Mobile Enables New Businesses ... Can You Name One?

Julie Ask

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.

On Boutiques.com And Why Brands Need A Content Syndication Strategy

Luca Paderni

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.
Read more

Why Google Buying Groupon Is a Bad Idea

Sucharita  Mulpuru

So the latest rumor is that tomorrow Google will buy Groupon for $5 billion.  You're not alone if you think that's crazy.  Here’s why:

  • $5 billion is an absurd valuation for a company that is in a business with virtually no barriers to entry and is younger than my toddler. 
  • That’s more than what they paid for YouTube, which had a heck of a lot more traffic when it was acquired than Groupon has now.
  • It’s a huge chunk of the cash that Google has on hand.  That’s a lot of money. 
Read more

Customer Experience Is Emotional By Definition

Ronald Rogowski

Harley Manning recently wrote a post that explained Forrester’s definition of customer experience as:

“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.

Read more

Help Forrester Predict The Top 2011 Customer Experience Trends!

Kerry Bodine

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.
Read more

Customer Experience Improvements Can Be Worth Billions — Yeah, “Billions” With A “B”

Harley Manning

Forrester just published Megan Burns’ new report that models the business impact of an improved customer experience. I’m proud of this report because it:

  • 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.
Read more

The Data Digest: Why US Consumers Will Be Buying More Online This Holiday Season

Reineke Reitsma

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.

Read more

Customer Experience Defined

Harley Manning

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.”

Read more

More Evidence Online Video Viewers Will Accept A TV-Style Ad Load

Nate Elliott

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.)

Amazon Follows Typical US Online Retailer Expansion Path With A New Site For Italy

Zia Daniell Wigder

Amazon today launched a localized site for Italy, its first new international offering since acquiring Joyo back in 2004 (Amazon’s UK and Germany sites were launched in 1998, France and Japan in 2000 -- the Canada site came in 2002. Full timeline available here). According to today's press release, the new offering has more categories than any new Amazon Web site has ever launched with -- not surprising given the six years that have elapsed since the last international launch.  

As part of its new offering, Amazon is pushing its selection of “hard-to-find Italian language items” to cater to local consumer needs -- indeed, Amazon has tended to excel in its localized offerings, ranging from its varied payment methods by country to its semi-localized categories (note the “Auto and Motorcycle” category on the German Web site or the “DIY” link on the UK one).  

Amazon’s choice of European markets mirrors many US online retailers’ expansion into Europe. Of the top 50 online retailers in the US, some 19 operate dedicated transactional Web sites for the UK, 14 operate sites for Germany, 12 for France and 14 in Italy. Less than 10 operate eCommerce sites localized for Spain. See the graphic from our recently published Establishing A Global Online Retail Footprint below.

Read more