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Making Leaders Successful Every Day
November 16, 2011
Mobile Mandate For eBusiness
Professionals
by Julie A. Ask
for eBusiness & Channel Strategy Professionals
© 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic
ImpactaretrademarksofForresterResearch,Inc.Allothertrademarksarethepropertyoftheirrespectiveowners.Reproductionorsharingofthis
content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@
forrester.com. For additional reproduction and usage information, see Forrester’s Citation Policy located at www.forrester.com. Information is
based on best available resources. Opinions reflect judgment at the time and are subject to change.
For eBusiness & Channel Strategy Professionals
Executive Summary
Mobile offers eBusiness professionals the opportunity to engage with consumers at every step of their
purchasing journeys, from upper-funnel demand generation through replenishment or repeat purchase.
Doing so effectively, in a way that will drive incremental value, requires more than squeezing assets and
services developed for the PC onto a smaller screen. eBusiness professionals must provide excellent
mobile services by delivering convenience, leveraging mobile as a highly efficient sales and service
channel, focusing on customer needs, breaking free of their PC-based design roots, and being agile.
table of Contents
Only Excellence In Mobile Services Will Deliver
Value
1. Focus on Consumer Needs
2. Drive Toward Convenience
3. Use Mobile To Execute At Every Step Of The
Customer Journey
4. Divorce The PC — Think Mobile First For
Mobile Services
5. Be Agile
NOTES & RESOURCES
This report is a summary of a series of reports
designed to guide the effective development
and execution of mobile strategies and services.
We have highlighted relevance to eBusiness
professionals throughout this report, as this
research was originally written for those in other
roles.
Related Research Documents
“eBusiness: The Future Of Mobile Is User Context”
July 11, 2011
“How To Prepare For Mobile Total Product
Experiences”
April 14, 2011
“Mobile Is Not Just Another Channel”
February 25, 2011
November 16, 2011
Mobile Mandate For eBusiness Professionals
Five Mandates To Guide The Evolution Of Mobile Services
by Julie A. Ask
with Patti Freeman Evans, Jeffrey S. Hammond, and Doug Roberge
2
© 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011
Mobile Mandate For eBusiness Professionals
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Only Excellence in mobile services will deliver value
Mobile is rapidly evolving into an important, if not the most important, digital touchpoint for
eBusiness professionals. Forrester Research forecasts that consumers will spend more than $6
billion on their mobile devices in 2011, with that number growing to more than 31 billion by the
end of 2016.1
Consumers are using their mobile phones in stores and on car dealer lots to compare
prices and get product information, book airline tickets, and make the right product choices. And
the opportunity to influence offline sales far surpasses those numbers. Just as companies such as
Blockbuster failed to retool their go-to-market strategies to embrace the impact that digital retail
presented, those eBusiness professionals who are dismissive of the disruptive potential of mobile
may face the same consequences. eBusiness professionals looking to maximize the revenue that is
both delivered and influenced by the mobile medium should heed the following mandates.
1. Focus On Consumer Needs
Consumer needs fall into one of four categories: comfort, connection, variety, and uniqueness (see
Figure 1).2
eBusiness professionals who focus on customer needs, as opposed to “simply getting
something out there” or “offering cool mobile services,” will be rewarded with customer praise.
Fulfilling customer needs has proven to be a profitable strategy for more than one company.3
Moreover, this customer love will, in return, drive loyalty, social media impressions, and new
customer acquisition.4
Mobile is not unique in its overall ability to satisfy consumer needs, but it
does offer distinct opportunities for eBusiness professionals. eBusiness professionals should focus
on the needs of consumers when building mobile services and deliver:
·	Comfort by mitigating buyer’s remorse and delivering on service promises. Comfort is
synonymous with reassurance, security, and safety. Certainly, mobile phones can offer comfort
to a parent by letting him know that a child is safe. And mobile can help a shopper feel more
comfortable making a purchase if she knows she is getting a fair price after comparing prices
on her phone. A banking customer will have more peace of mind knowing his bank is using all
means possible to detect and prevent fraud, including comparing the location of a phone with
that of a transaction at an ATM or point of sale (POS), for example.
·	A ubiquitous connection to friends, families, and our social networks. Connections could be
through physical touch, communication, or engagement with online communities. Mobile phones
allow us to connect to our most intimate contacts or a trusted community when we most need or
want to do so. The mobile usage of Facebook offers compelling testimony.5
eBusiness professionals
can facilitate these connections by allowing proposed purchases to be shared and then approved
by friends before a purchase. Services such as Yelp and Trip Advisor offer user-generated opinions
and reviews of services, while Best Buy uses Twitter for customer service.6
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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Figure 1 eBusiness Professionals Must Focus On Customer Needs
Source: Forrester Research, Inc.60960
Comfort
(oxytocin, serotonin)
Variety
(dopamine, epinephrine)
Connection Uniqueness
Threats Opportunities
Needs optimized to prepare us for:
Subconsciously
Serve short-term
motivation
Consciously
Serve long-term
motivation
How needs
are expressed
The four fundamental human needs1-1
Comfort
• Anywhere/anytime access
• Bank balance
• Location of child
• Price comparisons or
reviews
• Notifications (e.g., in mail
or late)
Variety
Connection Uniqueness
Threats Opportunities
Needs optimized to prepare us for:
Subconsciously
Serve short-term
motivation
Consciously
Serve long-term
motivation
How mobile phones can support consumer needs — examples1-2
• Customer service
• Ratings/reviews
• Social shopping
• Twitter-based customer
service
• Channel choice for leads
or customer service
• Communication choice
(e.g., email, SMS, push-
based notifications)
• Product/color choices
• Augmented reality to
offer personalized
Internet
• Personalized services
based on context
• Targeted offers
Source: February 4, 2010,“What People Really Need”Forrester report
© 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011
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·	A variety of communication, product, and service options. Variety prevents boredom and
generates feelings of excitement and possibility around new opportunities for expansion and
growth. Mobile phones in themselves offer phenomenal variety. One need not look past the
Apple iPhone App store, which offers more than 425,000 applications.7
eBusiness professionals
can use phones to show variety, as Converse did with its mobile application that lets consumers
“try on” its shoes.8
For eBusiness professionals, the mobile phone offers additional contact
options that go beyond the traditional phone calls, mail, or services that rely on a connected
personal computer. Consumers need options based on where they are at the time they need
access to a service or information as well as on the urgency or privacy of the need. State Farm,
for example, is one of many auto insurers facilitating claim creation on the phone in addition to
handling it via traditional channels.
·	Uniqueness through curated content, services, and preferences. Many consumers will
pay a premium to differentiate themselves from the masses. Mobile phones are personal
devices. Consumers expect relevant or contextual experiences that minimize the number
of steps required to help complete tasks or give them what they want (e.g., information or
entertainment).9
Today, eBusiness professionals can deliver unique experiences through stated
preferences, with learned context offering incredible potential. Amazon.com, for example,
allows consumers to set preferences for product category alerts. Today, a consumer with
potentially dangerous allergies can scan a 1D bar code to obtain a list of ingredients to make a
decision on whether or not a food product is safe to eat. Imagine a futuristic scenario: Suppose
an application on the phone already understood the individual’s allergies and could alert him or
her to danger with a photo of a package or plate of food?
2. Drive Toward Convenience
Consumers will not adopt any new product or service that is not more convenient than what they
are already using (see Figure 2).10
The concept applies directly to mobile services. Starbuck’s iPhone
application allows consumers to purchase products via stored value cards loaded on the device.
Walgreen allows its pharmacy customers to refill prescriptions without going online or enduring a
tedious interactive voice response (IVR).11
eBusiness professionals should adopt convenient mobile
services experiences that offer:
·	Value in immediacy. There are times when a consumer will use a mobile phone because that is
the only device he or she has available at that moment (e.g., rebooking a canceled flight while at
the airport). Consumers will choose to use a mobile phone to get instant information. In-store
pricing comparisons, for example, let a consumer know in the moment that he or she is getting
the best price or what the tradeoffs of purchasing at a lower price would be (e.g., driving to
another store or ordering online and waiting).
·	Simplicity. Mobile phone form factor cannot typically handle the more complex tasks
consumers do on a PC. For example, checking an account balance is simple, yet filling out
a mortgage application is more complex. Most eBusiness professionals who design mobile
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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experiences today limit the amount of content or number of services in an effort to offer a
simple mobile experience. That approach is less expensive than investing in simplicity by design.
New technologies, such as using cameras to enter information (e.g., by scanning a bar code)
rather than using key entry, continue to bring down barriers to mobile experiences, allowing
eBusiness pros to further simplify their mobile offerings.
·	Relevance through the use of context. Forrester defines context as “the sum total of what
your consumer has told you and is experiencing at the moment of engagement.” Context
encompasses a consumer’s situation, preferences, and attitude.12
Airlines, for example, will
present a different home page services menu if they know a passenger is two days or two hours
ahead of a flight. Two days out, the passenger may want to change a reservation. Two hours out,
a passenger may be more interested in an upgrade or gate information.
Figure 2 Mobile Should Offer Three Core Benefits To Drive Convenience
Source: Forrester Research, Inc.60960
Source: Target iPhone app; Charles Schwab iPhone app; Google Maps iPhone app
Immediacy Simplicity
Convenience Quotient
Context
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3. Use Mobile To Execute At Every Step Of The Customer Journey
Three to five years ago, mobile engagement with consumers outside of communication and media
primarily involved marketing — especially upper-funnel branding with display ads or text-based
voting. As mobile devices improved, eBusiness professionals took advantage and built out more
complex services focused on influencing and capturing sales. Banks, insurance providers, and
brokerage firms already focus on existing customers through convenient access to account services.
eBusiness professionals in other industries must identify their opportunities to enhance loyalty
and drive their customers toward replenishment or the next purchase by engaging with consumers
throughout their journeys (see Figure 3).13
While priorities will vary by industry and the target
audience, eBusiness professionals should have plans in place to do all of the following:
·	Support category demand — anywhere. More often than not, this responsibility lies with
marketing professionals. mCommerce, however, shortens purchase cycles in some cases
and deepens engagement in others. Consumers in transit on a bus or sitting in a hair salon
thumbing through a magazine can immediately purchase items. Shopping magazines such
as Lucky and Allure are full of 2D barcodes, as well as combinations of SMS short codes and
keywords, to facilitate spontaneous purchases. Many catalogs also ship with 2D bar codes today,
but, ironically, there is less of an emphasis on commerce.14
·	Influence sales by offering consumers timely content . . . Opportunity abounds here for
eBusiness professionals to insert themselves into a customer’s thought process via mobile
devices. Retailers such as Best Buy, Target, and Walgreen utilize 2D bar codes on store shelves
to connect consumers to information, such as product reviews and ratings, price comparisons,
tools, and detailed product information, to aid and drive decision-making. Their manufacturing
partners, such as Canon and Ryobi, are participating as well. Hotels are benefiting from travelers
seeking same-day bookings nearby when weather, for example, alters travel plans.
·	. . . or equipping sales personnel with in-depth information. These devices are not just
for consumers. Lowe’s is putting mobile phones and devices into the hands of 42,000 store
associates to give them the same tools that consumers have — and more. Handheld devices can
offer timely product, pricing, and inventory information to help capture sales. Imagine if store
associates not only had their store information but also could order from other stores in the
chain by searching their inventory. Knowledge of competitor pricing will also help put them on
par with content that customers can access.
·	Handle sales transactions. mCommerce transactions aside, mobile phones can be payment
mechanisms on their own or serve as card readers with connectivity for mobile points of sale.
Starbuck’s has scanners in its shops that will read bar codes on prepaid cards within its mobile
application. Sales associates in national retail chains such as Apple and Nordstrom use handheld
POS devices to facilitate quicker checkouts.15
Companies with higher-consideration products,
such as insurance, financial services, and pharmaceuticals, are giving their sales teams tablets to
drive field sales.
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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·	Support owners. eBusiness professionals should support customer care needs in the garden, in
the bathroom, and on the go. SmashBox Girls On Film eye shadow, for example, ships with a
quick response (QR) code linking to video with application instructions and tips. Banks have
invested in mobile services to give their customers convenient anytime/anywhere access to
account information and services.
·	Drive replenishment and repeat purchases. Loyal customers are the most profitable because
they buy again and again and tend to be less price sensitive than occasional shoppers.16
While
consumers will be annoyed if bombarded with untargeted messages, they will embrace
replenishment services they view as offering utility and convenience, such as MTD’s Microsoft
(MS) Tags on replacement parts for its lawn mowers; these tags ensure that the proper spare
parts are purchased.
Figure 3 Mobile Can Support Consumers Throughout Their Journeys
Source: Forrester Research, Inc.60960
Auto
Repeat
purchase
What to buy
Post-purchase
interaction
Ownership
Where to buy
Discovery Influence
Retention/upsell
Sale
• Games
• Product information
• Tools
• Video (demonstrations)
• Configurations
• Consumer reviews
• Dealer inventory
• Location-based marketing
• Nearest dealer
• Price comparisons
• Vehicle history
• Community
• Ownership guides
• Roadside assistance
• Maintenance
reminders
• Promotions
• Replenishment
• Accessories
• Lead generation
• Financing/
Insurance
qualification
• Information
verification and
accuracy
• Vehicle history
Mobile opportunities example: automotive3-1
© 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011
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Figure 3 Mobile Can Support Consumers Throughout Their Journeys (Cont.)
Source: Forrester Research, Inc.60960
Insurance
provider
Repeat
purchase
What to buy
Post-purchase
interaction
Ownership
Where to buy
Discovery Influence
Retention/upsell
Sale
• Branded content
• Home inventory lockers
• Tools (e.g., calculators)
• Utility applications
(e.g., accident kits)
• Agents — local contact
information
• Consumers tend to rely on
trusted advisors — both
professional and friends/
family for investment
decisions, but mobile can
offer support tools
• Pricing comparisons
• Product information
• Account status (e.g., balance, coverage, policy information)
• Account services (e.g., pay a bill)
• Claim kits — accidents
• Contextual information (e.g., how to prepare for an impending
hurricane)
• Ensure appropriate coverage as new purchases made
• Home value/condition maintenance through proactive care
• Mitigation of risky behaviors (e.g., driving while texting)
• Add or remove
drivers
• Lifestage
marketing (e.g.,
birth of a child
or new job)
• Renew policies
• Travel insurance
or increased
home insurance
as new
purchases made
• Contextual lead
generation (e.g.,
confirmation on
the automotive lot
• Notifications (e.g.,
missing
information
“application
approved”
• Sales through
agents, advisors or
professionals —
especially utilizing
tablets
Mobile opportunities examples: insurance3-2
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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4. Divorce The PC — Think Mobile First For Mobile Services
Too many eBusiness professionals begin a mobile strategy with the goal of simply having a mobile
presence. This leads to the shrinking or squeezing of a company’s existing digital assets onto a
smaller screen to offer essentially the same services (see Figure 4).17
While this approach offers a
pragmatic starting point, it is not an approach that will drive enough value to the organization long
term or offer the most convenient experiences. eBusiness professionals must evolve their approach
to designing mobile services in order to avoid a myopia that holds them back from seizing the full
potential of mobile within a multitouchpoint strategy.
Many mobile phones today are designed and built by those in the PC industry. Many think they will
replace PCs in the future, as portable processors that can be plugged into monitors and keyboards.
While this may be a use case scenario in the future, mobile phones will look less and less like PCs
with each new generation.18
Mobile phones will be packed with sensors and new gizmos capable of
offering experiences unthinkable on a PC. Use case scenarios will also diverge, with more on-the-go
consumers looking to complete tasks or get things done in unusual scenarios. Fully leveraging the
opportunities available will require mobile services to:19
·	Migrate a portion of existing digital services to support consistency. Consumers will look
to migrate some of their online behaviors and expectations from the PC to the phone. This
doesn’t mean they’ll use mobile exclusively — in fact, this will seldom be the case. Mobile will
become an additional touchpoint. Consumers will expect consistency of experiences across
devices. To optimize the opportunity here, eBusiness professionals must focus on those services
that are mobile-appropriate or those that deliver value through immediacy and are simple and
contextual.20
This first step is a pragmatic, low-cost one to get started, but it is not the end game.
·	Offer new digital services in combination with other touchpoints to enhance experiences.
Mobile offers much more than a pocket PC experience. When combined with other channels
such as radio, TV, or physical presence, mobile offers new, enhanced, and improved services.
Comparing location of a mobile phone with an ATM or credit card transaction, for example,
offers a new fraud-alert service. Domino’s Pizza pushes out coupons via SMS that can be
redeemed online for an in-person delivery order.
·	Develop mobile-first experiences for breakthrough experiences. New services will be born
on mobile devices and, with them, new value. Through a simultaneous assessment of consumer
pain points and business processes, along with creative thought about how to use mobile
technologies to mitigate issues or enhance existing processes, eBusiness professionals will find
new ways to provide value to their customers. Mobile is capable of offering entirely new services,
such as check deposits. Take USAA, for example. With customers spread throughout the world
and only one physical branch, increasing access to banking services through mobile phones
opened up new opportunities to deliver value.
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·	Evolve the use of context to maximize convenience. Context must be used to simplify the
delivery of mobile services on phones and offer highly relevant experiences. For many eBusiness
professionals today, context simply means using location to tailor search results for inventory —
whether it be bike helmets or empty hotel rooms. A handful of more sophisticated companies
are layering intelligence on top of context to offer different home screens based on context. For
example, banks may alter security requirements based on whether a customer is at home or
traveling. Going forward, eBusiness professionals will use context to test price elasticity. As more
sensors are placed in and attached to phones, more contextual information will be available.21
Figure 4 Mobile Services Will Evolve In Phases
Source: Forrester Research, Inc.60960
Leading companies are deploying
mobile-unique services today.
They will need to evolve their
use of context to stay at the
forefront of innovation going
forward.
Major phases of evolution of mobile services4-1
Level of
sophistication
High
Low
Evolution of services over time
Nothing
Multichannel
Cross-channel
Mobile-unique
Advanced
contextual
Consistency
Enhancement
Breakthrough
Ultimate convenience
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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Figure 4 Mobile Services Will Evolve In Phases (Cont.)
Source: Forrester Research, Inc.60960
Phases of evolution in the use of context to deliver contextual experiences4-2
Level of
sophistication
High
Low
2011 2012 2013 2014 2015 2016
Fundamentally
alter navigation
Add third dimension
Add intelligence
Basic context
Evolution of services over time
• Consumer behavior
• GPS
• Time of day
• Consumer’s purchase intent
• In my store? In a competitor’s store?
• Within one hour of flight? Two days?
• 3D cameras/displays
• What floor in building? What aisle?
• In what direction is consumer facing?
• Is it light? Dark?
• Augmented reality (true)
• Biometrics
• Conversational voice
• Gesture-based control
5. Be Agile
The emergence and adoption of new mobile technologies and devices will be a certainty. No one —
not even Forrester — anticipated how quickly consumers would buy new devices such Apple’s iPad
tablet, Amazon’s Kindle, or Microsoft’s Kinect.22
These disruptive devices completely changed how
consumers interact with personal technology. eBusiness professionals must stay nimble when it comes
to technology and, especially, mobile technology. While no one can predict the next success, eBusiness
professionals should be prepared to embrace it with agile organizations, planning processes, and
development platforms.23
·	Build device-agnostic infrastructure. The iPad may be the most recent disruptive mobile
product, but it will certainly not be the last. Consumers will be connected via more devices, with
the expectation of consistent state and experience.24
The underlying logic or application layers
and data should be flexible enough to support PCs, tablets, phones, and the next new gadget.
While the services must be flexible, plan on the need to adapt and create device-specific content,
even if it is dynamically generated by a third party, until there is standardization of formats.
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·	Develop vendor relationships to support both short- and long-term mobile strategies. As
eBusiness professionals are building out the infrastructure and partnerships to support their
long-term mobile services needs, using managed services or licensing software in a software-
as-a-service (SaaS) model offers the opportunity to test new technologies and get to market
quickly. Simple campaigns leveraging SMS or 2D barcodes with mobile landing pages can be
provisioned, assembled, and published within a matter of hours. Full websites with commerce
capabilities may take eight to 12 weeks in comparison. In either case, services offer a faster
time-to-market with the onus of keeping up with handset launches, OS upgrades, and wireless
carrier policies left to the vendors. This may or may not be an eBusiness professional’s long-term
approach, but it offers the ability to be as nimble as needed now. Agencies may even offer these
services, mitigating the need for vendor selection and onboarding.
·	Maintain centralized expertise and strategy as mobile usage expands. As with any emerging
customer touchpoint, managing and optimizing growth will require an evolving organizational
approach. Organizations must be flexible as they accommodate the expansion of mobile.
As mobile becomes woven into the full customer communication cycle, each part of the
organization will necessarily be involved. Early owners should not become distraught at the
loss of control but should facilitate involvement across the organization while maintaining a
centralized group responsible for technology, personnel, and overall mobile strategy.
Endnotes
1	
Forrester Research published its first mCommerce forecast in the summer of 2011. The growth of
smartphones and build-out of faster wireless networks has created the potential for excellent experiences
on handheld devices. eCommerce professionals are capitalizing on this opportunity by building out mobile
services (e.g., applications and mobile websites) to drive both online and offline sales. See the June 17, 2011,
“Mobile Commerce Forecast, 2011 To 2016” report.
2	
Forrester has identified consumers’ core needs based on an analysis of years of consumer data and research.
For more information, see the February 4, 2010, “What People Really Need” report.
3	
Forrester cites many examples of companies that have profited from delivering on all four core needs.
One notable example is Apple, with its iPhone. Celebrity endorsements can also be effective, as they help
consumers feel connected. See the February 4, 2010, “What People Really Need” report.
4	
Companies that have really delivered on meeting a customer need have been well-rated in iTunes. Take, for
example, USAA, the first bank in the US to offer remote deposit capture services or the ability to deposit a
check by taking a photograph of it with a phone within an application. A Google search of “USAA’s mobile
check deposit” returns 1,600 results. The company serves a need by allowing its customers to deposit checks
from all around the world without relying on the postal system and has a 4.5-star rating in iTunes. Intuit
SnapTax, which allows a user to file a 1040EZ with a simple photo of a W2 form, has a 5-star rating on
iTunes.
© 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011
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5	
Facebook has more than 350 million active users who currently access Facebook through their mobile
devices. Source: Facebook (http://www.facebook.com/press/info.php?statistics).
6	
Companies such as Best Buy benefit from using Twitter as a customer service tool. Twitter facilitates the
quick connection of customers or possible customers, with staff answering technical questions or business-
related ones on subjects such as inventory, store hours, or product recalls. Source: Josh Bernoff and Ted
Schadler, Empowered: Unleash Your Employees, Energize Your Customers, Transform Your Business, Harvard
Business Review Press, 2010 (http://www.forrester.com/empowered).
7	
Source: Apple (www.apple.com). On September, 22, 2011, Apple claimed the availability of 425,000
applications for its iOS platform. Source: (http://www.apple.com/iphone/apps-for-iphone/).
8	
R/GA built a pseudo-augmented-reality application for Converse shoes. The app allowed consumers to
try on a seemingly infinite number of combinations of colors and styles. Source: interview with R/GA,
September 19, 2011.
9	
Forrester defines context as the sum total of what your customer has told you as well as what he or she
is experiencing at his moment of engagement. Context includes a consumer’s situation, preferences, and
attitude. The availability and nature of contextual information will evolve with time. See the July, 2011,
“eBusiness: The Future Of Mobile Is User Context” report.
10	
Forrester outlines the basic tenets of convenience in this report. See the February 6, 2009, “Cracking The
Convenience Code” report.
Mobile product and service strategists can learn from our Convenience Quotient analysis to put
convenience first when crafting their mobile experiences. Successful mobile services will support ongoing
business objectives, such as improving customer acquisition, loyalty, satisfaction, and retention. See the
October 14, 2010, “The Convenience Quotient Of Mobile Services: A Facebook Case Study” report.
11	
eBusiness professionals looking to evaluate how convenient their mobile services are or to prioritize the
proposed features, functionality, content, and services for mobile devices should see the July 8, 2010,
“Creating A Mobile Services Product Road Map” report.
12	
Forrester defines context and the evolutionary path it will take in this research. Consumers are using their
phones for more and more activities (e.g., starting a car, programming a digital video recorder (DVR),
banking, shopping, etc.). The combination of these activities, as well as a growing number of sensors, will
offer a phenomenal amount of information about the consumer. See the July 11, 2011, “eBusiness: The
Future Of Mobile Is User Context” report.
13	
Forrester’s research addresses the impact of digital devices and their ability to help consumers to experience
products before purchase, including the ability to overlay digital services on top of physical products.
Forrester has adapted this research for consumer product strategy professionals who are designing and
developing mobile services. See the October 18, 2010, “How To Prepare For The Era Of Experience” report
and see the April 14, 2011, “How To Prepare For Mobile Total Product Experiences” report.
14	
Forrester scanned bar codes found in catalogs such as L.L. Bean, Pottery Barn, Williams-Sonoma, and Title
Nine.
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15	
Nordstrom is deploying mobile checkout devices to more than 5,000 store employees. Source: Kaitlin
Mattingly, “Nordstrom Gets Digital: Mobile Check-Out, Geolocation & Apps,” June 22, 2011 (http://
fashionablymarketing.me/2011/06/nordstrom-mobile-marketing-strategy/).
16	
Forrester interviewed Bain & Company while conducting research about the age of the customer. Bain’s
research shows that, in mature markets, “sustainable organic growth comes only from the loyalty of
customers.” The research also shows that so-called “loyalty leaders” have a 15% cost advantage. For more
details, see the June 6, 2011, “Competitive Strategy In The Age Of The Customer” report.
17	
Forrester Research has described the phases of mobile services maturity. See the February 25, 2011, “Mobile
Is Not Just Another Channel” report.
18	
In the winter and spring of 2011, Forrester conducted research with technology vendors making
components for mobile phones. They included manufacturers of displays, processors, and sensors, among
other technologies. We also spoke to handset manufacturers. See the April 14, 2011, “How To Prepare For
Mobile Total Product Experience” report and see the July 11, 2011, “The Future Of Mobile Is User Context”
report.
19	
Forrester identified opportunities for brands to use mobile for more than marketing and commerce. See the
April 14, 2011, “How To Prepare For Mobile Total Product Experiences” report.
20	
The benefits of immediacy, simplicity, and context are part of the convenience that mobile services should
offer. See the October 14, 2009, “The Convenience Quotient Of Mobile Services: A Facebook Case Study”
report.
21	
Forrester Research offers a very detailed road map of how technology in handsets will evolve, as well as
the evolution of the use of context. The report also offers very specific guidance to eBusiness professionals
to help them through each phase. See the July 11, 2011, “eBusiness: The Future Of Mobile Is User Context”
report.
22	
The iPad, the Kinect, and the Kindle are creating unforeseen disruption in how users consume media as
well as opportunities for consumers to experience products before they buy them. See the January 7, 2011,
“The Three Most Important Consumer Products Of 2010” report.
23	
eBusiness professionals must go beyond their multichannel mindset to think about consumer touchpoints.
See the March 11, 2011, “Welcome To The Era Of Agile Commerce” report.
24	
Among US adults, 105.3 million have at least two connected devices, 79.3 million have at least three
connected devices, and 4.5 million have nine or more connected devices. See the January 25, 2011,
“Welcome To The Multidevice, Multiconnection World” report.
Forrester Research, Inc. (Nasdaq: FORR)
is an independent research company
that provides pragmatic and forward-
thinking advice to global leaders in
business and technology. Forrester
works with professionals in 19 key roles
at major companies providing
proprietary research, customer insight,
consulting, events, and peer-to-peer
executive programs. For more than 28
years, Forrester has been making IT,
marketing, and technology industry
leaders successful every day. For more
information, visit www.forrester.com.
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Mobile forrester mobile mandate for e_business professionals

  • 1. Making Leaders Successful Every Day November 16, 2011 Mobile Mandate For eBusiness Professionals by Julie A. Ask for eBusiness & Channel Strategy Professionals
  • 2. © 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic ImpactaretrademarksofForresterResearch,Inc.Allothertrademarksarethepropertyoftheirrespectiveowners.Reproductionorsharingofthis content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@ forrester.com. For additional reproduction and usage information, see Forrester’s Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. For eBusiness & Channel Strategy Professionals Executive Summary Mobile offers eBusiness professionals the opportunity to engage with consumers at every step of their purchasing journeys, from upper-funnel demand generation through replenishment or repeat purchase. Doing so effectively, in a way that will drive incremental value, requires more than squeezing assets and services developed for the PC onto a smaller screen. eBusiness professionals must provide excellent mobile services by delivering convenience, leveraging mobile as a highly efficient sales and service channel, focusing on customer needs, breaking free of their PC-based design roots, and being agile. table of Contents Only Excellence In Mobile Services Will Deliver Value 1. Focus on Consumer Needs 2. Drive Toward Convenience 3. Use Mobile To Execute At Every Step Of The Customer Journey 4. Divorce The PC — Think Mobile First For Mobile Services 5. Be Agile NOTES & RESOURCES This report is a summary of a series of reports designed to guide the effective development and execution of mobile strategies and services. We have highlighted relevance to eBusiness professionals throughout this report, as this research was originally written for those in other roles. Related Research Documents “eBusiness: The Future Of Mobile Is User Context” July 11, 2011 “How To Prepare For Mobile Total Product Experiences” April 14, 2011 “Mobile Is Not Just Another Channel” February 25, 2011 November 16, 2011 Mobile Mandate For eBusiness Professionals Five Mandates To Guide The Evolution Of Mobile Services by Julie A. Ask with Patti Freeman Evans, Jeffrey S. Hammond, and Doug Roberge 2
  • 3. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 2 Only Excellence in mobile services will deliver value Mobile is rapidly evolving into an important, if not the most important, digital touchpoint for eBusiness professionals. Forrester Research forecasts that consumers will spend more than $6 billion on their mobile devices in 2011, with that number growing to more than 31 billion by the end of 2016.1 Consumers are using their mobile phones in stores and on car dealer lots to compare prices and get product information, book airline tickets, and make the right product choices. And the opportunity to influence offline sales far surpasses those numbers. Just as companies such as Blockbuster failed to retool their go-to-market strategies to embrace the impact that digital retail presented, those eBusiness professionals who are dismissive of the disruptive potential of mobile may face the same consequences. eBusiness professionals looking to maximize the revenue that is both delivered and influenced by the mobile medium should heed the following mandates. 1. Focus On Consumer Needs Consumer needs fall into one of four categories: comfort, connection, variety, and uniqueness (see Figure 1).2 eBusiness professionals who focus on customer needs, as opposed to “simply getting something out there” or “offering cool mobile services,” will be rewarded with customer praise. Fulfilling customer needs has proven to be a profitable strategy for more than one company.3 Moreover, this customer love will, in return, drive loyalty, social media impressions, and new customer acquisition.4 Mobile is not unique in its overall ability to satisfy consumer needs, but it does offer distinct opportunities for eBusiness professionals. eBusiness professionals should focus on the needs of consumers when building mobile services and deliver: · Comfort by mitigating buyer’s remorse and delivering on service promises. Comfort is synonymous with reassurance, security, and safety. Certainly, mobile phones can offer comfort to a parent by letting him know that a child is safe. And mobile can help a shopper feel more comfortable making a purchase if she knows she is getting a fair price after comparing prices on her phone. A banking customer will have more peace of mind knowing his bank is using all means possible to detect and prevent fraud, including comparing the location of a phone with that of a transaction at an ATM or point of sale (POS), for example. · A ubiquitous connection to friends, families, and our social networks. Connections could be through physical touch, communication, or engagement with online communities. Mobile phones allow us to connect to our most intimate contacts or a trusted community when we most need or want to do so. The mobile usage of Facebook offers compelling testimony.5 eBusiness professionals can facilitate these connections by allowing proposed purchases to be shared and then approved by friends before a purchase. Services such as Yelp and Trip Advisor offer user-generated opinions and reviews of services, while Best Buy uses Twitter for customer service.6
  • 4. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 3 Figure 1 eBusiness Professionals Must Focus On Customer Needs Source: Forrester Research, Inc.60960 Comfort (oxytocin, serotonin) Variety (dopamine, epinephrine) Connection Uniqueness Threats Opportunities Needs optimized to prepare us for: Subconsciously Serve short-term motivation Consciously Serve long-term motivation How needs are expressed The four fundamental human needs1-1 Comfort • Anywhere/anytime access • Bank balance • Location of child • Price comparisons or reviews • Notifications (e.g., in mail or late) Variety Connection Uniqueness Threats Opportunities Needs optimized to prepare us for: Subconsciously Serve short-term motivation Consciously Serve long-term motivation How mobile phones can support consumer needs — examples1-2 • Customer service • Ratings/reviews • Social shopping • Twitter-based customer service • Channel choice for leads or customer service • Communication choice (e.g., email, SMS, push- based notifications) • Product/color choices • Augmented reality to offer personalized Internet • Personalized services based on context • Targeted offers Source: February 4, 2010,“What People Really Need”Forrester report
  • 5. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 4 · A variety of communication, product, and service options. Variety prevents boredom and generates feelings of excitement and possibility around new opportunities for expansion and growth. Mobile phones in themselves offer phenomenal variety. One need not look past the Apple iPhone App store, which offers more than 425,000 applications.7 eBusiness professionals can use phones to show variety, as Converse did with its mobile application that lets consumers “try on” its shoes.8 For eBusiness professionals, the mobile phone offers additional contact options that go beyond the traditional phone calls, mail, or services that rely on a connected personal computer. Consumers need options based on where they are at the time they need access to a service or information as well as on the urgency or privacy of the need. State Farm, for example, is one of many auto insurers facilitating claim creation on the phone in addition to handling it via traditional channels. · Uniqueness through curated content, services, and preferences. Many consumers will pay a premium to differentiate themselves from the masses. Mobile phones are personal devices. Consumers expect relevant or contextual experiences that minimize the number of steps required to help complete tasks or give them what they want (e.g., information or entertainment).9 Today, eBusiness professionals can deliver unique experiences through stated preferences, with learned context offering incredible potential. Amazon.com, for example, allows consumers to set preferences for product category alerts. Today, a consumer with potentially dangerous allergies can scan a 1D bar code to obtain a list of ingredients to make a decision on whether or not a food product is safe to eat. Imagine a futuristic scenario: Suppose an application on the phone already understood the individual’s allergies and could alert him or her to danger with a photo of a package or plate of food? 2. Drive Toward Convenience Consumers will not adopt any new product or service that is not more convenient than what they are already using (see Figure 2).10 The concept applies directly to mobile services. Starbuck’s iPhone application allows consumers to purchase products via stored value cards loaded on the device. Walgreen allows its pharmacy customers to refill prescriptions without going online or enduring a tedious interactive voice response (IVR).11 eBusiness professionals should adopt convenient mobile services experiences that offer: · Value in immediacy. There are times when a consumer will use a mobile phone because that is the only device he or she has available at that moment (e.g., rebooking a canceled flight while at the airport). Consumers will choose to use a mobile phone to get instant information. In-store pricing comparisons, for example, let a consumer know in the moment that he or she is getting the best price or what the tradeoffs of purchasing at a lower price would be (e.g., driving to another store or ordering online and waiting). · Simplicity. Mobile phone form factor cannot typically handle the more complex tasks consumers do on a PC. For example, checking an account balance is simple, yet filling out a mortgage application is more complex. Most eBusiness professionals who design mobile
  • 6. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 5 experiences today limit the amount of content or number of services in an effort to offer a simple mobile experience. That approach is less expensive than investing in simplicity by design. New technologies, such as using cameras to enter information (e.g., by scanning a bar code) rather than using key entry, continue to bring down barriers to mobile experiences, allowing eBusiness pros to further simplify their mobile offerings. · Relevance through the use of context. Forrester defines context as “the sum total of what your consumer has told you and is experiencing at the moment of engagement.” Context encompasses a consumer’s situation, preferences, and attitude.12 Airlines, for example, will present a different home page services menu if they know a passenger is two days or two hours ahead of a flight. Two days out, the passenger may want to change a reservation. Two hours out, a passenger may be more interested in an upgrade or gate information. Figure 2 Mobile Should Offer Three Core Benefits To Drive Convenience Source: Forrester Research, Inc.60960 Source: Target iPhone app; Charles Schwab iPhone app; Google Maps iPhone app Immediacy Simplicity Convenience Quotient Context
  • 7. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 6 3. Use Mobile To Execute At Every Step Of The Customer Journey Three to five years ago, mobile engagement with consumers outside of communication and media primarily involved marketing — especially upper-funnel branding with display ads or text-based voting. As mobile devices improved, eBusiness professionals took advantage and built out more complex services focused on influencing and capturing sales. Banks, insurance providers, and brokerage firms already focus on existing customers through convenient access to account services. eBusiness professionals in other industries must identify their opportunities to enhance loyalty and drive their customers toward replenishment or the next purchase by engaging with consumers throughout their journeys (see Figure 3).13 While priorities will vary by industry and the target audience, eBusiness professionals should have plans in place to do all of the following: · Support category demand — anywhere. More often than not, this responsibility lies with marketing professionals. mCommerce, however, shortens purchase cycles in some cases and deepens engagement in others. Consumers in transit on a bus or sitting in a hair salon thumbing through a magazine can immediately purchase items. Shopping magazines such as Lucky and Allure are full of 2D barcodes, as well as combinations of SMS short codes and keywords, to facilitate spontaneous purchases. Many catalogs also ship with 2D bar codes today, but, ironically, there is less of an emphasis on commerce.14 · Influence sales by offering consumers timely content . . . Opportunity abounds here for eBusiness professionals to insert themselves into a customer’s thought process via mobile devices. Retailers such as Best Buy, Target, and Walgreen utilize 2D bar codes on store shelves to connect consumers to information, such as product reviews and ratings, price comparisons, tools, and detailed product information, to aid and drive decision-making. Their manufacturing partners, such as Canon and Ryobi, are participating as well. Hotels are benefiting from travelers seeking same-day bookings nearby when weather, for example, alters travel plans. · . . . or equipping sales personnel with in-depth information. These devices are not just for consumers. Lowe’s is putting mobile phones and devices into the hands of 42,000 store associates to give them the same tools that consumers have — and more. Handheld devices can offer timely product, pricing, and inventory information to help capture sales. Imagine if store associates not only had their store information but also could order from other stores in the chain by searching their inventory. Knowledge of competitor pricing will also help put them on par with content that customers can access. · Handle sales transactions. mCommerce transactions aside, mobile phones can be payment mechanisms on their own or serve as card readers with connectivity for mobile points of sale. Starbuck’s has scanners in its shops that will read bar codes on prepaid cards within its mobile application. Sales associates in national retail chains such as Apple and Nordstrom use handheld POS devices to facilitate quicker checkouts.15 Companies with higher-consideration products, such as insurance, financial services, and pharmaceuticals, are giving their sales teams tablets to drive field sales.
  • 8. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 7 · Support owners. eBusiness professionals should support customer care needs in the garden, in the bathroom, and on the go. SmashBox Girls On Film eye shadow, for example, ships with a quick response (QR) code linking to video with application instructions and tips. Banks have invested in mobile services to give their customers convenient anytime/anywhere access to account information and services. · Drive replenishment and repeat purchases. Loyal customers are the most profitable because they buy again and again and tend to be less price sensitive than occasional shoppers.16 While consumers will be annoyed if bombarded with untargeted messages, they will embrace replenishment services they view as offering utility and convenience, such as MTD’s Microsoft (MS) Tags on replacement parts for its lawn mowers; these tags ensure that the proper spare parts are purchased. Figure 3 Mobile Can Support Consumers Throughout Their Journeys Source: Forrester Research, Inc.60960 Auto Repeat purchase What to buy Post-purchase interaction Ownership Where to buy Discovery Influence Retention/upsell Sale • Games • Product information • Tools • Video (demonstrations) • Configurations • Consumer reviews • Dealer inventory • Location-based marketing • Nearest dealer • Price comparisons • Vehicle history • Community • Ownership guides • Roadside assistance • Maintenance reminders • Promotions • Replenishment • Accessories • Lead generation • Financing/ Insurance qualification • Information verification and accuracy • Vehicle history Mobile opportunities example: automotive3-1
  • 9. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 8 Figure 3 Mobile Can Support Consumers Throughout Their Journeys (Cont.) Source: Forrester Research, Inc.60960 Insurance provider Repeat purchase What to buy Post-purchase interaction Ownership Where to buy Discovery Influence Retention/upsell Sale • Branded content • Home inventory lockers • Tools (e.g., calculators) • Utility applications (e.g., accident kits) • Agents — local contact information • Consumers tend to rely on trusted advisors — both professional and friends/ family for investment decisions, but mobile can offer support tools • Pricing comparisons • Product information • Account status (e.g., balance, coverage, policy information) • Account services (e.g., pay a bill) • Claim kits — accidents • Contextual information (e.g., how to prepare for an impending hurricane) • Ensure appropriate coverage as new purchases made • Home value/condition maintenance through proactive care • Mitigation of risky behaviors (e.g., driving while texting) • Add or remove drivers • Lifestage marketing (e.g., birth of a child or new job) • Renew policies • Travel insurance or increased home insurance as new purchases made • Contextual lead generation (e.g., confirmation on the automotive lot • Notifications (e.g., missing information “application approved” • Sales through agents, advisors or professionals — especially utilizing tablets Mobile opportunities examples: insurance3-2
  • 10. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 9 4. Divorce The PC — Think Mobile First For Mobile Services Too many eBusiness professionals begin a mobile strategy with the goal of simply having a mobile presence. This leads to the shrinking or squeezing of a company’s existing digital assets onto a smaller screen to offer essentially the same services (see Figure 4).17 While this approach offers a pragmatic starting point, it is not an approach that will drive enough value to the organization long term or offer the most convenient experiences. eBusiness professionals must evolve their approach to designing mobile services in order to avoid a myopia that holds them back from seizing the full potential of mobile within a multitouchpoint strategy. Many mobile phones today are designed and built by those in the PC industry. Many think they will replace PCs in the future, as portable processors that can be plugged into monitors and keyboards. While this may be a use case scenario in the future, mobile phones will look less and less like PCs with each new generation.18 Mobile phones will be packed with sensors and new gizmos capable of offering experiences unthinkable on a PC. Use case scenarios will also diverge, with more on-the-go consumers looking to complete tasks or get things done in unusual scenarios. Fully leveraging the opportunities available will require mobile services to:19 · Migrate a portion of existing digital services to support consistency. Consumers will look to migrate some of their online behaviors and expectations from the PC to the phone. This doesn’t mean they’ll use mobile exclusively — in fact, this will seldom be the case. Mobile will become an additional touchpoint. Consumers will expect consistency of experiences across devices. To optimize the opportunity here, eBusiness professionals must focus on those services that are mobile-appropriate or those that deliver value through immediacy and are simple and contextual.20 This first step is a pragmatic, low-cost one to get started, but it is not the end game. · Offer new digital services in combination with other touchpoints to enhance experiences. Mobile offers much more than a pocket PC experience. When combined with other channels such as radio, TV, or physical presence, mobile offers new, enhanced, and improved services. Comparing location of a mobile phone with an ATM or credit card transaction, for example, offers a new fraud-alert service. Domino’s Pizza pushes out coupons via SMS that can be redeemed online for an in-person delivery order. · Develop mobile-first experiences for breakthrough experiences. New services will be born on mobile devices and, with them, new value. Through a simultaneous assessment of consumer pain points and business processes, along with creative thought about how to use mobile technologies to mitigate issues or enhance existing processes, eBusiness professionals will find new ways to provide value to their customers. Mobile is capable of offering entirely new services, such as check deposits. Take USAA, for example. With customers spread throughout the world and only one physical branch, increasing access to banking services through mobile phones opened up new opportunities to deliver value.
  • 11. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 10 · Evolve the use of context to maximize convenience. Context must be used to simplify the delivery of mobile services on phones and offer highly relevant experiences. For many eBusiness professionals today, context simply means using location to tailor search results for inventory — whether it be bike helmets or empty hotel rooms. A handful of more sophisticated companies are layering intelligence on top of context to offer different home screens based on context. For example, banks may alter security requirements based on whether a customer is at home or traveling. Going forward, eBusiness professionals will use context to test price elasticity. As more sensors are placed in and attached to phones, more contextual information will be available.21 Figure 4 Mobile Services Will Evolve In Phases Source: Forrester Research, Inc.60960 Leading companies are deploying mobile-unique services today. They will need to evolve their use of context to stay at the forefront of innovation going forward. Major phases of evolution of mobile services4-1 Level of sophistication High Low Evolution of services over time Nothing Multichannel Cross-channel Mobile-unique Advanced contextual Consistency Enhancement Breakthrough Ultimate convenience
  • 12. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 11 Figure 4 Mobile Services Will Evolve In Phases (Cont.) Source: Forrester Research, Inc.60960 Phases of evolution in the use of context to deliver contextual experiences4-2 Level of sophistication High Low 2011 2012 2013 2014 2015 2016 Fundamentally alter navigation Add third dimension Add intelligence Basic context Evolution of services over time • Consumer behavior • GPS • Time of day • Consumer’s purchase intent • In my store? In a competitor’s store? • Within one hour of flight? Two days? • 3D cameras/displays • What floor in building? What aisle? • In what direction is consumer facing? • Is it light? Dark? • Augmented reality (true) • Biometrics • Conversational voice • Gesture-based control 5. Be Agile The emergence and adoption of new mobile technologies and devices will be a certainty. No one — not even Forrester — anticipated how quickly consumers would buy new devices such Apple’s iPad tablet, Amazon’s Kindle, or Microsoft’s Kinect.22 These disruptive devices completely changed how consumers interact with personal technology. eBusiness professionals must stay nimble when it comes to technology and, especially, mobile technology. While no one can predict the next success, eBusiness professionals should be prepared to embrace it with agile organizations, planning processes, and development platforms.23 · Build device-agnostic infrastructure. The iPad may be the most recent disruptive mobile product, but it will certainly not be the last. Consumers will be connected via more devices, with the expectation of consistent state and experience.24 The underlying logic or application layers and data should be flexible enough to support PCs, tablets, phones, and the next new gadget. While the services must be flexible, plan on the need to adapt and create device-specific content, even if it is dynamically generated by a third party, until there is standardization of formats.
  • 13. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 12 · Develop vendor relationships to support both short- and long-term mobile strategies. As eBusiness professionals are building out the infrastructure and partnerships to support their long-term mobile services needs, using managed services or licensing software in a software- as-a-service (SaaS) model offers the opportunity to test new technologies and get to market quickly. Simple campaigns leveraging SMS or 2D barcodes with mobile landing pages can be provisioned, assembled, and published within a matter of hours. Full websites with commerce capabilities may take eight to 12 weeks in comparison. In either case, services offer a faster time-to-market with the onus of keeping up with handset launches, OS upgrades, and wireless carrier policies left to the vendors. This may or may not be an eBusiness professional’s long-term approach, but it offers the ability to be as nimble as needed now. Agencies may even offer these services, mitigating the need for vendor selection and onboarding. · Maintain centralized expertise and strategy as mobile usage expands. As with any emerging customer touchpoint, managing and optimizing growth will require an evolving organizational approach. Organizations must be flexible as they accommodate the expansion of mobile. As mobile becomes woven into the full customer communication cycle, each part of the organization will necessarily be involved. Early owners should not become distraught at the loss of control but should facilitate involvement across the organization while maintaining a centralized group responsible for technology, personnel, and overall mobile strategy. Endnotes 1 Forrester Research published its first mCommerce forecast in the summer of 2011. The growth of smartphones and build-out of faster wireless networks has created the potential for excellent experiences on handheld devices. eCommerce professionals are capitalizing on this opportunity by building out mobile services (e.g., applications and mobile websites) to drive both online and offline sales. See the June 17, 2011, “Mobile Commerce Forecast, 2011 To 2016” report. 2 Forrester has identified consumers’ core needs based on an analysis of years of consumer data and research. For more information, see the February 4, 2010, “What People Really Need” report. 3 Forrester cites many examples of companies that have profited from delivering on all four core needs. One notable example is Apple, with its iPhone. Celebrity endorsements can also be effective, as they help consumers feel connected. See the February 4, 2010, “What People Really Need” report. 4 Companies that have really delivered on meeting a customer need have been well-rated in iTunes. Take, for example, USAA, the first bank in the US to offer remote deposit capture services or the ability to deposit a check by taking a photograph of it with a phone within an application. A Google search of “USAA’s mobile check deposit” returns 1,600 results. The company serves a need by allowing its customers to deposit checks from all around the world without relying on the postal system and has a 4.5-star rating in iTunes. Intuit SnapTax, which allows a user to file a 1040EZ with a simple photo of a W2 form, has a 5-star rating on iTunes.
  • 14. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 13 5 Facebook has more than 350 million active users who currently access Facebook through their mobile devices. Source: Facebook (http://www.facebook.com/press/info.php?statistics). 6 Companies such as Best Buy benefit from using Twitter as a customer service tool. Twitter facilitates the quick connection of customers or possible customers, with staff answering technical questions or business- related ones on subjects such as inventory, store hours, or product recalls. Source: Josh Bernoff and Ted Schadler, Empowered: Unleash Your Employees, Energize Your Customers, Transform Your Business, Harvard Business Review Press, 2010 (http://www.forrester.com/empowered). 7 Source: Apple (www.apple.com). On September, 22, 2011, Apple claimed the availability of 425,000 applications for its iOS platform. Source: (http://www.apple.com/iphone/apps-for-iphone/). 8 R/GA built a pseudo-augmented-reality application for Converse shoes. The app allowed consumers to try on a seemingly infinite number of combinations of colors and styles. Source: interview with R/GA, September 19, 2011. 9 Forrester defines context as the sum total of what your customer has told you as well as what he or she is experiencing at his moment of engagement. Context includes a consumer’s situation, preferences, and attitude. The availability and nature of contextual information will evolve with time. See the July, 2011, “eBusiness: The Future Of Mobile Is User Context” report. 10 Forrester outlines the basic tenets of convenience in this report. See the February 6, 2009, “Cracking The Convenience Code” report. Mobile product and service strategists can learn from our Convenience Quotient analysis to put convenience first when crafting their mobile experiences. Successful mobile services will support ongoing business objectives, such as improving customer acquisition, loyalty, satisfaction, and retention. See the October 14, 2010, “The Convenience Quotient Of Mobile Services: A Facebook Case Study” report. 11 eBusiness professionals looking to evaluate how convenient their mobile services are or to prioritize the proposed features, functionality, content, and services for mobile devices should see the July 8, 2010, “Creating A Mobile Services Product Road Map” report. 12 Forrester defines context and the evolutionary path it will take in this research. Consumers are using their phones for more and more activities (e.g., starting a car, programming a digital video recorder (DVR), banking, shopping, etc.). The combination of these activities, as well as a growing number of sensors, will offer a phenomenal amount of information about the consumer. See the July 11, 2011, “eBusiness: The Future Of Mobile Is User Context” report. 13 Forrester’s research addresses the impact of digital devices and their ability to help consumers to experience products before purchase, including the ability to overlay digital services on top of physical products. Forrester has adapted this research for consumer product strategy professionals who are designing and developing mobile services. See the October 18, 2010, “How To Prepare For The Era Of Experience” report and see the April 14, 2011, “How To Prepare For Mobile Total Product Experiences” report. 14 Forrester scanned bar codes found in catalogs such as L.L. Bean, Pottery Barn, Williams-Sonoma, and Title Nine.
  • 15. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011 Mobile Mandate For eBusiness Professionals For eBusiness & Channel Strategy Professionals 14 15 Nordstrom is deploying mobile checkout devices to more than 5,000 store employees. Source: Kaitlin Mattingly, “Nordstrom Gets Digital: Mobile Check-Out, Geolocation & Apps,” June 22, 2011 (http:// fashionablymarketing.me/2011/06/nordstrom-mobile-marketing-strategy/). 16 Forrester interviewed Bain & Company while conducting research about the age of the customer. Bain’s research shows that, in mature markets, “sustainable organic growth comes only from the loyalty of customers.” The research also shows that so-called “loyalty leaders” have a 15% cost advantage. For more details, see the June 6, 2011, “Competitive Strategy In The Age Of The Customer” report. 17 Forrester Research has described the phases of mobile services maturity. See the February 25, 2011, “Mobile Is Not Just Another Channel” report. 18 In the winter and spring of 2011, Forrester conducted research with technology vendors making components for mobile phones. They included manufacturers of displays, processors, and sensors, among other technologies. We also spoke to handset manufacturers. See the April 14, 2011, “How To Prepare For Mobile Total Product Experience” report and see the July 11, 2011, “The Future Of Mobile Is User Context” report. 19 Forrester identified opportunities for brands to use mobile for more than marketing and commerce. See the April 14, 2011, “How To Prepare For Mobile Total Product Experiences” report. 20 The benefits of immediacy, simplicity, and context are part of the convenience that mobile services should offer. See the October 14, 2009, “The Convenience Quotient Of Mobile Services: A Facebook Case Study” report. 21 Forrester Research offers a very detailed road map of how technology in handsets will evolve, as well as the evolution of the use of context. The report also offers very specific guidance to eBusiness professionals to help them through each phase. See the July 11, 2011, “eBusiness: The Future Of Mobile Is User Context” report. 22 The iPad, the Kinect, and the Kindle are creating unforeseen disruption in how users consume media as well as opportunities for consumers to experience products before they buy them. See the January 7, 2011, “The Three Most Important Consumer Products Of 2010” report. 23 eBusiness professionals must go beyond their multichannel mindset to think about consumer touchpoints. See the March 11, 2011, “Welcome To The Era Of Agile Commerce” report. 24 Among US adults, 105.3 million have at least two connected devices, 79.3 million have at least three connected devices, and 4.5 million have nine or more connected devices. See the January 25, 2011, “Welcome To The Multidevice, Multiconnection World” report.
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