Merchants That Accept EMV Chip Cards Reduce Some Payment Risk, But Not All

Brendan Miller
Much has been written about the impacts of the recent U.S. October 1, 2015 Fraud Liability Shift milestone and the migration to chip cards.  Some retailers geared up for the fraud chargeback liability shift long before October 1st by upgrading POS software and hardware systems to accept the new EMV chip cards.  Most U.S. merchants are still sitting on the EMV sidelines and have not made the commitment to upgrade.  
 
When considering EMV acceptance upgrades retailers need to look at their total risk profile when it comes to fraud, security, and PCI Compliance.  The EMV chip card standard was developed as a way to minimize in-store fraud.  After October 1, 2015 card present merchants will be accepting more risk as transactions made with counterfeited EMV cards will now be the merchant's responsibility if it decides not to accept EMV chip technology at the POS.  The benefit of the investment in new payment system upgrades needs to outweigh the risk of fraud and customer perception for the merchant.    
 
Fraud and EMV in the Context of Risk
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The Data Digest: Wear, Why, And What Next?

Anjali Lai

For US online adults, wearable technology is no longer the stuff of myth. Over the past year alone we’ve witnessed the launch of the Apple Watch and iterations on early wearable products. Wearable devices are now making their media cameo across a variety of channels and topics ranging from politics to pop culture.

According to Forrester’s Consumer Technographics® survey data, around one-fifth of US online consumers use a wearable gadget. While the adoption rate is higher among young, wealthy males, wearables are already breaking into segments that aren’t typically considered among the early adopters. Most individuals tend to use the technology for health- and fitness-related activity; however, consumers demonstrate a growing interest in using wearables for several different functions:

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Introducing The Marketing Measurement and Insights Playbook

Tina Moffett

It’s no secret that marketers are under increasing pressure to be accountable, while an increasingly fragmented media environment compounds the perennial challenges of marketing measurement.  Meanwhile, consumer insights pros are improving skills and gaining ever more powerful tools to harvest and analyze the data from web, mobile, and social marketing. The scale and speed requirement of today’s marketing world strained legacy marketing measurement approaches like attribution and marketing mix modeling .  

We knew the convergence of different marketing analytics approaches was inevitable so earlier this year, my colleague Jim Nail and I began sharing our ideas on where marketing measurement was headed.   We agreed each approach provides only a partial answer to the marketing ROI puzzle and they shared enough methodological similarity that merging them was plausible.

We’ve just completed research that shows that our intuition is correct and in our new report, Embrace Unified Marketing Impact Analytics to Deliver Value Across Interactions, we dubbed this converged approach as Unified Marketing Impact Analytics (UMIA), defining it as:

blend of statistical techniques that assigns business value to each element of the marketing mix at both a strategic and tactical level. 

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Safe Harbor is dead. What does that mean for your customer insights & analytics practices?

Fatemeh Khatibloo

Yesterday morning, many of us in the United States awoke to some troubling news: the European Court of Justice (ECJ) had ruled that the Safe Harbor agreement is no longer valid.  Security & risk (S&R) and data management folks kicked into high gear. Customer insights and digital marketing teams...? Well, the news slipped past mostly unnoticed. That's a mistake. 

Let's start with a primer on Safe Harbor. If you're a multinational company doing business in Europe, Safe Harbor is the agreement under which you've been allowed to bring European customers' data back into your servers in the US for purposes of targeting, analytics, campaign management, etc. If you work with a US-based database MSP, digital or CRM agency to manage customer data, they've likely been relying on the same agreement. It's a nearly 20-year old agreement that was put in place to bridge the gap between Europe's strict data protection laws and America's relative dearth of them. 

Now, that agreement has been deemed invalid, which means that every company serving European customers needs to reexamine its data practices. Of course, this is primarily the purview of our technology management peers. But customer insights professionals need to partner closely with them on two fronts:

  • Speak up about your third-party data sharing practices. This includes sharing between business partners (for example, passing customer data to a firm that administers your loyalty program or manages warranties), sharing CRM data with digital marketing vendors, and even using third-party tracker on your website that collect IP addresses. Any third party data sharing could come under scrutiny from the European Data Protection Authority, so you'll want to have a consent-based model for collecting and sharing that data soon.
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Transforming the Role of Payments in the Digital Business

Brendan Miller
My mission at Forrester is to help ebusiness executives transform the role of payments from financial utility into an engine for customer engagement, revenue growth and improved customer experience.
 
A barrage of new innovation and business models are upending how consumers and businesses make and receive payments.  If merchants and businesses do not consider or implement these new innovations they risk losing customers and ultimately relevancy.  
 
Customer obsessed businesses can turn payments disruption into business advantage.  Success hinges on making technological and organizational shifts that turn the view of payments from customer transactions to an engine for customer growth.  
 
Businesses must consider the following challenges if they want to turn payments into customer advantage:
 
  • Embrace mobile and emerging payments
  • Gain more customer relevancy through collected payment data
  • Provide new tailored customer experiences and services based at point of purchase
  • Reduce risk and secure the shopping experience from data compromise and fraud 
  • Leverage payments for operational advantages
My role will be focused on how to make payments more operative and strategic through the lens of “Transforming the Customer Experience,” “Accelerating Your Digital Business,” “Embracing the Mobile Mind shift,” “Turning Data into Customer Insights.”  I look forward to expanding the aperture of these topics and working with you to transform the role of payments in your organization. 

By 2025, 50% Of Adults Under Age 32 Will Not Pay For TV

James McQuivey

Title got your attention? It should. In a report I just published this week, I use our Forrester Consumer Technographics® data to identify the 7% of adults who are digital cord-nevers — measured as people who have never paid for TV and who are under age 32. This is the worrisome group whose arrival TV-industry pros have nervously anticipated. As we show in the report, they are officially now larger than the entire adult population of cord cutters, who come in at 6% of all adults. Put them together, and you have 15% of adults who are not paying for TV while still getting all the TV value they need from a combination of Netflix, Amazon Prime Video, and other tools. 

Don't jump out of any Times Square windows just yet. TV is still massively popular and will continue to be. I wrote that report earlier this year, and Forrester clients can read it here. These defector groups are going to grow over time, true. And as the title of this post suggests, if we model this behavior out over the next 10 years, we expect that 50% of adults under age 32 will not pay for TV, at least not the way we think of it today. That compares to 35% of that age group that doesn't pay for TV today. (That's right, a third of them are already out of the pay TV game.) 

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The People Equation In Shifting To A Customer-Obsessed Business

Victor Milligan

It’s not news that the digitally empowered customer is changing our world. What is news is 1) the pace needed to catch up to an extremely dynamic and impatient customer and 2) the magnitude of real change needed to meet the challenges (and opportunities) of a customer-led market.

The magnitude and pace of change driven by customers, competitors, and innovation can be dizzying:

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B2B Customer Experience Professionals: Do You Know Who Your Customers Are?

TJ Keitt

In April 2015, we started a conversation about what is different between business-to-consumer (B2C) and business-to-business (B2B) customer experience (CX). That early discussion focused on the fact that in B2B scenarios, there isn't one customer; there are multiple stakeholders within a client account whose work depends on interactions with the vendor. Now we're ready to elevate this conversation to its next level: How do B2B CX pros help their businesses find the stakeholders who matter?

I know what you're saying: "Don't all client stakeholders matter?" Yes — you want to make sure that each individual in an account who interacts with your firm has an experience that helps them achieve their goals. But when business leaders assess the value of customer experience, they want to know that it contributes to revenue growth, a business success indicator. So when B2B CX pros examine customer experience, they must understand the perceptions of stakeholders who influence:

  • Retention. Who are the stakeholders who must see value in the vendor's products and services before the buyer(s) renews the contract?
  • Upsell and cross-sell. Who are the stakeholders whose perceptions of value influence their colleagues' decision to acquire more products and services from the vendor?
  • Advocacy. Who are the stakeholders whose opinion of the vendor can sway their colleagues' or industry counterparts' decision to do business with the vendor?
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Introducing Unified Marketing Impact Analytics

Jim Nail

“Hey…you got chocolate in my peanut butter!”

This line from a 1980’s Reese’s Peanut Butter Cups campaign is a classic in advertising…and aptly describes what is happening in marketing measurement today. (For a blast from the past click here to view this oldie!)

Two proven techniques that work great separately – attribution and marketing mix modeling – work even better when merged into a unified measurement approach.

I suspected the convergence of different marketing analytics approaches was inevitable so earlier this year, my colleague Tina Moffett and I began sharing our ideas on where marketing measurement was headed.   We agreed each approach provides only a partial answer to the marketing ROI puzzle and they shared enough methodological similarity that merging them was plausible.

We’ve just completed research that shows that our intuition is correct and in our new report "Embrace Unified Marketing Impact Analytics to Deliver Value Across Interactions" we dubbed this converged approach as Unified Marketing Impact Analytics (UMIA), defining it as:

blend of statistical techniques that assigns business value to each element of the marketing mix at both a strategic and tactical level. 

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Forrester’s Customer Experience Index, Q3 2015: It’s Hard Being An Optimist

Michael Gazala

I am an eternal optimist. My take on the Dow’s spiraling downward in Q3? Buying opportunity! That “exercise pill” scientists are working on that promises the benefits of exercise without any of the effort? I’m thinking my six-pack abs are now a sure thing. And I’m even holding out hope that the next season of Homeland will be as good as the first. But the Q3 2015 data from our Customer Experience Index (CX Index™) is making it hard for an optimist like me to find a lot of bright spots.

We’re in a world fraught with persistent economic imbalances where customers with copious options are flexing their market muscles more than ever before. If this is still news to you, I suggest reading up on our research about the age of the customer. But I think most of you know that an obsession with winning, serving, and retaining customers is a must and that you should transform your company to be more customer-focused.

Given that, I expected our latest US CX Index report would reveal that brands are delivering customer experiences that are getting better at strengthening the loyalty of their customers. But while much remained the same in the second round of Forrester’s 2015 US CX Index study (scores didn’t change for 69% of brands), when scores did change, they got worse instead of better. So of 92 scores that changed significantly from round one to round two, only seven improved; 85 got significantly worse. It’s hard being an optimist when:

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