Citibank Moves Boldly Into The Tablet Banking Market

Peter Wannemacher

Hotcakes, you've got some competition: the phrase "selling like tablets" might soon enter the global lexicon. And it's not all hype — though there is a fair bit of that as well. Tablet users in the US are estimated to grow at a compound annual growth rate (CAGR) of 51% from 2010 to 2015. That’s a fast-growing market for firms of all stripes.

As such, the tablet as a touchpoint is becoming a critical consideration for eBusiness & Channel strategists. This is especially true for executives at banks, as financial transactions benefit from the immediacy of the mobile channel, but users often struggle to make these transactions on smaller smartphone screens.

Enter tablet banking.

Forrester has previously identified best practices for tablet apps in financial services, but only in the past year have leading banks rolled out robust tablet banking efforts. One of the strongest tablet offerings we’ve seen is from Citibank.

In my new report, I outline the process Citibank went through in building its own tablet banking strategy, developing an iPad app, rolling it out to customers, and continually improving the service. We outline how Citi:

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Brands Are Increasingly Selling Direct Online . . . In New Global Markets

Zia Daniell Wigder

Back in 2010, we wrote a report that looked at how and where US online retailers were expanding internationally. Today we published a related report that focuses on brands that have extended their international offerings by launching transactional websites. Establishing A Global Direct Online Sales Footprint looks at the countries where brands are choosing to focus on with their eCommerce offerings, and some of the tactics they’ve used to keep costs in check.

A handful of findings from the report:

Brands rarely enter a market by selling direct on their websites. Most brands enabling eCommerce on their global websites today already sell in these markets through traditional retail channels — the online sales channel simply becomes a new way to reach consumers.

Country selection is not always dictated by market size. Brands expanding their online offerings in Europe, for example, often focus first on the UK, France, and Germany. After the big three, however, the ease and convenience of serving other markets often trumps market size.  

Online sales strategies differ by market. Rare is the brand that has an identical offering in every international market. Most brands that offer eCommerce-enabled sites also provide informational sites in other markets, with little consistency in how the informational sites direct online shoppers to the brands’ retail partners.

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Thinking of launching a daily deal? Just hold that thought and read this first...

Martin Gill

In November 2011 Sucharita Mulpuru published a very well read Forrester research document entitled “The Myths and Truths About Daily Deals”. In this document she led with the line…

“While significant media and investor interest in daily deals has fueled the hype around this business model, data from consumers indicates that daily deals are significantly challenged models.”

The daily deals concept is receiving just as much press coverage in Europe as it is in the US, so with that in mind we have taken a similar look at the state of the market of deals, flash sales and coupons and found that while there is a great deal in common, there are some notable differences.

Much of the differences stem from a combination of the local players and the geographical complexity of operating across Europe.  Many of the big players like Grouponand Living Socialare present in Europe, with significant market presence in many countries, though a range of other national companies like DailyDeal.deand SecretSales.comoperate in only one country. So while at a national level the situation is reasonably easy to understand, eBusiness executives operating in a pan-European company have a maze of different options to navigate through.

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A Unified Digital Europe. Is It Possible?

Martin Gill

 

Yesterday the European Commission outlined its ambition to create a “genuine Digital Single Market” by 2015. You can read the whole text here if you have some time to kill . . .

 http://ec.europa.eu/news/economy/120111_en.htm

It has the bold aim of “doubling the shares of the internet economy in European GDP and of online sales in European retail by 2015.”

Bold? Not half!

Like many EU documents of this sort, it’s big on ambition but frustratingly light on the “how.” In short, the document outlines 5 key blockers to cross-border growth in the EU, as follows:

·         The supply of legal, cross-border online services is still inadequate.

·         There is not enough information for online service operators or protection for internet users.

·         Payment and delivery systems are still inadequate.

·         There are too many cases of abuse and disputes that are difficult to settle.

·         Insufficient use is made of high-speed communication networks and hi-tech solutions.

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The Globalization of eCommerce in 2012

Zia Daniell Wigder

As we look back on the year 2011, eCommerce organizations continued to expand their global reach. A growing number of US and European retailers started shipping internationally. Brands enabled eCommerce on their own websites in new markets and launched online stores on marketplaces in multiple countries. Other companies with an interest in global eCommerce used the year to gain insights into new markets, determining which ones to prioritize in the years ahead. Rumors swirled about Amazon preparing to enter India. Or Brazil.

For many companies, however, the globalization process is still just beginning. Aside from a handful of companies that operate eCommerce sites around the world, few companies have a truly global online footprint. The growing number of US- and European-based companies that ship internationally will see revenues increase from these markets, but will start to hit a language ceiling: Close to two-thirds of online consumers in both France and Germany, for example, agreed with the statement, “I only shop from websites in my native language.” In the UK, the percentage is close to three-quarters.

2012 will not be the year that eCommerce organizations blanket the globe with localized offerings – they will, however, continue stepping into international waters. Next year we expect to see :

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The Data Digest: Black Friday - Understanding The Purchase Path Of Online Holiday Shoppers

Reineke Reitsma

Successfully reaching online shoppers during the critical holiday season is crucial to the Q4 success of eCommerce businesses. Forrester recently published its “US Online Holiday Retail Forecast, 2011”; it predicts strong growth despite the current economy. My colleague Sucharita Mulpuru shared in her blog that November and December alone are expected to pull in nearly $60 billion in online revenues in the US, a 15% increase over 2010 and about one-third of the overall volume of online sales for the year.

But what are the drivers for purchasing? How do consumers discover a good deal? Forrester collaborated earlier this year with the eCommerce company GSI Commerce to answer these and other questions and to create a picture of online buyers’ purchase journey in various categories during key periods of the Q4 2010 holiday season across 15 eCommerce sites.

We found in this study that search and email were the most effective tactics in driving sales, and shoppers were heavily influenced by retailers’ marketing efforts during key dates such as Cyber Monday and the Thanksgiving weekend. But in many cases, it's a combination of marketing tactics that makes people buy: More than half of US consumers purchasing products online in the soft goods category experienced two or more marketing touchpoints prior to the completion of their transaction.*

 

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Growing Momentum Around eCommerce In Brazil

Zia Daniell Wigder

Back in September, I wrote up a few of my findings from meetings with companies in the eCommerce space in Rio and São Paulo. We’re fielding an increasing number of questions about Brazil, and indeed, while eCommerce in Brazil today is still heavily dominated by local companies, the landscape is starting to include more international players:

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Now The Holidays Are Upon Us, Are You Sleeping At Night?

Peter Sheldon

With the holidays rapidly approaching, eBusiness executives face many a sleepless night as their eCommerce infrastructure comes under attack from hordes of festive online shoppers. These customers are buying online to avoid the crowds, queues and stress of the mall and they demand nothing short of an exemplary online experience. Slow pages, site outages, and checkout problems will at best cause frustration as loyal customers switch channel to the call center or brick and mortar stores, however most customers will simply take their business elsewhere. These customers will end up buying online from your competitors, but before they do, you can bet they will express their dismay on Twitter, Facebook, blogs and even through your own online reviews. The damage will extend beyond the online channel and the impact on brand reputation will be widespread and long lasting. 

No more aware of this than anyone are eBusiness executives. Q4 sales will either make or break entire annual revenue goals and the c-suite have zero tolerance whatsoever for site outages or transactional problems online during the holidays. Jobs are on the line.
 
Only last week Targets head of online retailing, Steve Eastman left the company after a high profile site outage back in September left shoppers staring at this screen all day long as they frantically tried to get their hands on an exclusive and limited range of luggage, clothes and house wares from Italian designer Missoni.  

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Some Observations On The Evolving eCommerce Landscape In China

Zia Daniell Wigder

Last week I joined a few of my colleagues in China to meet with a variety of eBusinesses in both Beijing and Shanghai. We met with online retailers, technology companies, and other players in industry. For those used to selling online in countries other than China, some of the takeaways included:

Multichannel remains in its infancy. With the leading online retailers in China being pureplays, multichannel remains at very early stages. In-store pickup or returns are not widespread – however, there are emerging multichannel initiatives. In a recent, high-profile online-to-offline expansion, for example, Taobao opened a new furniture showroom in Beijing to enable consumers to experience different furniture brands sold on the site. The furniture sellers rent out space in the showroom to display their products. We had an opportunity to visit the huge showroom, which was somewhat quiet when we were there – terminals stationed throughout the showroom (see below) enabled consumers to insert a card and select products online, then proceed to checkout to pay.

    

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Is It Time You Accepted PayPal?

Benjamin Ensor

We've just published some new research on online shoppers' payment preferences in Europe. Payment habits across Europe remain diverse, with shoppers in different countries using different, and sometimes entirely different, payment methods to shop online.

One of the findings that struck me most during our research was the growing popularity of PayPal. That PayPal is used by many online shoppers across Europe is well known, and partly explained by the success of eBay. What struck me as new is how many big European online merchants now accept PayPal, among them leading fashion retailers and airlines. Perhaps I didn't spot that sooner because the British merchants have been much slower to adopt than those in Italy, Germany, France and Spain.

The growing acceptance of PayPal raises questions for two groups of eBusiness executives: 

  1. If you work at a retailer or other merchant, is it time you accepted PayPal payments online?
  2. If you work at a bank or card issuer, what does the growing use of PayPal mean for your relationships with your customers?
  3. For both groups, what payment methods are customers likely to want as they start buying from tablets and mobile phones?

What do you think?

If you are a Forrester client, you can read the full report here.