To Survive In The Post-PC World, Device Manufacturers Need To Get Tough

Tony Costa

While Google and Microsoft downplay the significance of their Nexus 7 and Surface tablets, the message to their device manufacturers is abundantly clear: If you’re not building devices that surpass what we can do ourselves, you’re not adding value. Their intent in sending this message is to push device manufacturers to abandon their race-to-the-bottom strategy that emphasize low prices and incremental improvements over new product innovation. 

As I discuss in my new report, Humdrum Hardware: Why Google And Microsoft Are Goading Their Partners To Innovate, this strategy worked well in the Windows PC era, when there were no other viable ecosystems to draw consumers away and device manufacturers competed primarily on price, but they are no longer relevant in today’s post-PC world, where multiple ecosystems (Apple, Google, Amazon, and Microsoft) compete against one another. To survive in the post-PC era, device manufacturers must get tough:

  • Pick sides in the platform wars. Device manufacturers need to concentrate their resources and commit to a single platform if they expect to develop compelling and innovative products that can compete against Apple.
  • Start playing hardball with Google and Microsoft. When Nokia went all-in on Microsoft, Nokia demanded special benefits, support, and concessions in exchange for platform-exclusive innovations. Other device manufacturers should replicate this model.
  • Push Google and Microsoft to adopt a co-opetition-based ecosystem model. In order to compete effectively against the vertically integrated ecosystems of Amazon and Apple, Google and Microsoft need to coordinate and optimize the innovation efforts of device manufacturers. 
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Burberry's Digitally Enabled Store Is Seductive, But Is It Really "Agile Commerce"?

Martin Gill

There are a few firms that I regularly point to as agile commerce exemplars, and one of them is Burberry.

This always makes me smile because being from the north of England and growing up in a  culture dominated by shipbuilding and football (and Newcastle Brown Ale), Burberry has long been the iconic garb of the “chav.” Since many of the people who read this blog aren’t from the UK, a quick cultural diversion is probably needed here. But don’t worry - it's relevant to the Burberry story. Honest.

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Digital Disruption Will Tear Down And Rebuild Every Product In Every Industry

Carrie Johnson

 

Digital disruption is forcing business leaders in every industry to rethink their strategy. Music, media, and publishing have been turned upside down. Now, non-digital products and services — from airlines to automobiles — must consider new competitors, new economics, and new customer relationships. For example, game-changing, disruptive mobile experiences and apps on platforms like Amazon.com, Apple, eBay, and Google give those firms control of consumer mobile devices and platforms, allowing them to both "tax" sales and hijack payments as well as threatening to further strangle already-squeezed margins for eBusiness professionals.

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Hire The Will, Train The Skill

Harley Manning

If you scroll down, you’ll see a link to part two of my appearance on Jim Blasingame’s talk show, The Small Business Advocate. Among other things, in this segment, we talked about one of the keys to customer experience success: hiring the right employees.  

Hiring is one of the tools for creating a customer-centric culture that my co-author Kerry Bodine and I describe in our new book, Outside In. Although hiring is fundamental, it’s something that many hiring managers get wrong. That’s because they’re still looking primarily at what their candidates know — their job skills — and not focusing enough attention on to who their candidates are

Here’s why that’s a problem. You can teach people how to perform tasks, whether it’s stocking shelves or doing the books. And you can teach them enough about your products and services to be able to help your customers. But if they’re people who don’t want to help customers, you’re not going to teach them to be different people.

Are there really that many people out there who just don’t want to help customers? Yes. That’s a lesson Kevin Peters, the president of Office Depot North America, learned several years ago.

Kevin asked all 22,500 store associates to take a personality assessment test designed to evaluate employees’ skills, behaviors, and aptitudes as they related to serving customers. To his surprise and disappointment, a significant percentage agreed with statements like, “If the job requires me to interface with customers, I’d rather not do the job.”

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Digital Banking Innovation In Turkey

Benjamin Ensor

In our research on eBusiness and channel strategy, we often come across clusters of innovation where innovation by one company in a sector causes its competitors not only to match it, but to try to leapfrog it -- resulting in a rapid cycles of innovation. Among the examples of these clusters are insurance companies in the US (Progressive, Geico and a growing number of others) and banks in Spain (Bankinter, La Caixa, BBVA and Banco Sabadell).

Another of those clusters is the retail banking market in Turkey. Last week I was in Istanbul and was able to see some of the innovations in person and meet a number of heads of eBusiness at Turkey's big banks. Turkey's banks have been quick to adopt digital technologies and achieved some world firsts for the banking industry. Here are a few examples you might like:

  • Ziraat Bank's video teller machineZiraat Bank has deployed a network of unstaffed video kiosks (see picture, right), which it calls video teller machines, that use video-conferencing to connect customers with agents in the bank’s contact centre. Customers can use the kiosks to deposit and withdraw money, buy and sell foreign exchange, pay bills, transfer money and buy bonds. The kiosks let the bank expand its network much more quickly than building conventional branches would do.
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Mobile Marketers: I'm Looking For You!

Melissa Parrish

Those of you who know my research won’t be surprised to learn that I’m currently working on a collection of mobile marketing reports that will eventually make up our mobile marketing playbook. (For more information about Forrester’s new playbooks, check this out.) But what you probably don’t know is that the report I’m working on right now isn’t about mobile marketing — it’s about mobile marketers.

My hypothesis is that as a company decides to commit to mobile marketing, experts either emerge or are hired to shepherd programs specifically designed to engage the mobile audience. It sounds easy enough, but there are a couple of things that complicate this seemingly straightforward evolution. First, mobile isn’t really just “a” channel. There's more than a dozen mobile tactics that a mobile channel manager could be responsible for, including mobile display, mobile search, and mobile messaging, in addition to mobile sites and apps. Second, for a lot of those mobile tactics, there are already embedded non-mobile counterparts, like digital media buyers, email marketers, and search specialists with whom the mobile marketer may need to collaborate.

So, for this report, I’m hoping to speak with several of you mobile marketers out there to understand things like:

·         How you got into your current role and what it entails.

·         Where you sit in relation to other marketers at your company.

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Co-Create Great Experiences With Your Customers

Kerry Bodine

Henry Ford purportedly quipped that if he had asked customers what they wanted, they would have said, “a faster horse.” It’s a well-trod line, one that’s guaranteed to receive nods and chuckles in any business meeting. We can all relate. After all, nothing’s really changed since Ford’s time. Customers today still can’t tell us exactly what they want or imagine products and services that don’t currently exist. No one in 2009, for example, was screaming for a computer that was smaller than a laptop and bigger than a phone — and yet the iPad has become one of the most successful consumer devices on the planet, spawning dozens of copycats.

But here’s the problem: Ford’s quote is a cop out. It bolsters our self-serving belief that we know what’s best for our customers. We hide behind Ford’s lesson, using it to justify our decision to not ask customers what they really want or need. Perhaps this approach worked in the early 1900s. But today, in the age of the customer, the balance of power has shifted from companies to consumers — and companies can no longer afford to make business decisions based on what they think they know about their customers.

One of the most effective ways to make sure you’re delivering products, services, and experiences that meet your customers’ needs is to actually bring them into your design process. I know this can sound like a shocking suggestion, so let me say it again. You should ask your customers to work with you on developing potential solutions to their biggest pain points. Designers call this co-creation.

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When It Comes to Total Returns, Customer Experience Leaders Spank Customer Experience Laggards

Harley Manning

Whenever I talk about the business impact of customer experience, there’s one thing that always grabs people’s attention. It’s an analysis done by Jon Picoult of Watermark Consulting, who took five years of data from Forrester’s Customer Experience Index and constructed two model portfolios. One is a portfolio of the top 10 publicly traded companies in the index (customer experience leaders), and one is a portfolio of the bottom 10 publicly traded companies in the index (customer experience laggards).

You can read details of how Jon conducted his analysis in our new book, Outside In, and in this post on Jon’s blog. The results are striking. Over the course of the five-year period, the customer experience leaders spanked the laggards in stock performance. The leader portfolio had a cumulative total return of +22.5%, compared with a -1.3% decline for the S&P 500 market index and a -46.3% decline for the laggard portfolio.

Five-Year Stock Performance Of Customer Experience Index (CXi) Leaders Versus Laggards Versus S&P 500 (2007 to 2011)

Customer Experience Leaders Portfolio deliver 5 year return of 22.5 percent

What follows is an interview I recently conducted with Jon to get his thoughts on why making a compelling business case for customer experience is so challenging — and so important.

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The Data Digest: Alternative Payment Methods In Europe

Reineke Reitsma

Consumer usage of alternative payment methods like contactless cards or mobile payments is still very limited in Europe, and the majority of European consumers aren’t interested in using these services (yet). But attitudes vary across Europe. In the UK, where consumers are more familiar with the concept thanks to public transport schemes like London’s Oyster card, about 4% of the population use contactless payment cards, and a further 22% are interested in using one. In Spain and Italy, a third of consumers show interest in such a payment system.

But security concerns and a lack of need are holding consumers back. While early adopters will more likely overcome them, these concerns represent a serious barrier to mainstream adoption.

While mobile digital wallets have received much of the recent buzz in the marketplace, digital wallets cover a much broader spectrum, as my colleague Denée Carrington explains in her post 'The Digital Wallets Wars Are The Next Phase Of The Payments Industry Transformation'. But moving the needle on the adoption of digital wallets will require adding significant value before, during, and after payment.

Consumers have little motivation to adopt a new payment solution if it is purely a one-for-one replacement. Digital wallets must instead increase the value of the transaction for both consumers and merchants. Winning solutions will bring this to life through greater convenience, contextual relevance, and a compelling purchase experience.

Apple Maintains The Status Quo With The iPhone 5, But For How Long?

Tony Costa

Apple's new iPhone 5 is a case study in incremental improvement. Nearly every aspect of the product -- the CPU, display, cameras, radio modem, size, weight, etc. -- are all improved over the iPhone 4S and at the same $199 price point. No doubt, the iPhone 5 and iOS 6 will sell millions of units, preserve Apple's momentum, and hold off the competition, but significant threats are mounting that Apple cannot afford to ignore:

  • Nokia is delivering Apple-quality innovation. As Nokia demonstrated last week at its Lumia 920 event, Nokia's innovation engine is firing on all cylinders. When the Lumia 920 launches (rumored for November 2), it will outclass the iPhone 5 in key areas such as imaging (PureView imaging, Cinemagraph) and location (Maps, City Lens, Transit) as well as bring wireless charging and NFC into the mainstream. While the breadth of accessories will be nowhere near what the iPhone offers, Nokia gets strong marks for showing Apple how NFC can enhance the accessory experience. 
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