Avoiding Missteps When Expanding Internationally

Zia Daniell Wigder

We’ve been having a series of conversations with brands and retailers recently about how to effectively plan for global online expansion. While approaches vary, eBusiness leaders cite similar challenges. In particular, two hurdles to successful international expansion tend to come up repeatedly in conversations:

“Our ROI scenarios are unrealistic.” In a survey of eBusiness professionals in the B2C space, we asked how quickly they expected to see a return on their investments in new global online initiatives. Over three-quarters said either in less than one year or in one to two years. By contrast, leaders of successful global eBusinesses frequently highlight the fact that payback on new initiatives takes at least two years, with many citing three years and up. As a result of this disconnect, eBusiness professionals overseeing new global businesses often find themselves falling short of expectations and struggling to secure the funds needed to succeed. Today, the mismatch between ROI expectations and performance is one of the leading reasons why new global initiatives fail.

Read more

Snapchat Rejects Facebook's $3B Bid

Julie Ask

If you believe the idiom "a bird in the hand is worth two in the bush," then Snapchat believes it will be worth more than $6B to a future buyer — or the public through an IPO. The service is appealing not just for the UI but also for the limited time the content is stored. That appeals to me as a middle-aged adult, let alone to a teen with poor judgement who may be applying for college or a job in a few years. We've probably all felt awkward at some point about something someone posted. 

If you believe the movie "The Social Network," Mark Zuckerberg was also advised to turn down early offers. Remember the shockwaves that rippled down the West coast when Microsoft invested $240M in the fall of 2007 for what is now a 1.6% stake or $1.36B valuation? (See Source

I am not our social media expert. I am also not our primary mobile marketing expert, though I've covered it extensively at times. This POV is from a mobile analyst who has spent a lot of time looking at social networks on mobile devices. 

Here's what we do know:

- There are about 7 billion people on earth. 

- 6 billion of them have mobile phones.

- 1 billion (and growing) of them have smartphones, with nearly 400m of those in China.

- People communicate, consume media, and transact on mobile phones — in that order.

- Mobile phones sit at the core of our social graph. We create photos and we share good times with friends. I don't often post while I am sitting at home working. I post when I am out and about doing fun things that I want to share. 

What drives a $6B+ valuation beyond pure speculation, optimism, and wishful thinking?

Read more

Banks: Add Search To Your Secure Sites

Peter Wannemacher

The majority of bank customers are now active online bankers, making the content and functionality offered on secure sites more important than ever. Forrester has just published research on which features are must-have on banks’ secure websites.

For my money, the most surprising high-value secure website feature is search (here we mean natural language keyword search that lets a user find what he or she is looking for on the site). In fact, our research revealed search to be one of the few bank website features that customers rate as above-average in importance, yet search is either nonexistent or poor on most banks’ secure sites. So we wrote an entire research report about it. Here are some highlights:

  • Online banking customers want search… We asked consumers who bank online to "rate how important it is to you that your bank's website has each of the following features" and asked them about 14 different features, including search. The majority of online bankers — 68% in the US and 63% in Canada — say search is important to have on their bank's secure website.
  • …but few banks offer search on their secure website…Just seven of the 25 largest banks in North America include search functionality on their secure websites.
Read more

eCommerce in Brazil Charges Forward

Zia Daniell Wigder

I returned yesterday from a short trip to Brazil - I spoke at eTail in São Paulo on Monday and spent a few days meeting with retailers, vendors and agencies. Some of the takeaways from our conversations:

Omnichannel initiatives are gaining momentum. Omnichannel integration has been a topic of conversation among retailers in Brazil for several years, but it’s now slowly starting to happen. Today, most of the large Brazilian online retailers have established mobile sites or apps; by contrast, initiatives that integrate the online and offline channels are more nascent. Tactics like click-and-collect or ship-from-store, for example, are early stage but being explored by the more innovative players in the market. And while some forward-thinking Brazilian retailers have been quite advanced in terms of understanding cross-channel behavior, most have not taken major steps in this direction. Interestingly, retailers in Brazil have a particularly big opportunity in this area given that Brazilian consumers frequently supply a CPF (roughly the equivalent of a social security number) when they purchase online or offline – the savviest retailers are leveraging this customer data to identify and target omnichannel shoppers.

Read more

Global eCommerce In The Age Of The Customer

Zia Daniell Wigder

Last week, Forrester published an updated version of our report on The Age of the Customer (the author, David Cooperstein, blogs about it here). The report discusses the fact that competitive differentiation has been based upon the power of manufacturing, distribution and subsequently information. We’ve now entered an era in which “the only sustainable competitive advantage is knowledge of and engagement with customers.”

The report gives great examples of brands that have used both digital and traditional channels to become customer obsessed and the benefits they’ve realized as a result. Yet for a large number of brands, the journey is just beginning. This early stage is often reflected in brands’ eCommerce offerings around the globe, many of which still reflect a product-centric rather than a customer-centric approach. Today we find that:

Read more

Mobile Shifts Into Real-Time Gear

Julie Ask

When I was 4 or 5 years old, I remember going to the bank with my Mom. She’d say, “hey, let’s go. I need to make a quick trip to the bank to deposit a check.” It was a big deal that the bank had a drive thru. We’d pull up in the car. My mom would manually roll down the window. A teller would speak to us. My mom would reach out and take the plastic tube. She’d drop in a few checks, put the tube back into the machine and it would be sucked back into the building. A couple minutes later, the pneumatics would work their magic, and money and a lollipop would appear. We’d drive back home. All in, maybe this trip took 20 minutes.

It took 20 minutes to deposit a check. My mom was thrilled – besides that she didn’t have to get out of her car, the bank was even open on Saturdays. I only missed one episode of Sesame Street. She was satisfied with this experience for probably two decades.

Fast forward 40 years. If it takes me more than 20 seconds to deposit a check, (And, yes, my 93 year old grandmother still sends me paper checks), I’m twitching … I’m staring at the app on my phone and wondering how the bank could get it so wrong. Just two years ago, I was fine with walking over to the bank and using the ATM.

Two things are changing. One, consumers expect to do things quickly. Two, their expectations of you – their bank, their store, their hotel – are shifting very, very quickly as the result of mobile.

Read more

Announcing The Forrester Wave: B2B Commerce Suites, Q4 2013

Peter Sheldon

Today, we released our inaugural Forrester Wave evaluation of B2B commerce suites.  In a sister blog post, my colleague Andy Hoar, with whom I coauthored this report, explains why client demand for this research has exploded over the past 12 months, with manufacturers and distributors grappling with how to better serve their sales channels through digital experiences. In writing this report, Andy and I have spent the past six months evaluating the B2B commerce capabilities of dozens of vendors. Despite casting the net wide, our research found that although it’s common for vendors to provide “B2B lite” functionality for their clients — such as supporting unique pricing for employees — only a subset of the broader commerce platform vendor community can truly cater for complex B2B business models with support for distributors, resellers, partner networks, employees, retail stores, and direct B2C all from a single platform. To differentiate the wannabes from the bona fide leaders, Forrester rejigged its established B2C commerce suite scoring criteria to emphasize:

  • B2B commerce features. We added all-new criteria to evaluate how these solutions solve unique B2B problems, such as quotes; complex pricing lists; eProcurement; product configuration and customization; guided selling; bulk order entry; dealer management; and account, contract, and budget management, to name a few.
Read more

A First-Of-Its-Kind Piece Of Research: The Forrester Wave: B2B Commerce Suites, Q4 2013

Andy Hoar

For years, customers have asked Forrester to publish a Forrester Wave evaluation specific to B2B commerce solutions. Well, that day has finally arrived! Today, I’m pleased to announce the release of our very first Forrester Wave dedicated exclusively to B2B commerce suites.

In “The Forrester Wave™: B2B Commerce Suites, Q4 2013,” we found that IBM, hybris (an SAP company), Oracle Commerce, and Intershop lead the pack. Additionally, we found that Insite Software and NetSuite offer competitive options. In a separate blog post, coauthor Peter Sheldon explains in more detail how we ranked the vendors.

What’s at stake overall for B2B companies is no less than a piece of the $559 billion US B2B eCommerce market. To earn a share, B2B eBusiness and channel strategy professionals at all levels of maturity require a world-class B2B commerce suite that:

  • Offers a customer experience standard comparable to leading B2C sites. We frequently hear from our B2B clients that the technology should deliver an “Amazon-like experience.” Fortunately, several of the solutions we evaluated possess the functionality to deliver robust search and navigation, value-added recommendations and reviews, and 24x7x365 ordering and servicing — both online and on mobile devices. In addition, most come ready out of the box to integrate with back-office systems and complex order orchestration and fulfillment workflows.
Read more

It's Time Digital Banking Teams Took Games Seriously

Benjamin Ensor

Rachel RoizenThis is a guest post from Rachel Roizen, a researcher serving eBusiness & Channel Strategy professionals.

Gamification, which Forrester defines as the insertion of game dynamics and mechanics into non-game activities to drive a desired behavior, has rightfully been a hot topic of debate in many roles and many industries. We’ve blogged about it here, and written reports on success stories ranging from Club Psych on the USA Network to the use of games in education

The banking industry has been using some features of gaming for years, such as by offering redeemable points based on credit card purchases, but some remain wary of combining games with finances. Forrester’s view is that game mechanics can be used to draw in new and existing digitally connected customers. Digital teams at financial firms that have begun experimenting with gamification are seeing positive results, including increases to online engagement, online banking use, product sales, and social influence. Here are four leading firms that are betting on gamification and implementing it in innovative ways:

Read more

Reaching Jet-Setting Shoppers Online

Zia Daniell Wigder

Over the past few years, extensive media coverage has been dedicated to the billions of dollars that tourists spend while shopping in the US and what retailers are doing to cater to these foreign buyers. Coverage of this trend has often focused on Brazilian and Chinese shoppers in major US cities (with travelers from both Brazil and China having been dubbed “walking stimulus packages”), but tourist shopping is not just relegated to large urban centers. Retailers in a variety of areas are looking to tap into the rising middle class of consumers abroad, many of whom are taking advantage of relaxed visa restrictions or circumventing sky-high prices in their home countries.

Increasingly, retailers are looking at ways to engage these shoppers, with some turning to the online channel:

Read more