“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.
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.
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)
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 :
As the online holiday shopping season comes to a close, we’re in the process of pulling together our final thoughts on this season. Last month, we predicted that the season would grow 15% over the previous year and by all accounts, that number should more or less be in the ballpark of what actually happened.
I worked with the great team at Bizrate Insights again this holiday season to survey online holiday shoppers and their attitudes and here were some of the highlights from that research:
The web is cannibalizing Black Friday sales; 80% of online buyers we surveyed agreed with the statement “I prefer to shop online rather than go to crowded stores during the Thanksgiving weekend.”
Email is very much alive; shoppers said they find out about holiday deals through email more than any other marketing channel including search, social networks and mobile texts combined.
Approximately 12% of web buyers now say they belong to shipping clubs (e.g. Amazon Prime); that is up from 9% last year.
Sixteen percent of online buyers said they shopped with their mobile devices over the Thanksgiving weekend this year, up from 9% last year.
While mobile shopping is the most notable difference this year, retailers that mastered the basics of great values, extensive assortments and effective marketing campaigns should have fared best. We’ll be releasing a holiday post-mortem in January as well as our 2012-2017 online retail forecast in early Q1; stay tuned for final figures.
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.
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.
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.
Forrester’s two recent reports — 2011 US Bank Secure Website Rankings and 2011 Canadian Bank Secure Website Rankings — highlight the incremental improvements banking providers have made over the past year. Overall, scores among US and Canadian banks rose by an average of five points. The biggest gains can be seen in the improved usability of the websites, with big advances in users’ ability to navigate banks’ secure websites. Canada’s six largest banks gained more ground than their counterparts south of the border, with firms such as Bank of Montreal and Scotiabank rolling out completely overhauled secure sites. In terms of individual banks, we found that:
· Wells Fargo, Bank of America, and Chase take the top three spots overall. Wells Fargo’s secure website is the only one we evaluated that scored above a 90 (out of 100) in the category of transactional content and functionality. In addition, it ranked first or second across all four categories of usability we evaluated. Bank of America earned an overall score of 81 by offering best-in-class alerts and self-service functionality. Chase, meanwhile, had a strong showing with convenient secure website functionality such as multiple bill payment options and solid mobile banking features.