2014 US Credit Card Secure Website Benchmark: Discover Continues To Lead

Peter Wannemacher

[This blog post was co-authored by Rachel Roizen]

Forrester has just completed our 2014 US credit card secure website benchmark, in which we assessed the features, functionality, and content on the secure websites of the six largest credit card issuers in the US.

You can read and/or download the full report by clicking on the link below:                                                                                                                                                                                                                      

Here are some key findings from our research:

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Mobile-Fueled Valuation: Uber at $40B?

Julie Ask

I am not a financial analyst so will not speak to the specifics on the $40 billion.

Uber isn’t a mobile app service. (I heard a taxi driver call them “app cars”). Uber is a business enabled by mobile.

Mobile changes consumer expectations of convenience in three dimensions:

  1. Immediacy. I may wait three to 10 minutes for a ride, but I have instant access to information (e.g., the location of the vehicle and when it will arrive).
  2. Simplicity. I press a button “pick me up” and a car is ordered for my precise location. Ordering a ride could not be any simpler — well, at least until someone learns to anticipate when I need a ride and asks me before I order. (I’m waiting on my airline to do this for me).
  3. Context. Context is the sum of all of the information that a company has about a consumer (or employee — in this case supply of rides also) including situation (time, location, etc.), past behavior or preferences, and emotions inferred from one’s logistics. Uber depends primarily on real-time context or location in the moment to match supply and demand. Drivers also use ratings to decide if they want to pick up a passenger.
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Mobile Laggards Beware - Google Is Exposing Your Shortcomings

Peter Sheldon

This week Google started promoting mobile optimized websites in their search results:

Frankly I'm amazed it's taken Google this long to implement, however for mobile users it's a welcome addition to the search experience that alleviates the pain of clicking on a link only to find a desktop site at the other end. Now the consumer is in control and armed upfront with a Google endorsement of mobile readiness. This strategy is part of an evolution of preemptive warnings for mobile search users. Earlier this year Google started warning mobile users of destinations using Flash or destinations with broken links that would result in a re-direction to the destination homepage

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Insurers Will Pour Capital Into New Digital Innovation Ventures In 2015

Ellen Carney

Think that insurance is a sleepy industry? Think again.  In 2014, global insurance companies raced to out-innovate each other. They turned to new digital innovations to fend off threats from insurance start-ups like MetroMile and PolicyGenius and sorted out new ways to remain relevant as a host of well-known brands like Google and AT&T crept into realms historically owned by insurance firms.   We noted this innovation urgency among European and North American insurance firms earlier this year.

In casting an eye forward, we predicted seven events that would change the insurance landscape in 2015. A major force informing all seven predictions is the fact that smart insurers are recognizing that in the need to generate more good ideas faster, they have to radically change how they develop and execute new thinking. That means that insurers need to short cut the industry’s traditional “we’ll build and control” culture and instead go into the market, spot a hot business technology start-up that brings a lot of what’s needed to create a minimum viable product, and partner with them. And the smartest of the smart insurers are employing two unique industry forces—a very regular flow of premiums and the dynamics of equity markets— to get even closer to the source of new ideas:  By investing in them. In 2015, we’ll see more insurance venture capital startups form in the wake of similar VC business launches from insurers like American Family, AXA, MassMutual, and Transamerica.

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Ready to Write Your Digital Strategy? Read This First.

Mobile Predictions: The Game Will Change in 2015

Julie Ask
Mobile reached a tipping point in 2014 as it solidified its position as one of the most disruptive technologies for businesses in decades. Not since the advent of the Internet, has a technology forced businesses to rethink completely how they win, serve and retain customers. Mobile has completely shifted consumer expectations. Today, consumers expect to get anything they need immediately, in context. Forrester refers to this as the mobile mind shift.
 
Forrester believes that, in 2015, the gap will increase between leaders and laggards. Leaders will use mobile to transform both their customer experience and their business. They will anticipate the needs of their customers and engage them at exactly the right moment with the right content and services. Forrester refers to these moments as mobile moments. Doing so will require massive spending in the tens if not hundreds of millions of dollars to put the infrastructure, technology, processes and organization in place to engage consumers in their mobile moments.
 
Most companies will fall short. They have a myopic view of mobile. Why?
 
  • Treat mobile has a squeezed down version of a PC experience or a portion of their digital strategy. Why? That is how they are organized and goaled. As a result, they fail to optimize the use of mobile for their overall business. Second, they fail to serve the needs of customers.
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You Need Stickiness To Make Your Mobile App A Destination

Julie Ask
Too many brands fail to leverage the potential of mobile because they act like destinations. Some of you may think being a destination is awesome. Who doesn’t like Paris or Bora Bora? But what does it mean to “act like a destination” in mobile? For most brands, their only strategy to engage their customers is on their own mobile web site or app.
 
Let’s step back a minute and talk about destinations.  
 
Atlantic City was conceptualized as a destination in the 1800’s. Tourism peaked during Prohibition when drinking and gambling rules were not enforced. Consumers had limited options. That changed. Fast forward 50+ years. In 1976, Atlantic City legalized gambling which led to a partial comeback, but they’ve struggled since the early 1990’s because consumers have better options and prefer to spend their time elsewhere. People still go there – just fewer. 
 
Developers have since tried to revitalize Atlantic City as a destination. In May 2012, the Revel Casino opened. Billions were spent to create a destination with shops, restaurants and gambling – everything a visitor could want. How many people visited last weekend? Zero. Revel – this casino - closed its doors in September 2014 with its assets liquidated for small change relative to the investment. 
 
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Digital Business Transformation Will Gain Critical Mass In 2015

Martin Gill
In 2014 digital business hit the boardroom and the C-suite offices: At the beginning of 2014, 93% of executives told us that they believed that their industries would experience digital disruption in 2014. But our surveys and interviews also tell us that many executives don’t believe that their firm has the ability to execute on that plan, and many don’t have confidence in the plan itself.
 
As leaders race ahead with their digital business transformations in 2015, eBusiness professionals have to help pivot their firms from planning mode to doing mode or risk falling behind their more digitally savvy competitors.
 
In the report, "Predictions 2015: Digital Business Transformation Will Gain Critical Mass", I outline the key digital business trends that will impact eBusiness and channel strategy professionals in 2015, including:
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Inspired By Disruptors, Digital Banking Executives Will Innovate In 2015

Peter Wannemacher

In April, we outlined some of the most powerful forces reshaping digital banking. These include breathtaking growth in the role of mobile banking, unrelenting changes in technology, a crowded field of new competitors and digital disruptors, and rising expectations among customers and prospects.

Now we’ve taken a look at 2015 and predicted a dozen ways digital banking will change in the coming year.* At the center of these predictions is what Forrester calls the age of the customer: A 20-year business cycle in which the most successful enterprises reinvent themselves to systematically understand and serve increasingly powerful customers. To succeed in the age of the customer, digital bank executives must work with partners across their organizations to use business technology — which Forrester defines as technology, systems, and processes to win, serve, and retain customers — to deliver more compelling customer experiences to bank customers.   

You can read the full report with all of our digital banking predictions here. In the meantime, here’s a sample of two:

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Global eCommerce Will Shift In 2015

Zia Daniell Wigder
We just published our predictions report for global eCommerce in which we identify 10 trends and discuss the impact they’ll have on the industry in 2015. We look at key commerce topics such as mobile and omnichannel and also address what we expect to see from some of the global eCommerce giants in terms of their international efforts in 2015.  In addition, we explore topics such as:
 
  • The B(R)IC markets will continue to attract attention, but smaller ones will also gain traction. Next year, we expect to see continued interest in Brazil, India and China (the political situation in Russia means it will be bumped down the list for many US and European brands). However, all of these markets will remain challenging for varying reasons and we expect that other emerging markets will gain traction with brands in 2015. Indeed, a look at the World Bank Ease of Doing Business Index shows the BRIC markets falling well below other markets like Malaysia, Thailand, the UAE, Mexico and Colombia. Many eCommerce organizations won’t yet be able to justify the cost of launching direct-to-consumer sites in these smaller markets, but a handful of large global organizations will jump in to establish a brand for themselves before their counterparts do the same. Brands looking to sell cross-border will also turn their attention to smaller but fast-growing eCommerce markets.
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