On eCommerce In South Africa And Beyond

Zia Daniell Wigder

I recently had a chance to catch up with another global eCommerce enthusiast: Hendrik Laubscher works for PriceCheck, a price comparison site in South Africa owned by MIH Internet Africa. He and I sat down for a coffee to talk all things developing eCommerce markets. A few things that came out of our conversation:

In South Africa, payments and broadband connectivity remain hurdles to eCommerce adoption. South Africa, the continent’s largest eCommerce market, remains at a relatively early stage, with several inhibitors preventing the market from truly flourishing.  Although credit and debit card usage is growing, overall penetration remains low, even in comparison to other large emerging markets. PayPal offerings have been a challenge, as well — currency issues and restrictions that required users to be registered FNB online banking customers prevented many from taking advantage of this payment method.  Additionally, the country’s low overall Internet penetration — in particular, broadband penetration — also presents hurdles. The CEO of Woolworths in South Africa recently said that faster, cheaper broadband was essential for eCommerce to flourish, but estimated that this scenario remained “about four years off.”

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US B2B eCommerce Sales To Reach $559 Billion By The End Of 2013

Andy Hoar

Today Forrester is releasing a report entitled “Key Trends in B2B eCommerce for 2013” that, for the first time in over 10 years, sizes the US business-to-business (B2B) eCommerce market in the US.  Forrester estimates that by the end of 2013, customer-facing front-end B2B eCommerce will reach $559 billion.  This figure includes transactions placed online (independent of whether payment is taken online or not), but does exclude EDI-based commerce.

By comparison, US B2C eCommerce will be a $252B market--which would make B2B eCommerce fully twice the size of B2C eCommerce. In addition to sizing the US B2B eCommerce market, “Key Trends in B2B eCommerce for 2013” explores three important trends in B2B eCommerce for the coming year:

  • Ever-Growing Demand For B2C-like B2B eCommerce Experiences. With key B2C sites having set a high standard for what constitutes a compelling online customer experience, B2B eCommerce companies are now actively retooling their existing B2B sites or building whole new sites to deliver B2C-like eCommerce experiences.
  • Increasing Channel Conflict Between Direct Sales Organizations and eCommerce Operations. As the eCommerce option becomes a more viable alternative to a traditional direct sales model, companies are increasingly migrating their offline customers to more cost-effective, self-serve, online-only environments.  In addition, they’re now focusing their sales reps exclusively on acquiring and retaining higher-margin and higher-volume key account customers.
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Q&A with Mike Boush, VP, eBusiness, Discover Financial Services

Peter Wannemacher

Earlier this week I caught up with Discover’s Mike Boush to talk about his keynote at the upcoming eBusiness Forum, where he’ll explore innovations in eBusiness at Discover. Here’s a snippet of our conversation, and a sneak peak of Mike’s session at the event:

Q: What digital initiative have you undertaken in the last 12 months that you're most excited about?

A: I love what we're doing with partnerships online. It's creating a whole lot of value for customers and, frankly, getting us out of the "must be built at Discover" mentality. It started with an integration with PayPal in order to deliver peer-to-peer payment services. The program leverages PayPal’s huge delivery platform, and customers love it. Then we introduced an integration with Amazon that lets customers pay for their Amazon.com purchases with the cash they earned through our Cashback Bonus rewards program. This really highlights the difference between competitors' "points" programs and our straightforward cash, and the transparency shows just how great our program is. And recently, Google announced our integration of Discover card enrollment into the Google Wallet from our website, which is convenient for customers and helps position us in the mobile payments space. These integrations are just a sample of what we've done, but they become powerful illustration of what we can do when we team up and innovate with other great companies. 

Q: What gets in the way of delivering the right experience to your customers?

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European Brands are Embracing the Cross-Touchpoint Reality

Martin Gill

I had the pleasure of presenting an evolution of our Agile Commerce research last week at the Internet Retailing conference in London. It was an interesting event on a number of fronts, but my key take-away from the event was a very positive one.

eBusiness executives in Europe have definitely woken up to the Agile Commerce message.

We can’t claim all the credit at Forrester, but I definitely got the feeling from listening to my fellow panelists on the Customer track present their stories that they were in the same place as we are now, at least in terms of strategic intent, if not yet in execution:

  • Simon Smith, Head of Multichannel Experience at O2 Telefonica described how he is bringing a service design ethos to delivering both consumer and employee experiences. Telefonica aims to design service experiences that are Individual, Relevant, Thoughtful, Reassuring and Amazing (SUPER, anyone?), and what was the most interesting piece about their story was that these experiences are designed from an outside in, customer first perspective before any of the individual touchpoints are designed. By basing these experiences on common personas and a wealth of analytical data, Telefonica then overlay touchpoints as appropriate, enabling them to step out of the discussion about “should we or shouldn’t we develop this or that functionality on this or that platform?” and into the more relevant discussion about “what touchpoints and experiences most make sense for our customers?”
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Q&A with Bert DuMars, VP, Digital Marketing & Ecommerce, Newell Rubbermaid

Carrie Johnson

I had the chance to catch up with Bert DuMars, VP of Digital Marketing & eCommerce at Newell Rubbermaid, in advance of his keynote later this month at the eBusiness Forum. I spoke with Bert about the impact of digital channels on the overall shopping experience, and how Newell Rubbermaid is charting a course for profitable eCommerce growth. Here are some of his thoughts.

Q: What digital initiative have you undertaken in the past 12 months that you're most excited about?

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Why Contactless Cards Aren’t Taking Off In The UK

Benjamin Ensor

The other day, Smile*, one of the banks I have an account with, sent me a new contactless card.

The contactless symbolThe striking thing about this otherwise ordinary event was that the bank didn’t mention that it was a contactless card. I know it’s a contactless card because it has the contactless symbol on it. But nothing in the letter the bank sent with the card so much as mentioned the new contactless functionality. Logically, one of the following must be true:

  • Uncharitably, it could just be that the left hand doesn’t know what the right hand is doing, and the product team forgot to tell the marketing team it was doing anything new.**
  • Possibly, some slip meant that my envelope didn’t contain any marketing. But there’s no mention of contactless cards on the bank’s website either.
  • Alternatively, the bank simply reckons that the benefits of promoting the contactless functionality are so marginal that it’s not even worth the effort of changing its standard letter (which promotes card protection insurance in extensive detail).
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Mobile Efforts Are Starved For Funding

Julie Ask

Forrester just released a new report, “The State Of Mobile Technology Adoption.” The report will allow eBusiness professionals to benchmark their annual spending, mobile services, and approach to building mobile services among their peers in North America and Europe.

One of the biggest takeaways from the research is that eBusiness professionals lack the funding they need to build mobile services, integrate mobile services with their back-end infrastructure, and build out teams with the right skills in-house. Consider that:

·         56% of eBusiness professionals spend less than $500K annually on their mobile services.

·         Only 24% spend more than $1M – the base level for a good native application and mobile website.

From a technology standpoint:

·         40% are building applications in-house, with 12% licensing a platform to do so.

·         62% are building mobile websites in-house, with 46% relying on their IT team directly.

·         68% have native applications – far more than are using hybrid applications (most of the budgets would have to be here to fund these efforts).

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Why The Future Of Insurance Will Be Mobile And What Will It Mean For Insurance Business Models

Ellen Carney

Anybody out there who doesn't have a mobile device, raise your hand...just what I thought.

The explosion of mobile phones and apps in the everyday lives of consumers--and agents--is powering big changes in the business of insurance.  Heightened customer expectations are getting formed by the changing mobile landscape; new generations of customers; new competitors, and the ferocious pace of mobile tech-enabled innovation that is radically reshaping how customers become informed, purchase, and get service. 

In our new report, the first of Forrester's Mobile Insurance Playbook, we examine how mobile forces are driving customer expectations and how customer demands are going to influence new insurance business models.

Consider that:

  • Consumers are living La Vida Mobile.  Mobile is a pervasive element in the daily lives of insurance customers. With more mobile devices available within easy reach, US consumers are tapping into this ready convenience to research, buy, and service their financial needs, including insurance.  And how about those Millennial insurance customers?  More than one in four told us that they use mobile as their main personal financial channel. 
  • Agents are becoming proficient mobile tool users.  The tablet form factor looks almost purpose-built for the needs of agents.  From their hi-def displays to fast boot-up and super portability, agents are ardent tablet-ers, and half the agents in an informal survey at the end of last year cited mobile as one of their leading business initiatives. 
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Mobile Banking And Payment Innovation In France

Benjamin Ensor

Myriam Da CostaThis is a guest post from Myriam Da Costa, a researcher serving eBusiness & Channel Strategy professionals.

France has been quick to embrace mobile banking. Banks like BNP Paribas and Société Générale were among the pioneers of mobile banking in Europe and since 2009, all of the big French banks have launched iPhone mobile banking apps, so most French banks now offer several forms of mobile banking. The first wave of mobile banking was about getting the basics down and offering customers functionality like balances, transaction histories and SMS alerts. The second wave now focuses on money transfers and payments.

As we wrote in our report on The State Of Mobile Banking In Europe 2012, mobile banking is the foundation for mobile payments. France's banks and mobile operators are moving fast to seize the opportunity. In the past two years there has been a wave of new mobile payment initiatives in France: Buyster, Cityzi, Kwixo, Kix and S-money.

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Burberry's Digitally Enabled Store Is Seductive, But Is It Really "Agile Commerce"?

Martin Gill

There are a few firms that I regularly point to as agile commerce exemplars, and one of them is Burberry.

This always makes me smile because being from the north of England and growing up in a  culture dominated by shipbuilding and football (and Newcastle Brown Ale), Burberry has long been the iconic garb of the “chav.” Since many of the people who read this blog aren’t from the UK, a quick cultural diversion is probably needed here. But don’t worry - it's relevant to the Burberry story. Honest.

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