Finovate Europe 2012: Innovation In Digital Financial Services

Benjamin Ensor

A number of people asked me to repeat my blog post from last year with my impressions from Finovate, so I thought I would.

For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.

I was lucky enough to go along to the show in London today. Unlike last year, when four or five themes dominated the day, this year’s exhibitors were more diverse. Among them were:

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The Brick-And-Mortar Renaissance

Peter Sheldon

Since the 1970’s, retail stores have slowly undergone a digital evolution. POS systems replaced cash registers, credit cards became the payment norm, and security tags reminded shoppers to pay. Despite these changes, the fundamentals of the customer shopping experience remained unchanged: We still pick up products, ponder a decision, and either leave empty-handed or wait in line to pay.

However, in the digitally connected store of 2012, big changes are underway. Fixed checkout aisles and cash registers are being replaced by smartphone-wielding store associates who now take the checkout to the customer. Furthermore, the smartphone generation performs self-assisted checkouts directly from their phones while sleek new in-store touch-screens allow them to experience products without opening the box or removing the coat hanger.

Welcome to the brick-and-mortar renaissance.

In my new report, The Digitization of the In-Store Experience, I take a detailed look at the digital transformation underway at retailers across the US and Europe, including:

  • The technologies being adopted. Retailers such as Lowe’s, Gap, Nordstrom, Macy’s, and Sears are rolling out smartphones and tablets to their store associates and investing in next-generation interactive displays and kiosks. Certain solutions are starting to prevail across retailers.
     
  • The empowerment of the sales associate. Armed with smartphones and tablets, empowered sales associates are helping customers on the shop floor as well as busting checkout queues with mobile POS.
     
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Google, Amazon, Apple, And Facebook: What eBusiness Executives Need To Know For 2012

Sucharita  Mulpuru

Nearly 50% of web shoppers start their research process on Amazon or Google.  Over 40% of the world’s Internet traffic constitutes daily visits to Facebook and Google. Twenty-one percent and 49% of iPhone and iPad owners respectively purchasing products via these devices. Google, Amazon, Apple, and Facebook not only absorb consumer time but are quickly becoming gateways for other eBusiness traffic. This makes the Big Four critical in the product research and sales funnel.  In our recently published report, “Google, Amazon, Apple, And Facebook: What eBusiness Executives Need To Know For 2012” we help eBusiness professionals identify what’s on the horizon for these companies and what it means for them. Some key findings of the report include the following:

  • Google has broad ambitions to support (or displace) incumbent eBusinesses. While Google struggles to move beyond its paid search roots, eBusiness professionals will need to keep the company top of mind because it maintains a majority share of online marketing spend but promises to transform every industry from financial services to travel to health care and retail.
  • Amazon is disrupting retail economics. While Amazon has the smallest market cap of the four players, it is completely changing the dynamics of manufacturers and distributors.
  • Apps can be powerful tools to support eBusiness objectives. Companies that see apps as just extensions of web content are missing the many opportunities to enrich experiences with cameras, microphones, speakers, accelerometers, and location-sensing capabilities.
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Overhauling Battle Cards (And Transforming Other Sales Tools)

Dean Davison

As part of Forrester’s research into sales enablement, I recently took a journey to “plumb the depths” of sales battle cards. Why?

Sales reps at technology companies tell Forrester that they must understand their competitors if so that they can outmaneuver them during the sales cycle; but, these same sales professionals tell Forrester that, despite the best efforts of product managers, competitive teams, and sales operations, current battle cards are not consistent, instrumental tools that help win more deals.

And thus, my journey into battle cards begins.

During my career, I’ve worked in competitive intelligence at two technology companies, so I already had some strong opinions about battle cards. I tried to set my own views aside, though, and adopted Forrester’s methods of developing a hypothesis and interviewing professionals in the industry.

My initial research looked at the “thing” called a battle card – the layout, structure, and content with the goal of building battle cards that helped sales reps address competitive issues during customer conversations. While testing some really good ideas that came out of the interviews, I could see that the improved battle cards still weren’t enough to meet our objective – routinely helping reps win more deals. 

I turned my attention to the “process” of building battle cards – specifically, how sales enablement professionals identify the competitive issues that merit battle cards, how they work with product managers and marketing teams to create the content for battle cards, and how they deliver battle cards to sales reps. While testing some really good process ideas that came out of the interviews, I could see that even when the groups creating battle cards actively work with sales, their points of view and professional skills are so different, that they miss important details.

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Is Facebook Worth It? You Bet

Sucharita  Mulpuru

I was called a Facebook hater last week.  No ambiguity.  "You're such a hater!" this woman, who happened to be a social media marketer at a large retailer, told me. I will admit, I have reservations about Facebook’s role in commerce which has no doubt made her job more difficult, but I must defend myself.  I’m not a hater.  In fact, contrary to all the tweets and blogs questioning Facebook’s purported $100B valuation, I actually think the company is worth all of it and probably more. (To those same critics, if Facebook with $1B in profits is overvalued, what does that say about Groupon with about as much in losses?  But that’s a discussion for another day.)  Here are some considerations:

  • 44% of the world’s internet traffic visits Facebook daily.  As the CEO of an internet company months ago hypothetically and brilliantly asked me in response to the question of Facebook’s valuation, “What’s half the internet worth?”  Whatever the right number is, it’s a lot and when framed like that, it makes $100B seem very reasonable.
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Improve, Transform, Or Sustain: What’s Your Path To A Better Customer Experience?

Kerry Bodine

If you’re reading this post, there’s probably at least one person in your company (you) who’s already working to improve your customer experience in some way.  That means your company’s CX efforts fall somewhere on the curve below.

Improve:  This is where most companies start their customer experience initiatives.  Typically, a small group implements a voice of the customer program, prioritizes customer feedback, and routes it to different parts of the organization so that they can make changes.  Some employees might adopt new customer-focused work practices, but these efforts remain ad-hoc or siloed.  The net result is incremental customer experience improvements.

Transform:  At a certain point, some companies decide that they want to leverage customer experience in order to create a jump in customer loyalty, accelerate growth, and differentiate themselves from competitors.  When that happens, incremental customer experience improvements are no longer sufficient.  The company begins to change just about every part of the business — including processes, policies, technologies, and incentives — to focus on the needs of customers.

Sustain: For companies that decide to take the path towards transformation, this is the end goal.  Once a company puts customers at the center of all business operations, employees need to figure out how to sustain the new ways of working so that they can continue to deliver a great customer experience indefinitely.

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Don't Believe The Hype: 5 Trends to Watch (and 5 to Ignore) for On-line Retail in 2012

Martin Gill

 

Every year at Forrester we take a look ahead at the driving forces behind online retail and make some predictions about how we think things will evolve and we try and identify the key trends to watch or even act upon. This year we’ve done things a little differently.

Sucharita Mulpuru has taken a look at the “Key Trends in US Retail eBusiness” while I’ve concentrated on “European Retail: Key Trends to Watch in 2012”.

Broadly we find similar themes – multichannel, mobile and changing consumer behavior in light of the continually depressing economic condition. But there are some notable differences in Europe. I’ve said this before, but I will continue repeating it – the national, cultural, language and regulatory differences that persist across Europe make European eBusiness a complex beast. 2012 will bring us more in the way of EU strategy papers and directives as the European Commission begins to formulate what their “Single Digital Market” looks like in reality. While we are unlikely to see many changes immediately, the EC’s vision for the future will begin to crystallize. Add to that changes to the e-privacy and distance selling directives that must be acted upon, European eBusiness executives are going to have a busy time in 2012 just keeping abreast of legislation.

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Citibank Moves Boldly Into The Tablet Banking Market

Peter Wannemacher

Hotcakes, you've got some competition: the phrase "selling like tablets" might soon enter the global lexicon. And it's not all hype — though there is a fair bit of that as well. Tablet users in the US are estimated to grow at a compound annual growth rate (CAGR) of 51% from 2010 to 2015. That’s a fast-growing market for firms of all stripes.

As such, the tablet as a touchpoint is becoming a critical consideration for eBusiness & Channel strategists. This is especially true for executives at banks, as financial transactions benefit from the immediacy of the mobile channel, but users often struggle to make these transactions on smaller smartphone screens.

Enter tablet banking.

Forrester has previously identified best practices for tablet apps in financial services, but only in the past year have leading banks rolled out robust tablet banking efforts. One of the strongest tablet offerings we’ve seen is from Citibank.

In my new report, I outline the process Citibank went through in building its own tablet banking strategy, developing an iPad app, rolling it out to customers, and continually improving the service. We outline how Citi:

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The Data Digest: Profiling Digital Natives

Reineke Reitsma

As part of our Demographic Overview series, we just published Digital Natives: A Demographic Overview; previously, we published research on digital dads and digital moms. For readers who haven’t heard the term before, Digital Natives are the individuals currently ages 12 to 17, and they will soon become the most sophisticated consumers in the digital world. Forrester defines Digital Natives as “individuals who have grown up in the age of technology and cannot imagine a life without computers, cell phones, and social networking.”

With the increasing numbers of these Digital Natives, it is imperative that companies get to know them — and the earlier the better. They adopt digital technology faster than older generations; they can’t imagine a life without digital “essentials”; and they combine these digital activities in sophisticated ways.

For example, Forrester’s Consumer Technographics® data shows that boys, on average, spend 6.1 hours playing video games per week, and when they have discussions on social networks, video games are the No. 1 topic. Moreover, despite having little disposable income yet, more than one-third of Digital Natives have either researched or purchased a product or service online in the past three months.

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The Guts To Grow: What Amazon.com, Trader Joe's, And Westin Hotels Have In Common

Sucharita  Mulpuru

I received a curious email from one of the founders of eBags the other day. In it, he said that by bringing customer service back to the US and away from an offshore vendor, the company actually reduced customer service costs by 34% (yes, reduced!) while still growing sales by double digits in Q4. It reminded me of another article not too long ago from the Wall Street Journal that cited Qantas as having one of the world’s best check-in experiences because the airline invested in RFID tags for passengers, a decision that the article pointed out no other airline has yet copied. These examples stood out to me because these companies managed to pull off a very difficult trick: to make contrarian investments that industry peers would consider hogwash that nonetheless pay off in spades. It’s more likely that such investments would backfire, but when they work, they succeed beautifully. Three cases in point: 

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