The Indian online retail market is still nascent, yet it is growing rapidly. Despite all of the existing challenges — underdeveloped logistics and supply chain operations, poor last-mile connectivity, delivery rejections at the doorstep when cash-on-delivery payments are used, and low conversion rates — online retail in India grew by 67% in 2013. Forrester expects India’s online retail spending to grow at a compound annual growth rate (CAGR) of more than 50% over the next five years as more Indian consumers start purchasing online. Our recently published report India Online Retail Forecast, 2013 To 2018 discusses our online retail forecast and the growth drivers for India.
On the demand side, Forrester sees a lot of room for growth in the number of Indian online buyers. India had a total population of 1.28 billion in 2013, nearly 16% (or one in six) of whom are online. While higher PC penetration rates have driven Internet adoption in the developed economies over the past two decades, faster mobile penetration is helping boost the Indian Internet population, thanks to “mobile-only” Internet users.
Of all Indian online users, just 14% currently purchase online. Forrester expects the online buyer population in India to grow to 128 million by 2018. Mobile Internet access will be a catalyst for the growth of online retail in India. Several Indian online retailers have reported a large increase in their mobile traffic in 2013, which was virtually nonexistent two years ago; in 2013, almost 20% to 30% of the Indian online retailers web site visits came through mobile. Additionally, mobile commerce accounted for 10% to 15% of online retailer transactions.
While this $320 million acquisition of a behind-the-scenes ad tech company seemingly pales next to Comcast's splashy $45 billion bid for Time-Warner, it is a more important transaction for the evolution of television advertising. FreeWheel provides essential functionality for the networks to maximize revenue as their advertising inventory splinters across computer, tablet, and smartphone devices as well as cable, Internet, and mobile delivery systems.
It is safe to say that online and mobile banking have hit mainstream. Today, more than half of all adults with a bank account in France, Germany, Italy, Netherlands, Spain, Sweden, and the UK use banking services — which we define as information requests, transactions, or alert delivery — on their PCs, tablets, or mobile phones. The uptake of tablets and smartphones gives banks an opportunity to engage their customers deeply across platforms. Our recently published Forrester Research Digital Banking Forecast, 2013 To 2018 (EU-7) explores how each Internet-connected device will drive future online and mobile banking adoption across seven key European markets.
The forecast identifies some key trends in the European digital banking market.
1. Mobile banking adoption continues its sturdy growth. As recently as 2009, mobile banking activity was negligible, representing fewer than 5% of all adults with accounts. Adoption has risen nearly fourfold since and will continue to grow at double-digit compound annual growth rates through 2018. However, consumer concerns about device security will restrain growth: In all the European countries we track other than Italy and Spain, consumers are more than twice as likely to cite security concerns as a reason for not using mobile banking than for not using PC/tablet online banking.
On February 24, Oracle announced it was buying data management platform BlueKai for an estimated $350 million, to add to its enterprise marketing suite.
This acquisition is the latest in a string of big-ticket purchases that Oracle has made recently to further flesh out its marketing offerings. In 2012, it acquired Eloqua, a marketing automation firm, and in 2013, Oracle bought cross-channel marketer Responsys. There have been smaller acquisitions along the way, too. The combination is meant to position Oracle as a serious competitor to established enterprise-level marketers, specifically, salesforce.com and Adobe.
I think that marketers should take notice of this latest move by Oracle and ask themselves a few questions about it. More specifically:
Calling Aereo a “direct assault” on the broadcast industry's business model, a coalition of TV companies indicated in court papers that Aereo's continued existence could mean the end of free over-the-air television.
In my reading of the Constitution, I see neither a right to free TV nor protections for an existing business model (snark over).
About a year ago, I wrote a gentle but firm breakup letter from CMOs to the marketing funnel. They have a more attractive love interest who is in the relationship for the long haul; the perfect partner for the age of the customer. For many, calling it quits with the marketing funnel has been messy and difficult, leaving a lot of marketers desperate to move on, but pulled back to the familiar, comfortable arms of linear, campaign-driven, transaction-oriented marketing.
Like your best friend who was willing to be patient and forgiving as you repeatedly returned to your ex, it’s time I throw down the gauntlet: Commit to the customer life cycle or be left behind by your peers who get that the terms of engagement have changed. Loyalty, context, and relevance are the new black as customers outrun campaigns, have heightened expectations for brand interactions, and use mobile technology at remarkable scale. This is not the customer Elias St. Elmo Lewis was dealing with. Fundamentally different customer behavior demands new tools.
In the age of the customer, companies must be customer-obsessed, putting knowledge of and engagement with customers ahead of all other strategic and budget priorities. The customer life cycle is the framework that puts the customer at the heart of all activities, allowing the customers’ unique context and set of interactions define what their brand experience is.
About a year ago, I wrote a gentle but firm breakup letter from CMOs to the marketing funnel. They have a more attractive love interest who is in the relationship for the long haul; the perfect partner for the age of the customer. For many, calling it quits with the marketing funnel has been messy and difficult, leaving a lot of marketers desperate to move on, but pulled back to the familiar comfortable arms of linear, campaign-driven, transaction-oriented marketing.
Many companies tie rewards to a rise in either Net Promoter Scores (NPS) or customer satisfaction scores. Unfortunately, that's exactly the kind of mistake that leads employees and partners to game the system. Porsche discovered that its stellar NPS was the result of dealers offering freebies to customers in exchange for higher scores. Similarly, when it noticed that satisfaction scores and comments didn't match, music retailer Guitar Center had to retool its rewards and recognition system to prevent store associates from massaging customer survey results.
My report describes the process for ensuring your rewards and recognition reinforce customer-centricity, rather than tempting employees to game the system. To avoid common pitfalls, companies must:
Customer analytics takes center stage in the age of the customer for firms trying to understand and predict customer behavior. From descriptive to predictive methods, customer insights (CI) professionals can apply a wide array of analytics methods to behavioral customer data. CI professionals have a lot to consider when deciding on the right portfolio of methods to drive customer understanding – what dependencies exist between analytics methods, what investment levels are required, where to get help and what business value do these methods drive.
To make it easier, we identified 15 key customer analytics methods that help firms win, serve and retain their customers. In our latest report, “TechRadar™: Customer Analytics Methods, Q1 2014” (subscription required), we evaluate each of these methods in detail taking into consideration their current adoption as well future potential. These methods, ranging from behavioral customer segmentation, lifetime value analysis, next-best offer analysis to recommendation analysis, allow firms to analyze customer data and use the analytical insight to drive acquisition, retention, cross-sell/upsell, loyalty, personalization and contextual marketing.
Our analysis shows that:
Methods that drive contextual insights are in early stages. Emerging methods such as sentiment analysis, location analysis, and device usage analysis are in early stages of development, but they have the potential to provide valuable context around behavior and other customer analytics methods.