I was really lucky this morning. I've been spotting the yellow eBay buses around town (San Francisco) recently. I love it when companies like eBay promote new services like their mobile application -- it does so much to raise awareness and eventually demand for new services. There was one stopped next to my car when I got out of Starbucks this morning. Yay! I quickly set down my tea and reached for my phone to get a photo. The ads are promoting eBay applications for mobile phones. What I hadn't noticed were the individual QR codes helping people find the applications and download them. Companies like Target, Best Buy, and eBay using QR codes will increase awareness first of 2D bar codes and QR codes and second of the ability/option to connect with online content through your phone.
More importantly, eBay was in the news today because it reported a 146 percent jump in mCommerce sales on Cyber Monday. (See press release.) It has been public with its expectations of generating more than $1.5 billion in gross merchandise volume in 2010 compared to $600 million in 2009. I think this qualifies it as one of the hottest names in mobile commerce at least.
I was in San Diego airport this past weekend on my way home to San Francisco. A nurse in the airport was offering vaccinations and flu shots. Not so interesting I know. What was interesting is that she was using an iPad with a "Square" (see product description or https://squareup.com) to collect payment with a credit card. I stopped, of course, to talk with her about her experience.
A year ago they accepted cash or check only. Now they accept credit cards. They used the software provided by Square to build out an application that allows one to choose the vaccinations. The application compiles an itemized bill. The card is read by the Square and processed. The customer signs with a finger on the iPad. And . . . the customer can get a receipt via email immediately. End result? More accurate records. Real-time bookkeeping. More revenue b/c more payment options.
Intuit and others offer payment mechanisms through mobile phones and other portable devices with connectivity. These innovations will continue to enable small businesses and entrepreneurs to pursue new ideas . . . and in this case simplify the payment process. Totally cool. I love seeing ideas like this. Please post comments to this blog if there are others I should see.
Last week, The New York Times broke the news that Google is launching a new eCommerce platform targeting fashion brands: Boutiques.com: http://nyti.ms/9DlCu. (Disclaimer: I worked for four and a half years at Google, but I was not involved in this project.)
The launch pushes the envelope of how technology can help consumers navigate and discover fashion products and trends by:
Taking vertical search accuracy to the next level.
Using social as a centerpiece of the experience, giving celebrities, fashion bloggers, and ultimately everybody the capability to create a "personal boutique" with the fashion items they love for all to have a peek.
Taking advantage of the latest visual search technology that helps users in mixing and matching colors, patterns, and trends.
I think that the approach to product discovery of Boutiques.com is a very interesting development in eCommerce as well as for brand marketers. Why?
Boutiques.com offers a much richer way for consumers to explore brands online by shifting the focus from product to the context in which the product will be ultimately used. I would expect Google to target notoriously difficult categories to contextualize like furniture and cars.
Data, data, data . . . retail aggregators like Boutiques.com have the opportunity to develop unique insights on demand trends that many brands will be happy to pay for.
As cross-brand navigation becomes an easier and rewarding experience, the current cornerstone of today’s brand digital presence — the Web site — will face increasing competition from innovative retail formats, and as a result, brands will need to develop a syndication strategy for their branded content across platforms.
“How customers perceive their interactions with your company.”
The key word I want to focus on here is “perceive.” While business success is viewed by metrics like conversions or average order size, for customers, their level of satisfaction is tied to the sum total of all interactions they have with a company from the first time they click on a link from an online ad all the way to opening and experiencing a product. That satisfaction is based on some rational justifications such as price, but it’s also largely based on the overall feeling customers have about those interactions. It’s that emotional component that can be the X factor in how consumers report whether or not they are satisfied with a brand — and more importantly determine whether they’ll do business with you again.
Think about it, emotions drive needs, wants, and desires and are the triggers that are the basis for most interactions consumers have with a company. Think about something as seemingly mundane as cleaning products. Why do people care about cleaning products? Because maybe they want to have a clean house that smells nice because they’re going to entertain soon and, secretly, they want to leave their guests not with an image of their home, but of how they keep their home. Or, maybe there’s a concern over the ingredients that are in the cleaning supplies that people use because they have young children and want to keep them safe from harmful chemicals. The bottom line is that people bring all sorts of baggage to every experience and that baggage is emotional — even the things that cannot be explicitly stated.
Our team is pretty floored by everything that’s happening in the customer experience space right now. We’re seeing massive changes in technology, which are enabling personal and social experiences unlike any we’ve ever seen. In addition, customer experience is gaining unprecedented importance across the enterprise. We think the combination of these influences is going to make for a pretty spectacular 2011.
Ron Rogowski and I are collaborating on a report that will outline Forrester’s thoughts on what 2011 has in store for customer experience professionals. Among our predictions:
Customer experience will (finally) connect with marketing. If you read my last blog post, it’ll be no surprise that I think there’s a pretty strong connection between customer experience and marketing. For CCOs and CMOs, 2011 will come in like a lion (with tension between their two groups) and go out like a lamb (with true collaboration).
Brands will (wrongfully) rush to abandon their Web sites. With the skyrocketing market for mobile phones and tablets, firms will look to engage users through differentiated experiences on these devices. But in the process, many will neglect a critical touchpoint — the Web — in favor of apps that have less reach.
Quantifies the correlation between a rise in a company’s Customer Experience Index score and the corresponding increase in three loyalty metrics that every company cares about: purchase intent, likelihood to switch business to a competitor, and likelihood to recommend.
Makes conservative but realistic assumptions about the business fundamentals of companies in 13 different industries.
Produces eyepopping projections of increased annual revenue as a result of realistically attainable improvements in customer experience — by industry.
A recent Forrester report "US Online Holiday Retail Forecast, 2010" forecasts online retail sales during the 2010 US holiday season to grow 16% year over year. Consumers are showing a willingness to spend this season, with affluent consumers driving the most growth. Respondents to our North American Technographics® Retail Online Survey, Q3 2010 (US) plan to complete 37% of their November/December holiday shopping through an online channel, up from 30% last year.
Let’s have a look at the post-mortem of the 2009 US holiday season to understand what is really important to customers: In spite of the economic slowdown last year, nearly three-quarters of US online holiday buyers maintained or increased their spending in the online channel compared with 2008. Online holiday buyers are buying more online for the same reasons that the online channel is a successful and growing component of retail in general: convenience, selection, and price.
If you’re reading this post, you’re someone who cares about customer experience. You might even be one of the professionals who works in the field of customer experience full-time.
So I’m going to go out on a limb here and guess that you occasionally get the question, “What is ‘customer experience?’”
Now maybe when you’re asked that question, it isn’t phrased so directly (or politely). For example, I get asked, “Isn’t customer experience just marketing?” And, “How is customer experience different from customer service?” But the bottom line is that people are looking for a definition that’s crisp, useful, and distinct from the definitions of other things that companies do. They are right and reasonable to ask for this — but collectively those of us who work to improve customer experience have failed to answer them.
I mean no offense to the many people out there who have tried to define “customer experience.” I’ve read many of the attempts that are out there, and the ones I’ve seen tend to be longer and more convoluted than necessary.
Not that customer experience is an easy concept to define. The customer experience team at Forrester has been debating the definition of customer experience for a while now, and it took us until recently to reach consensus. We now define customer experience as:
“How customers perceive their interactions with your company.”
We've been saying for a while now -- based on the evidence we've seen in certain European markets -- that online video viewers are happy to watch a significant number of in-stream ads in exchange for access to high-quality content. Today, we found yet more evidence of the same from a study conducted by Turner Broadcasting. Today, many of Turner's TV shows only run two or three in-stream ads each (generally less than 2 minutes of advertising per episode); but the broadcaster found that if it increased the ad load to the same volumes the shows feature on TV (as much as 20 minutes per episode) the number of users who dropped off was shockingly low. The CW network found the same in its own tests.
The bottom line: Get ready for more online video ads. Inventory will grow, prices will fall (at least somewhat), and overall online video ad spending will grow dramatically.
(As a side note, The New York Times' article in which this research is published takes aim at Hulu for hoping to "lighten up" the amount of advertising users see and repeats Hulu's accurate claim that it has less than half as much advertising as the same shows on TV -- which is ironic, given that in my anecdotal experience Hulu has been more aggressive than any other US online video site in pushing more ads into its content; most of the ad breaks I see on Hulu these days contain two ads.)