On Tuesday at 8 a.m., I received a call from my mother. Instead of driving to her office, as she’s faithfully done at that time for more than a decade, my mother was caught between shelves of cashmere. Macy’s was having a pre-holiday one-day sale, and my mother was thrilled to be part of the early-bird crowd getting first dibs on cardigan colors at 50% off. I was struck — not by my mother’s rare excitement about the discount but by Macy’s success in changing her behavior. My mother traded her comfortable weekday rhythm for a detour to the mall, thanks to Macy’s timely, exclusive promotion.
This example is representative of a major potential shift in which consumers break traditional habits thanks to strategic sales and effective marketing. My mother’s impromptu spree is only a precursor to the behavior that could play out next week when Thanksgiving Thursday becomes the new Black Friday. For the first time in its history, Macy’s will open on Thanksgiving itself to compete with retailers like Target and Best Buy, which open their doors moments after the pie crumbs and coffee cups are cleared away. For Wal-Mart, Black Friday 2013 will start one full week early.
This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals
Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. But accepting global online payments is VERY complicated. It includes the transmission of sensitive financial information, an array of diverse payment methods, a long list of players in the transaction stream and many regulatory considerations. Add to the equation the increasing importance of mobile and the seamless user experience the consumer is demanding, and it’s enough to make even the most seasoned eBusiness professional’s head spin. So what are we to do? eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. But the PSP vendor landscape is crowded and highly competitive, leaving eBusiness professionals unclear of which PSP will best serve their needs.
Together with payments analyst Denée Carrington and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global payments challenge. Here are a few key questions eBusiness professionals should consider before signing on with any PSP:
We’ve been having a series of conversations with brands and retailers recently about how to effectively plan for global online expansion. While approaches vary, eBusiness leaders cite similar challenges. In particular, two hurdles to successful international expansion tend to come up repeatedly in conversations:
“Our ROI scenarios are unrealistic.” In a survey of eBusiness professionals in the B2C space, we asked how quickly they expected to see a return on their investments in new global online initiatives. Over three-quarters said either in less than one year or in one to two years. By contrast, leaders of successful global eBusinesses frequently highlight the fact that payback on new initiatives takes at least two years, with many citing three years and up. As a result of this disconnect, eBusiness professionals overseeing new global businesses often find themselves falling short of expectations and struggling to secure the funds needed to succeed. Today, the mismatch between ROI expectations and performance is one of the leading reasons why new global initiatives fail.
Earlier this week, Groupon celebrated its fifth birthday — and its party was certainly hard to miss. The countdown to the big day began last week, when my daily deal emails arrived with pomp and circumstance — images of crowns in the subject lines, extra exclamation points in the text, and heavy promotions based on the need to celebrate. On November 4, Groupon gave out $5 million in “Groupon Bucks” to thank its customers for fueling its five-year evolution from daily deal provider to searchable marketplace.
But the party isn't stopping there. The company continues to identify marketplace opportunities and engage its consumers in a seamless, meaningful way. Groupon’s recently redesigned mobile application and website aim to enhance user experience and allow the company to start optimizing its audience potential. Forrester’s Consumer Technographics® data shows that Groupon's US online customers are a particularly valuable target, as they spent around $200 more shopping online in the past three months than the average US online consumer:
Today, we released our inaugural Forrester Wave evaluation of B2B commerce suites. In a sister blog post, my colleague Andy Hoar, with whom I coauthored this report, explains why client demand for this research has exploded over the past 12 months, with manufacturers and distributors grappling with how to better serve their sales channels through digital experiences. In writing this report, Andy and I have spent the past six months evaluating the B2B commerce capabilities of dozens of vendors. Despite casting the net wide, our research found that although it’s common for vendors to provide “B2B lite” functionality for their clients — such as supporting unique pricing for employees — only a subset of the broader commerce platform vendor community can truly cater for complex B2B business models with support for distributors, resellers, partner networks, employees, retail stores, and direct B2C all from a single platform. To differentiate the wannabes from the bona fide leaders, Forrester rejigged its established B2C commerce suite scoring criteria to emphasize:
B2B commerce features. We added all-new criteria to evaluate how these solutions solve unique B2B problems, such as quotes; complex pricing lists; eProcurement; product configuration and customization; guided selling; bulk order entry; dealer management; and account, contract, and budget management, to name a few.
For years, customers have asked Forrester to publish a Forrester Wave evaluation specific to B2B commerce solutions. Well, that day has finally arrived! Today, I’m pleased to announce the release of our very first Forrester Wave dedicated exclusively to B2B commerce suites.
In “The Forrester Wave™: B2B Commerce Suites, Q4 2013,” we found that IBM, hybris (an SAP company), Oracle Commerce, and Intershop lead the pack. Additionally, we found that Insite Software and NetSuite offer competitive options. In a separate blog post, coauthor Peter Sheldon explains in more detail how we ranked the vendors.
What’s at stake overall for B2B companies is no less than a piece of the $559 billion US B2B eCommerce market. To earn a share, B2B eBusiness and channel strategy professionals at all levels of maturity require a world-class B2B commerce suite that:
Offers a customer experience standard comparable to leading B2C sites. We frequently hear from our B2B clients that the technology should deliver an “Amazon-like experience.” Fortunately, several of the solutions we evaluated possess the functionality to deliver robust search and navigation, value-added recommendations and reviews, and 24x7x365 ordering and servicing — both online and on mobile devices. In addition, most come ready out of the box to integrate with back-office systems and complex order orchestration and fulfillment workflows.
eCommerce is becoming more globally pervasive. Therefore, retailers must continually adapt their expansion strategies to reflect changing retail consumption behaviors. But what makes a country ready for eCommerce? When making investment decisions, it's certainly important to get the facts about macroeconomic conditions, Internet access, and consumer market size. However, there is much more driving the eCommerce market.
In order for firms to get a full view of a country’s online retail readiness, they must also consider its online activity, consumer payment behavior, and postal courier infrastructure. In a recent study conducted by Forrester's ForecastView team, we investigated 55 global economies to discern the readiness of each eCommerce market. The underlying quantitative framework captures 25 variables under four pillars: consumer behavior, merchant adoption, macroeconomic conditions, and the retail opportunity. The analysis is distilled in the Forrester Readiness Index: eCommerce (FRI).
I recently published a report on The European eCommerce Landscape; it shows that more than two-thirds of European online consumers are shopping online, but there are big differences among the different countries. The top categories bought online are travel, clothing and accessories, leisure and entertainment, and consumer electronics. Forrester’s European Technographics® data also reveals that European consumers increasingly prefer the Internet to high-street shops for purchases of music, computer software, event tickets, and videos:
In recent years, the Internet has become the leading channel for media products. In 2012, more European online consumers bought videos/DVDs, music, event tickets, and computer software online than offline. These online media purchases fall into two categories:
1. Digital (sold direct as a download).
2. Physical (a product that an Internet retailer delivers).
I recently had the opportunity to spend some quality time with NetSuite in San Jose at its customer forum — SuiteWorld. The event gave me a long, overdue deep-dive into their current strategy and the chance to speak with many of their customers one-on-one.
The big announcement from the event was the availability of its manufacturing solution. The evening before the event started I had a good conversation with our Sourcing Analyst Liz Herbert — who spends a lot of her life focused on the SaaS providers — and asked her why NetSuite was not growing more quickly. Her response was that its lack of a manufacturing solution is partly to blame. So when it was announced by CEO Zach Nelson the next morning, it certainly helped to fill me with confidence about its future.
This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals
Today, eBusiness professionals are struggling with how to engage their clients around the globe via a website that meets varying language and cultural needs. Additionally, they’re faced with deciding between the different technical implementation methods with language service providers. Forrester has recently published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help implement their translation and localization strategy.
Before evaluating solutions and signing contracts, eBusiness professionals must consider these important questions:
What is the right mix of translation methods? There is no replacement for translation done by a professional translator in terms of quality output, but the sheer volume of website content, the increasing demand for quick turnaround, and the number of languages needed far exceed the capacity of using all human translation. Many enterprises use a combination of translation methods (e.g., human translation, machine translation, human-aided machine translation, crowdsourcing) to execute on their international initiatives and fulfill their translation needs while keeping project costs under control.