Apple's Retail Self-Checkout Is No iPhone 4S, This Really Is An Upgrade

Peter Sheldon

For the next 2 minutes as you read this blog post, please try to forget about Apple the product company and instead focus on Apple the retailer. Two years ago, Apple undertook a worldwide roll out of iPod Touches to its store associates. These devices came wrapped in a sled adding a 2D bar code scanner and credit card swipe capabilities to the hardware lineup and enabled store associates to perform mobile POS transactions anywhere in the store. Ever since the retail industry has been playing catch-up with retailers like Lowes, Gap, and Home Depot recently following suit with respective rollouts of mobile POS functionality to their store associates.

Today Apple raised the bar. Customers in the US can now use their own iPhone 4 or 4S in conjunction with the Apple Store app (one of my favorite mobile shopping experiences and complete with a fresh update) to scan the bar code of most in-store products and perform a self-checkout. The feature, called EasyPay uses the iPhone’s rear-facing camera to scan a product bar code with payment occurring via a simple authentication to iTunes, just like any other in-app purchase. The core difference is that Apple is now allowing in-app purchases of physical merchandise, albeit restricted to Apple at this time. Once payment is complete, the customer simply strolls out of the shop showing their digital EasyPay receipt to a member of staff as they exit. Time will tell if EasyPay results in any increase of in-store fraud for Apple, but for the consumer that knows what they want the convenience of EasyPay is crystal clear.  
 
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Do You Need Retail Stores? Best Buy Thinks Not.

Martin Gill

 

Disappointing news for UK shoppers today – Best Buy has announced that it will close its UK stores by the end of the year.

Best Buy was a bit of a breath of fresh air in a multichannel consumer electronics market in the UK that is struggling to find its identity as sales shift rapidly to the web. In a Website Functionality Benchmark we conducted earlier this year, we found that Best Buy stood out in a number of areas against its European competition, and its approach to multichannel retailing was similarly refreshing. While UK traditionalists DSGI have been struggling to find a multichannel model that works for them, Best Buy seemed to embrace the concept of agile commerce quite neatly. It understood that shoppers want flexibility to research, transact, purchase, and return products across multiple touchpoints, be that the web, the store or mobile.

And mobile is definitely where Best Buy and many other retailers clearly see the future.

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For Groupon, The Really Hard Work Starts Now

Sucharita  Mulpuru

After months of drama, Groupon finally had its IPO last week, concluding perhaps the most anticipated event in the daily deals space.  Now, however, is the even bigger challenge of actually proving out its valuation. The obstacles aren’t small and we lay them out in a report out today called Myths and Truths About Daily Deals. We define daily deals as both the purveyors of prepaid vouchers like Groupon and Living Social as well as the flash sale sites like Gilt Groupe and Woot. Two of the biggest challenges for prepaid voucher companies are the following:

  • Little incrementality especially for core Groupon businesses like restaurants or even national retailer deals. The majority of consumers who redeem prepaid vouchers (80% in the case of clothing or shoe stores, for instance) were already customers of the brand, and more than half say they would have purchased anyway without the voucher. 
  • Email won’t drive growth moving forward. While Groupon vaunts the size of its “subscriber base” (i.e., email addresses), all evidence points to the medium becoming less important. A significant portion of people who once subscribed to these emails no longer do, and many simply don’t want to because they have no need for more clutter in their inboxes. On the other hand, we’ve heard anecdotally that revenues for these sites are increasingly coming from organic traffic, which can be good so long as a daily deal company can continue to keep its brand top-of-mind for consumers. Marketing and sales, however, are two of the expenses that Groupon has loudly vowed to reduce.
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Looking Forward To Our Marketing & Strategy Forum 2011 On November 16th And 17th

Benjamin Ensor

One of the (many) things I have been working on for the past few months is this year’s  European Marketing & Strategy Forum, which is taking place on the 16th and 17th of November at the Grove, just outside London in Hertfordshire.

Our theme is about driving innovation for the next digital decade and what that means for leaders. We’re particularly focusing on some of what we see as the big disruptions of the coming digital decade: the growth of mobile Internet use; the growing demographic diversity brought by ageing populations; and the increasing economic weight of emerging economies, particularly the BRIC (Brazil, Russia, India, China) countries

I’m particularly pleased that we’ve got such a strong line up of eBusiness and channel strategy executives presenting this year, including:

·         Georges-Edouard Dias, Senior Vice President of eBusiness at L’Oréal.

·         Sean Gilchrist, Head of Digital Banking at Barclays Bank.

·         Jonathon Brown, Head of Online at John Lewis.

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Join Our Global Mobile Survey And Get Free Aggregated Results

Julie Ask

A year ago, Forrester fielded our Q3 2010 Global Mobile Online Survey. We interviewed more than 200 executives in charge of their companies’ mobile strategies around the globe (40% in the US, 40% in Europe, and 20% in the rest of the world). You can see the results from last year’s survey here.

To help eBusiness executives benchmark and mature their mobile consumer strategies, we’re updating this survey.

Planning and organizing for the use of mobile technologies is a complex task. Some players are laggards and think they still need to get the basics of their online presence right, while others are clearly ahead of the curve. Yet two questions we consistently hear are: “Where is my organization compared with others in the use of mobile?” and “How can we mature our mobile consumer approach?”

Here’s how you can help:

If you’re in charge of your company's mobile consumer initiative or if you’re familiar with it, then please take this survey.

Click here to start the questionnaire. 

If you’re not familiar with your company’s mobile consumer approach, please forward this survey to the relevant colleagues who are in charge of defining or implementing your mobile consumer approach. 

  • The survey takes less than 20 minutes to complete.
  • The survey will be live until November 20.
  • Responses will be kept strictly confidential and published only in an aggregated and anonymous manner.
  • For your efforts, we will share a free copy of the survey results.
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How Agile Are You Feeling?

Martin Gill

 

Here at Forrester we’ve spend a lot of time this year evangelizing a new approach to multichannel commerce – one that we call agile commerce. The fundamentals are outlined here in Brian Walker’s excellent doc, “Welcome to the Era of Agile Commerce.” But in short, and to quote Brian . . .

“Traditional ways of describing multichannel commerce no longer work because customers don't interact with companies from a 'channel' perspective. Customers now use a rapidly evolving set of devices as a means of engaging across touchpoints, which they don't distinguish from the brand or business.”

What this means to most eBusiness execs across Europe is an explosion in the number of touchpoints they now have to consider in their customer interactions. It’s no longer just about managing a store chain and a website as two separate entities. Increasingly shoppers are turning to social networks, mobile price comparison applications, tablets, and more and they are demanding an increasing level of cross touchpoint flexibility as they browse, choose, shop, and even return products.

Alongside our latest eBusiness Maturity Model, I’ve been speaking to eBusiness executives across Europe to gauge where their organizations are in the evolution toward agile commerce.

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Now The Holidays Are Upon Us, Are You Sleeping At Night?

Peter Sheldon

With the holidays rapidly approaching, eBusiness executives face many a sleepless night as their eCommerce infrastructure comes under attack from hordes of festive online shoppers. These customers are buying online to avoid the crowds, queues and stress of the mall and they demand nothing short of an exemplary online experience. Slow pages, site outages, and checkout problems will at best cause frustration as loyal customers switch channel to the call center or brick and mortar stores, however most customers will simply take their business elsewhere. These customers will end up buying online from your competitors, but before they do, you can bet they will express their dismay on Twitter, Facebook, blogs and even through your own online reviews. The damage will extend beyond the online channel and the impact on brand reputation will be widespread and long lasting. 

No more aware of this than anyone are eBusiness executives. Q4 sales will either make or break entire annual revenue goals and the c-suite have zero tolerance whatsoever for site outages or transactional problems online during the holidays. Jobs are on the line.
 
Only last week Targets head of online retailing, Steve Eastman left the company after a high profile site outage back in September left shoppers staring at this screen all day long as they frantically tried to get their hands on an exclusive and limited range of luggage, clothes and house wares from Italian designer Missoni.  

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The Spotty Record For Insurance Online Cross Selling

Ellen Carney

When it comes to the top business strategies for North American insurance carriers (and agents), selling more to the same customer is a top initiative. Because, what's a better way to grow revenue and profit in a tough market than to sell more insurance to your proven customers? And thanks to big media budgets, it’s easy to see lots of these cross-selling campaigns in action, from the practical take of Allstate’s Shop Less, Get More campaign to more humorous approaches with Progressive’s Flo and Nationwide’s World’s Greatest Spokesman (among others), duking it out over insurance bundles and multi-product discounts. 

With all this enthusiasm, just how successful are insurance ebusiness at cross-selling?  In our report, “Making Online Insurance Cross-Sell Initiatives Work”,  that went live on the Forrester website today, it turn out that sales performance varies wildly between the ten US insurance companies evaluated, with the best cross-sellers sharing four key characteristics. And it’s not just the best performing carriers that share traits—consumers likely to purchase multiple insurance coverages from a single carrier have their own set of common characteristics around income, age, and even where they live in the US.   

So, what can insurance ebusiness teams do to improve their cross-selling performance?  We outline nine tactics such as including leveraging opportunities to promote insurance when using interactive tools to when and how the cross-sale offer is made during the online experience. Along with auditing internal practices against our checklist, a roadmap for the remainder of 2011 is offered that, if followed, will let insurance providers start 2012 with an effective cross selling strategy.

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Online Retail In Germany -- Isn't It Time For A Multichannel Approach?

Martin Gill

 

Following on from my European eCommerce overview a couple of months ago, I’m continuing to build a deeper view of how the online retail markets are evolving in the major European markets. 

This month I turn to Germany, the second-largest online retail market in Europe, and one with a number of interesting characteristics. When we compare Germany to other European markets we see that:

·         eBay and Amazon.de are hugely influential. While eBay and Amazon see strong sales in Germany, their influence extends beyond their direct sales as many German web shoppers turn to these sites ahead of search engines to research products. Major retailers such as Conrad are trying to leverage this consumer behavior.

·         Consumer electronics is hotly contested. We looked at Redcoon.de in some detail in our recent Website Functionality Benchmark of European Consumer Electronics Retailers, but with consumer electronics  the number one online category in Germany, other specialist retailers such as ComputerUniverse are looking at new ways of influencing online shoppers with rich product information and ratings and reviews.

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Some Observations On The Evolving eCommerce Landscape In China

Zia Daniell Wigder

Last week I joined a few of my colleagues in China to meet with a variety of eBusinesses in both Beijing and Shanghai. We met with online retailers, technology companies, and other players in industry. For those used to selling online in countries other than China, some of the takeaways included:

Multichannel remains in its infancy. With the leading online retailers in China being pureplays, multichannel remains at very early stages. In-store pickup or returns are not widespread – however, there are emerging multichannel initiatives. In a recent, high-profile online-to-offline expansion, for example, Taobao opened a new furniture showroom in Beijing to enable consumers to experience different furniture brands sold on the site. The furniture sellers rent out space in the showroom to display their products. We had an opportunity to visit the huge showroom, which was somewhat quiet when we were there – terminals stationed throughout the showroom (see below) enabled consumers to insert a card and select products online, then proceed to checkout to pay.

    

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