It was more than 10 years ago that I listened to my first sermon about the growing importance of mobile as a marketing channel. It was late 2000 or early 2001; I was working at DoubleClick at the time, and my boss left the company to join a mobile startup, claiming we should’ve already had a mobile ad offering in place because it wouldn’t be long before smartphones replaced PCs entirely.
Suffice it to say I’m still waiting anxiously for a chance to throw away my computer -- and likewise, marketers are still waiting for mobile to become a genuinely important marketing channel. It’s not that they’re pessimistic: In fact, the marketers in our surveys rank mobile just a hair behind social media in terms of channels they think will grow in effectiveness over the coming years. But anticipation has never quite equaled reality -- and so most interactive marketers across the US and Europe continue to bide their time, waiting for a mobile marketing opportunity that’ll match the hype.
And that’s where mobile apps appear to come in. Few interactive marketing opportunities are more hyped than mobile apps, but in our search for a mobile marketing channel that really works we’ve lost sight of one crucial point: Marketers’ target audiences don’t care nearly as much about branded applications as the marketers themselves do. In fact:
Today, 22% of employees say that they have used a non-IT-provisioned service over the Web to perform their job function —not to update their Facebook accounts, but to do real work.[i] Many employees are no longer relying on IT to provision, manage, and run their technology because they feel IT is too slow and puts unnecessary restrictions on their use of technology. Many customers expect on-demand information, customized user experiences, and mobile apps that IT is expected to deliver quickly, cheaply, and reliably. Some CIOs have reacted to this shift by vigorously defending their turf from these encroachments. Others have ceded control to third-party service providers and business managers who now make their own technology decisions.
Delivering highly contextual mobile services is an expectation. Mobile phones are personal devices. Consumers expect personal and relevant experiences.
What is context?
Forrester defines “context” as
“the sum total of what your customer has told you and is experiencing at his moment of engagement.”
Situation: the current location, altitude, and speed the customer is experiencing.
Preferences: the history or personal decisions the customer has shared with you.
Attitudes: the feelings or emotions implied by the customer’s actions or logistics.
eBusiness professionals make limited or very basic use of context today. Mostly, they use an individual’s location to tell her where the nearest store or hotel is. The use of location is a minimum requirement today to meet consumer expectations of “decent” mobile services. The bar is rising quickly though. eBusiness professionals need to layer intelligence on top of contextual information and plan how they will use new contextual information such as temperature or altitude.
Here are a few scenarios that simply leverage intelligence with location:
Banks. Should a user require the same depth of authentication at home, at work, or in a foreign country?
Hotels. How much should you quote a prospective customer for a room tonight if she is 5 miles or 500 miles away?
Airlines. What home page services should you show a passenger whose flight leaves in 2 hours? In 10 minutes?
In 2006, Forrester found that organizational structure, internal enterprise goal systems, and most urgent business requirements were key obstacles on many firms’ journey toward broad multichannel solutions with rich cross-channel capabilities. At that time, a few advanced firms tried to establish a multichannel organization, an organizational layer to coordinate multichannel requirements and solutions between the different business groups and the IT organization. Has this changed over the past five years?
Cloud computing continues to be hyped. By now, almost every ICT hardware, software, and services company has some form of cloud strategy — even if it’s just a cloud label on a traditional hosting offering — to ride this wave. This misleading vendor “cloud washing” and the complex diversity of the cloud market in general make cloud one of the most popular and yet most misunderstood topics today (for a comprehensive taxonomy of the cloud computing market, see this Forrester blog post).
Software-as-a-service (SaaS) is the largest and most strongly growing cloud computing market; its total market size in 2011 is $21.2 billion, and this will explode to $78.4 billion by the end of 2015, according to our recently published sizing of the cloud market. But SaaS consists of many different submarkets: Historically, customer relationship management (CRM), human capital management (HCM) — in the form of “lightweight” modules like talent management rather than payroll — eProcurement, and collaboration software have the highest SaaS adoption rates, but highly integrated software applications that process the most sensitive business data, such as enterprise resource planning (ERP), are the lantern-bearers of SaaS adoption today.
Forrester recently published the “State Of Retailing Online 2011: Marketing, Social, and Mobile” report in conjunction with our friends at Shop.org. It is available on Shop.org (with a subscription) now.
Some highlights include:
Understanding which marketing tactics are still leading to growth.
Examining the investment in social and the returns retailers are seeing.
Analyzing mobile and tablet adoption and strategy.
Apple has been storing our location. (See article) Sounds bad, but really, is it? My colleague Joe Stanhope forwarded the article to me with the line, “kinda scary.” Is it? Our credit cards track where we are and what we spend. The carriers know where we are all the time — they aren’t storing the information as far as we know, but they could be. Our cars can be tracked. We buy plane tickets and make flight reservations online. What’s a bit different is that many different entities have our information, but not necessarily one.
Your phone will know everything about you going forward. My phone already knows where I go (ok, and Apple is recording), who I call, what sports teams I follow, what games I play, where I bank, how often I visit Starbucks, where I shop, what books I’m reading (Kindle), what music I listen to . . . and the list goes on. What else is my phone going to know about me? It’s going to know:
What I eat because I want help tracking calories
How often I run because I track my workouts
What I watch on TV because my phone is my remote control
Who I fly . . . because I use mobile boarding passes
How healthy I am b/c it will track my cholesterol
Who my friends are from phone, texting, and Facebook
Where I’m eating b/c it tracks my Yelp searches and OpenTable bookings
Whether I’m traveling on foot or by car b/c it tracks my speed
Intrigued by a lot of what I’ve been reading recently, I’ve started looking for evidence of QR codes transforming how shoppers are interacting with retailers. The thing is all the evidence I see with my own eyes doesn’t back up this proclaimed uptake. I’ve never noticed a single one in a shop. Now, that could be because I’ve not been looking and if I’m honest, I’ve only had a phone capable of reading them for a few months.
Time for a quick bit of ad-hoc analysis (Health Warning: NOT OFFICIAL FORRESTER RESEARCH !!!)
In order to give this mini research project some vague semblance of credibility, I have adopted the rigorous scientific approach that Mr. Featonby, my A-level physics teacher drilled into me many years ago . . .
My hypothesis is that retailers aren’t using QR codes in the UK, and furthermore, the average shopper hasn’t a clue what one is.
I went to the local Tesco Metro and browsed the aisles, looking at every product I could find.
I’ve looked through every store magazine and free paper and at every poster I pass in London, on the Midlands Mainline train service, and in Nottingham (where I live) for two weeks.
I posted a picture of a QR code on my Facebook page and asked my friends (average shoppers one and all!) if they knew what it was.
They say "content is king." But, "context is kingier" when it comes to designing great smartphone and tablet mobile apps. Don't make the mistake of thinking that mobile app design is just about a smaller screen size or choosing the right development technology. Content and context are both important to designing great user experiences, but mobile amplifies context on five critical dimensions: location, locomotion, immediacy, intimacy, and device. Understand each dimension of Forrester's mobile context to design mobile apps that will make your users say "I love this app!"
Forrester LLIID: Location, Locomotion, Immediacy, Intimacy, And Device
Location. People use apps in an unlimited number of locations. And not all places are the same. A user may be in a quiet movie theater, at home in the kitchen, on a train, or in the White Mountain National Forest. Contrast this with desktop computers, stuck in places such as an office cubicle, home office, or kitchen. Laptops provide some mobility but are larger and less able to provide the immediate access of instant-on mobile devices such as smartphones, eReaders, and tablets. Location is a key dimension of context, driving different needs for users depending on where they are. Fortunately, GPS-equipped smartphones can use a geodatabase such as Google Maps to determine precise location.
With a big splash, we recently launched a significant idea and theme for eBusiness & Channel Strategy professionals for 2011 and beyond called agile commerce. In the report "Welcome To The Era Of Agile Commerce," we highlight how customers no longer interact with companies from a "channel" perspective; instead, they interact through touchpoints. As a result, eBusiness & Channel Strategy professionals have to leave their channel-oriented ways behind them and enter the era of agile commerce -- optimizing their people, processes, and technology to serve today's empowered, ever-connected customers across touchpoints.
Since its launch, we've received some excellent feedback from clients and thought-leaders, validating agile commerce. We've also interviewed three executives in our ongoing series about how agile commerce is affecting their clients and how they are positioning themselves to support the transition to agile commerce. Please continue to visit our community and our blog to share with us your perspective on how agile commerce is affecting your business. Do you see the signs of this disruption in your business? Is your organization evolving to sell and service customers seamlessly across touchpoints? What organizational models and technology decisions are you making to optimize your commerce efforts across touchpoints?