The State Of Retail eCommerce In Brazil

Lily Varon

The economic decline in Brazil has hit the retail sector hard , but eCommerce is still growing. To understand the state of affairs in retail eCommerce in Brazil, in 2016 Forrester surveyed online retailers in Brazil together with industry partner e-Commerce Brasil. Here are a few findings from the research:

  • Retailers are feeling the pain of operating in the midst of Brazil's economic recession. Nearly 60% of online retailers say slowing consumer spending with be a significant barrier to their eCommerce growth over the next 12 months. Furthermore, more than half cite the operational constraints of keeping up with constant regulatory change.
  • Online retailers are increasing their eCommerce technology budgets. Despite the pressure to reduce costs during turbulent economic times, 64% of Brazilian retailers we surveyed are increasing eCommerce investments to help them weather the storm.
  • Investment priorities include marketing, mobile – and uniquely! - marketplaces. Retailers this year are focusing on marketing and mobile, much the same as in the US and other global markets. Unlike many other markets, however, Brazilian digital commerce pros are also prioritizing marketplaces. Why? Third party marketplaces are a relatively simple way to sell direct to consumer online. And retailers like Magazine Luiza and Walmart Brasil are prioritizing launching marketplaces on their own retail sites as a source of new revenues.
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The Age of Alt: Data Commercialization Brings Alternative Data To Market

Jennifer Belissent

We all want to know something others don’t know. People have long sought “local knowledge,” “the inside scoop” or “a heads up” – the restaurant not in the guidebook, the real version of the story, or some advanced warning. What they really want is an advantage over common knowledge – and the unique information source that delivers it. They’re looking for alternative data – or “alt-data.”

From the information age where everyone took advantage of easy access to information, we are now entering an age where everyone seeks alternatives: new sources of information and innovative ways of deriving unique insights.  This is the “Age of Alt.”

We know that business leaders want to better leverage data and analytics in their decision-making. But more importantly most decision-makers want to supplement their own data with external data; 81% tell us they want to expand their ability to source new external data.  Demand for data is exploding.

With everyone now chasing data, the challenge is to find something new and different – finding the “alt data.”

Fortunately, the supply of data is booming as well. Forrester’s hot-off-the-press 2017 Data and Analytics survey reports a huge jump in companies taking their data to market:

48% are commercializing their data – and that’s up from 32% last year.

These new data sources out there represent an enormous opportunity to find that information advantage.

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Start Silo-Busting: Strengthen Your Relationship With Compliance

Erna Alfred Liousas

What comes to mind when you hear the word “compliance”? Do you shiver, sigh, break out into hives, or all three? Believe it or not, your compliance colleagues are crucial to your social marketing success. This is especially true for marketers in regulated spaces such as financial services, healthcare, and pharmaceuticals. I can share from personal experience that my social marketing success at American Express was in part due to the relationships I fostered with compliance, legal, and even outside legal counsel — in fact, I’m still in touch with those former colleagues. Given the importance of breaking down the marketing compliance silo, I partnered with my colleague Nick Hayes on a new report, Bridge The Divide Between Social Marketing And Compliance. And though the intention of this report is to help marketers in regulated industries, Nick and I both agree that all marketers can benefit from it. 

Below are three takeaways to help you elevate your relationship with compliance:

  • Don’t make procrastination an option. Yes, it’s true, most healthcare or pharma social media-related regulations aren’t consistently updated. But that doesn’t mean you can or should procrastinate about initiating a conversation with compliance. Your social marketing success rests upon a few factors, including your relationship with your compliance colleagues.
  • Create structure around your approach. Our “research, align, implement, and optimize” approach is a repeatable process that can jump-start your compliance conversation (see below). This will eventually help you establish a solid relationship and, ultimately, trust with your stakeholders. In addition, you’ll have a clearer understanding of their perspective on social.
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Amazon Prime Wardrobe Won’t Will Kill Subscription Boxes: Bad Strategies Will

Lily Varon

Retail subscription boxes have a churn problem – that’s the bottom line. For non-essential categories, once the novelty wears off, consumers leave. We're seeing subscription box companies burn through their addressable markets. If there's a death knell for today’s subscription box companies, it's not Amazon’s new Prime Wardrobe offering, it's that many of them have been short-sighted. They have no game plan to maintain their value proposition after the novelty of their initial product or service wears off. 

Here’s what subscription box retailers, or retailers considering a subscription box model, should take away from Amazon’s Prime Wardrobe announcement:

  • Amazon continues to build out the value they give to Prime members. Amazon isn’t letting Prime members become desensitized to the value of their subscription.This service isn’t innovation per se  rather, it’s a value-add for existing subscribers for no additional cost. Amazon is a building out the value of a Prime membership for its members. 
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Navigate Forrester’s Insights Services Research

Jennifer Belissent

Early last year, Forrester defined a new player in data and analytics services, the insights service provider.  Over the past 18 months, our research has produced a number of reports defining the category, digging into specific industry and functional or domain specialists, identifying what really makes a true insights provider stand out (hint, it’s decision support) and addressing questions that companies have about how best to select and engage these new service providers.

Our research has also explored the business opportunity that insights services delivery offers, for data originators and aggregators, for software providers, and for manufacturers of connected products.

The following list provides a table of contents for the research – a cheat sheet for Forrester’s research on insights services.

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Two Reports To Get Search Marketers Closer To The Summit

Collin Colburn

Co-authored with Christian Splaine, Research Associate on Forrester's B2C Marketing Team

Earlier in the year, we came out with our State Of Search Marketing, 2017 report. The takeaway? Search marketing is only getting more complex and harder to navigate. And so far that has played out to be true. In fact, we here at Forrester have received an increasing number of questions this year on how to traverse the tricky terrain that is search. So, we have donned our mountaineering hats and written two new reports aiming to help search marketers navigate to the top of the search marketing summit.

The first report maps out the current relationship (or lack thereof) between search and social. Inadvertently, search marketers have become isolated from social intelligence insights that the rest of their enterprises are benefitting from. The benefits of connecting social listening data with search can range from better keyword targeting to improved campaign timing. The key to using search and social insights in tadem is collaboration between the two teams, which marketers can foster by:

·         Analyzing search and social insights together. For those marketers that are reliant on agencies, understand that they have both a search and social practice as part of their offerings. Ensure that their search and social teams are working together and sharing insights, so that you can reap the rewards.

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Amazon Buys Whole Foods To Expand Its Digital Prowess In Retail

Brendan Miller

Written by Principal Analyst Brendan Miller and Principal Analyst Brendan Witcher.

Whole Foods’ brick-and-mortar expertise combined with Amazon’s digital prowess is a one-two punch that will give retail executives more sleepless nights. Our initial take on what Amazon’s $13.7 billion acquisition of Whole Foods means for the broader retail market:

  • To thrive in grocery, Amazon needs a keystone: the local store. Grocery is a high-frequency shopping experience. Whole Foods’ stores give Amazon a new store platform for deeper engagement across all its selling categories. Amazon can lock in its national distribution and logistics mastery with a local “place” in a way that other retailers will struggle to replicate. Now Amazon can tie into those weekly (or multi-weekly) grocery runs with add-on products and services further deepening their reach into customers’ wallets.
  • Amazon knows that to win at brick and mortar, retail theater is paramount. Whole Foods locations are destinations where the idea of “Retail Theater” still thrives. Consumers go to Whole Foods to shop but also to discover new foods, attend wine tastings, pick up prepared foods, and enjoy a cup of organic coffee. Whole Foods can be credited with turning Americans on to arugula, almond milk, and probiotics. The idea of retail theater and discovery is badly missing in most brick-and-mortar retail shopping experiences. Amazon is now getting private lessons from the master.
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The Predictive Marketing Analytics for B2B Marketers Forrester Wave

Allison Snow

When my colleague Laura Ramos and I set out to “Wave” the B2B predictive marketing analytics space, we knew that while there are impressive results across the board here, marketers struggle to identify differentiation among its vendors. We’re thrilled to have published Forrester’s first Wave that provides clarification to B2B marketers who seek to connect their business requirements to a predictive marketing analytics solution.

The Wave process begins by screening dozens of interested vendors and each participating vendor – household name or not – brings exceptional capabilities to the market.

We included 11 vendors in the assessment: 6sense, BrightTarget, EverString, Infer, Lattice, Leadspace, Mintigo, MRP, Radius, The Big Willow, and Versium.

Forrester Waves have a track record of delivering objective guidance to technology buyers of all stripes, supported with an interactive tool that marketers can use to zoom in on the capabilities that are important to them. We chose to focus on how well these offerings give marketers the ability to deploy predictive marketing analytics across the customer life cycle, to integrate with other popular martech solutions, and leverage a variety of data sources. Laura and I prioritized the following core principles as we built and assigned weights to each of the 28 criteria:

  • The extent to which solutions can reliably predict an outcome in a specific time frame.
  • The ease with which marketing and sales can execute campaigns using model output.
  • The degree to which model output supports engagement across the customer life cycle.
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Now Accepting Entries For Digital Marketing Awards Asia 2017

Xiaofeng Wang

Jointly hosted by Forrester and CMO Innovation, the inaugural Digital Marketing Awards Asia 2017 aims to inspire marketers in Asia by highlighting innovative approaches to and best practices for digital marketing.

We’re looking for exciting B2C or B2B digital marketing programs that clearly deliver on business goals. To determine the winners of the Digital Marketing Awards Asia 2017, we will focus on how marketers use digital marketing at each stage of the customer life cycle. We’ve created three categories of awards, each corresponding to a different aspect of what Forrester calls the marketing RaDaR:

  • Reach: programs that generate brand visibility.Reach efforts drive discovery and awareness. These include word-of-mouth marketing, paid social advertising, and thought leadership.
  • Depth: programs that close sales.Depth programs pave the path for exploration and buying. These include ratings, reviews, and brand communities for information that helps to close existing prospects or leads.
  • Relationship: programs that build loyalty.Relationship tactics increase the loyalty and lifetime value of existing customers. These include a consistent presence on a social media account and loyalty programs designed to create repeat business.
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Busting The Big Myths Of Retail: The Real Reasons Retailers Are Missing The Mark

Brendan Witcher

If you believe what you've heard in this year’s earnings calls, retailers are losing every dollar of business to Amazon. Are they? No. They’re losing some, but the estimates on Amazon’s pure, non-marketplace growth don’t even come close to every other retailer’s declines. Amazon's growth is a symptom of - not the reason for – retailers’ problems. Retailers in decline are also losing sales to the many multi-channel retailers that are growing and actually - *GASP* - opening stores, as well as new market entrants, including brands selling direct.

The other big industry myth: online sales are adding to total retail sales growth more than in-store sales. The facts: last year, retail sales grew $128B excluding items like fuel and autos. Online sales added a healthy $53B, but in-store sales added an even healthier $75B. The result of these myths: some retailers believe they should close stores and compete more online to resolve issues. But this strategy actually makes their problems worse, and closing stores is likely the first step to ultimately closing the doors.

Retailers struggling today suffer from brand problems, not store problems. They have failed on five main fronts. Specifically, they:

  • Don’t focus on solving customer pain points. The ability win in today’s environment is just a matter removing customer pain points to improve experiences along the shopping journey. Unfortunately, many retail teams we speak to make the issue too complicated, and aren’t even aligned on what their customer pain points are.
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