Depending on the viewpoint of your favorite economist, the recession may be over. But retail growth is far from buoyant in many markets. The UK retail sector shows healthy signs of recovery, while US consumers seem be less confident. There are numerable success stories; John Lewis passed the £1bn online revenue mark this year, while Macys is in its fifth year of double-digit online growth, in spite of a slightly shaky offline performance. But as an eBusiness leader, no matter what your local market conditions, I’m willing to bet one thing.
Your growth targets haven’t gone down.
For many years, growing online revenues has been a core strategy for most B2C firms, and many B2B firms are also riding the eCommerce wave. But as markets become crowded and competition becomes tighter, globalization is an increasingly attractive option for eBusiness professionals. With southern European markets seeing online growth rates in the high teens and even bigger opportunities like Russia and China on the global horizon, it’s no surprise that an international strategy is high on the agenda for many eBusiness leaders.
[Quick note: If you read my old blog post about gamification, you may hope to earn more Peter Wannemacher Points. Well congrats! You just earned 150 more Peter Wannemacher Points! Plus, you can collect a digital badge if you read to the end of this post and send me an email!]
Fiserv’s current version of CheckFree RXP uses gamification to increase digital bill pay adoption among its bank clients - our research shows online bill pay is a critical secure site feature on banks' websites. So I spoke with Justin Jackson, senior product manager at Fiserv, about the company’s use of gamification. Right away, he made it clear that gamification is not just “building an online game for people to play” but the process of “taking cues from game design to better engage users.”
Yesterday Manhattan Associates announced the acquisition of mobile point of service (mPOS) provider GlobalBay Technologies. A few years ago, it might seem odd that a warehouse and order management company would be interested in playing a significant role in the experience of customers and associates on the sales floor. However as we recently covered in our Omnichannel Order Management Wave, the role of distributed order management has been elevated and is now key to meeting customer’s rising expectations. Along with orchestrating orders across all inventory locations, omnichannel order management systems (OMS) are already taking orders in the call center, handling fraud management, and providing mobile utilities for associates to fulfill orders from stores. Moving into the point of service (POS) space with an mPOS solution is a logical evolution for Manhattan Associates since it combines enterprise inventory visibility, order management, and order capture all under one roof. In addition this acquisition provides a stronger differentiator from their largest competitor IBM, who exited the legacy POS market in 2012.
So what does this mean for POS moving forward? Three distinct solutions are now possible, including:
More than two years ago, Westpac – a bank in New Zealand – rolled out its “Cash Tank” feature for mobile bankers. Suddenly, customers could view key information like account balances without needing to log in (needless to say, it was and is opt-in-only). This new mobile banking feature immediately made a splash and was hailed as a small-but-impressive innovation. Other banks – such as Société Générale in France and Bank of the West in the US – offer similar pre-login information features.
This led folks like me to wonder: How might digital teams at banks take pre-login information further or make it even better?
Great digital strategy is often about pushing the limits – and not just in big ways. So Citi’s recent update to its smartphone apps is noteworthy for the bank’s decision to push the idea of pre-login information even further with Citi Mobile Snapshot. Citi customers who bank via their mobile phones can view not only balances but recent transactions without the hassle of logging in.
We spoke with Andres Wolberg-Stok, Global Head of Emerging Platforms and Services who shared with us a diagram that demonstrates the evolution of its mobile banking effort before and after Citi Mobile Snapshot (see below).
Last week Peter Sheldon and I published The Forrester Wave TM: Omnichannel Order Management, Q3 2014 report, assessing order management vendors targeting omnichannel businesses. Compared to our 2010 Forrester Wave on order management hubs, this new stream of research addresses the heightened requirements that order management systems (OMS) must now help broker and fulfill orders across all distribution centers as well as physical stores. Based on our research many retailers are seeing a significant lift in online sales by enabling all inventory in the enterprise to be sold. The omnichannel OMS applications evaluated in this Wave differ from our 2010 evaluation because:
Inventory transparency is a priority. In a world where digitally enabled customers expect to find and purchase products from any touchpoint, inventory visibility is now a requirement for OMS applications. The OMS today is responsible for consolidating and maintaining inventory positions from various systems including WMS, eCommerce and even from the supply chain. This consolidated, enterprise view of inventory is made available to customers in near-real time, affording shoppers the best opportunity to have their needs met regardless of the whereabouts of the product.
Over the past year, we’ve told banks that some of them would become custodians. We’ve told insurers that many of them would be forced to specialise. We’ve told wealth management firms that many would shrink. We’ve done this to show them how digital disruption could savage retail financial services, just as it has done with the music and publishing industries.
But we don’t want to be just the bearers of bad news: We want to help you deal with new players like peer-to-peer lending platforms and even Google entering retail financial services. And to be fair, it’s not all bad news. There are plenty of companies out there using digital innovation to meet their customers’ financial needs in new and better ways. Take for example BBVA which has brought its customers the virtual assistant Lola, video banking, and the crowdfunding platform called Suma. And BBVA hasn’t stopped here. The Bank is currently running the sixth edition of its Open Talent competition for start-ups most likely to affect financial services.
Many brands eyeing Latin American eCommerce markets look first to Brazil, and with good reason. Brazil is Latin America’s largest online retail market by a wide margin and growth rates remain high: Our forecast shows the market growing by a CAGR of 18% to reach $35 billion in 2018.
As in every fast-growing eCommerce market, however, companies that compete in this environment face numerous challenges. Issues like complex tax navigation and the long path to profitability are well documented. In addition, companies need to prepare for shifts in what consumers buy online and how they make these purchases. The dynamics of online shopping are shifting.
Our report published today on The Evolution Of eCommerce In Brazil (client access req’d) discusses five trends that will impact the online retail market in the country. While these same trends will play out in many markets around the globe, our report dives into how and when we expect to see shifts in Brazil.
But many eBusiness executives are more concerned about the potential impact of technology giants like Amazon, Apple or Google with their deep pockets, technological prowess and broad consumer reach.
I originally posted this question on one of Forrester's internal collaboration platforms, but I was so intrigued by the results from my colleagues I thought I would post the same question here to see whether your perspective similarly is thought-provoking.
Please vote in my poll in the column to the right of this post. ->
Have I missed any firms that you think have even greater potential, or plans, to disrupt retail financial services?
Order management systems (OMS’s) typically haven’t garnered the same attention as other commerce technology. Orchestrating online orders from the point of purchase through to the point of fulfillment was viewed (through the eyes of eBusiness professionals) as a back-office process. In fact, eBusiness professionals have historically paid little attention to these systems and were happy for them to be developed and minded by supply chain or enterprise architecture professionals. But like the awkward kid at school, Omnichannel OMS systems have blossomed and turned into the must-have technology for almost every eBusiness leader.
"When will Google launch a bank and what will it look like?" is a question I frequently hear from our banking clients. Google’s activities in digital wallets and payments, as well as its reputation as one of the most disruptive firms in the market, have obviously left many banking executives worried. Unfortunately, they’re asking the wrong question.
I’ll leave aside the issue of whether Google or perhaps Apple or Amazon should be the focus of this increased attention. Each of these players has its unique strengths and growth plans, and some of these correlate more or less closely with financial services. That’s not what makes the question so wrong. As I write in my new report, it’s the assumptions that are faulty here; assumptions that reveal precisely the type of legacy mindset that makes many retail banks so vulnerable to disruption.
Many retail financial firms still haven’t grasped the full potential of digital disruption. They think that new competitors will use their digital might to beat them at their own game, be that through more efficient processes, brilliant algorithms or better user experience. While these three things do matter, what matters most is the purpose which they serve. As I have written elsewhere, digital disruptors like Google are disruptive because they don’t play by the rules. Instead, they use digital technologies to deliver better or entirely new ways of meeting customer needs, often bypassing regulation and re-defining a given industry in the process.