Bank of America CEO Brian Moynihan just announced that more than 10% of all consumer deposits are done through mobile devices. That's in Q1 2014, and it's up from 6% in Q1 2013. (What you see in this picture is my local Bank of America branch, which I never visit any more.)
I love this from the Wall Street Journal's MoneyBeat blog:
Banks that don’t offer a full suite of mobile banking services may run the risk of alienating customers. All told, about 60% of smartphone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision, up from 7% in the second quarter of 2010, according to data from New York-based consulting firm AlixPartners.
A mobile transaction costs 10 cents. An ATM transaction costs $1.25.
Here's what this means for you: Find a mobile moment where you can make your customer's life easier and you'll make money three ways. First, you'll make the customer happier with a better experience. Second, you'll keep him from switching to a competitor. And third, if you engineer it right, your own processes will be simpler and you'll save money, too. That's mobile mind shift thinking.
It's not just banking. Where are the mobile moments like this in your business?
It was just a matter of time. They started with taking people from point A to point B. They gave us some glimpses of what might come by dropping off ice cream and litters of kittens. Uber became (and continues to become) incredibly efficient by matching supply and demand, all from the mobile device. How successful? A valuation of $3.4B back in August 2013.
Some may argue (and I got this question yesterday from a journalist) "they could have done this without mobile services." I disagree. Mobile has added a level of convenience and improved the customer experience dramatically. Convenience. Convenience. Convenience. Uber has embraced what we call the mobile mind shift and is expertly serving customers in their mobile moments - a concept explored in depth in our upcoming book.
Uber (and similar services) have grown the overall business for private car transportation. What are they cannibalizing? I haven't done this analysis, but for me - I drive less and spend a lot less on parking. Do I spend more on Uber than I would have on parking? Probably, but they are so enjoyable to do business with. (See our customer experience framework).
- Mobile phones (subsidized) are relatively cheap - or at least affordable as a cost of doing business for your typical driver. Dedicated hardware isn't.
- A mobile app for the drivers (and now cyclists) pinpoints exact pick-up locations PLUS shows the hotspots for demand based on time of day, location, weather, holidays, local events, and probably a hundred other factors. There is no other way to communicate easily to drivers where they should wait to pick up rides.
Amazon is testing a new device to facilitate making a grocery list and ordering groceries through their AmazonFresh service in markets such as San Francisco and Seattle. (See TechCrunch article.) Consumers can add items to the list through voice or by barcode scan. Two things (for me) make this an interesting experiment to watch.
1) Amazon looks to profit from what we call "a mobile moment," a concept introduced in our forthcoming book, The Mobile Mind Shift. Or more specifically in this case, an impulse sales moment. As a consumer, I add an item to my grocery list before I forget. I may or may not order that day - it may be tomorrow, but I will buy it. The Dash adds convenenience - it removes friction from my shopping process. The Dash takes advantage of the immediacy of mobile. (See our report on how to create mobile moments).
David Ortiz took this selfie when the Red Sox visited the White House to celebrate their win in the 2013 World Series. First there was a huge hue and cry because of the question of whether Samsung put him up to it (David says it was spontaneous, but he does have a contract with Samsung.)
Was Big Papi wrong to take money from Samsung? No, any athlete can sign an endorsement deal.
Was Ortiz wrong to ask for a selfie with the president? Look at that smile on Obama's face. He was having a good time. If he didn't want a selfie, he should have said no. This is a hell of a mobile moment. If it were me up there with the president, I hope I would have the courage to ask, too!
Was Samsung wrong to promote it? You could argue this, but frankly, Samsung has to be delighted.
Is the White House within its rights to object? I imagine so, and I understand their position.
When Clippy, Microsoft’s paper-clip assistant, disappeared in 1998, it was hardly missed; it was both annoying and offered little value to users. Zip forward 16 years: Microsoft has just introduced Cortana, a new personal digital assistant that the firm will launch on Windows Phone in the coming months. Powered by Bing, and about two years in the making, Cortana will be important if Microsoft gets it right. Here’s why it’s an exciting development:
Mobile-first is a growing enterprise strategy. The whole idea of creating a mobile-first enterprise strategy has taken root in many enterprises, as they recognize that users now expect any information or service they desire to be available to them, in context and at their moment of need. Users are cognitively and behaviorally ready to embrace wearable technology as an extension of mobility — and to weave it into their business processes. My colleague JP Gownder shares his views on wearables here.
When March comes to a close, the madness in the US picks up: March Madness, the national college basketball championship, gives sports fanatics the chance to rally around their alma maters, while sports novices get to observe college basketball culture at its best. Personally, I tend to lean to the latter end of the spectrum — but this year, thanks to a redesigned mobile app and enhanced social engagement strategy, I find myself moving away from observer status toward that of participant.
My story isn’t unique: The features and functions of sports-related mobile apps allow fans of any knowledge level to receive immediate updates, learn more about players and teams, and connect with fellow spectators across the region — and globe. From reviews of the recent winter Olympic Games to preparations for the upcoming FIFA World Cup, “sports fever” is universal. Forrester’s Consumer Technographics® data shows that while the impulse to engage with sports-related apps on portable devices is evident around the world, it is most noteworthy among consumers in Metro China and Metro Brazil:
A journalist called and asked me today about the market size for wearables. I replied, “That’s not the big story.”
So what is? It's data, and what you can do with it.
First you have to collect the data and have the permission to do so. Most of these relationships are one-to-one. I have these relationships with Nike, Jawbone, Basis, RunKeeper, MyFitnessPal and a few others. I have an app for each on my phone that harvests the data and shows it to me in a way I can understand. Many of these devices have open APIs, so I can import my Fitbit or Jawbone data into MyFitnessPal, for example.
From the story on 9to5mac.com, it is clear that Apple (like with Passbook) is creating a single place for consumers to store a wide range of healthcare and fitness information. From the screenshots they have, it also appears that one can trend this information over time. The phone is capable of collecting some of this information, and is increasingly doing so with less battery burn due to efficiencies in how the sensor data is crunched, so to speak. Wearables – perhaps one from Apple – will collect more information. Other data will certainly come from third-party wearables - such as fitness wearables, patches, bandages, socks and shirt - and attachments, such as the Smartphone Physical. There will always be tradeoffs between the amount of information you collect and the form factor. While I don't want to wear a chubby, clunky device 24x7, it gets better every day.
Over the past few months I have spoken with a lot of CIOs, customer experience professionals, marketing professionals, and BT strategists in both the public and private sectors in Australia about their organization’s or department’s mobile strategy. This culminated in a number of meetings in Canberra last week, where I got a great feel for how mobile strategies are playing out within the Australian federal government.
While there is a broad spectrum of maturity when it comes to embracing the mobile mind shift, the good news is that everyone I spoke with recognized not only how important mobility is to existing business processes, but also that mobile will transform their customer base and their organization.
It was interesting to note that the conversations I’ve been having with private-sector organizations about mobility usually involve both someone from the CIO’s department and someone from marketing (sometimes CX, sometimes management, sometimes channels). Mobile initiatives are generally partnerships; while the business side leads these initiatives, they also involve the technology department. In contrast, in the public sector the mobile initiative is often led by the technology department — and often by the CIO herself.
Some 80,000 visitors ventured to Barcelona to attend the annual congregation for the mobile-minded, the Mobile World Congress (MWC). Long gone are the days when one single theme dominated the show. My main impression of MWC was that compared with last year, there was surprisingly little true news. I see evolution not revolution, which is somewhat odd as the overall business environment is clearly changing faster than ever.
Of course, everybody again claimed that they are active in the obligatory fields of cloud, analytics, and customer experience. However, if anything, I feel this convergence of marketing messages creates too many platitudes and undermines the practical use case scenarios that define the mobile mind shift. I went to MWC with several questionsin mind, and my main takeaways of MWC are that:
The central theme of Mobile World Congress 2014 for me was clearly Connected Living. I’ve been attending Mobile World Congress for quite some time — 2006 was my first, the year that it moved to Barcelona from Cannes. And, this year felt different. No longer did the event feel dominated by handset manufacturers and equipment providers. Mobile World Congress is no longer a telecom event; it is clearly a mobile event. Mobility has penetrated every industry and every aspect of life, and that diversity is now clearly felt at the show. The large presence of car manufacturers and the buzz around Facebook indicate a definitive changing of the guard. That shift is ongoing. The proliferation of connected devices, the explosion of over-the-top services and the rise of the data economy will continue to shape the industry. But for me, this year I felt excitement around our new connected lives.