Ten years ago, Forrester published some research with the slightly awkward title of ‘New Payment Systems’ Survival Guide’. One of our findings was that many successful new payment systems have some kind of ‘must-have’ transaction that encourages customers to go through the hassle of learning how to use a new system in the first place. Good examples of ‘must-have’ transactions include eBay’s auctions for PayPal, travel to work for Transport for London’s Oyster, and online shopping for iDeal.
Ever since, I’ve been seeking the ‘must-have’ transaction that will spark consumer adoption of mobile payments in developed economies. But what if there isn’t one? (And, after 10 years, it’s probably time to admit that there isn’t). The answer is to focus relentlessly on both lowering the barriers to mobile payment by making it as easy as possible for customers to use a new system and to increase the benefits by maximizing the number of ways and places customers can use a system.
Tablets drive worker productivity in part due to their hyper-portability, as I argued in a recent blog post. Workers can (and, we showed with data, do) use tablets in more places, places where they wouldn’t (and don’t) take their PCs.
The top question I’ve received about tablet hyper-portability is this one: “Tablets are very portable, sure, but are people using them as creation devices or as (mere) consumption devices?” The general assumption behind this question tends to be that “creation” activities are equal to “productivity,” while “consumption” activities are not. I believe this is a false dichotomy, however. Consuming the right information at the right time can increase worker productivity in and of itself. Let me offer a few examples showing how that can work:
Retail sales associates using tablets with customers. Retailers are equipping sales associates with tablets to use on the retail floor, creating richer interactions with customers – and driving higher sales.
Physicians conducting patient rounds with tablets. Physicians can gain rich, immediate insight into their patients’ health records – saving time and driving more accurate diagnoses in less time. They also use the tablets to show patients results (like x-ray images), creating a better patient experience.
Business leaders have revenue growth first and foremost on their minds. On average, 70% of these business leaders place a high or critical priority on revenue growth, customer acquisition and retention, and addressing rising customer experience expectations for 2013. Our data suggests business leaders are 50% more likely to identify these as critical initiatives than they do margin improvement or reducing operating costs. Growth and customer experience improvement take business priority.
This week, there was a lot of blogging and commenting around Facebook possibly acquiring mobile messaging company WhatsApp. And although WhatsApp quickly denied that Facebook acquisition talks were happening, I still really enjoyed all the analysis shared by the different technology blogs on why this would be an interesting deal. Many of these mentioned the differences between adoption of Facebook Messenger and WhatsApp in Europe versus in the US.
In fact, the news got me wondering to what extent consumers use mobile messaging at the moment. Forrester’s European Technographics® Consumer Technology Online Survey, Q4 2012 shows that just over one in 10 online European adults (16+) use mobile messaging (e.g., WhatsApp, Skype, or Viber), and this rises to 21% for European smartphone owners. Further analysis shows that usage is very much driven by age:
2013 is going to be an amazing year for mobile and web developers for a number of reasons, but the top one on my list today is the advance in tooling. This isn't simply a turn of the crank adding a few features/functions to the existing state of the art but instead the realization of a growing paradigm shift in how developers (experience creators, to quote my colleague Mike Gualtieri) create software. Today the majority of web and mobile apps are written by developers manually writing source code in text editors or IDEs, but tomorrow's tooling is becoming much more visual in nature. Here are the three tooling areas that excite me looking forward to 2013.
That’s kind of a bold statement to make when many companies — be they media players or the likes of Facebook — face a mobile monetization gap and when most successful companies generate only dozens of millions of dollars of direct mobile transactions. Despite the hype around “freemium” models, the reality is that few companies can now rely on a standalone mobile business model and that most mobile business models remain unproven.
The Web extended most business models and created only a small number of truly successful new ones. Mobile will follow the same path: Extension, rather than disruption, will be the norm for most businesses, with a few disruptive mobile pure-plays as the exception but not the rule. That doesn’t mean, however, that mobile-first businesses won’t disrupt existing players. Mobile is an enabler of new direct-to-consumer products already, in industries such as car services, food delivery, and home health products. And mobile is disrupting born-on-the-Web companies such as Facebook.
I recently attended Trend Micro’s Insight 2012 event for an update on corporate and product strategy from Trend executives, hear from partners and enterprise customers about their experiences working with Trend Micro, and sit down to 1:1's with business unit leaders. I met with Carol Carpenter, EVP of Consumer, who shared a bit about what Trend is doing for consumers and provided demos of their latest Android mobile apps out on the market and in development. Of the ones available now, they are the usual suspects – mobile security, backup and restore, and a password manager. And then, there’s a battery optimizer app. Random? No, not really.
Consumer security has come a long way from simply antivirus software for PCs. Mobile security is undoubtedly on everyone’s minds at this point (oh no! device loss, malware, my apps are spying on me!), but that’s only one factor (albeit a big one) contributing to the evolution of this consumer security market. We’re looking at protecting devices, data, identities, interactions, privacy, the consumer – in short, the online experience. That’s where the umbrella of consumer security expands, and I see apps like Trend’s battery optimizer fitting in. It’s not a “security” solution in the traditional sense, and more of a productivity tool. Consumers gain visibility into what the device and apps are doing (to the battery), and using that information to then make an informed decision (e.g., stop running that app, turn off Wi-Fi, etc) to preserve battery because it’s running too low for comfort.
Earlier this week I caught up with Discover’s Mike Boush to talk about his keynote at the upcoming eBusiness Forum, where he’ll explore innovations in eBusiness at Discover. Here’s a snippet of our conversation, and a sneak peak of Mike’s session at the event:
Q: What digital initiative have you undertaken in the last 12 months that you're most excited about?
A: I love what we're doing with partnerships online. It's creating a whole lot of value for customers and, frankly, getting us out of the "must be built at Discover" mentality. It started with an integration with PayPal in order to deliver peer-to-peer payment services. The program leverages PayPal’s huge delivery platform, and customers love it. Then we introduced an integration with Amazon that lets customers pay for their Amazon.com purchases with the cash they earned through our Cashback Bonus rewards program. This really highlights the difference between competitors' "points" programs and our straightforward cash, and the transparency shows just how great our program is. And recently, Google announced our integration of Discover card enrollment into the Google Wallet from our website, which is convenient for customers and helps position us in the mobile payments space. These integrations are just a sample of what we've done, but they become powerful illustration of what we can do when we team up and innovate with other great companies.
Q: What gets in the way of delivering the right experience to your customers?
Mobile website or mobile app? It's not only a common question from marketers -- it’s also the wrong question to ask. So let’s get this out of the way first, interactive marketers: You need a mobile-optimized or mobile-specific website. If you don’t want to take my word for it, check your organic web traffic. Odds are, you’ll see anywhere from 10%-25% of your web traffic coming from mobile devices, whether you’re intending to capture that mobile traffic or not. That percentage has been growing steadily and will continue to, so yes, you need to have a mobile web home. I’m glad that’s settled.
Whether or not you need a mobile app for marketing is a little less clear-cut. To decide, once and for all, if you should really build that mobile app, ask yourself these three most important questions:
1. Is my audience using apps?
Yes, about half of US adults have a smartphone, but that doesn’t automatically mean they’re using it in sophisticated ways. You can likely find users of all ages among those who have apps, but demographics affect the size of your app audience. For example, about one-third of smartphone app users are Gen Y (ages 23-31), and another third are Gen X (ages 32-45). Make sure you understand the app habits of your own audience before you decide what to build.
If you’ve been chatting with your web development team recently, you might recall them talking about responsive design. But, what is responsive design and why should eBusiness professionals be taking it seriously?
First, responsive design is not a technology, it’s a development philosophy - an approach to web development that forces user experience developers to design and optimize from the outset for multiple touchpoints including (but not limited to) the desktop, tablets and mobiles. Until now, many eBusiness teams have either developed their mobile site by coding a separate set of templates, or outsourcing to a 3rd party vendor or agency whom in many cases scrapes or proxies existing content from the desktop site. As many retailers and other eBusiness teams start to develop optimized tablet sites, there is a distinct concern that supporting 3 different sites for desktop, tablets and mobile is becoming increasingly expensive and is causing a drag on innovation momentum.
With a responsive site, developers use a single set of front-end code to build a site that responds within the constraints of the device to deliver an experience that is contextual to the size and orientation of the screen. Responsive design allows eBusiness leaders to consolidate their teams (UX designers and developers) back into a single ‘web’ team aligned around a single technology (CSS3 & HTML5) and writing a single set of code. Some eBusiness leaders are referring to this consolidation as back to “one-web” and are increasingly intrigued by the potential cost and efficiency benefits that moving to a responsive site has to offer.