In Canada, Mobile Initiatives Show A Positive Impact On ROI

Julie Ask

Last week, we had the opportunity to have a conversation with one of the world’s, and certainly Canada’s, largest premier coalition loyalty programs, the AIR MILES Reward Program. It has penetrated two-thirds of Canadian households, with 10 million active Collector accounts in Canada. AIR MILES is also deeply entrenched in the mobile landscape, having launched the first coalition loyalty program app of its kind in Canada for mobile and tablet, which has since had more than 800,000 downloads. Here are a few nuggets from what we learned about Canada’s increasingly sophisticated mobile landscape:

  • Immediacy reigns. The most used feature in the application is real-time updates. Mobile phone users pull out their phone throughout the day to access real-time and geo-specific updates on deals and offers at nearby participating retailers. Activity shows that the habit influences the consumer’s decision about where to shop and drives in-store sales.   
  • iOS users are the most active by far. Compared to Android and RIM users, iOS users are by far the most active on their mobile phones. More than 80% of the downloads are from an iPhone with that group being most active.
  • Mobile engagement drives ROI. When it comes to mobile,any engagement level is positive. This loyalty program found that when users engage with the mobile app, their in-store spend increases anywhere between 5% and 21%.
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An NRF Retrospective

Peter Sheldon

As the annual retail pilgrimage to the Jacob Javits Center draws to a close, I started wondering if anything has changed since last year. As I met with Forrester’s retail clients during the show, it was clear that this is no longer just a brick-and-mortar show. The retailers I met with had all sent a delegation of cross-functional executives, including the CIO, COO, CMO, SVP of eCommerce, and head of store operations. These leaders are no longer working in organizational silos: they know that they need to find technology solutions that meet the needs of today’s digitally connected customer, not the needs of their legacy channel-centric business units. I was impressed at the way these retailers are embracing and executing on agile commerce.

On the expo floor, the same theme was abundantly clear. NRF has evolved to become a retail commerce show, not just a retail technology show. Joining the incumbent store systems and POS vendors were all the enterprise eCommerce solution providers, order management vendors, system integration firms, and digital agencies. Whereas last year was all about mobile, with hastily developed prototypes and lots of vaporware, this year the expo floor was a place more grounded in reality. Strategic relationships were abundant, with vendors realizing that customers are demanding integrated solution suites that go far beyond the scope of their own product portfolio. As I did my rounds of expo floor booth visits, executive briefings, and product demos, here’s what I found:

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US Mobile Retail Sales To Top $12 Billion In 2013

Sucharita  Mulpuru

The rapid growth and ubiquity of smartphones has led many to conclude that a significant portion of Internet activity, including shopping, will migrate to these mobile devices. To help eBusiness professionals in retail get a better sense of the real size and opportunity that exists, Forrester has released its “US Mobile Retail Forecast, 2012 To 2017.” Retailers beware: while mobile commerce is growing and undeniably shifting how some consumers buy, the pertinent facts are that:

  • Total US mobile retail is still small. Forrester estimates that of the 132 million US mobile Internet users in 2012, only a quarter of those users have ever made purchases via their phones. While we expect the retail mCommerce penetration rate to double by 2017, it’s still a tiny portion of eCommerce — and, consequently, a minuscule share of overall retail.
  • Significant impediments exist for mobile retail. The main road block to mobile sales is the checkout experience; it’s the single most important feature when it comes to driving conversions on mobile devices. Adding an easy checkout experience, like PayPal Express, will enable users to more easily convert – even with the smaller screen – but how much that moves the needle remains to be seen.
  • Consumers prefer the mobile Web to apps, despite retailer investment. Consumer awareness of and/or interest in retail apps is low: Only a tiny share of any given retailer’s shoppers appears to download their app. Most shoppers who access a retailer’s mobile presence get there by clicking on links from mobile search engines or from mobile emails.
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US MOBILE PAYMENTS FORECAST 2013-2017: Mobile Payments to Reach $90B by 2017

Denée Carrington

This week, the National Retail Federation (NRF) held its 102nd Annual Convention and EXPO —Retail's Big Show 2013. Attendees gathered from around the world to demo products and services and exchange ideas about the future of retail, including mobile payments. Mobile payments have captured the attention and imagination of industry insiders, venture capital investors, and innovators. Although retailer investment and consumer adoption have been nascent to date, we see that changing. Forrester forecasts that US mobile payments will reach $90B in 2017, a 48% compound annual growth rate (CAGR) from the $12.8B spent in 2012.

In my new report out today, titled “US Mobile Payments Forecast, 2013 To 2017”, I outline the growth drivers and inhibitors for the three mobile payments categories: mobile proximity, or in-store payments; mobile peer-to-peer (P2P) and remittances; and mobile remote commerce, or mCommerce. Here are the key takeaways:

  • Mobile payments adoption will be fueled by unprecedented growth in proximity payments. Mobile proximity payments are currently the smallest category within mobile payments, but we expect it to be the fastest growing. Proximity payments will reach $41B, making up nearly half of all mobile payments in 2017. Lower barriers to adoption, increased convenience, and early entrants striving for scale will be important drivers of growth.
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What does the arrival of the Chief Digital Officer mean to the eBusiness team?

Martin Gill

I’ve been thinking, talking to clients, and reading a lot recently about the rise of the Chief Digital Officer.

Most of my recent research has been concerning the shift we are seeing in leading organizations in response to their increasingly digitally aware consumers. Much of this has been described in our agile commerce research, and it goes something like this...

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The Art and Science of Building a World-Class B2B eCommerce Business

Andy Hoar

B2B eCommerce executives today don’t lack for data. What they’re screaming for is insight. With our new playbooks framework, busy executives can go to one place to dip their toes in a subject matter, or fully immerse themselves for deeper insight. Either way, they can move up to speed quickly and smartly about a specific subject. 

Today I’m pleased to announce that Forrester is officially releasing its very first playbook dedicated to B2B eCommerce. Inside you’ll find key insights and critical information specific to the rapidly-emerging B2B eCommerce space. This playbook is designed to help you:

  • Discover the opportunity. Study the fertile landscape that is B2B eCommerce and learn about what Forrester defines as a customer-facing front-end B2B eCommerce market. One that will reach $559 billion by the end of 2013. See how high-performers have developed a compelling vision for the space and a clear business case to prove an always critical return on investment (both documents to be released in the coming months). 
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"State Of Retailing Online 2013" launches on Shop.org today

Sucharita  Mulpuru

Forrester recently completed the “State Of Retailing Online 2013: Key Metrics And Initiatives” report in conjunction with our friends at Shop.org. It is available on Shop.org (with a subscription) now.

Some of the reports highlights include the following facts:

  • Web sales continue to grow (duh!). Retailers we surveyed experienced 28% growth on average in 2012 over 2011. Furthermore, 72% of those retailers are experiencing double digit growth.
  • Key eCommerce metrics are improving. The retailers we surveyed generally responded that site conversion rates, average order values and the percentage of repeat shopper sales all grew in 2012.
  • Mobile growth rates are strong.  Mobile commerce grew at a triple digit pace last year for the retailers we surveyed, but off a teeny base. Furthermore, the debate remains on whether mobile traffic with its anemic conversion rates, actually hurts “the mother ship.” Retailers were split on that assessment.
  • 2013 initiatives will focus on site optimization. Of the retailers we interviewed, site conversion rate and redesigning the web experience – in other words, optimizing the overall online experience -- topped the list, yes, more than even investing in mobile. Many retailers specifically called out plans to focus on the checkout experience and to adjust their site to accommodate a responsive design framework.

Shop.org members can access the document here and Forrester clients will be able to access the document on January 28, 2013.

So You Want To Be A Chief Digital Officer?

Carrie Johnson

During my sullen teenage years my father invented a nonsensical, rhetorical question to proffer when conversation ran dry. During particularly quiet moments he’d ask, “So you want to be a movie star?” No, I did not want to be a movie star, but I’d play along and invent similarly nonsensical answers: “Yes, but my agent won’t return my calls,” or “Yes, but Molly Ringwald keeps getting all of my parts” and so on. He still asks to this day and so in this New Year I will ask all of you a related but non-rhetorical question: So you want to be a Chief Digital Officer (CDO)?

Many Forrester analysts and others have taken note of the rise of and need for this position to oversee digital business. Indeed, the rapid and colossal impact of digital disruption is overhauling products, inverting category economics, and redefining customer relationships, requiring new focus and leadership. Where will these CDOs come from? Firms will promote Chief Digital Officers (CDOs) from business units and departments that face the most disruption. In firms that sell products and services directly to customers, we believe that eBusiness and channel strategy professionals are well positioned for a Darwinian rise into the CDO ranks. It’s already happening in firms like Finish Line, Dollar Thrifty Automotive, and MetLife. Many executives in your company see themselves on a similar path — interactive marketers, enterprise architects, and even some CIOs. eBusiness and Channel Strategy Professionals looking to advance their careers must:

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The Digital Banking Strategist’s Wish List

Peter Wannemacher

Whether you’ve been naughty or nice this year, you probably have a wishlist for your business. We thought it would be fun and interesting to find out what some of your wishes are, so the Digital Banking Strategy team at Forrester reached out to some of our eBusiness clients at banks and asked them “What one ‘wish’ do you have for your team’s digital banking efforts or strategy in 2013?”

Here are some of the answers we got back:

  1. “We wish we could transform every branch and call center employee into an advocate for marketing and educating customers on our digital capabilities.”
  2. “I wish that our execs would understand how understaffed we are.”
  3. “I wish we had better live help for our digital banking customers.”
  4. “I wish I knew which area of mobile payments to focus on and what is going to ‘shake out’ and actually ‘stick,’ so to speak.”
  5. “We wish for a digitalized branch pilot that focuses on advice and guidance.”
  6. “We wish all of our customers – including the most skittish and skeptical – would try out our digital banking capabilities (online, mobile, and tablet)… and those who already use them would do so even more regularly.”
  7. “I wish I could spend 3 hours with our CMO – and have his full attention – to show him how much impact our online and mobile banking efforts have.”
  8. “I wish we could sort through the clutter of mobile wallet vendors and offerings to know which will actually pan out.”
  9. “I wish I could snap my fingers and have great secure site search and intelligent cross-selling on our secure site.”
  10. “a pink pony.”
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The Globalization of eCommerce in 2013

Zia Daniell Wigder

In 2012, online retailers continued to expand into new geographic areas, with many eyeing eCommerce markets beyond those of North America and Europe. Local partnerships and adaptations were key: In China, Neiman Marcus, Macy’s, and eBay all invested in or partnered with local players to expand their footprint in the market. In India, Amazon launched with Junglee, an online shopping service adapted to comply with foreign direct investment restrictions – in Brazil, the company launched with e-books.

The next year will see eCommerce organizations continue their global initiatives. In 2013, we expect to see the following trends:

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