2D Bar Codes: Where Are We Today?

Julie Ask

Microsoft Tag had a big announcement this week.

It announced:

  • March had the greatest number of Tag scans since Tag launched in January 2009, with more than 50 percent more scans than any other month to date.
  • The number of scans per month has doubled over the past three months, and the number of users per month has increased 2.5 times in that same timeframe.
  • Three billion Tags were printed during the past six months alone, and 5 billion Tags have been printed since Microsoft Tag’s January 2009 launch.
  • Publishing continues to lead among top industries adopting Tag, with retail scenarios and entertainment holding the second and third positions, respectively.
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Will Facebook Ever Drive Commerce?

Sucharita  Mulpuru

My bearishness on F-commerce is no secret, so I may have been a little biased when I dove into my most recent research, Will Facebook Ever Drive eCommerce? Fortunately, the findings were nuanced among different types of retailers, which gave a lot to write about. Some highlights:

  • There are retailers (albeit small ones) seeing a double-digit percent of their sales coming through their Facebook stores. These companies often have unique demographics or marketing models (e.g., flash sales) that drive this behavior.
  • Facebook’s “data layer” is probably one of the most underleveraged assets that exists with respect to F-commerce. There is myriad information about fans, what products consumers are liking, and competitive insights that can be gleaned from merchant and consumer activity on and off Facebook.
  • Facebook Credits is a non-starter for most retailers. This is the “currency” that consumers can use to buy, say, potatoes on Farmville. Facebook, however, has little to no credibility with respect to financial services among consumers, and the same retailers reluctant to implement PayPal (which so many large merchants are) will be 10 times more resistant to a less-tried, less-reliable, newer payment mark. 
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Forrester Publishes Its First Online Retail Forecast For Brazil And Mexico

Zia Daniell Wigder

Over the past year, we’ve worked together with the forecast team at Forrester to help eBusiness professionals understand the size of different online retail markets around the globe. Last year we published our first look at the online retail markets in some of the major markets in Asia-Pacific — this year, we’ve just published our first forecast for two of the largest online retail markets in Latin America, Brazil and Mexico. Some findings from the report include:

  • Brazil is — and will remain — the powerhouse in the region. With more than 40% of the online users in the region and a steadily growing economy, it’s not surprising that Brazil’s eCommerce market will outpace all others by a wide margin. Brazil’s projected 2011 sales of almost $10B put it behind other major online retail markets like France and South Korea but ahead of smaller ones such as the Netherlands and Italy.
  • Mexico’s online retail market is small today — but growing by a CAGR of almost 20%. With less than half of the online users of Brazil and limited online spending, Mexico’s online retail market remains a small fraction of the size of Brazil’s. Average online spending per buyer will not increase significantly over the next five years, but the sheer number of online buyers will.
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The Lost Art Of Serendipity

Martin Gill

ser·en·dip·i·ty  /ˌsɛr ənˈdɪp ɪ ti/ –noun

1. an aptitude for making desirable discoveries by accident.

2. good fortune; luck: the serendipity of getting the first job she applied for.

Internet retailers have been struggling with a challenge since the first time a shopper clicked “Add to Cart,” and so far I don’t think anyone has really cracked it.

Recently we’ve had a number of discussions in our office (and more in the pub) about the difference between the online and offline shopping experiences, and the subject of online product discovery is one we can’t seem to get to the bottom of.  It appears that many retailers are in the same place, and despite their best efforts, online retailers just can’t duplicate what we’ve termed serendipity.

That feeling of walking into your favorite bookshop and picking something up in a section you don’t normally go into just because the cover leaps out at you.

The moment when you stumble across some unutterably stylish, drop dead gorgeous dress in the store you don’t normally go into, but your friend dragged you protesting into.

That magic moment where you discover something.

Amazon has had a good go at it, and I confess I’m a huge fan of its “people like you buy stuff like this” functionality, but it does suffer from a major flaw. Like many of my Forrester colleagues, I use Amazon to buy a lot of gifts that I don’t ask to have wrapped. So Amazon thinks I’m crazily into books on vintage fashion and Waybuloo toys. Well I’m not. But my wife and 2-year-old niece are. Go figure which one likes which. So I regularly receive invites to buy more books and toys I really don’t want.

Anyone spot the odd one out on here ?

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Making Money On QR Codes

Julie Ask

This is one of the more creative applications of QR codes - tattoos. $240 to date at $80/tattoo. Given how permanent the code is, I'm wondering if they shouldn't have considered MS Tags - more branding and flexibility. It's the 2011 version of a dog tag. Would be more interesting if these were links to pages with medical records, etc. - something useful in the case of an emergency. Kidding aside, 2D bar codes have a lifetime - whether they live in a print ad, on a book cover, or on one's skin. Those employing 2D bar codes - especially on product packaging - must take into consideration the lifetime of the code and be ready to support it whether it's a marketing campaign or a link to a video with a safety demonstration.

Our Mediocre Multichannel Mission

Martin Gill

In celebration of the fact that my Forrester Boss, Patti Freeman Evans, was over this week in London, we thought we’d go on a multichannel retail shopping tour of London to see just how well some major UK retailers are integrating their on- and offline channels and enticing their shoppers into engaging with them online.

The answer is sadly, not very well at all.

Hitting Oxford Street on a sunny Friday at lunch time, we performed an eyes-on tour of a rough cross-section of some of the better-known UK brands. We went looking for exciting new uses of technology disrupting the in-store environment. Examples of beautifully integrated online/offline/mobile channels placing the customer at the heart of the brand experience. Innovative applications of technology that seamlessly blended the digital and physical brands, enticing shoppers into engaging with these premier retailers both now, and later when they got home. Or even, how excitingly, via their mobile phones.

So while a hungry band of devotees of the fruit-flavored tech-god gathered outside the Apple Store, not realizing that just round the corner they could get their paws on a new iPad 2, sans queue, we started our shopping trip.

Flippancy aside, we were looking specifically for how well multichannel retailers are integrating physical and digital channels.

The results were (depressing) surprising :

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Can an Old Dog Learn New Tricks ?

Martin Gill

Hot off the press from last week’s Retail Week conference, “HMV will still have a portfolio of hundreds of stores on the high street in five years, HMV CEO Simon Fox told delegates”

And so they should.

But in my opinion, some careful thought is needed to position the store chain alongside HMV’s evolving digital persona.  HMVDigital, launched last July, is their take on iTunes. As a digital destination for downloading music it seems to stand on its own two feet. Product scope is a little limited in that it’s music only (no videos), but I can only assume that they have a roadmap to open up new product categories over time.

They are clearly set on taking on iTunes at their own game, a fact that is evident from the site’s logo when you link to it from HMV.com – the old familiar, faithful HMV hound listening to a gramophone, sat right in the middle of a now familiar iPod control wheel.  An interesting choice.

It would be a shame if all HMV did here was attempt to mimic iTunes, as they have one ace up their sleeve that iTunes can’t (yet) mimic; a nationwide chain of high street stores staffed with music loving store colleagues. Although the products may become digital, I believe that there is a place for human interaction that multichannel retailers such as HMV can capitalise on. And interestingly, from the tone of his Retail Week address, Fox believes this too.

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Time for a local focus. Well, local if you live in Europe, that is

Martin Gill

My first Blog post as a Forrester Analyst and I was going to go little further than saying “hey, hello!” but I figure why not take a few minutes to dig into a couple of subjects that I’m looking at.

Forrester have a large and growing body of research and a dedicated team of Analysts and Researchers serving eBusiness and Channel strategy professionals, and our research plan for the next year covers some bold topics like Agile Commerce, the future of Mobile as a channel and the growing power of Social Media.  While I’ll be looking at these topics and more, I’ve joined Forrester with a specific brief, and that is to bring some focus to the European Retail arena. 

I’ve come to Forrester from Boots, where I worked for the last 4 years in the Enterprise Architecture group leading the architecture strategy across both on-line and stores, and my move to Forrester is, in my opinion, a sign of Forrester’s commitment to do what we repeatedly tell you to do with your Retail efforts. 

Make them Relevant and Contextual.

So that’s my primary mission, at least to begin with.  Making what we do here at Forrester relevant and contextual to the challenges and opportunities of the European market.  That isn’t to say I won’t be looking at broader global eCommerce trends, and in fact one of the first pieces of work I’m doing is on the evolution of video in eCommerce (more on that soon).  But to support those of you who are either focusing on or are looking to move into the European market, I’m working on a broader piece looking into the state of Multichannel Retail in Europe.

If there is anything I can help you with, or if there are any burning topics you would like to see us focus on, then please reach out to me at mgill@forrester.com or get engaged in our community.

The Next Generation Of Digital Financial Services

Benjamin Ensor

[With apologies to all those of you who had already read this, I'm re-publishing this as the Forrester gremlins ate my previous post.]

For the past few years, many eBusiness and channel strategy executives in financial services have had a nagging sense that today's websites would be rendered obsolete as new technologies emerged or younger consumers developed radically different behaviour patterns. We think that time if fast coming upon us. 

For the past six months we've been working on our vision of the Next Generation of Digital Financial Services, led by my colleague Alexander Hesse and inspired by the work of leading eBusiness teams worldwide. Although our vision is not an exact description of how all digital financial services will evolve, given the wide variety of markets that eBusiness executives operate in and the different strategies of their firms, we think the next generation of digital financial services will be characterized by five things:

  • Simplicity. Making it easy for customers to achieve their goals.
  • Ubiquity. Interacting with customers wherever they want.
  • Personalization. Making the entire experience relevant to individual needs.
  • Empowerment. Enabling customers to take action by themselves.
  • Reassurance. Providing human help whenever it adds value.
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The Secret To Loyal Financial Services Customers

Bill Doyle

Eight years ago, Forrester set out to find the corporate trait that does the most to create loyalty among financial services consumers. Loyalty, of course, is about more than simply retaining customers: Loyal customers are willing to buy more, borrow more, save more, and invest more with the firms they already use. We tested dozens of variables, including the length of the customer’s relationship with the firm, the quality of the firm’s customer service, and the firm’s money management skills. One trait emerged above all others: the perception on the part of customers that the firm does what’s best for them, not just what’s best for the firm’s own bottom line. We call it customer advocacy.

Our research continues to show that customers who rate their firm highest on customer advocacy are most likely to stay at and do more business with the firms they use. In the just-published “Customer Advocacy 2011: How Customers Rate US Banks, Investment Firms, and Insurers,” we show which firms are ranked highest by their customers – and which ones bring up the rear. 

The Big US banks dominate the bottom of our rankings of 47 firms. Thirteen of the bottom 14 firms are banks, including all of the nation’s 10 largest banks. Fewer than one-in-four customers of Citibank and Capital One Bank believe that the firm has their best interests at heart.  Small banking institutions, on the other hand, are among the customer advocacy leaders – and are winning market share in the process. Two-thirds of the customers of credit unions and well over half of the customers of regional and local banks rate their firms high on customer advocacy.

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