Will 2012 Be The Year Financial eBusiness Teams Fully Embrace Video?

Benjamin Ensor

I love video as a communication media. The combination of sound and moving pictures so much more engaging and more memorable than text.

We wrote in our research last year about how we're starting to see video being used more and more by eBusiness teams as an efficient and effective way to educate customers about products, encourage sales and deliver customer service.

With the Academy Awards coming up, we thought it would be both fun and helpful to highlight some of the best examples we've seen of online video in retail financial services in the past year.  With the help of the rest of team, I've drawn up a list of our favourites in five categories:

Product marketing video
DNB's S for Savings Plan video (Norway).
PayPal’s future of shopping video.

Service marketing video
Commonwealth Bank of Australia's Welcome to NetBank video.
E*Trade's Take Control In 3 Easy Steps video (US).
Mint.com's 90-second overview (US).
Lloyds TSB's money manager video (UK).

Educational (‘how to’) video

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Brands Are Increasingly Selling Direct Online . . . In New Global Markets

Zia Daniell Wigder

Back in 2010, we wrote a report that looked at how and where US online retailers were expanding internationally. Today we published a related report that focuses on brands that have extended their international offerings by launching transactional websites. Establishing A Global Direct Online Sales Footprint looks at the countries where brands are choosing to focus on with their eCommerce offerings, and some of the tactics they’ve used to keep costs in check.

A handful of findings from the report:

Brands rarely enter a market by selling direct on their websites. Most brands enabling eCommerce on their global websites today already sell in these markets through traditional retail channels — the online sales channel simply becomes a new way to reach consumers.

Country selection is not always dictated by market size. Brands expanding their online offerings in Europe, for example, often focus first on the UK, France, and Germany. After the big three, however, the ease and convenience of serving other markets often trumps market size.  

Online sales strategies differ by market. Rare is the brand that has an identical offering in every international market. Most brands that offer eCommerce-enabled sites also provide informational sites in other markets, with little consistency in how the informational sites direct online shoppers to the brands’ retail partners.

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Thinking of launching a daily deal? Just hold that thought and read this first...

Martin Gill

In November 2011 Sucharita Mulpuru published a very well read Forrester research document entitled “The Myths and Truths About Daily Deals”. In this document she led with the line…

“While significant media and investor interest in daily deals has fueled the hype around this business model, data from consumers indicates that daily deals are significantly challenged models.”

The daily deals concept is receiving just as much press coverage in Europe as it is in the US, so with that in mind we have taken a similar look at the state of the market of deals, flash sales and coupons and found that while there is a great deal in common, there are some notable differences.

Much of the differences stem from a combination of the local players and the geographical complexity of operating across Europe.  Many of the big players like Grouponand Living Socialare present in Europe, with significant market presence in many countries, though a range of other national companies like DailyDeal.deand SecretSales.comoperate in only one country. So while at a national level the situation is reasonably easy to understand, eBusiness executives operating in a pan-European company have a maze of different options to navigate through.

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The Co-Operative Bank Comes First In Forrester's 2011 European Bank Customer Advocacy Rankings

Benjamin Ensor

For the second year in succession, the UK's Co-operative Bank has come top in our European Bank Customer Advocacy Rankings, just ahead of Poland's ING Bank Śląski, with Germany's Sparda-Banken in third place.

Customer advocacy is the perception among customers that a firm does what’s right for them, not just what’s best for its own bottom line. Customer advocacy matters because in every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.

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A Unified Digital Europe. Is It Possible?

Martin Gill

 

Yesterday the European Commission outlined its ambition to create a “genuine Digital Single Market” by 2015. You can read the whole text here if you have some time to kill . . .

 http://ec.europa.eu/news/economy/120111_en.htm

It has the bold aim of “doubling the shares of the internet economy in European GDP and of online sales in European retail by 2015.”

Bold? Not half!

Like many EU documents of this sort, it’s big on ambition but frustratingly light on the “how.” In short, the document outlines 5 key blockers to cross-border growth in the EU, as follows:

·         The supply of legal, cross-border online services is still inadequate.

·         There is not enough information for online service operators or protection for internet users.

·         Payment and delivery systems are still inadequate.

·         There are too many cases of abuse and disputes that are difficult to settle.

·         Insufficient use is made of high-speed communication networks and hi-tech solutions.

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Big Brother? Or Big Mother? Depends If You Get It Right ...

Julie Ask

What am I even talking about? Think about how you use your mobile phone. Do you contact your closest friends? Do you shout and swear at your local telecom provider's IVR because your new home Internet service isn't working as advertised? Do you shop? Bank? Read books? As a result, your phone knows if you are happy or sad. Your phone knows where you live, how fast you drive and where you spend money. Creepy? Maybe if your phone tells you your wife isn't going to like that shirt you are buying. Less creepy if your phone knows you are a Starbucks addict and they are giving away free coffee today. What defines creepy to some extent lies in how much value you perceive in a service. We call this context - what an individual's situation, preference and attitudes are. How you use it will define how creepy it can be.

Your phone will know more and more about you based on some technology that will be in the phone that can sense what you are doing or your feelings, for example. Your phone will also understand your preferences based on how you use the phone. We wrote a lot about this in 2011 - re what is means to you as an eBusiness professional. (See report)

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The Globalization of eCommerce in 2012

Zia Daniell Wigder

As we look back on the year 2011, eCommerce organizations continued to expand their global reach. A growing number of US and European retailers started shipping internationally. Brands enabled eCommerce on their own websites in new markets and launched online stores on marketplaces in multiple countries. Other companies with an interest in global eCommerce used the year to gain insights into new markets, determining which ones to prioritize in the years ahead. Rumors swirled about Amazon preparing to enter India. Or Brazil.

For many companies, however, the globalization process is still just beginning. Aside from a handful of companies that operate eCommerce sites around the world, few companies have a truly global online footprint. The growing number of US- and European-based companies that ship internationally will see revenues increase from these markets, but will start to hit a language ceiling: Close to two-thirds of online consumers in both France and Germany, for example, agreed with the statement, “I only shop from websites in my native language.” In the UK, the percentage is close to three-quarters.

2012 will not be the year that eCommerce organizations blanket the globe with localized offerings – they will, however, continue stepping into international waters. Next year we expect to see :

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Who Is That Crazy Lady In Macy's? (A Mobile Augmented Reality Story)

Julie Ask

It's me. I was in Macy's last Saturday morning checking out the augmented reality (AR) app, "Believe Magic." I got a lot of stares. At one point, I had a small audience as I danced about and took photos with Macy holiday characters ("Yes, Virginia" characters) that only I could see on my phone. What I liked about this app is that Macy's and Metaio didn't push the technology too far - they created an experience well within the bounds of the technology. It worked without long delays or instructions.

There were TWO red mailboxes in the Macy's in downtown SF. When I asked for help ("Where's the red mailbox with the AR app?") from the nice Macy's executive in a black suit, her jaw dropped a bit with the realization she had no idea what I had just said or wanted. Another sales associate helped me out and took me over to a full-blown display that allows people to interact with the characters even if they don't have a phone. The app allows you to take pictures with the characters, share them with friends (usual FB and Twitter plus email), make cards, etc. It's fun. The small crowd of people pointing and staring . . . also fun. :)

This app is more about marketing, but it will give you a sense of the potential of AR for commerce purposes. We've just finished up research due out this week that speaks to the uses of AR in the purchase funnel or commerce track. AR will allow consumers to experience products pre-purchase. AR will simplify the discovery and consumption of content (e.g., pricing). AR will improve the owners' experience with "how to" guides.

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Optimizing the Affiliate Channel for Deal-Driven Customers

Andy Hoar

With consumers increasingly looking for discounts online and flocking to horizontal coupon sites (e.g. ShopatHome and RetailMeNot), vertical coupon sites (e.g. TechBargains), and cashback sites (e.g. Ebates), eBusiness professionals face a new “coupon-driven” shopping normal. As a result, eBusiness professionals are increasingly considering, and reconsidering, the affiliate deal space as a channel for both acquiring and retaining online shoppers.

As stated in my new report, “Optimizing the Affiliate Channel for Deal-Driven Customers,” while some historical questions persist around measuring incrementality, sales crediting, and brand association, affiliate deal sites today now help eBusiness professionals address a growing number of “deal-insistent” customers by offering:     

  • Advanced targeting capabilities. Today’s affiliate deal sites have modernized to accommodate eBusiness professionals’ higher targeting, tracking, and geographic coverage standards. They now offer sort and search functionality, rich editorial content, exclusive deals, and reach into international markets.  
  • New means to optimize offers and commission payments.  Advanced technology now enables eBusiness professionals to more accurately align commissions with affiliate deal site performance.  Affiliate deal sites operating within a broader affiliate network can tie commissions to the quality of the sale and the quantity of margin available.  
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Insurance eBusiness Initiatives And IT Priorities And Spending Closely Aligned For 2012

Ellen Carney

The insurance industry is in the midst of some big changes. Those changes introduce very new pressures, priorities, and uncertainties into an industry whose business depends on stability. In these dynamic times, carriers hang their hat on what they do for their customers, even if how it gets done and who does it might be changing. Our report, "Tech Opportunities In The North American Insurance Industry",  outlines the top business priorities and supporting technology investment plans of North American insurers.  In this year's study (our fourth) it turns out that:

Industry’s business outlook turns strongly positive with select IT spending following along. Even with a record number of disasters that have translated into record economic losses, more US and Canadian insurers have positive outlooks when compared with last year. What’s behind these buoyant outlooks? By all indications, it looks like insurers will be competing on something other than price, as the market condition changes to “firm” and even “hard” for some lines. This year’s top initiative remains growing the business, with ebusiness teams playing a starring role.

Technology’s value shifts to sales, service, and support, not simply cost-savings. Five years ago, the IT’s fundamental value proposition was as a means to take cost out of the insurance equation. While still important, virtually all the insurers we surveyed told us that technology was critical to how they serviced and supported their customers, and 80% told us that technology was essential in the insurance distribution and sales model.

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