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.
When we think about the Thanksgiving weekend and online sales, we’re conditioned to think "Cyber Monday." But now there’s another online sales story to report -- Black Friday.
While Cyber Monday saw a record $1.25B in online sales this year, a somewhat underreported story was that Black Friday also set a record by bringing in $816MM– or nearly the same amount spent on Cyber Monday just two years ago.
Increased Black Friday online sales are being driven by:
A behavioral shift among consumers. In 2010, 49% of consumers surveyed after the Thanksgiving holiday weekend said that they shopped less in stores on Thanksgiving weekend because they were shopping online instead. In addition, an increasing number of online shoppers report that they are now pre-shopping online for Black Friday deals.
High traffic throughout the weekend. This year, Thanksgiving Day took the top spot for holiday weekend online traffic, but Black Friday finished second -- edging out Cyber Monday by a nose. Data from Experian Hitwise shows that traffic to the top 500 online retailers increased by 2% YOY on Black Friday to more than 170 million unique visits.
The consumer perception that better deals can be found online. 58% of US online adults say that they are more price-conscious today than they were a year ago. 48% maintained that they found better values and deals online.
As the debate around mandating an online sales tax rages on, Forrester remains convinced that 2012 will see no significant national change to the current tax structure. As stated in my new report, “What You Need To Know About The Online Sales Tax” and a previous blog post around the issue, some are framing the debate in such a way that online-only companies like Amazon and eBay are tax-shirking delinquents; they’re not. Not only are they in compliance with current law, Amazon, who was at one point resolutely opposed to any new legislation, has made concessions to voluntarily start collecting tax and in fact, physical retailers may soon regret their staunch stances as the balancing act that Amazon avoided around nexus kept them squarely away from physical stores to date. Now, that may change and create yet another headache for retailers as Amazon reportedly ponders stores.
So what does this all mean? There is likely to be a few more years of heated debate around the issue followed by a number of possible outcomes. eBusiness professionals should stay abreast of situation, but realize that this is not likely to be a game changer for the following reasons:
Tax has a negligible impact on online shopping behavior. In a survey that was conducted in partnership with Bizrate Insights, we found only 8% of consumers said that tax was a priority consideration. Furthermore, only around one quarter of buyers said that the introduction of a sales tax would cause them to switch retailers.
But before we get too excited about what that could mean for 2011 holiday spending, consider this: The reason the unemployment rate dropped from 9.0% to 8.6% in the household survey was as much due to the fact that 315,000 people gave up looking for work as that 120,000 people actually found work. It’s a big flaw in the way the US unemployment rate is calculated that the rate can actually go down (so appear to improve) when people just stop looking for work.
The reality is we won’t know the true unemployment rate until those who’ve given up looking for work re-engage in the job hunt and fill out that total workforce denominator (at which time the unemployment rate will actually go up temporarily before then finally coming down as we start seeing that recovery). But we’re not there yet.
The co-reported payroll employment number is a better indicator of job growth because it comes from a much broader and deeper survey called the payroll survey. But for November that number (120K new jobs created) only matched expectations and is actually below the minimum number (approximately 150K) needed to keep pace with population growth in America. So, unfortunately, not much real gain there. And sadly, there’s probably not much to say about a jolt to the 2011 holiday shopping season either.
I've written a lot about the notion that the "Future Of Mobile Is Context" this year at Forrester. Since publishing this research this spring, I've been searching for examples and case studies of innovative uses of context. (See how marketers and eBusiness pros can leverage context.)
Coca-Cola is allowing consumers in Hong Kong to enter a sweepstakes by virtually collecting bottle caps from a 3rd screen (TV, movie theather). The audio signal from the commercial triggers the application/ syncs the user's motion with the video. The acclerometer is used to assess the quality of the motion of the user's mobile phone — the device that is used to catch the bottle tops virtually. See video.
Why is their use of context sophisticated?
In the research, I describe the four phases of evolution.
Phase 1: the basics — leveraging location, time of day, etc.
Phase 2: layering intelligence — so, not just time of day, but time of day relative to an event
Phase 3: using new technology in phones (e.g., sensors, two cameras, etc.)
Phase 4: more sophisticated use of the sensors and technology to control the device
Coke's campaign is what I would call a v 2.0 use of mobile (they are enhancing another touchpoint - see research) with some Phase 3/4 context. They enhance the video/commercial experience by getting the consumer to be active. The act of collecting the bottle tops gets the consumer off the couch and to interact with the ad directly. I think it's very cool.
EBay is now the latest entrant into the field of retail experimenters that are trialing the concept of a “virtual store.”
EBay joins Occado and Tesco in embracing the increasing number of Multidevice Buyers in the UK who use their smartphones not only to inform their offline shopping journeys, but to buy products as well. EBay’s pop-up store in the heart of London promises to allow shoppers to browse products in person and purchase via a QR-code-driven mobile shopping experience.
While eBay's store is very deliberately designed as a temporary pop-up, others are approaching the same challenge in a completely different way. House of Fraser recently launched a concept store in Aberdeen that carries no stock but offers shoppers the opportunity to sip a free cappuccino while they browse House of Fraser’s website on dedicated Internet stations.
I'm so excited to announce that today we have launched Forrester's new free eBusiness benchmarking tool. With the tool you can compare your key performance metrics against your peers'. Plug in the answers to a few questions about your eBusiness budget and metrics and our tool will instantly compare your answers to similar size companies for five key benchmarks:
The size of your annual eBusiness budget
The number of staff dedicated to your online division
The percent of overall sales that occur online
The size of your eBusiness team
The percent of customer service interactions that occur online
The tool will not only show side-by-side results, it'll also produce a nifty PDF for you to print out and show to your colleagues. But wait there's more! We have a suite of research that helps our clients act on results, outlining how to improve those five key metrics to keep up with competitors and align with best practices. We've summarized all of our advice on how to use the benchmark tool and to improve results in an accompanying report called "Benchmark Your eBusiness Strategy And Results" (sound familiar?) and I encourage you to read it.
We also have a whole body of research that we think help turbo charge your eBusiness results.
Over the past couple of years I have been intrigued by the concept of a 'digital wallet' that will combine mobile payments with a variety of other benefits for customers. The more people I talk to, the more convinced I am that mobile digital wallets will mark a big shift in retail payments. A mobile digital wallet is more than just a mobile payment system because it combines:
Mobile payment. Digital wallets are likely combine several different payments systems into a single service, including mobile contactless payments, online (i.e. web) payments, and over-the-network mobile payments, making it easy for customers to make a variety of different types of payment from a mobile device.
Barcode scanning. Scanning barcodes or QR codes will let customers get more information about products, and let them pay for items on their phones before showing an on-screen receipt to leave the store.
Loyalty rewards. Instead of carrying (and sometimes forgetting) a separate loyalty card, digital wallets will track customers’ spending and offer merchant-funded rewards, either on the phone or at the point of sale.
Coupons and offers. Digital wallets are likely to offer customers coupons and location-based offers.
A few days ago, online coupon site Retailmenot.com released results from its inaugural holiday edition Shoppers Trend Report. A combination of consumer trend data pulled from activity on Retailmenot.com and a survey by Ipsos regarding near-term consumer sentiments, the report corroborates much of what Forrester recently predicted for this year’s holiday shopping season:
Growth in overall retail spend will be positive but small. According to the Shoppers Trend Report, only 11% of consumers surveyed intend to increase their holiday spending. Similarly, the National Retail Federation (NRF) and Forrester predict the U.S. will see only a marginal increase of 2.8% growth in overall retail spending this holiday season.
Coupon use is on the rise. 58% of US online adults say that they are more price-conscious today than they were a year ago. Not surprisingly, Experian Hitwise has seen downstream traffic from retailers to couponing sites grow 69% in the last three years. Similarly, Retailmenot.com has seen online coupon usage increase 23% in the months leading up to the holiday season. Seems if there’s a deal lurking out there on the internet, price conscious consumers are out to find it.
Free shipping is preferred by online shoppers. 59%of US online adults say that they shop online more often with retailers that offer free shipping. In fact, according to the Shoppers Trend Report, free shipping is the coupon promotional offer most favored by consumers – preferred by 26% of all shoppers.
Without naming names, I’m struck by the sharply different perspectives these executives have. Simplistically, their view of mobile banking falls into two camps:
Mobile is just another channel. These executives see mobile banking as a way of letting customers do old things, like checking their account balance, in new ways.
Mobile will revolutionize retail banking. These executives believe that mobility could turn the retail banking industry upside down, by enabling customers to do entirely new things like scanning bills to make payments, responding to location-based offers, and receiving rewards at the point of sale.