Software App Stores And The Implications For eCommerce

Peter Sheldon

For eBusiness leaders, software app stores represent a new and disruptive distribution channel for PC and Mac software.

Three weeks ago, Apple launched its App Store for Macs, following in the footsteps of the hugely successful app store for the iPhone, iPad and iPod touch. With the new Mac app store, Apple is hoping to change the way Mac users discover, download and purchase software. At launch the store contained more than 1,000 apps, and Apple was keen to report an impressive 1 million downloads on the first day. For Mac users it’s a compelling story:

  • A convenient one-stop shop. Users can launch the app store right from the Mac dock, revealing a powerful set of discovery tools to browse and search the library of apps on offer. eCommerce best practices are employed throughout including search, faceted navigation, what’s hot, top sellers, favorites and customer reviews to create an intuitive discovery experience.
  • Frictionless purchase and install experience. Downloading and buying in the app store is a simple one-click process. By linking the checkout and payment process to users' iTunes accounts, Apple is able to streamline the buying process significantly versus a typical multipage checkout process common on software publishers' eCommerce sites. The apps in the Mac store have been packaged to comply with the Mac app install process, making the installation quick and seamless compared to the multistep install process common with most software.
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The Data Digest: Why Young Consumers Like Tablets

Reineke Reitsma

With tablet sales projected to grow from 10.3 million in 2010 to 44 million in 2015, we wanted to understand what will be fueling this growth. Since 18- to 24-year-olds will be the ones growing up accustomed to this technology, we honed in on this demographic to see what it is about the tablets that excites them the most. Our Technographics® data shows that they want a tablet for a variety of reasons, but what they are most attracted to is its portability, and they are much more driven than US online consumers in general by its “fun factor.”

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Nokia Results: An Ovi Store Update

Thomas Husson

Nokia just published its fourth-quarter and annual results for 2010. I am not going to focus on the overall announcements and what they mean for Nokia’s device business in particular, but Nokia’s update on the Ovi Store is quite interesting.

Here are some of the key takeaways from a data perspective:

  • 4 million-plus daily downloads on the Ovi Store.This is an increase of 200% from the 2 million daily downloads statistic shared at Nokia World in mid-September. If momentum continued and we assumed an average of 5 million-plus daily downloads throughout 2011, this would represent close to 2 billion downloads for 2011 alone. That’s not bad considering that Apple just announced 10 billion cumulative downloads since the launch of the Apple App Store in July 2008.
  • Good performance in BRIC and emerging countries.Seven of the top 10 most active countries are in the BRIC region or are emerging countries. These include: China, where Nokia claims to be the No. 1 store with 65% share (based on independent research); India; Indonesia; Russia, which sees more than 1 million downloads per week; Saudi Arabia, Turkey, with 1.6 million downloads per week; and Vietnam. One should not forget that growth and volumes will increasingly come from these regions. As a result, developers may increasingly be open to Nokia’s pitch that it offers local reach and global scale. One of the main advantages of the Ovi Store is its ability to provide operator billing (currently available in 32 markets), which makes a lot of sense in unbanked or underbanked countries where credit card penetration is low. Interestingly, 27% of the current downloads come from low-end devices (e.g, Nokia’s S40 proprietary platform) — meaning that apps are not just for “smartphones.”
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“What Did Marketing Ever Do For Us?” Asks Sales

Peter O'Neill

 It is January, 2015, and technology sales reps Reg, Xerxes, Francis, and Loretta have been to the movies to watch a rerun of Monty Python’s Life of Brian, probably one of the best film comedies of any time. At dinner afterward, they are reliving the scene where the commandos discuss “what did the Romans ever do for us” when one of their marketing colleagues stops by to say hello. After the marketing manager leaves, they continue their discussion.

REG:

Now there’s another point. Those people in marketing. What have they ever done for us?!

XERXES:

Well, they give us much better leads now.

REG:

What?

XERXES:

Yes. Compared to before, they’re really qualified. I can certainly close my deals much quicker than I used to. To be honest, I didn’t even look at leads five years ago  — they were a waste of my time.

REG:

Oh. Yeah, yeah. They did give us that. Uh, that's true. Yeah.

XERXES:

And those contact profiles.

LORETTA:

Oh, yeah, the contact profiles. Remember what it used to be like? We’d have no idea who we were visiting. Had to ask all those questions about family and hobbies. Now, before I see someone, marketing give me a full profile  — I see their Facebook, I know how LinkedIn they are. I even see their last 20 tweets.

REG:

Yeah. All right. I'll grant you: Leads and the contact profiles are two things that marketing has done for us.

MATTHIAS:

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2011 Mobile Trends

Thomas Husson

In a recent post, my colleague Julie Ask and I examined what happened in the mobile space in 2010. In a new report, we are highlighting what we expect the key trends to be in 2011. While we believe that most of the trends identified last year will continue throughout the year ahead, here’s a snapshot of more specific trends that will shape the market in 2011.

•           The mobile/social/local combo will explode in usage but generate little revenue.

•           2011 will be the year of the “dumb” smartphone user. Thanks to handset subsidies, smartphones will be available to the masses. Expect new smartphone users to be less engaged and active than the first cohorts of Android and iPhone early adopters. The good news is that thanks to customer education and the convenience that these devices offer, even “dumb” smartphone users will consume more mobile media than ever before and will have incremental usage of mobile data!

•           The mobile fragmentation problem will continue in 2011. Prioritizing mobile developments will still be a challenge, and cross-platform development has not yet been achieved successfully.

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Users Can't Always Tell You What Their Real Goals Are, But The Right Kind Of Research Can

Ronald Rogowski

Lately it’s become en vogue to talk about how to “surprise and delight” your customers. And why not? If companies are competing on experience, they need to find ways to impress and engage their customers. Figuring out how to do this is difficult but doable.

I recently had the pleasure of editing a report that Vidya Drego wrote that outlined three categories of customer research techniques: exploratory, evolutionary, and evaluative (read or download the report here). That process led me to think about my own research on Emotional Experience Design, which asserts that in order to engage their customers, companies have to craft interactions that address real goals, craft a cohesive personality, and deliver the right sensory experience. It’s this first principle of addressing real goals that I’ve looked into more deeply in a new report called, “Mastering Emotional Experience Design: Address Customers’ Real Goals.” Here are a few examples of companies that address real goals by extending value beyond the functional needs of a single interaction:

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The Rise Of The Chief Customer Officer

Paul Hagen

Over the past five years, Forrester has observed an increase in the number of companies that have a single executive leading customer experience efforts across a business unit or an entire company. Whether firms call these individuals a chief customer officer (CCO) or give them some other label, these leaders sit at high levels of power at companies as diverse as Allstate, Dunkin’ Brands, Oracle, and USAA.

We define the CCO as: “A top executive with the mandate and power to design, orchestrate, and improve customer experiences across every customer interaction.”

Who are these new customer experience executives? Why do companies appoint them? And does your company need one? To answer these questions for a newly released report called “The Rise of the Chief Customer Officer,” we gathered data on 155 CCOs, surveyed a panel of customer experience decision-makers from large North American firms, and conducted in-depth interviews with CCOs from both B2C and B2B companies. Here are a few of the nuggets we found:

  • Title. Forty-four percent have the title of “chief customer officer,” 23% are called “chief client officer,” and 8% go by “chief experience officer.” The many, highly varied titles of the remaining 26% highlight the extreme difficulty of trying to spot CCO-level people by title alone, such as USAA’s “executive vice president, member experience” and Sirva’s “customer experience, operational excellence, and chief innovation officer.”
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We Are About To Enter The Era Of Experience

James McQuivey

There are rare moments in technology when everything changes. When the entire framework defining how we interact with machines (and consequently, each other) shifts perceptibly. That happened when the TV was invented, it happened when the computer mouse was made available commercially. These kinds of changes forever alter our economics, our social life, and our individual experiences.

It's now about to happen again. Only this time, the shift that is coming is on such a large scale that not only will it change things dramatically, it will usher in a new era in human economics (and therefore, everything else). 

We call the new era the Era of Experience. I'm working furiously to complete a report detailing all the specifics so you'll understand what this era entails and, importantly, what you can do to anticipate this era rather than follow it. 

In fact, at our Customer Experience Forum in New York City during the last two days in June, I gave an exclusive preview to the 600+ attendees of what the Era of Experience was. In my speech, I gave a live demo of the PrimeSense technology that the people at Xbox built on to create the Kinect for Xbox 360 platform. This platform incorporates a full-body gesture control interface, voice control, and face recognition. It's as if all the science fiction we've been reading for decades was really just a how-to manual for Kinect. Oh, and this future-defining platform costs all of $149.99 at Amazon.

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The Data Digest: The Role Technology Plays In Brick-And-Mortar Stores

Reineke Reitsma

With the increasing uptake of technology and online shopping, consumers are getting more comfortable using technology in the store, as well. Data from our North American Technographics® Retail Online Survey shows that consumers like to be informed while they are shopping — they want to be able to access product information instantaneously, and they want to be more independent shoppers (without the help of sales personnel).

The items at the top of the list are those that allow consumers to find product information quickly — with majority of respondents reporting that they found in-store price scanning and computer kiosks valuable (84% and 66%, respectively). The fact that self-checkouts were the second most valuable in-store technology exemplifies how consumers want to be more independent while shopping: It shows that they are willing to take on that responsibility themselves in order to get in and out of the stores quickly.

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A Cool Research Methodology That I Predict You Will Use

Roxana Strohmenger

As my colleagues in our team can attest, I get giddy when I talk about all the cool, emerging, and innovative methods that market research professionals can use — whether it be how biometric techniques helped the Campbell Soup Company understand how consumers respond to marketing and advertising in order to redesign its soup-can logo, or when Nokia used mobile research methods as a way to understand what emotional constructs influence a consumer’s “love and admiration” for a brand. All in all, it is great to see technology starting to make a significant impact on how we collect richer insights about consumers.

To help market research professionals understand what innovative research techniques are out there, I am launching a report series this year that will cover some of these innovative methods. To kick off the series, I have focused on prediction markets. Why? Because I see this extremely underutilized method as a valuable tool in the long, expensive, and arduous process of product and concept testing.

 Companies are faced with the following daunting facts:

  • Over 25,000 new consumer products skus are introduced annually in North America with only half of these new product launches considered successful at launch.
  • For every seven product ideas that are created, typically only one succeeds in the market.
  • An estimated 46% of all resources allocated to product development and commercialization is spent on products that are cancelled or that fail to yield an adequate financial return.
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