Executive Q&A with Sona Chawla, President e-Commerce, Walgreens

Andrew Stockwell

I'm thrilled that Sona Chawla will be a keynote speaker at Forrester's Consumer Forum in just over three weeks! As the President of e-Commerce, Sona oversees operations and leads the team responsible for building the sales, service and customer experience of Walgreens.com and drugstore.com (acquired in June 2011). This includes driving store traffic through the Web, growing online profitability, and the development of new product and service offerings via emerging digital touchpoints such as mobile.

Earlier today, Sona provided me with a sneak peek of her upcoming presentation for our forum "110 Years Of Agility: Continuing Our Evolution To Meet Customer Demands" and all I can say is that it's not to be missed! I don't want to reveal too much and spoil it, but Sona will touch on the dynamic forces at play within healthcare and retail that are driving Walgreens' digital transformation, the framework they are utilizing to enable that transformation, and finally what Walgreens sees for the future. And of course throughout the discussion Sona will have key lessons learned and advice for firms across industries going through similar transformations.

I do however want to share with you Sona's responses to some questions we asked her in advance of the event. Her thoughts demonstrate the growing importance (and let's not forget the financial benefits) of serving customers across touchpoints with innovative, digital products and services.

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Break Down The Walls Of Shopper Marketing

Tracy Stokes

As the economic malaise lingers on, a more frugal consumer mindset is spurring consumers to embrace new digital technologies to make more informed buying decisions. This shift in behavior is releasing shopper marketing from the confines of the store walls, as consumers make purchase decisions at home and on-the-go. Once a tactical outpost in the sales organization, shopper marketing is now being embraced by forward-thinking marketers like Kellogg’s and Clorox, which are focused on getting on their consumer’s shopping list before she even gets to the store. But with this new opportunity comes potential organization confusion. Where does shopper marketing end and brand marketing begin? And where should it sit in the organization? Check out my report, “Shopper Marketing Breaks Out Of The Store,” to find out how consumers' shopping habits are changing, how retailers are responding, and what it means for brand marketers.

How is your consumer shopping differently? And how is shopper marketing changing your organization? Answer here or join the discussion on The Forrester Community For CMO & Marketing Leadership Professionals here.

Thanks!

The Applicability Of ITIL Outside Of IT

Stephen Mann

 

For those of you that put up with my tweeting on Twitter, you will already know that I am obsessed with customer service. Or to be more accurate, I am obsessed with being treated like a customer. While a polite Englishman at heart, I am not prepared to tolerate poor customer service. In the words of David/Bruce Banner, “You won’t like me when I am angry.”

“But what has this to do with ITIL?” I hear you screaming at your screen. Please bear with me as I recount last Saturday night and Sunday morning (thankfully there is no link to the film of the same name).

Last weekend I spent a single night at a “chain” hotel. The customer service upon arrival was excellent, on the back of my loyalty card I received a room upgrade and complimentary soft drinks and chocolate bars in the room. Ah, the world was good and I was “living the dream.” I felt like a valued customer. Fast-forward to the following morning and the picture couldn’t have been more different.

During the night the room had been so hot that it was difficult to sleep. “You should have turned down the heating or opened the window,” I hear you cry. Check and check. The wall-mounted thermostat made no difference. The window, somewhat morbidly, had been screwed shut. I didn’t call down to reception as I couldn’t face a handyman/woman messing around in my room in the middle of the night (if they were actually available).

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Ever Buy Your Cornflakes Online? If You Live In The UK You Might.

Martin Gill

Following my blog post from a couple of weeks ago where I wrote about the need to take a local approach in Europe, I’d like to take a few minutes to say something about the first of our country-specific reports.

It was natural to start with the UK Online Retail Overview, 2011, for two reasons. The first is that I live in the UK, so it’s the market and retail environment that I’m most familiar with, but secondly and more importantly, it’s the largest online market in Europe. Based on the figures in our European Online Retail Forecast, the UK online retail market will be worth £28.6 billion in 2011; this represents 9.4% of the overall national retail market, almost double the online penetration of any other European country.

So there are some big numbers but also some interesting trends to examine.

The UK market is increasingly dominated by multichannel retailers. While there are a range of notable online pure play success stories (Amazon.com, Asos, Net a Porter, and Play, to name a few), we are seeing an increasing level of sophistication in how the major high-street retailers are integrating their on- and offline properties. Initiatives like Click and Collect are now commonplace, and the pace of innovation isn’t slowing, with new initiatives such as Argos’ 90 minute Shutl delivery service being a prime example. So there are plenty of examples here to be inspired by.

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Categories:

Fake Apple Stores - Is This The Tip Of A Counterfeit Iceberg?

Martin Gill

Last week a lone blogger broke the news that not one but three fake Apple stores had sprung up in the city of Kunming in China, though it appears the problem is fast becoming a worldwide one for Apple to deal with.

It’s no secret that counterfeit goods are commonplace in China, and there are moves afoot to attempt to tackle this issue, at least online. However, this is a very different beast. There has been an explosion of commentary in the press about these fake stores, mostly focusing on the fact that they exist, and mostly failing to draw any comment for Apple.

Action has been taken. According to China Daily, “A local authority had previously said that two of the stores were suspended for not having business licenses. But the local industrial and commercial bureau confirmed to the Shanghai Morning Post on Tuesday that one of them had in fact obtained a license on June 22 and thus could stay open.”

The general tone of the various reports is that the stores are selling genuine Apple products bought wholesale through genuine channels, and that the only reason they would be closed down is because they didn’t follow local laws to obtain a retail license. Not because of any IPR infringement. This will be an interesting story to watch play out -- because if that turns out to be true, it sets a gloomy precedent for other retailers who may be suffering the same challenge.

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The Data Digest: Online Shopping — Researching Versus Purchasing

Reineke Reitsma

Recently, my colleague Jackie Anderson published a report, Understanding Online Shopper Behaviors, US 2011, and she indicated that 2010 online retail spending in the US had reached $175.2 billion and will grow at double-digit rates at least for another few years.

But among all the items that can be purchased online, some are more popular than others. We have extracted the top three and bottom three items that consumers research online and purchase online based on data from our North American Technographics® Retail Online Survey, Q3 2010 (US). The data shows that while online consumers are generally comfortable with both researching and purchasing books, hotel reservations, and airline tickets online, they still prefer to purchase footwear, consumer electronics, and household products from traditional channels.
 

About one-third of US Internet users aren't shopping online yet. The majority of them do use the Internet to research products but don't feel comfortable making the purchases online. The biggest barrier people mention for not buying online is their need to see things in person.

Join Us July 27th In San Francisco For An iPad App Strategy Workshop!

JP Gownder

More than 90,000 iPad-only apps are available today. Forrester clients in a wide range of industries — media, software, retail, travel, consumer packaged goods, financial services, pharmaceuticals, utilities, and more — are scrambling to determine how to develop their own iPad app strategies (or browser-based iPad strategies).

Clients are asking us to help them address both challenges and opportunities associated with the iPad: How do I develop an app product strategy for the iPad? Does the browser matter, too? What will make my app or browser experience stand out from the competition? How will an iPad app complement my smartphone and Web properties?

If you are navigating these sorts of decisions, I'd like to invite you to a very exciting event being hosted by an analyst on my team, Sarah Rotman Epps. Sarah's holding a Workshop on July 27 (in San Francisco) to help clients like you separate the hype from the reality and take concrete steps toward developing a winning iPad app and browser strategy. 

The Workshop: POST — Refining Your Strategy For iPads And Tablets
This Workshop focuses on refining your strategy for reaching and supporting your key constituencies through iPads and other tablets. We'll take you through the POST (people, objectives, strategy, and technology) process, helping you to:

  • Understand where the tablet market is going based on Forrester's latest data and insights.
  • Apply what other companies have done to your own tablet strategy.
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Online Video Retail Success Stories

Martin Gill

Increase your conversion rates overnight!

Really?

That’s amazing. How can I get a piece of that pie? 

Call it what you will -- V-Tail, vCommerce, or just plain online video -- we are seeing some pretty bold claims around the use of video in eCommerce. Claims from platform vendors, press, and even some case studies and success stories from large retailers who are seeing some significant successes when they integrate video content into the online shopping experience.

But there’s the key. Integrate. Of course it isn’t as simple as sticking a few videos on your existing dot-com site and hey presto, conversion rates skyrocket. Video needs to support the sales process in a way that makes sense to your customers, that supports your brand values, and that enhances the shopping experience.

There are a growing number of ways to source video content, and an increasing number of players in the market who will all tell you that they have the answer. From user-generated content to automatically generated video. From content delivery networks to social media. There are a bewildering number of options out there.

Video absolutely can deliver firm benefits :

  • It can increase page views by driving traffic to your site.
  • It can enhance the time people spend lingering on your site, giving you more opportunity to market to them.
  • It can help to increase conversion.
  • It can reduce your returns.
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Forrester Publishes Its First Online Retail Forecast For Brazil And Mexico

Zia Daniell Wigder

Over the past year, we’ve worked together with the forecast team at Forrester to help eBusiness professionals understand the size of different online retail markets around the globe. Last year we published our first look at the online retail markets in some of the major markets in Asia-Pacific — this year, we’ve just published our first forecast for two of the largest online retail markets in Latin America, Brazil and Mexico. Some findings from the report include:

  • Brazil is — and will remain — the powerhouse in the region. With more than 40% of the online users in the region and a steadily growing economy, it’s not surprising that Brazil’s eCommerce market will outpace all others by a wide margin. Brazil’s projected 2011 sales of almost $10B put it behind other major online retail markets like France and South Korea but ahead of smaller ones such as the Netherlands and Italy.
  • Mexico’s online retail market is small today — but growing by a CAGR of almost 20%. With less than half of the online users of Brazil and limited online spending, Mexico’s online retail market remains a small fraction of the size of Brazil’s. Average online spending per buyer will not increase significantly over the next five years, but the sheer number of online buyers will.
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POST: Refining Your Strategy For iPads and Tablets -- The Workshop!

JP Gownder

Are you a product strategist trying to craft an iPad (or general tablet) product strategy?  For example, are you thinking about creating an app to extend your product proposition using the iPad or other tablet computer?

At Forrester, we’ve noticed that product strategists in a wide variety of verticals – media, retail, travel, consumer products, financial services, pharmaceuticals, software, and many others – are struggling to make fundamental decisions about how the iPad (and newer tablets based on Android, Windows, webOS, RIM’s QNX, and other platforms) will affect their businesses.

To help these clients, an analyst on my team, Sarah Rotman Epps, has designed a one-day Workshop that she’ll be conducting twice, on February 8th and February 9th, in Cambridge, Massachusetts.

She’ll be helping clients answer fundamental questions, such as:

  • Do we need to develop an iPad app for our product/service/website? If we don't build an app, what else should we do?
  • What are the best practices for development app products for the iPad? What are the features of these best-in-class app products?
  • Which tablet platforms should we prioritize for development, aside from the iPad?
  • Which tablets will be the strongest competitors to the iPad?
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