On eCommerce In South Africa And Beyond

Zia Daniell Wigder

I recently had a chance to catch up with another global eCommerce enthusiast: Hendrik Laubscher works for PriceCheck, a price comparison site in South Africa owned by MIH Internet Africa. He and I sat down for a coffee to talk all things developing eCommerce markets. A few things that came out of our conversation:

In South Africa, payments and broadband connectivity remain hurdles to eCommerce adoption. South Africa, the continent’s largest eCommerce market, remains at a relatively early stage, with several inhibitors preventing the market from truly flourishing.  Although credit and debit card usage is growing, overall penetration remains low, even in comparison to other large emerging markets. PayPal offerings have been a challenge, as well — currency issues and restrictions that required users to be registered FNB online banking customers prevented many from taking advantage of this payment method.  Additionally, the country’s low overall Internet penetration — in particular, broadband penetration — also presents hurdles. The CEO of Woolworths in South Africa recently said that faster, cheaper broadband was essential for eCommerce to flourish, but estimated that this scenario remained “about four years off.”

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Just Published: The Forrester Wave™: Customer Analytics Solutions, Q4 2012

Srividya Sridharan

Customer Intelligence (CI) professionals invest in data-mining, predictive analytics and modeling tools and technologies to make sense of the deluge of data. In the past, they've had to adapt horizontally-focused analytics and modeling solutions to a customer intelligence and marketing context. Today, however, they can consider a gamut of customer analytics and marketing-focused analytics providers that have not only analytics production expertise but also domain and role-focused expertise.

We just published our first evaluation focusing on the customer analytics category here: The Forrester Wave™: Customer Analytics Solutions Q4 2012 . After screening more than 20 providers for analytics products specifically catering to customer analytics applications, we identified and scored products from six of the most significant providers: Angoss Software, FICO, IBM, KXEN, Pitney Bowes, and SAS. Our evaluation approach consisted of a 70-criteria evaluation; reference calls and online surveys of 60 companies; executive briefings; and product demonstrations. The core criteria included key dimensions such as core functionality (data management, modeling, usability); analytics production; analytics consumption; analytics activation and customer analytics applications. The evaluation also included the strength of the current product and corporate strategies  in the customer analytics market as well as the future vision for this category.

We found that four competencies define the current customer analytics market:

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Your Customers Are Complaining. Do Something About It

Adele Sage

I'm about to start a gut renovation of my kitchen, which, of course, is an incredibly stressful not to mention expensive project. For cabinets, we got a recommendation for a designer at a local cabinet store. We met with her, got some great ideas, and went home to wait for the quote.

After no word for a week, we reached out for an update. Several days later, she finally called and quoted a dollar amount over the phone. I was thrown off. No written quote? No detail? When I asked for more info, she emailed me a fantastic quote that included drawings and details on every component but had a slightly higher price at the end than what she'd quoted verbally. Odd. Then, as we made changes to the design, this miscommunication pattern repeated. We ultimately decided to get cabinets elsewhere.

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The Data Digest: Magazine Readership On Digital Devices

Reineke Reitsma

This week the news broke that Newsweek, one of the most recognized magazine brands in the world, will cease publishing its print edition after nearly 80 years and go all digital in 2013. The news got quite a bit of attention globally — it even made it into the printed edition of a Dutch newspaper. Of course, this didn’t come as a complete surprise, and Forrester has published enough about digital disruption and the media meltdown to know that newspapers and magazines have to change their strategy.

But the news got me wondering to what extent consumers use their digital devices for media consumption at this moment. Forrester’s North American Technographics® Media And Advertising Online Benchmark Survey, Q3 2012 (US) shows that about one-fifth of US online adults consume magazine content digitally, meaning they visit magazine websites or read digital publications.

This is lower than for newspapers, where about one-third of the US online population reads newspapers digitally — and 14% digital only (compared with 5% for magazines). Those who read digital magazines only are far more likely to be male, the average age skews younger than 35 years old, and only one-quarter of them regularly spend money on magazines.

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The Tech Industry Channel Is Cloud-Confused; Colt Technology Services Is Well Into It

Peter O'Neill

 

There continues to be a cacophony of marketing noise from technology vendors about their cloud strategies; while the announcements sometimes include messaging for their channel, many partners are still unsure of their future role in the industry. Nearly two years ago, Tim Harmon and I (Peter O'Neill here) published two reports on this, and earlier this year the Cloud and Technology Transformation Alliance (CCTA) reported that its survey of 229 channel partners in North America revealed that 13% of the partners still lack a cloud strategy altogether and 42% describe their strategy as “nascent” or “evolving.” CCTA also collected the alarming statistic that 65% of channel partners know that they’re losing business because of their cloud shortcomings; that is, the partners know that their customers are asking for cloud services but cannot react.

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What it Means That Apple's iPad Crossed The 100 Million Mark

James McQuivey

In just a few hours I will be on stage keynoting Forrester's eBusiness and Channel Strategy Forum: Seizing Opportunity From Digital Disruption. This is an exciting event because it was one year ago at this same forum that I debuted our research on Digital Disruption, to overwhelmingly positive response. 

It's now a year later and a lot has happened. Digital Disruption will soon be available as a hardback book (also as an eBook, natch). You can pre-order a copy now at Forr.com/DDbook. To complete the book I had to get far outside of my comfort zone -- I work with media companies and consumer product companies primarily, but to prove that digital disruption is a fundamental change in the way we all do business, I had to interview people in the pharmaceutical industry, the military camouflage industry, and I even recently spoke to the CIO of a cement manufacturer! And to my pleasant surprise, they were every bit as digitally disruptive as their counterparts in the consumer-facing enterprises that we think of when we imagine digital disruption.

One of the main reasons every company can be and eventually must be a digital disruptor is the rise of digital platforms. These platforms are founded on a set of devices, wrapped together with software experiences that identify each customer individually, and are open to app contributions from thousands of partners. The platform owners that matter today are Amazon, Apple, Facebook, Google, and Microsoft.

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Q&A with Jesper Thomsen, VP Sales & Customer Service, Maersk Line on B2B Customer Experience

Peter O'Neill

Peter O'Neill here. I hope that most of you would agree that mastering customer experience is just as valuable for B2B firms as it is in B2C. And yet, there isn’t much information around on B2B customer experience, let alone case studies providing practical advice on how to get B2B customer experience right.  Well, at Forrester’s upcoming EMEA Forum dedicated to Customer Experience (London, November 6-7), I am hosting a “virtual track” of four sessions that debunks myths about customer experience for B2B companies. In one of the presentations, Jesper Thomsen, VP Sales & Customer Experience, Maersk Line, one of the largest shipping companies in the world, will discuss how his company improved its Net Promoter score from -10 to +30 over 30 months – an improvement program that involved staff throughout the enterprise. I recently caught up with Jesper in preparation for his session – for a sneak peak on how Maersk mastered B2B customer experience, check out our conversation below. I hope to see you in London where Jesper will share the full story!

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Navigating How To Win With US Banking Customers

Gina Fleming

Recently, Forrester released a report entitled “What Drives Retention and Sales In US Banking?” that tackles this question from the consumer point of view. Using regression analysis, we uncover how these drivers vary for acquisition, retention, and cross-selling in US retail banking.

What did we find? For one thing, consumers value trustworthiness from a bank above all else for both sales and retention. This comes as no surprise to us; with so many financial institutions to choose from, consumers want to do business with a bank that they trust. This finding also supports the key theme that Harley Manning and Kerry Bodine focus on in their recent book, Outside In: Treating your customers well and providing them with a positive customer experience pays off.

The graphic below shows the drivers of retention for the US retail banking customers: The perception of trustworthiness is off the charts as a driver of retention, and offering good customer service is the second-most influential driver. What our analysis shows to not impact retention — and even shows a negative relationship with retention — is having low APR and many locations.

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Dealing With The “People Part” Of Your Lead-To-Revenue Management Transformation

Lori Wizdo

Demonstrating the revenue return on marketing investment is the No. 1 issue for B2B marketing executives. In Forrester’s Q4 2011 B2B Marketing Organizations And Investments Survey, when we asked marketing execs to identify the most important metrics for their marketing organization, 56% identified a revenue-related metric — compared with 44% for customer satisfaction and 40% for brand awareness. So, it’s no wonder that marketing automation solution vendors vociferously tout the ability of their solutions to track the revenue performance of marketing campaigns and programs.

But, looking at marketing automation solutions solely through the value lens of revenue performance management masks a more fundamental benefit. Marketing automation can transform a company’s marketing operations. These solutions deliver scalability, root out excess cost, improve marketing execution, and provide the basis for continuous incremental process improvement.

Still many marketing execs hold back on investing in marketing automation. They fear the concurrent assimilation of new tactics, processes, and automation will unduly stress their marketing organization. But the transformation is necessary, and the stress unavoidable. Marketing execs need to proactively address the “people part” of their lead-to-revenue transformation.

I addressed these challenges in this recent webinar, which is available on-demand.

In summary, here is what I suggest to clients in inquires about how to lead the overall transition to L2RM:

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US B2B eCommerce Sales To Reach $559 Billion By The End Of 2013

Andy Hoar

Today Forrester is releasing a report entitled “Key Trends in B2B eCommerce for 2013” that, for the first time in over 10 years, sizes the US business-to-business (B2B) eCommerce market in the US.  Forrester estimates that by the end of 2013, customer-facing front-end B2B eCommerce will reach $559 billion.  This figure includes transactions placed online (independent of whether payment is taken online or not), but does exclude EDI-based commerce.

By comparison, US B2C eCommerce will be a $252B market--which would make B2B eCommerce fully twice the size of B2C eCommerce. In addition to sizing the US B2B eCommerce market, “Key Trends in B2B eCommerce for 2013” explores three important trends in B2B eCommerce for the coming year:

  • Ever-Growing Demand For B2C-like B2B eCommerce Experiences. With key B2C sites having set a high standard for what constitutes a compelling online customer experience, B2B eCommerce companies are now actively retooling their existing B2B sites or building whole new sites to deliver B2C-like eCommerce experiences.
  • Increasing Channel Conflict Between Direct Sales Organizations and eCommerce Operations. As the eCommerce option becomes a more viable alternative to a traditional direct sales model, companies are increasingly migrating their offline customers to more cost-effective, self-serve, online-only environments.  In addition, they’re now focusing their sales reps exclusively on acquiring and retaining higher-margin and higher-volume key account customers.
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