On November 20, Google released a report on the findings from a survey it conducted in collaboration with Forrester on online shopping trends in India. The report highlights what’s driving the growth of eCommerce in India, including mobile commerce, female shoppers, and the growing number of people in tier two and tier three cities making purchases online. However, the report also noted some barriers to online retail in India, such as its poor showing regarding customer satisfaction and trust; to make further progress, eCommerce firms must work hard to improve in these areas. The report’s key findings involved:
Mobile shoppers. Mobile is driving the market, especially in tier two and tier three cities in India. Half of the online shoppers in tier three cities are already on mobile, compared with just one-third in tier one cities. The percentage of online buyers making shopping queries from a mobile device has grown from 24% in 2012 to 57% in 2014. Forrester forecasts that mCommerce in India will reach $19 billion by 2019.
Women. Women are far more active buyers than men in tier one cities. They outspend men online by two to one, and one-quarter of women in tier one cities make mobile purchases.
New buyers. More than 70% of people in tier one and tier two cities who do not currently make purchases online are expected to do so in the next 12 months.
New growth areas. Home furnishings, cosmetics, and baby care are the next areas of growth for online retail after the success of online retail in the consumer electronics segment.
Indian consumers are more likely to own a mobile phone and use it to access the Internet than own a PC or laptop and use a wired Internet connection. The stats speak for themselves: As of September 2014, India has more than 930 million wireless subscribers against just 27 million wireline subscribers. And while just 8% of these 957 million subscribers have a broadband connection (with download speeds of 512 kbps or better), fully 80% of them are mobile users.
This is leading to the mobile mind shift: the expectation that consumers can get what they want in their immediate context and moments of need. This trend is particularly evident in retail; today’s consumers are increasingly using their mobile devices to accomplish a variety of shopping-related tasks online – from researching a product to buying it.
Forrester has developed a global retail segmentation framework to identify, assess, and compare the behaviors of shoppers in various countries. Five segments identify the most prevalent and regular shopper behaviors (see figure below). According to this framework, 6% of metro Indian online users fall into the Mobile Shoppers segment. In comparison, only 4% of online users in the US are Mobile Shoppers! Even the percentage of Super-Shoppers in India is more than twice that in the US.
This week Google started promoting mobile optimized websites in their search results:
Frankly I'm amazed it's taken Google this long to implement, however for mobile users it's a welcome addition to the search experience that alleviates the pain of clicking on a link only to find a desktop site at the other end. Now the consumer is in control and armed upfront with a Google endorsement of mobile readiness. This strategy is part of an evolution of preemptive warnings for mobile search users. Earlier this year Google started warning mobile users of destinations using Flash or destinations with broken links that would result in a re-direction to the destination homepage.
The unveiling of the Apple Watch in early September left consumers and industry analysts with more questions than answers. After the sluggish sales of smartwatch predecessors, what is the actual market opportunity for Apple’s wrist-based wearable? Will consumers’ perception of the technology motivate them to make a purchase? And what type of consumer is most receptive to this device?
In my recently published report, I leverage Forrester’s Technographics®360 multimethodology research approach to answer these questions. So far, reaction to the Apple Watch has ranged from skepticism to enthusiasm, and our data shows that the story of Apple Watch adoption is indeed two-sided. Our evaluation of consumer behavior and attitudes reveals an immediate market opportunity for the device as well as psychological barriers to adoption:
However, the story doesn’t end there. Between the advantages and challenges of Apple Watch adoption emerges a third reality, which synthesizes the two. Apple Watch uptake will evolve, with early adopters, motivated by excitement, biting first and a second wave of mainstream consumers – who can see and experience the benefits of the device – buying next.
Social marketing is reaching maturity. It is moving past the awkward adolescent stage and is trying to become a responsible adult. But similar to similar to those awkward adolescent years, a social marketing program can take one step forward and one step back. Marketing leaders tell us that developing their social marketing capabilities is frustrating because they make progress in some areas and fall short on some others. And even best-in-class social marketing programs are not immune to development challenges. For example, an award-winning social marketing initiative may regress because the social marketing team fails to get more resources to grow their program(s) and/or their customers' social behaviors are changing. This is why you must assess your social marketing capabilities on a regular basis and make it part of your planning process. As soon as you become complacent, you lose your edge.
A new pneumonia virus first infected a few people in China in November 2002. A scant seven months later, the virus known as SARS had infected more than 8,000 people in 26 countries and caused 774 deaths. The international medical community mobilized: Within one short month, it discovered the virus that caused SARS, completed its genetic sequencing, outlined its modes of transmission, and communicated guidance for managing the outbreak.
How did this happen so fast? The power of collaboration. A network of 11 laboratories in nine countries came together and collaborated to identify the cause of SARS and how best to combat it. They shared research in near real time, empowering each lab to build on the work of the others. Compare the success of this collaborative effort to the three years it took to discover that HIV led to AIDS as well as the slow movement to solve our current Ebola crisis. Clearly, collaboration when mobilized can have a huge, positive impact on the world in which we live, work, and play.
Now, just because CMOs and CIOs are not curing world hunger or an infectious disease, that does not mean they can choose to ignore the power of collaboration. In fact, as CMOs and CIOs, you too need to be collaboration superstars in order to prosper in the age of the customer.
In our new report, Want To Improve Your Customer Experience? Turn To The Cloud, we examine how cloud services can help customer experience professionals drive flexibility and responsiveness into their customer experience ecosystems. At the heart of this report is our read of cloud services' fundamental value:
On November 5, Dell announced new data and analytics services at its annual Dell World customer event. Having integrated the analytics products it acquired — such as Kitenga (from Quest), Boomi, and StatSoft — Dell is now trying to build big data analytics capabilities based on a big data platform, visualization, and advanced analytics. These analytics technologies are appealing to technology management teams in end user organizations, but they may not meet the expectations of lines of business, especially for marketers facing increasing and rapidly changing demand for data and analytics.
As part of its effort to enhance its customer analytics offerings, Dell hired new leaders with marketing experience for its analytics business, such as its new GM of advanced analytics for marketing. And the company has started to move analytics offerings into the marketing arena:
Social media analytics is extending to the cloud. Dell hosts its social media analytics products on the Microsoft Azure platform and has started offering social listening products powered by Radian6. The cloud platform helps Dell serve a wider variety of client companies, from large organizations like the American Red Cross to small and medium-size businesses. The vendor is helping marketers optimize their customer segmentation, but it needs to do more to help marketers better recognize and engage with customers.
Master data management services are strongly integrated but are weak on analytics. Dell consolidates data (such as transactional, CRM, and supplier data) from disparate sources into a central repository and distributes it downstream. However, its customer data analytics capabilities are poor and make it difficult to evaluate, for example, average customer lifetime value.
Forrester recently published its 2015 Predictions for Asia Pacific. I wanted to highlight some specific trends around customer insights (CI) and big data, two very hot topics for many AP-based organizations.
We strongly believe that success for many organizations hinges on your ability to close the gap between available data and actionable insight. Marketing is taking the lead here, as CI pros seek to use data to fuel customer engagement improvements. Hence 2015 will be a year of increased fragmentation as reliance on analytics spreads across organizations.
What will this mean for you? More cloud-based and mobile analytics, more demand for interactive and responsive analytics, and more use of specialist and niche BI and analytics service providers. Given this backdrop, Forrester believes that:
Analytics spending will increase by at least 10% across the region. Yes analytics spending will increase, but less of it will be visible in the CIO's budget. Marketing and other business departments will drive analytics investments to address specific challenges and opportunities. The technology management (TM) organization will have little control over the implementation and deployment of niche and specialist BI and analytics services.