The Co-operative Bank Tops Forrester's 2010 European Bank Customer Advocacy Rankings

Benjamin Ensor

A few months ago I blogged about how the UK’s Co-operative Bank had come top in our UK Bank Content & Functionality Benchmark. The bank has now done it again by coming top in our 2010 European Bank Customer Advocacy Rankings.

Customer advocacy is the perception among customers that the bank does what’s right for them, not just what’s right for its own bottom line. 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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Forrester's Online Holiday Retail Forecast Projects 16% Increase Over '09

Sucharita  Mulpuru

Forrester’s "US Online Holiday Retail Forecast, 2010" launches today, reporting quite a bit of optimism this shopping season. November and December alone are expected to pull in nearly $52 billion, a 16% increase over 2009. Several key factors contribute to this projection:

  • Consumers are shifting more and more to online retail.
  • Offline retail is still a significant player.

Consumers are cooperating, too. They’re looking to spend more this season and do so through a variety of means (mobile, apps, etc.).

Retailers are responding with numerous strategies, such as larger promotional budgets, honing in on key dates, and experimenting with new shipping options.

Live Streaming From Forrester's Consumer Forum 2010 - Day Two

Carrie Johnson

8:30 a.m.-8:35 a.m. CST

Day Two Opening Remarks

Carrie Johnson, Vice President, Research Director, Forrester

 

8:35 a.m.-8:50 a.m. CST

Working With IT To Build An Empowered Organization

Ted Schadler, Vice President, Principal Analyst, Forrester

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Live Streaming From Forrester's Consumer Forum 2010 - Day One

Carrie Johnson

I'm thrilled to be blogging from Forrester's 2010 Consumer Forum at the Hilton Chicago in downtown Chicago. We've got a crowd of 600+ folks on-site and are excited for another great event.

We've heard time and again that organizations need help responding to empowered consumers, and we're aiming to address that head on with our event this year. 

During these two days on the main stage, our roster includes fantastic stories of firms that have empowered their customers and employees, such as Vail Resorts, Southwest Airlines, the NHL, ESPN, and Kellogg. Plus, Forrester's very own Charles Golvin, Josh Bernoff, and Ted Schadler will present keynotes. There's more! We're also running 20 track sessions and countless one-on-one meetings with 30+ analysts. We're packing in as much great content as we can to make this a fantastic event.

If you can’t attend, be sure to check out the highlights of the speeches and the Twitter stream below. And join us next year! We'll have an equally exciting lineup of speakers and content in 2011.

9:25 a.m.-10:10 a.m. CST

The Empowered Organization

Josh Bernoff, Sr VP - Idea Development, Forrester

Forrester’s First-Ever Online Retail Forecast For Asia Pacific Now Live

Zia Daniell Wigder

After years of looking at how the online markets of Asia Pacific are emerging from an online shopping perspective, we are thrilled to announce our first online retail forecast for China, Japan, South Korea, India and Australia.* Some findings from the forecast:

  • Japan still takes the top spot in the region. Japan retains its dominance in the region with some $45 billion in online retail sales this year. Indeed, while China’s combined B2C and C2C spending surpasses B2C spending in Japan, Japan is still the leader in traditional online retail sales. And despite the fact that online consumers in Japan are purchasing across a wide variety of categories, some category purchases like beauty have shifted online in Japan in a way they have not in the US or Europe.
  • China’s growth rates will propel it ahead of Japan in the very near future. China’s combined  B2C and C2C sales — the two are nearly impossible to separate** — are poised to reach $49 billion in 2010. China’s CAGR will be double that of the US, Western Europe and Japan, and it’s clear that China will be the eCommerce market most likely to rival that of the US.
  • Australia’s robust growth will be driven by an increasingly vibrant online retail sector.  The online marketplace in Australia is marked today by a large number of cross-border transactions, but there is growing momentum among local players. Though less than half the size of the online retail markets in Japan and China, Australia’s growth rates are slightly higher than those of Japan and its US and Western European counterparts.
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National Australia Bank Tops Our Australian Bank Content & Functionality Benchmark

Benjamin Ensor

A few months ago I wrote here about our benchmark of the sales content and functionality of UK banks' sales sites. My colleague Vanessa Niemeyer has just published a benchmark of the big four Australian banks' sales sites. Crushingly for an Englishman, the Australians beat us. The four Australian banks achieved an average score of 56 (out of 100), compared with an average of 48 for the British banks.*

National Australia Bank (NAB) came top, just ahead of Westpac in second place, with Commonwealth Bank of Australia not far behind. The Australian banks demonstrate a series of good practices in their application processes, such as cross-selling during the application and automated confirmations. We highlight many of the good practices that the eBusiness teams at the Australian banks have developed in the report which is available for Forrester clients here.

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Looking Forward To Forrester's Marketing & Strategy Forum In London Next Month

Benjamin Ensor

Many of my colleagues in the eBusiness & Channel Strategy team at Forrester have been working extremely hard for the past few weeks, preparing for next week's Consumer Forum, which is taking place at the Hilton in Chicago on October 28th and 29th. Among my colleagues who are presenting their latest research are Brian Walker, Diane Clarkson and Zia Daniell Wigder, while Carrie Johnson is hosting the entire event. I'm sure it will be two days well spent.

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Thinking outside the American and European box

Zia Daniell Wigder

One trend over the past year has been a growing interest in markets outside of North America and Europe. We're getting an increasing number of inquiries about markets in Asia-Pacific, Latin America and the Middle East - companies are anxious to map out their strategies for major eCommerce markets like Japan and China, as well as others such as Brazil and Russia. Retailers with an offline presence in affluent markets like the Gulf States are considering supplementing their traditional retail channels with an online one.

If you're looking to expand into any of these areas of the world, I wrote up some observations which were just published in Internet Retailer yesterday. Have a look if you're interested in emerging trends among online buyers in China, Japan, South Korea, Australia, Brazil and the UAE. 

500MM Users...So Why Can't They Show You The $$??

Sucharita  Mulpuru

I was so glad to read Malcolm Gladwell’s piece in the New Yorker, because as a Facebook bear, I often feel alone in the wilderness.  Finally, I thought, a widely respected contrarian on the topic of social networks!  He says the “revolution won’t happen on Twitter.”  And I say “no one's revenue will come from Facebook.” 

While there is no shortage of bragging about how many people in the world are on Facebook, sadly none of them have generated any significant revenue for other companies. That may very well be The Social Network's bane.  I spend much of my day talking with, surveying and interviewing retailers and the general consensus I hear about social networks is that they just don’t drive revenue.  Nearly 60% of retailers agree that the returns on social marketing efforts are unclear.  Retailers tell us Facebook fans don’t buy after becoming fans, they don’t click on the posts that retailers make, and no one visits or buys from the Facebook stores (unless that’s the only place where your merchandise is available).  I contrast social networks with search, which even 10 years ago was regarded as one of the most effective marketing tactics out there even when few retailers were using it.  The State of Retailing Online Report from way back in 2001 had 88% of retailers saying paid search was effective.  To this day, search continues to retain that honor.  Social networks?  Not so much.  Only 7% of retailers say it’s an effective customer acquisition source.

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The Lone Cry for Growth In Insurance?

Ellen Carney

Yee Hah! The worst recession since the Great Depression was declared officially over in June of 2009. We should be feeling great, since all things considered, the insurance industry fared pretty well when it came to how it emerged from that dark tunnel. But except for one notable role voice, insurers, unlike their banking peers, are still holding back from growing the business. How do we know? We took a look at nearly 5,000 inquiries that Forrester answered for insurers, bankers, and securities firms in the wake of failure of Lehman Brothers to just after this May’s Flash Crash.

What was on the minds of insurers during these six quarters? For starters, insurers:

  • Asked more questions than their financial services peers. Of the three segments we looked at, insurers asked half of the inquiries we fielded—2,500 versus nearly 1,600 and 600 for banks and securities firms, respectively.
  • Framed more than half of those questions around risk. Insurers didn’t veer away from what got them through the recession intact (indeed, from the very nature of their business)—managing risk. Even questions about application development strategies were framed as a risk question, with most insurers seeking validation that they were following in the well-worn grooves of others in insurance (and other industries) before them.
  • Posed too few questions about growing the business. Unlike their banking and securities siblings who asked questions about growing the business through new product launches, up-selling and cross-selling, or luring new customers away from competitors, insurers, with one big role-based exception, did notreflect that Q2 2009 economic inflection point.
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