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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Clamoring For Answers Around Your Insurance Claims Strategy? You’re Not Alone

Ellen Carney

Without a doubt, the hottest inquiry category for insurance ebusiness and channel execs (and insurance IT, for that matter) has been anything to do with claims.  And why not, since as one insurance ebiz executive we talked with pointed out, isn’t claim handling the real business of insurance?   We also saw the big interest in both customer experience and claims processing when we surveyed 75 or so US and Canadian insurers a little less than a year ago, with both appearing in the top three insurance business priorities into 2011.

The claim is the real moment of truth in the insurer-policyholder relationship, and that experience is a big factor in whether that policyholder decides to stick around when the claim gets settled.  Just what’s on the minds of insurance roles when it comes to claims this year?   For starters, here’s a sampling of claim-related inquiry topics I’ve fielded:

  • What’s the business value of claims concierge services?  (and check this out—three inquiries about claims concierge services in two days!)
  • Why do policyholders still want to file claims with their agents?
  • How is document scanning and imaging being used for claims?
  • What role is streaming video playing in claims?
  • What’s the state of mobile claims applications for field adjusters?
  • And many, many questions on the vendor landscape for claims applications, including an interesting one on  integrating legal matter management into the claims system for asbestos-related workers’ comp claims

I’m just wrapping up a report on how carriers can tame the claims beast, but in the meantime, if you’d like to learn our thinking and what else is simmering around the topic of claims, that’s just an inquiry away.

The Expanding Community Of Web Buyers Boosts EU And US Online Retail Growth In 2011

Patti Freeman Evans

Forrester has just released its US Online Retail Forecast, 2010 to 2015, and EU Online Retail Forecast, 2010 to 2015. It is clear from our forecast data that online sales in the US and EU will continue to rise as users become increasingly comfortable buying in the online space. In 2010, US online retail sales grew 12.6% to a total of $176 billion. Similarly, EU online retails sales grew 18% in 2010 to a total of $81 billion. The US and EU markets are projected to grow 12% and 13%, respectively, in 2011.

Why is retail eCommerce continuing to grow?

  • There is an increase in overall web buyers. There were 5.5 million new US online shoppers who accounted for 30% of the total eCommerce sales. The EU online population grew by 13.4 million users in 2010.
  • Web buyers are spending more online. 70% of growth in US retail eCommerce sales came from existing shoppers spending more. Similarly, EU average online spend has increased 8% from 2010.
  • There is an increased level of penetration for online retail. Mobile devices and the proliferation of touchpoints have contributed to the US online retail penetration growing to 8% in 2010. The EU is also seeing steady growth; Forrester is estimating 10% penetration in the UK by 2012.
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Unleashing The Location Potential In Your Mobile Commerce App

Peter Sheldon

The consumer appetite for smartphones shows no signs of slowing in 2011 and neither does the growth of the mobile channel at leading retailers. eBusiness leaders, who have been focused on replicating the online store experience on mobile are now turning their attention to new mobile innovations that will not only drive revenue growth for the mobile channel but create an immersive multichannel consumer experience that bridges the gap between online and in-store shopping.

Location-based commerce is one such innovation that is gaining interest among eBusiness leaders responsible for mobile strategy. Some retailers have experimented with third-party location-based services including foursquare and Shopkick to roll out location-aware mobile coupons. A few retailers have innovated further and are developing location services into their own mobile shopping apps beyond the basic "store finder" feature to create new ways to interact with shoppers via their smartphones. With my latest research, Location-Based Commerce: An Evolution In Mobile Shopping, we look at how consumers' mobile shopping habits, location technology available in newer generation smartphones, and mobile push notifications have matured sufficiently to empower a new set of location aware multichannel experiences. Retailers are using geo-fences defined in the vicinity of their brick-and-mortar stores to attract nearby consumers by sending relevant, timely, and location-aware messages to customers' phones.

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Survey: Are Operating And Acquisition Costs Higher Or Lower For Digital Channels?

Carrie Johnson

Are costs to run your eBusiness operations increasing or decreasing? Last year eBusiness professionals reported that on average they spent over $25 million annually to run their eBusiness channels. With the pace of innovation and investment in digital channels barreling forward, we expect that number to increase in 2011. The only way for us to know though is for you to help us. As part of our quarterly panel survey of eBusiness professionals, we have deployed a survey to get to the heart of the cost of running digital channels -- namely the Web and mobile -- and also to understand how the cost of customer acquisition varies by channel.  We'll publish the results in an upcoming research document. 

Because this will be the third year fielding this survey, we'll be able to provide year-over-year data when we publish the results to highlight the key areas in which eBusiness costs are rising and falling, with more emphasis on mobile in particular than before.

Please take our survey today. It should take about 15 minutes to complete, and you'll get to choose some free research as a thank you from us. As always we'll only publish aggregate results and will never list the names or companies of participants. It's Valentine's Day after all, please share some survey love!

Some Observations From Finovate Europe

Benjamin Ensor

For the past few years I have watched enviously as the Finovate online financial technology show has gone from strength to strength in San Francisco and New York. So I was thrilled to hear that Finovate was coming to Europe and today I was lucky enough to go along to the show in London.

For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.

The big themes were:

                Money management: Figlo; IND Group;  Linxo; Lodo Software; LoveMoney.com; Meniga; Strands Personal Finance; Yodlee.

                Security: Business Forensics; miicard; SilverTail Systems; SolidPass; Voice Commerce.

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