Key Metrics In Brazil’s eCommerce Market

Zia Daniell Wigder

In August and September of this year, we fielded a survey of online retailers in Brazil together with partner e-Commerce Brasil, an established industry organization. The goal was to better understand key performance indicators (KPIs) in Brazil as well as retailers’ priorities, challenges and the size and composition of eCommerce teams.

We received over 300 responses to our survey and have just published the first in our three-report series based on the survey. Retail eCommerce In Brazil: Key Metrics provides a look at over a dozen KPIs such as conversion rates, average order values, return rates as well as sales driven by smartphones and tablets. Our report analyzes the data by retailer type (web-only, traditional retailer or manufacturer selling direct) as well as by retailers’ total online revenues and tenure.

A few findings from the report:

Conversion rates in Brazil average 1.9%. In Brazil, we found conversion rates that varied quite a bit by type of retailer, with web-only retailers reporting the highest conversion rates. These rates tend to increase as markets evolve: Our previous research on The State of Retailing Online 2014: Key Metrics & Initiatives conducted with Shop.org yielded an average conversion rate of 2.7% for the US.

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The Mobile Mind Shift Is Transforming The Rules Of Customer Engagement

Katyayan Gupta

Mobile is drastically changing consumers’ behaviors and expectations. Forrester calls this phenomenon the mobile mind shift: the expectation that I can get what I want in my immediate context and moments of need. While the mobile mind shift is global in nature, it’s most profound here in Asia Pacific (AP): By 2020, 4.3 billion people globally will have a mobile subscription and more than half of them will be in AP. Organizations must take advantage of this and catapult their business to new heights — or risk becoming irrelevant in the eyes of these technology-empowered customers.

Forrester has developed a framework to help eBusiness and channel strategy professionals prepare their organizations for the mobile mind shift that we call the IDEA framework. This is a systematic approach to developing mobile experiences for customers relevant to their context and entails:

  1. (I)dentifying mobile moments and their context. A mobile moment is any time a person pulls out a mobile device to get what s/he wants immediately, in context. To understand your customers’ mobile moments, identify their needs, motivations, and context. Forrester recommends using customer journey maps for this step.
  2. (D)esigning the mobile engagement. Use these results as an input when designing the mobile engagement. The design should match your business objectives and your customer’s motivation in each moment. The key is to incorporate contextual information into the design language of the app so that it is easy for your customers to interact with you in their mobile moments.
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Three Things We've Learned About Emerging eCommerce Markets

Zia Daniell Wigder

As global eCommerce players like Alibaba and Rocket Internet have made headlines in recent weeks, there has been much focus on how eCommerce is emerging around the globe. While a lot of the media coverage has looked at the specific operations of these two players, it’s important to note some of the trends that are powering growth in emerging eCommerce markets. Below are two themes we discuss in our research — and one more that keeps rearing its head in the media:

  • If traditional retail stores don’t meet rising consumer demand, eCommerce will fill the void. In some emerging markets, the nature of the traditional retail market left consumers particularly ripe for eCommerce. In markets like China and India — which have highly fragmented traditional retail landscapes and few retailers with nationwide footprints — consumers in smaller cities have traditionally had little access to global brands. This situation leaves an opportunity wide open as the growing number of middle-class consumers seek out access to a greater variety of products. Even as eCommerce revenues have soared across Asia, few traditional retailers have been quick to embrace the new medium. Today, eCommerce in many countries across the region is almost completely dominated by Web-only players.
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Accelerate Digital, Don't Try and Control It

Martin Gill

Centres of excellence and shared service teams are nothing new. Its a concept that Technology Management teams have been wrestling with for years, if not decades in an effort to streamline underlying technical architecture and simplify application landscapes. In the digital world, its a less well established approach, but one that is gaining momentum as an emerging set of best practices forms around how to organize and manage a global digital strategy.

Pete Blackshaw has led the charge over the last couple of years at Nestle, establishing a widely publicised Digital Acceleration Team. The team focuses on “listening, engaging, inspiring and transforming” across Nestle’s disparate and diverse markets and brands. Its not just an operational centre of excellence, it walks a fine line between dictating to local teams and being a paper tiger with no real influence. And it does so very effectively.

But why “acceleration team” and not “centre of excellence”.

I believe that the language is important. For a local team, the idea that a global “centre of excellence” is going to roll up and tell them what to do can be a very negative experience. Do the global team understand the nuances of my market? Will migrating our lean, agile eCommerce platform onto the behemoth enterprise platform slow us down?

“Acceleration” helps create a more positive and collaborative approach.  

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Join Us At the eBusiness & Channel Strategy Forum in Chicago, October 28th and 29th!

Carrie Johnson

It’s a boardroom topic, it’s changing the way that firms do business, and it’s unleashing innovation at an unprecedented pace. No, it’s not the new watch from Apple, it’s digital business, and getting it right is crucial to the survival of nearly every business. Mapping Your Path To Digital Mastery is also the theme of our annual eBusiness Forum, which will take place in Chicago on October 28th and 29th. Come join us!

At the event this year we’ll be tackling this fundamental tension: According to our survey with partner Russell Reynolds, 73% of firms think that they have a digital strategy but just 34% of executives that think their digital strategy is correct, and only 16% believe they can deliver their strategy.

Danger Will Robinson! Firms are in trouble: Digital innovation isn’t slowing down and customer expectations are rising. And when you think it couldn't get any more difficult to pull off a digital business transformation, digital business success requires a new, even thornier element: the creation of ecosystems of value.

This means re-envisioning your business not as a standalone entity but as part of an ecosystem of suppliers that customers assemble according to their needs and an ecosystem of collaborating businesses sharing data and services.

Do ecosystems sound complicated? Don’t panic, we’re focusing the majority of our event content on how to create internal and external ecosystems. On the main stage, Forrester keynoters Bill Doyle, Martin Gill, Julie Ask and David Johnson will outline what it takes to become a digital business leader and to create partner ecosystems.  Speakers from Walgreens, 3M, Bank of America and others will share their firms’ digital business journey and transformation stories.

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Forrester Predicts The Future Of Retail Store Technology

Lily Varon

What lies ahead for the retail store? Yesterday, Forrester published a report that predicts the answers to key questions about the future of the retail store: Which digital technologies currently on the periphery of the store environment will make the leap to the sales floor? How will retailers know which technologies have potential and which will remain gimmicks?

In the report, we outline the utility and predicted chronology of several technologies, including:

  • Proximity technologies. Retailers will know when and where an associate is needed, by whom, and for what purpose.
  • Wearable technologies. Associates will access the relevant data to provide optimum customer service with minimum intrusion.
  • Facial scanning technologies. Retailers will know their in-store customers’ histories, preferences, intentions, and needs and will cater the store experience to them.
  • Smart countertops. Retailers will embrace consumers’ propensity to do product research while shopping in-store and enhance the utility and experience at the same time.
  • 3D printing. Retailers will make the inventory they need on-site or once it’s been purchased.

For more on Forrester’s take on the usefulness of these and other technologies, and to see our predictions of when we’ll see them enter the retail store, see the report (client access required).

Which technologies do you think will realistically make it into retail stores of the future?

I look forward to your thoughts. 

Lily

Aetna's CarePass Saga Presents Valuable Lessons To The Healthcare Industry

Peter Mueller

Last week, Aetna decided to decommission CarePass, its consumer data aggregation platform. It was initially much heralded; however, this development highlights some of the fundamental problems with the health plan’s early forays into this space. I have outlined these issues in my new report, “The Unfulfilled Promise of Plan-Owned Digital Health and Wellness Platforms.” The report went to publication before the CarePass development was announced, but this decision is not at all surprising and validates many of the fundamental challenges with early platforms identified in the report.

The decision to unplug CarePass underscores the fact that there are lots of hurdles for enterprises when it comes to growing digital health as a business. What’s interesting about CarePass is it actually cycled through several different business models during the course of its evolution – ultimately repositioning the business model late last year to go directly after employers. With this pivot, CarePass essentially became a “bring your own” wellness tool servicing the traditional book of health plan business. This may have been the best approach for CarePass, but it came late in the game. Insurance, as a whole, is going to change dramatically over the next three years — with exchanges, defined contribution, etc. Given the competing priorities and the struggles to gain adoption, CarePass may have been doomed before the final pivot back to the employer. However, CarePass did a lot of things right and the CarePass team should be congratulated for their forward approach to the market.

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Starting A Mobile Banking Project? There's A Checklist For That

Peter Wannemacher

In his excellent book, The Checklist Manifesto, Atul Gawande makes a compelling case for the power of simple checklists to avoid issues and mistakes during the decisioning process. Gawande's thesis is essentially this: A consistently applied, step-by-step checklist can be enormously valuable for a range of professionals from doctors to software designers to executives at major companies.

Add to this group the lowly mobile banking strategist.

So Forrester built a checklist for anyone leading a mobile banking project. I encourage you to download it today. (It also conveniently prints out as a two-page physical checklist for those who still love paper!) Our checklist provides 20 key questions you and your team should ask and answer. These checklist items are divided into five key areas (see image below).

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Where’s Your Next $Bn In Growth Coming From? Your Home Market? I Don’t Think So…

Martin Gill

Depending on the viewpoint of your favorite economist, the recession may be over. But retail growth is far from buoyant in many markets. The UK retail sector shows healthy signs of recovery, while US consumers seem be less confident. There are numerable success stories; John Lewis passed the £1bn online revenue mark this year, while Macys is in its fifth year of double-digit online growth, in spite of a slightly shaky offline performance. But as an eBusiness leader, no matter what your local market conditions, I’m willing to bet one thing.

Your growth targets haven’t gone down.

For many years, growing online revenues has been a core strategy for most B2C firms, and many B2B firms are also riding the eCommerce wave. But as markets become crowded and competition becomes tighter, globalization is an increasingly attractive option for eBusiness professionals. With southern European markets seeing online growth rates in the high teens and even bigger opportunities like Russia and China on the global horizon, it’s no surprise that an international strategy is high on the agenda for many eBusiness leaders.

But going global is complex.

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Can Gamification Boost Digital Bill Pay?

Peter Wannemacher

[Quick note: If you read my old blog post about gamification, you may hope to earn more Peter Wannemacher Points. Well congrats! You just earned 150 more Peter Wannemacher Points! Plus, you can collect a digital badge if you read to the end of this post and send me an email!]

Forrester has outlined how and why digital teams at banks should employ gamification - defined as the insertion of game dynamics and mechanics into non-game activities to drive a desired behavior - to engage customers and employees. Banks like BBVA have used gamification in online banking. But what role can tech solutions vendors play in helping banks better employ gamification techniques?

Fiserv’s current version of CheckFree RXP uses gamification to increase digital bill pay adoption among its bank clients - our research shows online bill pay is a critical secure site feature on banks' websites. So I spoke with Justin Jackson, senior product manager at Fiserv, about the company’s use of gamification. Right away, he made it clear that gamification is not just “building an online game for people to play” but the process of “taking cues from game design to better engage users.”

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