How To Encourage Mobile Banking Use

Benjamin Ensor

When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?

  • Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
  • Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
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On Building A Global Digital Team

Zia Daniell Wigder

Executives at digital businesses cite a wide variety of challenges when expanding globally, but “finding the right talent to run our organization” inevitably factors high on their lists.  Yet despite the extensive preparation that goes into international expansion efforts, it’s rare to find companies staffing up far in advance of these initiatives. Some thoughts for digital organizations with increasingly global aspirations:

Think international – even before you are. It’s common to hear of multinational corporations thinking globally when creating content. For example, by avoiding website or marketing content that includes numerous local references, it becomes easier to translate that content into other languages. Executives need to extend this idea of early preparation from content to people as they staff up their teams: If digital leaders know they want to operate in multiple markets going forward, they need to start building teams with global knowledge well before they start their international expansion.

Hire candidates with international experience across the organization. Companies do not need to hire global talent with the sole purpose of contributing to international expansion. To the contrary: Many digital businesses bring in employees with strong language skills and knowledge of different global markets to work in a wide variety of capacities within the organization. A more globally experienced workforce can provide more diverse insights – additionally, as international markets rise in importance, those organizations that have hired and mentored employees with knowledge of these markets will be better positioned for success later. Some smaller vendors, for example, were able to establish a foothold in emerging markets relatively quickly by relying on executives with existing knowledge of these countries to guide their market entry strategies.

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Top 10 Ways My Mobile Travel Apps Disappointed On Travel Day

Julie Ask

Is it me or my expectations? My mobile travel applications have only improved over the past 12 months (and I mean this sincerely), but my disappointment has never been so acute. Why? My expectations have never been higher. I access information more frequently (see Ted Schadler's and John McCarthy's Engagement report -- they quantify this), and I expect more accuracy. In the absence of tethering my computer or tablet to to my mobile-phone-turned-hotspot (difficult on the move), I turn to my mobile phone for services. "Immediacy" is what makes mobile so valuable. If I can't get real-time, accurate information on the go, then how useful are the mobile services? 

11. (an extra) When I use the mobile app to add the boarding pass to Passbook, why does only one of two boarding passes go there when I have a connecting flight?

10. I uploaded an update to the loyalty program from the hotel chain. It deleted all of my account information. Awesome. Really guys?

9. I searched the mobile app, mobile web, and full web for a way to recover my account number - not possible in my 10 minutes of searching. Only possible to get password. 

8. I called customer service (hotel brand) while sitting on the plane to get my account number. They asked me to state my password out loud (while on the crowded plane). I gave them the password, and they told me it was incorrect. They proceeded to ask for all of my additional security information (e.g., mother's maiden name). "We have these rules in place to protect your privacy and ensure the security of your account." I'm thinking, "My hotel frequent stay account??? It's easier to get my user name and password from my bank!!" Terrible user experience. 

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Citi And Royal Bank Of Canada Earn The Top Spots In Our 2012 Bank Secure Website Rankings

Peter Wannemacher

Late last year, Forrester reviewed and ranked the secure websites of the 12 largest retail banks in the US and Canada. The full reports can be found here (US) and here (Canada). Overall, banks' secure websites earned an average score of 70 points (out of 100), demonstrating a level of quality that meets customers expectations but also leaves room for improvements. Here are some of the highlights:

  • Citi moves to the top of the US rankings with a website overhaul. In July 2011, Citi launched its first tablet banking app. Based in part on insights gleaned from that process, the bank rolled out a newly redesigned secure website, followed by additional digital features and functionality for online bankers, mobile bankers, and tablet bankers. As a result, Citi moved from second-to-last in our ranking to the top spot this year.
  • RBC pulls off a historic sixth-straight win among Canadian banks' secure sites. For a record sixth year, RBC earned the top spot in our Canadian rankings. Two factors drive RBC’s digital banking success: First, the bank's secure website offers a wide array of secure site features, including eBills, tax management tools, and more; second, the bank continues to innovate, this year adding customizable money management dashboards and new mobile features such as foreign exchange and mortgage payment calculators on its iPhone app.
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2013's Must Read On Mobile Application Development

Julie Ask

How many of you are still outsourcing your mobile application development because your internal technology "just doesn't get it"? I interviewed 25 eBusiness professionals in 2012 about their approach to mobile and how their challenges were evolving. (The first piece is due out soon, with more to follow quickly.) A lot of eBusiness professionals think their success hinges on "owning" the mobile development team directly (internal) or through an agency (external). Their worst-case scenario is funding the mobile development even if the team doesn't roll directly up to them. Reasons offered include:

"They move too slowly."

"They are in India. How are we seriously supposed to be agile with the distance?"

"Mobile isn't a high enough priority." 

"Their idea of an excellent customer experience and ours is like 'Men Are From Mars And Women Are From Venus' - we're not even on the same planet, let alone speaking the same language." 

I talk to our eBusiness clients a lot about "context" and how it will define the future of mobile. Consumers will become very task-oriented on mobile devices and they will expect their mobile phone to personalize or make the real world richer and more relevant to them. There are already great examples in the travel industry, with retail, banking, insurance, healthcare, and many other industries beginning to push the envelope. What has held them back have been development resources and an IT team that can support their vision. 

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Stay Tuned For More Of The Retail eCommerce Playbook

Sucharita  Mulpuru

You may have noticed that over the last several months, Forrester analysts have been writing “playbooks,” which are holistic overviews of various aspects of our respective coverage areas. In the retail eCommerce world, we’ve released a few chapters:

Landscape: The eCommerce Juggarnaut Dominates Retail, which reviews the growth and current size of web retail.

Vision: The New Paradigm Of Retail, which discusses how we expect retail to evolve in the years to come. 

Assessment: Rank Yourself With The eBusiness Maturity Model, which discusses different opportunities for different types of companies.

In the months to come, we will fill out the rest of the playbook with overviews of tactics, technologies, and metrics to support different organizations, whether they are just beginning their eCommerce journey and looking to build a business case or whether they are advanced sophisticates looking to improve their businesses even further. 

We’re open to feedback and look forward to hearing your thoughts on questions you may like to see addressed in this playbook.  

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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