How eCommerce Markets Evolve

Zia Daniell Wigder

One of the topics I’ve spoken about at recent industry events is how global eCommerce markets evolve – more specifically, how markets shift from an early stage to one in which consumers spend lavishly online and buy across a wide variety of categories.

After interviewing dozens of companies about their experience expanding into different global markets, and after reviewing internal and external data, we’ve noted that markets tend to go through four phases as they reach the stage of well developed eCommerce. We identify these four phases as the following:

Phase 1: Connecting and Entertaining. In this phase, consumers are starting to go online and connecting with others through the online channel. Some 10-15 years ago, consumers were likely to go online and engage through email or chat; today, social networking has joined the ranks of one of the early activities of online users. Socialbakers’ estimates of Facebook users by country indicate that the network’s top five markets outside the US are Brazil, India, Indonesia, Mexico and Turkey – in such markets, the number of Facebook users today often surpasses the total number of online users just five years ago.

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Forrester's first European Mobile Commerce Forecast

Martin Gill

 

Mobile commerce is a HOT topic!

Over the last three months I’ve presented at 4 different European events on the subject of Mobile Commerce in retail, and in every other speech I’m called on to do, mobile is increasingly at the heart of what I talk about when I discuss the key trends impacting European eCommerce. Its unavoidable.

So I’m delighted to say that Forrester has launched its first European Mobile Commerce forecast.

The growth assumptions are based on the existing Forrester Research Online Retail Forecast, 2011 To 2016 (Western Europe), with simplified category groupings to reflect mobile characteristics. Mobile purchasing behavior and mobile Technographics sophistication are overlaid onto the country-by-country eCommerce growth forecasts to reflect the way in which mobile commerce will grow differently from online commerce across Europe. What this gives us is a picture of how we believe that mobile commerce will evolve for some of the key European markets.

So what are we forecasting?

·         Mobile Growth Will Be Rapid, But Adoption Will Be Niche For Some Time Yet. Mobile commerce will represent 6.8% of all online eCommerce sales across Europe by 2017 (mobile only – we exclude Tablets from this figure). This is a significant portion of online sales, with the most rapid growth in the south of Europe.

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Take Forrester's Marketing Technology Survey

Rob Brosnan

Using, investigating, or buying marketing technology? If so, we want to hear from you. Take the survey and receive a complimentary copy of the completed research.

Take the marketing technology survey

Forrester's global Marketing Technology Adoption survey investigates:

  • What technologies do marketers currently use, and what do they plan to use?
  • How much do marketers budget for technology acquisition and operations?
  • What are the users' top goals for and pain points from marketing technology?

You can use the survey results to:

  • Provide justification for a business case in your 2013 technology road map.
  • Compare your spend levels and technology use to those of other marketing professionals.
  • Spot trends and see best practices to incorporate into your technology strategy.

The survey will close on Friday, August 3, and the completed research report will publish in early September. Once the research publishes, I will also present the findings in a Forrester Webinar and in advisory sessions to interested clients.

Take the marketing technology survey

Please share this blog post and survey link with friends and colleagues who share an interest in marketing technology.

Thanks in advance for your support and involvement.

Innovative Methodology: My Experience With Mobile Behavioral Tracking Data

Roxana Strohmenger

As an analyst, my job is to examine the emerging research methodology landscape and see what trends are evolving and how market insights professionals are leveraging and integrating these new techniques into their research toolkit. While this type of research is extremely enjoyable, every now and then I am lucky enough to be able to get my hands dirty and play with some of these methodologies. This time around, I got to play with passive mobile behavioral measurement data.

Similar to online behavior tracking, mobile behavior tracking passively records the activities that consumers perform on their mobile phone. With this data, you are able to know, for example, how many inbound and outbound texts are made, when and for how long a person uses an app like Facebook, or how many megabytes of data they downloaded or uploaded. Vendors that provide this tool include Arbitron Mobile, comScore’s MobiLens product, Research Now Mobile (formerly iPinion), and RealityMine (a spin-off company from Lumi Mobile).

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Healthcare, The Supreme Court, And Customer Experience: What It Means

Harley Manning

The Supreme Court decision upholding virtually all of the Patient Protection and Affordable Care Act (AKA “Obamacare”) shifted a balance for customer experience professionals in the healthcare industry. Now they — and the executives they report up to — know that it’s more risky to do nothing than to respond by taking action.

Keeping in mind that “the healthcare industry” is really three industries, here are some of the most important actions that healthcare organizations will need to take.

Health Insurance Providers (Payers)

As we point out in our upcoming book, Outside In, the health insurance industry has owned the cellar of our Customer Experience Index (CXi) since we began that study five years ago. The main reason for its dismal performance is that the CXi is a consumer study, and for health insurance providers, the customer has not been a consumer but a business — or more accurately, a person at a business, like a benefits manager.

The result was that payers didn’t need to focus much on the end users of their products — consumers — so most of them didn’t. But starting in 2014, a greater percentage of their business will come from consumers. That will drive health insurance providers to better understand consumers so they can attract and retain the healthiest ones, who are the most profitable. Payers will also want to get consumers to change their behavior as a way to keep costs down. For example, they’ll want them to opt for generic drugs and to take better care of themselves. But none of that will happen unless the health insurers build a trusting relationship by providing a far better experience than they have to date.

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What Would You Like In Your MDF Menu?

Peter O'Neill

Last week, Peter O'Neill here, I had the pleasure of going to Marseille and contributing to Dell’s first EMEA-wide PartnerDirect Marketing Advisory Council. I led a session entitled “Leave Your Competitors Behind With Better Marketing Campaigns,” where I proved that vendor-centric fulfillment marketing models no longer work in today’s market because the modern empowered buyer now controls when and how information is found and consumed. 

The battle among tech vendor marketers to configure their programs and content accordingly has now really heated up. The very same trend is about to hit the channel as well — there are too many companies in the tech channel, so only those that market well and appear compelling to buyers will prevail.

I enjoyed discussing content management, the buyer’s journey, and digital marketing tactics with the 30-odd marketing professionals in the audience in Marseille. But even these marketing pros admitted that they still need ammunition to argue for more resources with their own executives, so I hope that the material I provided will be useful in that respect. Feel free to drop me a line if you would like a copy of the presentation as well.

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Banks Make It Clear: We’re Sticking It To You With Fees

Harley Manning

An article in Boston.com highlighted the fact that many big banks still don’t understand what customer experience is or why it’s the biggest single driver of business success for most companies.  

Apparently Citigroup is about to join a “growing number of banks and credit unions” that have adopted some version of a one-page disclosure form. That form makes it easier for customers to see and understand fees.

Now don’t get me wrong: Making it easier to understand fees is a step forward. After all, ease of doing business is the second level of the customer experience pyramid and only slightly less important than meeting customer needs.

What has me shaking my head is the next part of the article. It says that these new summary pages come in response to complaints about rising fees, including fees that few customers knew about in the first place, like a fee for getting a paper statement and — my personal favorite — a fee for closing an account.   

A fee for closing an account? Really? I may be old-fashioned, but I’m used to paying people to perform a service for me, not paying them to stop performing a service for me.

Here’s why the whole “fee transparency” thing misses the point: Your bank really, really wants you to open more fee-generating accounts with it. When you add a savings account or CD to your checking account, or take out an auto loan or a home equity loan, you ring its cash register.

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The Data Digest: Mobile Banking’s Massive Growth Is Supplementary To PC banking

Susan Wu

Mobile banking is on a steep rise in the US. Almost one-third of online bankers currently conduct banking activities through their mobile handsets, and this population is poised to more than double by 2017. As indicated in our recently published Forrester Research Mobile Banking Forecast, 2012 to 2017 (US), younger age groups (Gen Y and Z) and familiarity with PC banking are fueling thisrapid adoption.

While checking account balances is the most popular activity, receiving alerts is the fastest growing feature; users will triple in the next five years. And with growing consumer comfort, mobile transactions, such as transferring funds from one account to another, will more than double during the same time period.

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Unexpected Musical Fun: "Outside In" The Song Rocks Day Two Of Forrester’s Customer Experience Forum

Harley Manning

I’m still digging out from all the things that I put off until after last week’s Customer Experience Forum in New York. Even so, I didn’t want to let too much time pass before sharing some unexpected fun we had on Wednesday morning.

It actually started on Tuesday afternoon when I received an email from the co-author of our upcoming book, Kerry Bodine, which said:

“Have you seen this??? Amazing!

http://blog.neolane.com/events-2012/forresters-book-eve-6-treatment-song/

Lyrics below the video.”

The short note included a link to a blog post with a song. The blogger, Ed Hadley, a senior marketing manager at Neolane, had written new lyrics to the Eve 6 song “Inside Out,” turning it into “Outside In.” I was skeptical, but I trust Kerry’s judgment, so I played the song and loved it.

After some quick back-and-forth between our event producer (Katie Petroff), Neolane’s vice president of marketing (Kristin Hambelton), and one of our backstage producers (the unflappably cool Dave), we had the song ready to play as part of my Wednesday morning opening remarks. As it played, Dave scrolled the lyrics karaoke-style. The audience clearly thought it was fun — lots of laughter and a big round of applause at the end.

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Moving eBusiness Into The C-Suite (Or Close To It)

Carrie Johnson

After years of fighting for a voice in the organization, eBusiness leaders are finding themselves in the spotlight. Some all-stars command total compensation packages of more than $1 million and others -- like this example from retailer FinishLine -- step into new roles like Chief Digital Officer. We believe that in the next few years many eBusiness professionals will graduate to titles like VP of Digital Strategy and VP of Multichannel Strategy, reporting directly into CEOs or to VPs of Distribution/Channels. 

What's driving the graduation of eBusiness out of the halls of IT and marketing and into the C-Suite? Two words -- mobile and multichannel. This is about so much more than apps and in-store inventory lookup. Mobile is finally enabling many of the multichannel programs that eBusiness professionals have evangelized for years. Some eBusiness teams were already serving as digital centers of excellence for business units and product lines and taking ownership of mobile strategies: In a survey of eBusiness professionals, the majority -- more than 70% -- reported that they have responsibility for the mobile channel. But suddenly, all eyes are on eBusiness teams to develop the firms' digital strategies for what were traditionally considered offline channels as well.  

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