The business case for Web sales is made on influence, not direct sales

[Posted by Brad Strothkamp}

One area where metrics in financial services are still hard to come by is the level of influence that the Web has on sales made in a branch, by phone or via mail. This is one area where Forrester's data can help clients. Every year, we survey US and Canadian consumers on their acquisition activities in the previous year.  

I just published a brief around the topic of online-influence sales. The big find?  The influence of the Web in sales is far more extensive than most expect. Just 37% of US online adults who researched online go to apply online - that means 63% research online and apply offline. Product is the key determinant of the percentage of online influenced sales. This graphic shows the breakdown by product for some of the products I looked at.

 
So what does this mean? If you are selling brokerage accounts, focus on the online application, if you are selling mortgages, focus on the cross-channel experience, if you are selling auto insurance, focus on both.

Brad
 

 

Your 2009 To-Do List

[Posted by Chad Mitchell]

My colleagues and I continue to receive questions from eBusiness managers about prioritization in 2009.

There are 3 common questions:

• What should we do to survive and succeed?
• What should we do first?
• Does my priority list make sense?

Allstate is currently running an ad about getting "Back to Basics." The spot states that "after the fear subsides" people enjoy the small things such as home-cooked meals and time with family. "And the basics are good."

eBusiness and channel managers should follow this logic and focus on the fundamentals.

Here are my thoughts on getting back to the basics in 2009. Call it a honey-do list for eBusiness and channel managers:

• Focus on retaining profitable customers - In a Q1 2008 Forrester survey of CMO's (well within the economic downturn), improving customer retention and lifetime value were ranked in the bottom 3 of the top 9 CMO marketing objectives. Amazingly, CMO's were still focused on acquisition, product development and brand awareness. That is upside down and backwards at the same time. Focus on retaining profitable customers by evaluating key metrics like total products per customer, late payments, and total customer service inquires.  Then "cut the fat" because not every current customer is profitable.  Convert single account owners to multi-product customers with email marketing retention programs and personalized x-sell product recommendations on the Web.  Stop investing in marketing or customer service time on unprofitable customer segments.
• Improve the multichannel customer experience - Many companies are restructuring marketing, sales and service teams around the Enterprise Customer Experience (ECM). A senior level executive is responsible for all customer-facing channels and content. I wrote about this recently in my trends 2009 eBusiness research and shared a sample org chart from a top 5 US insurance company. The insurer has realized increases in customer satisfaction and retention after implementing ECM.  Major reorganizations take time and can be painful as many companies downsize.  eBusiness managers are also investing in enterprise search tools that deliver more relevant content from Web customer inquiries.  Better search results can reduce call center volume and improve profitability.
• Leverage analytics across the Web and all channels - The priority list is simple to create when you are measuring what is wrong within your company. Lower online conversion rates? Increased customer attrition? Increased online cost per sale ? If you don't know what is wrong, start their first. Leverage the customer data available within the Web and other channels. Web site analytics, call center tracking and other business intelligence tools are must-haves for any eBusiness and channel manager.

The prioritization is up to you because you know your business better than anyone else. These are proven strategies supported by our research from consumers and executives across several industries.

Take a deep breath...remember that the sun is still shining and focus on attainable goals. We will all be OK...some times we just need to "get back to the basics."

Do you agree or disagree?

Help Consumers Find Your Best Content Online

[Posted by Chad Mitchell]

The Wall Street Journal published a great set of money saving tips on December 31st in the Personal Journal.  It reminded me of examples of other content on the Web helping consumers during the recession. 

eBusiness managers are using the Web to build customer advocacy.  My colleague, Bill Doyle, has written extensively on customer advocacy and its impact on companies during the economic crisis.  Bill’s theory is simple and smart: customer advocacy builds trust and leads to improved customer loyalty. 

The Web is the perfect channel to build advocacy, yet many companies appear to hide their most relevant content.  I searched several banking, brokerage and insurance Websites today and was surprised how difficult it was to find helpful content.

Here are two examples of financial services Websites with excellent “money saving” content and challenging placement.

Insurance.com

• The Good: The comparison sites offers customers a RateWatch tool showing auto insurance price increases by state.  Consumers can click on their state and search for cheaper insurance.
• The Bad: The RateWatch tool is No. 3 on the home page content scroll.  This is a terrific tool and should be front and center.

Bank of America

• The Good: BoA offers a helpful section called Facing financial hardships?  It offers a Personal Budget Worksheet and tips for consumers facing foreclosure.
• The Bad: The section is in small font at the bottom of the page.  This should be more visible.  It helps the customer and BoA by preparing the consumer prior to the call.

eBusiness managers are helping consumers with relevant content and useful tools…it simply needs better placement.  eBusiness managers should make any content, tools or tips front and center for worried consumers.  It will improve the customer experience, build advocacy and improve loyalty.

Do you agree or disagree with this posting?

Happy New Year!