Mobile Insurance Seeding New (And Surprising) Business Alliances

Ellen Carney

In the interviews we just wrapped up with insurance thought leaders, one thing’s certain: Mobile is going to play a BIG role in the future of insurance. Alongside another topic (about which you’ll hear more later), mobile, and its role in enabling policyholders along with underwriters, agents, commercial underwriters, and the claim supply chain, animated virtually every conversation we had. One area in particular — mobile partnerships — spurred some great discussion on the outlook for new mobile products and collaborations that might be in the offing.

Alongside Tokio Marine’s intriguing mobile one-time insurance for sporting events and travel, we uncovered a unique life insurance purchasing model in South Africa. What was it that caught our attention? Econet Wireless and First Mutual Life in South Africa have teamed up to produce Ecolife, a life insurance product purchased by prepaid subscribers using mobile airtime. The customer only has to purchase US$3 to receive coverage, and the amount of coverage increases with every additional dollar (up to $10,000 coverage). First Mutual Life’s attempt to reach the sizable population of South Africans without a traditional bank account has seen rampant successthus far.

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Online Video Retail Success Stories

Martin Gill

Increase your conversion rates overnight!


That’s amazing. How can I get a piece of that pie? 

Call it what you will -- V-Tail, vCommerce, or just plain online video -- we are seeing some pretty bold claims around the use of video in eCommerce. Claims from platform vendors, press, and even some case studies and success stories from large retailers who are seeing some significant successes when they integrate video content into the online shopping experience.

But there’s the key. Integrate. Of course it isn’t as simple as sticking a few videos on your existing dot-com site and hey presto, conversion rates skyrocket. Video needs to support the sales process in a way that makes sense to your customers, that supports your brand values, and that enhances the shopping experience.

There are a growing number of ways to source video content, and an increasing number of players in the market who will all tell you that they have the answer. From user-generated content to automatically generated video. From content delivery networks to social media. There are a bewildering number of options out there.

Video absolutely can deliver firm benefits :

  • It can increase page views by driving traffic to your site.
  • It can enhance the time people spend lingering on your site, giving you more opportunity to market to them.
  • It can help to increase conversion.
  • It can reduce your returns.
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What Amazon Should Do With Its Kindle iPad App

James McQuivey


This week, the iPad app world is frantically sorting through some recent changes in its environment. Last Monday, Apple quietly altered its app approval policies in a way that will make publishers much happier. Specifically, Apple has relaxed control over whether apps can access content paid for outside of the App Store’s purchase APIs. The company has also allowed publishers to price however they want, both outside and inside of the app.

In the same week, released a subscription-based HTML5 web app intended for iPad users that bypasses Apple entirely, giving the publisher its own path to market that does not depend on or enrich Apple directly. The coincidence of these two events is not lost on most of us industry observers and is the topic of a Forrester report issued by my colleague Nick Thomas last Friday. In it, Nick explains why the FT’s move is probably the first of many such moves by the most recognized publishers, even with Apple’s newly announced policy reversal.

But while publishers figure out their next steps for their content apps, there’s one app that no one is talking about but I believe everyone should have their eye on. It’s the Amazon Kindle app. This app violates even Apple’s revised policies and will soon face a day of reckoning when Apple's June 30th deadline for compliance comes up. 

I don’t claim to know Amazon's plans, but I will claim to tell Amazon what it should do:

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Magnificent Mile - Yes. Multichannel Mile…Still A Work in Progress

Andy Hoar

Recently two colleagues of mine, Patti Freeman Evans and Martin Gill, put their respective cities’ shopping meccas to the multichannel test.  The question: To what extent were bricks and mortar retailers on Fifth Ave in New York and Oxford Street in London using their physical stores to advertise and promote their digital channels?  

Eager not to be left out...and curious to see how my city of Chicago would fare…I paid a visit to our world famous “Magnificent Mile” to see if/how bricks and mortar retailers promoted a connection to their own digital channels.

As I walked both sides of Michigan Ave (home to retailers such as Northface, Macys and Gap…as well as high-end retailers such as Tiffanys, Louis Vuitton, and Chanel)…I thought to myself, would Chicago be different from London and New York?  Would America’s heartland have a better feel for a large and growing number of shoppers today who may physically “be” in stores but whose shopping “attention” may reside elsewhere?

Some findings:

  • Traditional Brands Disappointed.  Count among this grouphigh-end/luxury brands and more established brands (e.g. Louis Vuitton, Macys).  Which is not to say that all youth-oriented brands excelled (e.g. Zara, Disney)…in fact, a surprising number of them failed to show their multichannel chops (e.g. no URLS in store, no discernable mobile presence). For example, The Disney Store was heavily promoting the “Cars 2” movie on monitors in its store, but I could not find any links anywhere to their content-rich website.
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Call Center Satisfaction Ties To Consumer Loyalty And Overall Brand Impressions

Kerry Bodine

In a previous post, I said that bad call center experiences spoil millions of daily opportunities to drive business value. Now you can figure out just how much business you're missing out on. 

Forrester recently asked US consumers to rate their satisfaction with call center agents from companies across 11 industries. As a part of that survey, we also asked consumers about their loyalty to those same companies. Then we analyzed the correlation between the quality of call center customer experiences and customer loyalty.

What we found was pretty compelling.

As customer satisfaction with the call center goes up, the willingness of a consumer to make another purchase and to recommend that brand to others increases. In addition, likelihood to switch to another provider goes down.

These correlations were particularly high for PC manufacturers, parcel shippers, Internet service providers, TV service providers, and credit card issuers.

We also asked consumers about the usefulness, ease of use, and enjoyability of their interactions with these same companies. We used that data to analyze the correlation between the quality of call center conversations and consumers’ overall perception of the customer experience delivered by the brand.

Across every industry we looked at, call center satisfaction highly correlates with consumers’ perceptions of how well the company met their needs and how easy and enjoyable it was to work with the company.

Customer experience professionals, call center execs, and marketers need to start discussing these connections and developing a plan to improve the call center customer experience. Your brand and your customers’ loyalty might just depend on it.

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Are We Headed Toward A Cashless Society?

Carlton Doty

These are exciting—and challenging—times for anyone who is responsible for developing, managing, and innovating consumer products.  Why?  Because digital technology is disrupting everything—the way we communicate with each other; the way we access, store, and share information; the way we purchase and interact with the products and services we use every day; and yes—even the way in which we actually pay for those products and services.  Whether you like it or not, digital disruption is happening everywhere, it’s happening fast, and it’s accelerating.

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An Open Letter To Anyone Planning To Buy Into Groupon’s IPO

Sucharita  Mulpuru

Dear Potential Investor,

I have mixed feelings about the Groupon IPO. On one hand, we’ve just come out of a horrible economic period where there was a real fear of wealth destruction. But now just a few months after the near-collapse of our financial institutions, we actually have an extraordinary opportunity for wealth creation — how great is that! On the other hand, there is no rational math that could possibly get anyone to the valuation Groupon thinks it deserves. Yes, Groupon grew from $30 million in sales to more than $700 million between 2009 and 2010, but most of that growth was artificial. (The lack of profitability is another issue, but let's not even go there.) Here’s why:

  • $265 million came from its international markets, which were acquisitions.
  • It spent a quarter-billion dollars (!) on marketing. To put that into context, the average large eCommerce retailer spends $11 million on interactive marketing. Back of the envelope calculations from the SEC filing get us to $31 spent to acquire a customer, who then probably spends a little more than that on Groupon. That means it spent about $250 million to make another $300 million.
  • It launched in more than 100 new markets in 2010. I’ll conjecture that in any market in America, you can sell $500,000 of half-off manicures and teeth whitening procedures in a year just by hanging a shingle. That gets us to another $50 million in revenue. 
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Do We Still Need SMS?

Julie Ask

Apple's announcement today on the "Notification Center" triggered my comments. Other than the fact that I no longer need to tether all of my devices to a computer (finally!), I think this was my favorite announcement. My top "negative" re notifications to date has been the inability to save or file them. Do I want to save a FB update? No, not really. But I do want to save and file coupons, promotions, news alerts, etc. Will be interesting to watch the effectiveness of notifications now that they DON'T interrupt . . . in some ways, that's the point. Less intrusiveness may attract more uses of those afraid of annoying their customers. Re 100B notifications to date . . . wow.

"Do we need SMS?" I think the answer is "absolutely, yes." I've had more than one of my colleagues suggest to me that SMS no longer holds any relevance for commercial businesses hoping to reach their customer base. I disagree. Here's why:

  • For the forseeable future, a very small percentage of any company's customers will have downloaded its application. A few companies like eBay or may be the exception. Relying only on push-based notifications does not offer enough reach. Apple's announcement today, however, makes push-based notifications a lot more interesting.
  • Push-based notifications on smartphones are more of a US-centric phenom. If you are targeting customers in Asia, Africa, India, Latin America, etc., you need SMS -- SMS is the primary application/transport medium on most phones in many countries.
  • Tracking calls-to-action. When does a message drive an action? Clicking through to a URL? Using a coupon? Visiting a store? Calls-to-action can be digital, physical, or calls.
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Social Co-Creation Is A Valuable Opportunity For Companies With A Latin American Presence

Roxana Strohmenger

It’s been almost a year since I wrote Latin American Social Technographics® Revealed, which demonstrated this group of consumers’ voracious love of social media. In that report I highlighted how this high level of social engagement is not exclusive to just entertaining themselves or connecting with family and friends. In fact, it also extends to interacting with companies, with activities such as reading their blogs, following them on Twitter, or even watching a video they produced.

Given the ease with which companies can connect with online Latin Americans via social media, I’ve now published a new report entitled Take Advantage: Latin American Consumers Are Willing Co-Creators that examines whether companies can extend this interactive and social connection with consumers into the realm of co-creation in the social online world. My colleague Doug Williams, who focuses on co-creation processes for the consumer product strategy professional, defines “social co-creation” as the process of using social technologies as a vehicle to execute co-creation engagements.

To examine the viability of social co-creation in Latin America, we assessed the factors that we feel are crucial for a successful social co-creation engagement to occur. They are:

  • A high level of engagement with social media — especially at the Conversationalist and Critic levels.
  • A high degree of interaction with companies using social media tools.
  • An inherent willingness to co-create with companies.
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Get Customer Obsessed Or Perish: Welcome To The Age Of The Customer

Carrie Johnson

Today Forrester released a piece of must-read research for every organization that markets and sells to customers. In Josh Bernoff's report "Competitive Strategy In The Age Of The Customer," he illustrates how customer-led disruption forces firms to throw away old models of competitive differentiation. Competitive barriers like manufacturing strength, distribution power, and information mastery won't save anyone. The report concludes that the only sustainable competitive advantage is knowledge of and engagement with customers. In the age of the customer, firms must become customer obsessed.

eBusiness and channel strategy professionals are no strangers to customer-led disruption. Many firms' web strategies are just now finally catching up to the sneak attack of and E-Trade, if they survived at all. What happened in the early '90s will continue to happen again and again. In a companion document that I also released today, I argue that to survive, eBusiness and channel strategy professionals must embrace the principles of agile commerce -- optimizing people, processes, and technology to serve customers across all touchpoints. Specifically, eBusiness and channel strategy professionals must shift from:

  • Customer acquisition to retention.
  • Siloed channels to touchpoints.
  • Reactive to actionable use of customer data.

I encourage you and everyone in your organzation to read this critical document about surviving and thriving in the age of the customer.