The Data Digest: Mobile Behaviors in Russia

Reineke Reitsma

I’m sure you’ve noticed from the latest data digests that I'm really in a mobile mood, but there's just so much going on with mobile globally! Last week, I was at a research conference on “Mobile Research in a Mobile World”; it presented many interesting case studies on how to use mobile for research purposes in both developed and developing markets.

One of the most intriguing presentations was by Mikhail Zarin from Mobiety and Artem Tinchurin from Tiburon Research. They shared the challenges they encounter with doing research in Russia and how adding mobile adds a layer of complexity with regards to questionnaire design, engagement, and sample management. 

This reminded me about a report I recently worked on with a colleague called “The Introduction To The Russian Consumer.” My colleague is from Russia, and she taught me that many consumers pay their bills or top up their phones at machines that take cash. And these machines also act as eCommerce platforms: You can use them to purchase airline tickets, for example. During their speech at the mobile research conference, Mikhail and Artem shared how they use these machines to ask people to participate in research. Although response rates are low, overall participation is quite good because there are so many ATMs.

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Introducing Forrester’s Mobile Banking Functionality Benchmark

Peter Wannemacher

Technology is radically changing the way bank customers interact with their providers, and mobile touchpoints are at the forefront of this change. In the past five years, mobile banking adoption in the US has more than quadrupled, hitting 17% by the end of 2011. This represents a compound annual growth rate (CAGR) of more than 33%.

As such, eBusiness professionals and mobile strategists at banks are in a white-knuckle contest to out-do each other in the mobile space. To evaluate and gauge banks’ mobile offerings, we applied Forrester’s Mobile Banking Functionality Benchmark to the four largest retail banks in the US.                                                                                                 

What we found:

  • Big US banks offer solid, not-yet-splendid, mobile services.  We employ 63 individual criteria in our Mobile Banking Functionality Benchmark methodology. The combination of weightings and scores for the criteria generates an overall score based on a 100-point scale. In our inaugural ranking, the four largest US banks posted an average score of 63 out of 100 – above our minimum standards but far from perfect.
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With O2 Wallet, The Disruptive Mobile Payment Space Is Heating Up

Thomas Husson

A year ago, Forrester stated that mobile payments were entering a disruptive phase. More recently, my colleague Benjamin Ensor elaborated on the battle for the digital wallet.

Mobile digital wallets are emerging and going beyond payment. New technologies, mixing QR codes, apps, personal financial management software, NFC, and many more, are combining to convert mobile handsets into digital wallets that combine not just payments but also receipts, vouchers, and loyalty. Beyond the convenience of using the phone for payment, consumers will benefit from post-transaction elements such as location-based coupons or enhanced product information at the point of sale (POS).

We’ve not seen a single day without a new product launch, start-up creation, or acquisition — or a new strategic alliance between banks, payment networks, Internet firms, or mobile operators.

So what’s new today? Telefonica 02 just announced the launch of O2 Wallet in the UK.

We believe that the O2 Wallet is, for now, the most comprehensive mobile payment solution in the UK – available to a majority of smartphone owners, whether they are O2 customers or not. The new product combines the following functions:

  • Money Message — This gives customers the ability to easily transfer money to any UK mobile phone number.
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Our View On What Matters In European Retail Banking eBusiness & Channel Strategy

Benjamin Ensor

The past five years have been awful for most European retail banks. The financial crisis, and the resulting recessions in most of Europe's economies, nearly destroyed some banks and crushed the profitability of many of the remainder. Worse than that, it was a problem that was partly or largely of (some) banks' own making. Banks are being forced to shrink their balance sheets, sell off non-core businesses and cut costs (i.e. fire employees) just to survive. And Europe's ongoing financial crises are far from over as banks' fortunes are closely entwined with those of their indebted governments.

There's one small silver lining among these dark clouds. Over the past 15 years, eBusiness has evolved from providing an electronic brochure to become a fundamental strategic function within retail banks. One of the effects of the financial crisis has been to force most European banks to focus on how to generate profits in their core retail banking operations by serving customers efficiently. Digital banking is a big part of the answer. So, despite the bleak economic outlook, most retail banking boards know that they must continue investing in digital channels. Digital strategy is an increasingly important component in overall strategy.

I'm still surprised when I find heads of eBusiness who remain marginalized within their firms, reporting into IT or marketing rather than a centralized distribution channels function alongside branches. The leading banks no longer make that mistake. That has greatly increased the power and influence of digital banking executives, but also their responsibility for the overall success of their businesses.

Here's our view of the top five priorities for eBusiness and channel strategy executives at European retail banks:

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My Next “Letter From Germany” – Happy Birthday SAP & Time To Automate Marketing

Peter O'Neill

 

Those of you who know me (Peter O’Neill) know that I’ve lived in Germany for 30 years. So, I am posting a regular blog – probably bimonthly – where I highlight something important for you that has or is about to happen in Germany.  We’ll start with a history lesson. In 1972, the last Apollo moon mission was launched, Germany won the European Championship (soccer), and five consultants and developers left IBM Germany to start their own company called Systemanalyse und Programmentwicklung GbR. They wrote  financial accounting software for the local Imperial Chemical Industries (ICI) factory, which incorporated the then-revolutionary idea of using terminals and keyboards for data entry and reporting instead of the more common punch-hole cards. This made their software appear to work in “real time,” so they called it R/1. Now, 40 eventful years later, SAP is undoubtedly one of the most important technology vendors in the industry and still doing very well, thank you.

So, happy birthday SAP!  As someone who was part of the early HP team that partnered with you to market R/3 on HP-UX back in the 1980s, and now work with numerous SAP marketing professionals in my current capacity, I enjoy the success you are having.

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Forrester Releases Its New Asia Pacific Online Retail Forecast

Zia Daniell Wigder

Today we published our Asia Pacific Online Retail Forecast, 2011-2016 highlighting online retail sales in five different markets in Asia Pacific: China, Japan, Australia, South Korea, and India.

Along with providing overall online retail market sizes, we note that:

The combined size and growth of China's eCommerce market are unprecedented. China's online retail market surpassed $100B in 2011 and continues to grow at a breakneck pace — when the US online retail market was the same size as the market in China today, growth was considerably slower. We revised our forecast upward to reflect the fact that online sales continue to increase at a rapid pace, even as the market size swells.

Growth rates in Japan, South Korea, and Australia are more tempered. In contrast to China, online retail sales in Japan, South Korea, and Australia will grow at rates more in line with those of the US and developed eCommerce markets of Europe. However, all three markets are attracting increased investment as a growing number of both domestic and foreign players launch new online offerings in these countries. 

India will grow quickly off a small base. India's eCommerce market, by far the smallest of those covered in our forecast, is poised to grow by more than five-fold by 2016 as the number of online buyers and per capita online spending increase rapidly. This market is gaining more attention as global brands look to markets that are in the early stages of eCommerce adoption but offer significant long-term potential.

Forrester clients can read a summary of the report here.

The Data Digest: Global Mobile Behaviors

Reineke Reitsma

Recently, I've been editing some reports on how consumers are using their mobile phones and how that has changed in the past couple of years. We only have to think back to the Nokia 6510 or Motorola flip phones that we were using a few years ago to see how the introduction of smartphones has changed our world. In many countries, people spend more time texting and doing other data-related activities on their phone than using it for actual voice calls.

And in many countries, the impact of mobile uptake and its evolution has been even bigger and more different than in the US and Europe. In the West, mobiles are often an addition to a PC or game console; in many developing countries, a mobile phone is the only device that most consumers own. This is reflected in the activities for which they use their mobile. For example, Forrester's Technographics® studies — involving 333,000 respondents in 18 countries — shows that Indian, Chinese, and Mexican mobile phone owners use their phones more to listen to music and play games than their European and US counterparts. [Note: this graphic shows selected activities from a list of possible activities]

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Drive Product Innovation To Mature Your Mobile Strategy

Thomas Husson

To gauge how far organizations have come with their mobile initiatives, Forrester conducted the Q4 2011 Global Mobile Maturity Online Survey among executives in charge of their companies’ mobile strategies. 

Since 2010, fewer companies report not having a mobile strategy in place. Between Q3 2010 and Q4 2011, the percentage of companies we interviewed that have no mobile strategy or are at the early stage of defining one has significantly decreased, from 57% to 31%. C-level executives are increasingly in the driver’s seat, and mobile is moving away from a test-and-learn approach to fueling companies’ corporate goals. Mobile is primarily viewed as a way to improve customer engagement and satisfaction.

 However, the majority of companies face organizational issues and struggle to allocate the right resources for mobile and to measure the success of their mobile consumer initiatives. The main obstacles they face are these:

 ■ Lack of measurable business goals clouds early success.

 ■ Limited investment, resources, and expertise slow progress.

 ■ Cross-functional and cross-geographical complexity cause inefficiency.

 There are plenty of new disruptive platforms emerging from tablets, from game consoles to connected TVs, but mobile will be the primary platform for global product innovation. Only mobile phones can offer such a global reach.

 To prepare for the accelerating pace of mobile disruption, product strategists should help other internal stakeholders rethink the life cycles of their mobile applications and services and drive innovation via smarter apps, richer data, and converging technologies.

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How Quickly Can You Add A New Touchpoint?

Martin Gill

Here at Forrester we have been talking about the concept of "agile commerce" for some time now, but it's not always easy to point to live examples of “agile”businesses. What is agile commerce? How do I become agile? Both are very valid questions that we are in the process of building out a series of research documents and case studies in order to answer.

But there is a live example happening right now that encapsulates what agile is all about for me.

 Pinterest.

For those of you who are yet to become completely addicted to Pinterest (and you will), it's basically an image sharing site that allows you to group together images from around the web into categories and pin them to a virtual pin board. It creates highly visual mood boards, wish lists, galleries, and collections of images that link back through to the original source (which is where Pinterest makes its money). And since so many Pinterest boards are all about style — fashion and home in particular — it has the potential to be a bit of a retail gold mine.

 

Unlike Facebook, which is much more about social connections, it looks like Pinterest users are more in a discovery and pre-shopping mode when they are pinning and are pre-inclined to buy if they click through to a retail website. With an ever-expanding network of users, Pinterest has the potential to bring some much needed serendipity to web shopping.

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Thoughts About NFC, Contactless Services, And Nokia Lumia Devices

Thomas Husson

A couple of weeks ago, I stated that there was much more to Near Field Communications (NFC) than just contactless payments. The WIMA conference starting today in Monaco will showcase numerous use cases for the technology.

I continue to believe that most consumers using an NFC device in 2012 will more likely use it for device-pairing or data-sharing purposes than for payments. Pairing NFC accessories and reading NFC smart tags will open up new opportunities. NFC will be a key technology for interacting with the world around you — and it is time to test it, as highlighted in this recent piece of research written by my colleague Anthony Mullen. There is an ongoing debate about bar codes’ potential replacement by NFC; I think both technologies serve different objectives and have different advantages but will continue to co-exist. Radio and optical technologies are converging, as highlighted by French startup Mobilead, which does a fantastic job of delivering a great branded experience mixing QR codes and NFC tags.

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