our recently published Forrester Research World Mobile And Smartphone Adoption Forecast, 2015 To 2020 (Global), in 2020 there will be more than 5.4 billion active smartphones in the hands of more than 3.6 billion subscribers across the globe. Some of the implications of rapid smartphone growth are as follows:
Shortening the smartphone replacement cycle in developed markets.In most developed markets, smartphone penetration is saturating; vendors are expected to launch programs like Apple’s iPhone Upgrade Program to increase smartphone sales by shortening the replacement cycle. And it’s not just the US; handset manufacturers or telcos may launch similar programs in other regions with high smartphone penetration, including Australia, Canada, France, Germany, Hong Kong, the Netherlands, Norway, Saudi Arabia, Singapore, South Korea, Spain, Sweden, the UK, and the United Arab Emirates.