Will 2012 Be The Year Financial eBusiness Teams Fully Embrace Video?

Benjamin Ensor

I love video as a communication media. The combination of sound and moving pictures so much more engaging and more memorable than text.

We wrote in our research last year about how we're starting to see video being used more and more by eBusiness teams as an efficient and effective way to educate customers about products, encourage sales and deliver customer service.

With the Academy Awards coming up, we thought it would be both fun and helpful to highlight some of the best examples we've seen of online video in retail financial services in the past year.  With the help of the rest of team, I've drawn up a list of our favourites in five categories:

Product marketing video
DNB's S for Savings Plan video (Norway).
PayPal’s future of shopping video.

Service marketing video
Commonwealth Bank of Australia's Welcome to NetBank video.
E*Trade's Take Control In 3 Easy Steps video (US).
Mint.com's 90-second overview (US).
Lloyds TSB's money manager video (UK).

Educational (‘how to’) video

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The Co-Operative Bank Comes First In Forrester's 2011 European Bank Customer Advocacy Rankings

Benjamin Ensor

For the second year in succession, the UK's Co-operative Bank has come top in our European Bank Customer Advocacy Rankings, just ahead of Poland's ING Bank Śląski, with Germany's Sparda-Banken in third place.

Customer advocacy is the perception among customers that a firm does what’s right for them, not just what’s best for its own bottom line. Customer advocacy matters because in every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.

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Mobile Banking: Just Another Channel Or Fundamental Strategic Shift?

Benjamin Ensor

In the past week I’ve have the privilege of talking to (or listening to) executives responsible for mobile banking at some of Europe’s biggest banks, including Bankinter, Barclays Bank, La Caixa, Lloyds TSB, Nordea and RBS, at Forrester’s Marketing & Strategy Forum and at a conference on Next Generation Mobile Banking hosted by The Banker. I’ve also spoken privately to many other executives over the past few months, including at Forrester’s eBusiness Council meeting this week.

Without naming names, I’m struck by the sharply different perspectives these executives have. Simplistically, their view of mobile banking falls into two camps:

                Mobile is just another channel. These executives see mobile banking as a way of letting customers do old things, like checking their account balance, in new ways.

                Mobile will revolutionize retail banking. These executives believe that mobility could turn the retail banking industry upside down, by enabling customers to do entirely new things like scanning bills to make payments, responding to location-based offers, and receiving rewards at the point of sale.

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Looking Forward To Our Marketing & Strategy Forum 2011 On November 16th And 17th

Benjamin Ensor

One of the (many) things I have been working on for the past few months is this year’s  European Marketing & Strategy Forum, which is taking place on the 16th and 17th of November at the Grove, just outside London in Hertfordshire.

Our theme is about driving innovation for the next digital decade and what that means for leaders. We’re particularly focusing on some of what we see as the big disruptions of the coming digital decade: the growth of mobile Internet use; the growing demographic diversity brought by ageing populations; and the increasing economic weight of emerging economies, particularly the BRIC (Brazil, Russia, India, China) countries

I’m particularly pleased that we’ve got such a strong line up of eBusiness and channel strategy executives presenting this year, including:

·         Georges-Edouard Dias, Senior Vice President of eBusiness at L’Oréal.

·         Sean Gilchrist, Head of Digital Banking at Barclays Bank.

·         Jonathon Brown, Head of Online at John Lewis.

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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.

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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European ICT Market Will Grow More Slowly Than US Market, But With Wide Geographic Variances

Andrew Bartels

I am in Barcelona, Spain, at our IT Forum EMEA event, where my colleague Peter O'Neill and I presented our latest forecasts for the tech market in Western and Central Europe.  In parallel, Forrester has just published our report with this and much more information (see June 8, 2011, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).  Here are the key conclusions that I would highlight from the report:

  • As a geographic unit, the market for business and government purchases of information and communications technologies (ICT) in Western and Central Europe will grow by 3.8% in 2011 (measured in euros), compared with 6.4% growth in the US (measured in US dollars).  Excluding slow-growing telecommunications services, the information technology (IT) market in Western and Central Europe will grow by 4.5% in euros vs. the 7.4% growth in US dollars in the US (see June 7, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).
     
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Some Observations From Finovate Europe

Benjamin Ensor

For the past few years I have watched enviously as the Finovate online financial technology show has gone from strength to strength in San Francisco and New York. So I was thrilled to hear that Finovate was coming to Europe and today I was lucky enough to go along to the show in London.

For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.

The big themes were:

                Money management: Figlo; IND Group;  Linxo; Lodo Software; LoveMoney.com; Meniga; Strands Personal Finance; Yodlee.

                Security: Business Forensics; miicard; SilverTail Systems; SolidPass; Voice Commerce.

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The Co-operative Bank Tops Forrester's 2010 European Bank Customer Advocacy Rankings

Benjamin Ensor

A few months ago I blogged about how the UK’s Co-operative Bank had come top in our UK Bank Content & Functionality Benchmark. The bank has now done it again by coming top in our 2010 European Bank Customer Advocacy Rankings.

Customer advocacy is the perception among customers that the bank does what’s right for them, not just what’s right for its own bottom line. In every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.

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National Australia Bank Tops Our Australian Bank Content & Functionality Benchmark

Benjamin Ensor

A few months ago I wrote here about our benchmark of the sales content and functionality of UK banks' sales sites. My colleague Vanessa Niemeyer has just published a benchmark of the big four Australian banks' sales sites. Crushingly for an Englishman, the Australians beat us. The four Australian banks achieved an average score of 56 (out of 100), compared with an average of 48 for the British banks.*

National Australia Bank (NAB) came top, just ahead of Westpac in second place, with Commonwealth Bank of Australia not far behind. The Australian banks demonstrate a series of good practices in their application processes, such as cross-selling during the application and automated confirmations. We highlight many of the good practices that the eBusiness teams at the Australian banks have developed in the report which is available for Forrester clients here.

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