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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Software App Stores And The Implications For eCommerce

Peter Sheldon

For eBusiness leaders, software app stores represent a new and disruptive distribution channel for PC and Mac software.

Three weeks ago, Apple launched its App Store for Macs, following in the footsteps of the hugely successful app store for the iPhone, iPad and iPod touch. With the new Mac app store, Apple is hoping to change the way Mac users discover, download and purchase software. At launch the store contained more than 1,000 apps, and Apple was keen to report an impressive 1 million downloads on the first day. For Mac users it’s a compelling story:

  • A convenient one-stop shop. Users can launch the app store right from the Mac dock, revealing a powerful set of discovery tools to browse and search the library of apps on offer. eCommerce best practices are employed throughout including search, faceted navigation, what’s hot, top sellers, favorites and customer reviews to create an intuitive discovery experience.
  • Frictionless purchase and install experience. Downloading and buying in the app store is a simple one-click process. By linking the checkout and payment process to users' iTunes accounts, Apple is able to streamline the buying process significantly versus a typical multipage checkout process common on software publishers' eCommerce sites. The apps in the Mac store have been packaged to comply with the Mac app install process, making the installation quick and seamless compared to the multistep install process common with most software.
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The Evolving Behavior Of Smartphone Owners

Julie Ask

"A phone is a phone. A  phone stays at home. A phone doesn't go with me in the car or out on the town." Not quite the skill set of Dr. Seuss, but this is a direct quote from my 78-year-old friend from the pool. She just disconnected her home phone and now relies solely on a new iPhone 4.

Our clients have watched their traffic (and sales) from mobile devices explode in 2010. Much of this excitement stems from their observations of those customers with either iPads or what we call smartphones — all of the Apple, Android, BlackBerry, HP/Palm, Symbian, and Windows devices consumers own. Adoption of these devices has been growing rapidly. It is hard to name a media outlet, retailer, airline, hotel, bank, insurance provider, fast food company, beverage company, or consumer packaged goods company without an iPhone and/or Android application today. When these same consumer product and service companies look forward at smartphone sales forecasts for the next couple of years, the excitement around the potential opportunities is even greater. They are thinking, "... more smartphone owners will mean more downloads of my applications will mean more sales via the mobile device ...." Will it?

My colleagues Charles Golvin and Thomas Husson and I began to describe this phenomenon in our recent Mobile Technographics report. Will consumers move up the ladder? Or leap over steps? Will increased smartphone adoption translate directly into more usage and sales to companies with mobile services?

I offer two more personal observations.

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The Globalization Of eCommerce In 2011

Zia Daniell Wigder

Nearly one year ago, I asserted that the global economic downturn had not slowed the international expansion of eCommerce initiatives. In 2010, online retailers continued their push into new global markets: Gap launched eCommerce sites in the UK and China while starting to ship internationally to other markets; Amazon launched its first new localized Web site in six years;  Zara went live with eCommerce sites in six European markets.

The push toward global expansion is poised to continue in 2011, with few companies suggesting that international markets will represent a decreasing percentage of revenues in the future. And while Canada and the UK still rank as the top destinations for US online retailers operating abroad, it’s not just the markets of North America and Europe that are attracting attention. Indeed, companies increasingly cite emerging markets as key to long-term growth. A survey of business executives just released in the McKinsey Quarterly indicates that more than 75% of those surveyed expect to see revenues from emerging markets within the next five years; more than one-third of companies expect those revenues to represent more than 25% of the total.

Looking forward to 2011, we expect to see the following trends:

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What 1D Product Codes Did Consumers Scan This Shopping Season? Toys ...

Julie Ask

ScanLife reported that the amount of scanning traffic was 30x higher during Thanksgiving weekend than one year ago. Wow! Product purchases from the application were also up nearly threefold. Books were most purchased. Toys were most scanned. See this story on PR Newswire. This Forrester report offers our perspective on a developing technology.