Mobile forrester mobile mandate for e_business professionals
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  • 1. Making Leaders Successful Every DayNovember 16, 2011Mobile Mandate For eBusinessProfessionalsby Julie A. Askfor eBusiness & Channel Strategy Professionals
  • 2. © 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total EconomicImpactaretrademarksofForresterResearch,Inc.Allothertrademarksarethepropertyoftheirrespectiveowners.Reproductionorsharingofthiscontent 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 isbased on best available resources. Opinions reflect judgment at the time and are subject to change.For eBusiness & Channel Strategy ProfessionalsExecutive SummaryMobile offers eBusiness professionals the opportunity to engage with consumers at every step of theirpurchasing 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 andservices developed for the PC onto a smaller screen. eBusiness professionals must provide excellentmobile services by delivering convenience, leveraging mobile as a highly efficient sales and servicechannel, focusing on customer needs, breaking free of their PC-based design roots, and being agile.table of ContentsOnly Excellence In Mobile Services Will DeliverValue1. Focus on Consumer Needs2. Drive Toward Convenience3. Use Mobile To Execute At Every Step Of TheCustomer Journey4. Divorce The PC — Think Mobile First ForMobile Services5. Be AgileNOTES & RESOURCESThis report is a summary of a series of reportsdesigned to guide the effective developmentand execution of mobile strategies and services.We have highlighted relevance to eBusinessprofessionals throughout this report, as thisresearch was originally written for those in otherroles.Related Research Documents“eBusiness: The Future Of Mobile Is User Context”July 11, 2011“How To Prepare For Mobile Total ProductExperiences”April 14, 2011“Mobile Is Not Just Another Channel”February 25, 2011November 16, 2011Mobile Mandate For eBusiness ProfessionalsFive Mandates To Guide The Evolution Of Mobile Servicesby Julie A. Askwith Patti Freeman Evans, Jeffrey S. Hammond, and Doug Roberge2
  • 3. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals2Only Excellence in mobile services will deliver valueMobile is rapidly evolving into an important, if not the most important, digital touchpoint foreBusiness professionals. Forrester Research forecasts that consumers will spend more than $6billion on their mobile devices in 2011, with that number growing to more than 31 billion by theend of 2016.1Consumers are using their mobile phones in stores and on car dealer lots to compareprices and get product information, book airline tickets, and make the right product choices. Andthe opportunity to influence offline sales far surpasses those numbers. Just as companies such asBlockbuster failed to retool their go-to-market strategies to embrace the impact that digital retailpresented, those eBusiness professionals who are dismissive of the disruptive potential of mobilemay face the same consequences. eBusiness professionals looking to maximize the revenue that isboth delivered and influenced by the mobile medium should heed the following mandates.1. Focus On Consumer NeedsConsumer needs fall into one of four categories: comfort, connection, variety, and uniqueness (seeFigure 1).2eBusiness professionals who focus on customer needs, as opposed to “simply gettingsomething 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.3Moreover, this customer love will, in return, drive loyalty, social media impressions, and newcustomer acquisition.4Mobile is not unique in its overall ability to satisfy consumer needs, but itdoes offer distinct opportunities for eBusiness professionals. eBusiness professionals should focuson the needs of consumers when building mobile services and deliver:· Comfort by mitigating buyer’s remorse and delivering on service promises. Comfort issynonymous with reassurance, security, and safety. Certainly, mobile phones can offer comfortto a parent by letting him know that a child is safe. And mobile can help a shopper feel morecomfortable making a purchase if she knows she is getting a fair price after comparing priceson her phone. A banking customer will have more peace of mind knowing his bank is using allmeans possible to detect and prevent fraud, including comparing the location of a phone withthat 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 bethrough physical touch, communication, or engagement with online communities. Mobile phonesallow us to connect to our most intimate contacts or a trusted community when we most need orwant to do so. The mobile usage of Facebook offers compelling testimony.5eBusiness professionalscan facilitate these connections by allowing proposed purchases to be shared and then approvedby friends before a purchase. Services such as Yelp and Trip Advisor offer user-generated opinionsand reviews of services, while Best Buy uses Twitter for customer service.6
  • 4. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals3Figure 1 eBusiness Professionals Must Focus On Customer NeedsSource: Forrester Research, Inc.60960Comfort(oxytocin, serotonin)Variety(dopamine, epinephrine)Connection UniquenessThreats OpportunitiesNeeds optimized to prepare us for:SubconsciouslyServe short-termmotivationConsciouslyServe long-termmotivationHow needsare expressedThe four fundamental human needs1-1Comfort• Anywhere/anytime access• Bank balance• Location of child• Price comparisons orreviews• Notifications (e.g., in mailor late)VarietyConnection UniquenessThreats OpportunitiesNeeds optimized to prepare us for:SubconsciouslyServe short-termmotivationConsciouslyServe long-termmotivationHow mobile phones can support consumer needs — examples1-2• Customer service• Ratings/reviews• Social shopping• Twitter-based customerservice• Channel choice for leadsor customer service• Communication choice(e.g., email, SMS, push-based notifications)• Product/color choices• Augmented reality tooffer personalizedInternet• Personalized servicesbased on context• Targeted offersSource: February 4, 2010,“What People Really Need”Forrester report
  • 5. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals4· A variety of communication, product, and service options. Variety prevents boredom andgenerates feelings of excitement and possibility around new opportunities for expansion andgrowth. Mobile phones in themselves offer phenomenal variety. One need not look past theApple iPhone App store, which offers more than 425,000 applications.7eBusiness professionalscan use phones to show variety, as Converse did with its mobile application that lets consumers“try on” its shoes.8For eBusiness professionals, the mobile phone offers additional contactoptions that go beyond the traditional phone calls, mail, or services that rely on a connectedpersonal computer. Consumers need options based on where they are at the time they needaccess 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 tohandling it via traditional channels.· Uniqueness through curated content, services, and preferences. Many consumers willpay a premium to differentiate themselves from the masses. Mobile phones are personaldevices. Consumers expect relevant or contextual experiences that minimize the numberof steps required to help complete tasks or give them what they want (e.g., information orentertainment).9Today, eBusiness professionals can deliver unique experiences through statedpreferences, with learned context offering incredible potential. Amazon.com, for example,allows consumers to set preferences for product category alerts. Today, a consumer withpotentially dangerous allergies can scan a 1D bar code to obtain a list of ingredients to make adecision on whether or not a food product is safe to eat. Imagine a futuristic scenario: Supposean application on the phone already understood the individual’s allergies and could alert him orher to danger with a photo of a package or plate of food?2. Drive Toward ConvenienceConsumers will not adopt any new product or service that is not more convenient than what theyare already using (see Figure 2).10The concept applies directly to mobile services. Starbuck’s iPhoneapplication 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 atedious interactive voice response (IVR).11eBusiness professionals should adopt convenient mobileservices experiences that offer:· Value in immediacy. There are times when a consumer will use a mobile phone because that isthe only device he or she has available at that moment (e.g., rebooking a canceled flight while atthe airport). Consumers will choose to use a mobile phone to get instant information. In-storepricing comparisons, for example, let a consumer know in the moment that he or she is gettingthe best price or what the tradeoffs of purchasing at a lower price would be (e.g., driving toanother store or ordering online and waiting).· Simplicity. Mobile phone form factor cannot typically handle the more complex tasksconsumers do on a PC. For example, checking an account balance is simple, yet filling outa mortgage application is more complex. Most eBusiness professionals who design mobile
  • 6. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals5experiences today limit the amount of content or number of services in an effort to offer asimple 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, allowingeBusiness pros to further simplify their mobile offerings.· Relevance through the use of context. Forrester defines context as “the sum total of whatyour consumer has told you and is experiencing at the moment of engagement.” Contextencompasses a consumer’s situation, preferences, and attitude.12Airlines, for example, willpresent a different home page services menu if they know a passenger is two days or two hoursahead 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 ConvenienceSource: Forrester Research, Inc.60960Source: Target iPhone app; Charles Schwab iPhone app; Google Maps iPhone appImmediacy SimplicityConvenience QuotientContext
  • 7. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals63. Use Mobile To Execute At Every Step Of The Customer JourneyThree to five years ago, mobile engagement with consumers outside of communication and mediaprimarily involved marketing — especially upper-funnel branding with display ads or text-basedvoting. As mobile devices improved, eBusiness professionals took advantage and built out morecomplex services focused on influencing and capturing sales. Banks, insurance providers, andbrokerage firms already focus on existing customers through convenient access to account services.eBusiness professionals in other industries must identify their opportunities to enhance loyaltyand drive their customers toward replenishment or the next purchase by engaging with consumersthroughout their journeys (see Figure 3).13While priorities will vary by industry and the targetaudience, eBusiness professionals should have plans in place to do all of the following:· Support category demand — anywhere. More often than not, this responsibility lies withmarketing professionals. mCommerce, however, shortens purchase cycles in some casesand deepens engagement in others. Consumers in transit on a bus or sitting in a hair salonthumbing through a magazine can immediately purchase items. Shopping magazines suchas Lucky and Allure are full of 2D barcodes, as well as combinations of SMS short codes andkeywords, 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 foreBusiness professionals to insert themselves into a customer’s thought process via mobiledevices. Retailers such as Best Buy, Target, and Walgreen utilize 2D bar codes on store shelvesto connect consumers to information, such as product reviews and ratings, price comparisons,tools, and detailed product information, to aid and drive decision-making. Their manufacturingpartners, such as Canon and Ryobi, are participating as well. Hotels are benefiting from travelersseeking same-day bookings nearby when weather, for example, alters travel plans.· . . . or equipping sales personnel with in-depth information. These devices are not justfor consumers. Lowe’s is putting mobile phones and devices into the hands of 42,000 storeassociates to give them the same tools that consumers have — and more. Handheld devices canoffer timely product, pricing, and inventory information to help capture sales. Imagine if storeassociates not only had their store information but also could order from other stores in thechain by searching their inventory. Knowledge of competitor pricing will also help put them onpar with content that customers can access.· Handle sales transactions. mCommerce transactions aside, mobile phones can be paymentmechanisms 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 mobileapplication. Sales associates in national retail chains such as Apple and Nordstrom use handheldPOS devices to facilitate quicker checkouts.15Companies with higher-consideration products,such as insurance, financial services, and pharmaceuticals, are giving their sales teams tablets todrive field sales.
  • 8. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals7· Support owners. eBusiness professionals should support customer care needs in the garden, inthe bathroom, and on the go. SmashBox Girls On Film eye shadow, for example, ships with aquick response (QR) code linking to video with application instructions and tips. Banks haveinvested in mobile services to give their customers convenient anytime/anywhere access toaccount information and services.· Drive replenishment and repeat purchases. Loyal customers are the most profitable becausethey buy again and again and tend to be less price sensitive than occasional shoppers.16Whileconsumers will be annoyed if bombarded with untargeted messages, they will embracereplenishment 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 spareparts are purchased.Figure 3 Mobile Can Support Consumers Throughout Their JourneysSource: Forrester Research, Inc.60960AutoRepeatpurchaseWhat to buyPost-purchaseinteractionOwnershipWhere to buyDiscovery InfluenceRetention/upsellSale• 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• Maintenancereminders• Promotions• Replenishment• Accessories• Lead generation• Financing/Insurancequalification• Informationverification andaccuracy• Vehicle historyMobile opportunities example: automotive3-1
  • 9. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals8Figure 3 Mobile Can Support Consumers Throughout Their Journeys (Cont.)Source: Forrester Research, Inc.60960InsuranceproviderRepeatpurchaseWhat to buyPost-purchaseinteractionOwnershipWhere to buyDiscovery InfluenceRetention/upsellSale• Branded content• Home inventory lockers• Tools (e.g., calculators)• Utility applications(e.g., accident kits)• Agents — local contactinformation• Consumers tend to rely ontrusted advisors — bothprofessional and friends/family for investmentdecisions, but mobile canoffer 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 impendinghurricane)• 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 removedrivers• Lifestagemarketing (e.g.,birth of a childor new job)• Renew policies• Travel insuranceor increasedhome insuranceas newpurchases made• Contextual leadgeneration (e.g.,confirmation onthe automotive lot• Notifications (e.g.,missinginformation“applicationapproved”• Sales throughagents, advisors orprofessionals —especially utilizingtabletsMobile opportunities examples: insurance3-2
  • 10. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals94. Divorce The PC — Think Mobile First For Mobile ServicesToo many eBusiness professionals begin a mobile strategy with the goal of simply having a mobilepresence. This leads to the shrinking or squeezing of a company’s existing digital assets onto asmaller screen to offer essentially the same services (see Figure 4).17While this approach offers apragmatic starting point, it is not an approach that will drive enough value to the organization longterm or offer the most convenient experiences. eBusiness professionals must evolve their approachto designing mobile services in order to avoid a myopia that holds them back from seizing the fullpotential of mobile within a multitouchpoint strategy.Many mobile phones today are designed and built by those in the PC industry. Many think they willreplace 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 PCswith each new generation.18Mobile phones will be packed with sensors and new gizmos capable ofoffering experiences unthinkable on a PC. Use case scenarios will also diverge, with more on-the-goconsumers looking to complete tasks or get things done in unusual scenarios. Fully leveraging theopportunities available will require mobile services to:19· Migrate a portion of existing digital services to support consistency. Consumers will lookto migrate some of their online behaviors and expectations from the PC to the phone. Thisdoesn’t mean they’ll use mobile exclusively — in fact, this will seldom be the case. Mobile willbecome an additional touchpoint. Consumers will expect consistency of experiences acrossdevices. To optimize the opportunity here, eBusiness professionals must focus on those servicesthat are mobile-appropriate or those that deliver value through immediacy and are simple andcontextual.20This 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 channelssuch 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 beredeemed online for an in-person delivery order.· Develop mobile-first experiences for breakthrough experiences. New services will be bornon mobile devices and, with them, new value. Through a simultaneous assessment of consumerpain points and business processes, along with creative thought about how to use mobiletechnologies to mitigate issues or enhance existing processes, eBusiness professionals will findnew 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 worldand only one physical branch, increasing access to banking services through mobile phonesopened up new opportunities to deliver value.
  • 11. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals10· Evolve the use of context to maximize convenience. Context must be used to simplify thedelivery of mobile services on phones and offer highly relevant experiences. For many eBusinessprofessionals 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 companiesare layering intelligence on top of context to offer different home screens based on context. Forexample, banks may alter security requirements based on whether a customer is at home ortraveling. Going forward, eBusiness professionals will use context to test price elasticity. As moresensors are placed in and attached to phones, more contextual information will be available.21Figure 4 Mobile Services Will Evolve In PhasesSource: Forrester Research, Inc.60960Leading companies are deployingmobile-unique services today.They will need to evolve theiruse of context to stay at theforefront of innovation goingforward.Major phases of evolution of mobile services4-1Level ofsophisticationHighLowEvolution of services over timeNothingMultichannelCross-channelMobile-uniqueAdvancedcontextualConsistencyEnhancementBreakthroughUltimate convenience
  • 12. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals11Figure 4 Mobile Services Will Evolve In Phases (Cont.)Source: Forrester Research, Inc.60960Phases of evolution in the use of context to deliver contextual experiences4-2Level ofsophisticationHighLow2011 2012 2013 2014 2015 2016Fundamentallyalter navigationAdd third dimensionAdd intelligenceBasic contextEvolution 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 control5. Be AgileThe 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 iPadtablet, Amazon’s Kindle, or Microsoft’s Kinect.22These disruptive devices completely changed howconsumers interact with personal technology. eBusiness professionals must stay nimble when it comesto technology and, especially, mobile technology. While no one can predict the next success, eBusinessprofessionals should be prepared to embrace it with agile organizations, planning processes, anddevelopment platforms.23· Build device-agnostic infrastructure. The iPad may be the most recent disruptive mobileproduct, but it will certainly not be the last. Consumers will be connected via more devices, withthe expectation of consistent state and experience.24The underlying logic or application layersand 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, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals12· Develop vendor relationships to support both short- and long-term mobile strategies. AseBusiness professionals are building out the infrastructure and partnerships to support theirlong-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 marketquickly. Simple campaigns leveraging SMS or 2D barcodes with mobile landing pages can beprovisioned, assembled, and published within a matter of hours. Full websites with commercecapabilities may take eight to 12 weeks in comparison. In either case, services offer a fastertime-to-market with the onus of keeping up with handset launches, OS upgrades, and wirelesscarrier policies left to the vendors. This may or may not be an eBusiness professional’s long-termapproach, but it offers the ability to be as nimble as needed now. Agencies may even offer theseservices, mitigating the need for vendor selection and onboarding.· Maintain centralized expertise and strategy as mobile usage expands. As with any emergingcustomer touchpoint, managing and optimizing growth will require an evolving organizationalapproach. Organizations must be flexible as they accommodate the expansion of mobile.As mobile becomes woven into the full customer communication cycle, each part of theorganization will necessarily be involved. Early owners should not become distraught at theloss of control but should facilitate involvement across the organization while maintaining acentralized group responsible for technology, personnel, and overall mobile strategy.Endnotes1 Forrester Research published its first mCommerce forecast in the summer of 2011. The growth ofsmartphones and build-out of faster wireless networks has created the potential for excellent experienceson handheld devices. eCommerce professionals are capitalizing on this opportunity by building out mobileservices (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 helpconsumers 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, forexample, USAA, the first bank in the US to offer remote deposit capture services or the ability to deposit acheck by taking a photograph of it with a phone within an application. A Google search of “USAA’s mobilecheck deposit” returns 1,600 results. The company serves a need by allowing its customers to deposit checksfrom all around the world without relying on the postal system and has a 4.5-star rating in iTunes. IntuitSnapTax, which allows a user to file a 1040EZ with a simple photo of a W2 form, has a 5-star rating oniTunes.
  • 14. © 2011, Forrester Research, Inc. Reproduction Prohibited November 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals135 Facebook has more than 350 million active users who currently access Facebook through their mobiledevices. 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 thequick 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 TedSchadler, Empowered: Unleash Your Employees, Energize Your Customers, Transform Your Business, HarvardBusiness Review Press, 2010 (http://www.forrester.com/empowered).7 Source: Apple (www.apple.com). On September, 22, 2011, Apple claimed the availability of 425,000applications 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 totry 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 sheis experiencing at his moment of engagement. Context includes a consumer’s situation, preferences, andattitude. 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 TheConvenience Code” report.Mobile product and service strategists can learn from our Convenience Quotient analysis to putconvenience first when crafting their mobile experiences. Successful mobile services will support ongoingbusiness objectives, such as improving customer acquisition, loyalty, satisfaction, and retention. See theOctober 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 theproposed 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 theirphones 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, willoffer a phenomenal amount of information about the consumer. See the July 11, 2011, “eBusiness: TheFuture Of Mobile Is User Context” report.13 Forrester’s research addresses the impact of digital devices and their ability to help consumers to experienceproducts 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 anddeveloping mobile services. See the October 18, 2010, “How To Prepare For The Era Of Experience” reportand 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 TitleNine.
  • 15. © 2011, Forrester Research, Inc. Reproduction ProhibitedNovember 16, 2011Mobile Mandate For eBusiness ProfessionalsFor eBusiness & Channel Strategy Professionals1415 Nordstrom is deploying mobile checkout devices to more than 5,000 store employees. Source: KaitlinMattingly, “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’sresearch shows that, in mature markets, “sustainable organic growth comes only from the loyalty ofcustomers.” The research also shows that so-called “loyalty leaders” have a 15% cost advantage. For moredetails, 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, “MobileIs Not Just Another Channel” report.18 In the winter and spring of 2011, Forrester conducted research with technology vendors makingcomponents for mobile phones. They included manufacturers of displays, processors, and sensors, amongother technologies. We also spoke to handset manufacturers. See the April 14, 2011, “How To Prepare ForMobile 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 theApril 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 shouldoffer. 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 asthe evolution of the use of context. The report also offers very specific guidance to eBusiness professionalsto 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 aswell 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 threeconnected devices, and 4.5 million have nine or more connected devices. See the January 25, 2011,“Welcome To The Multidevice, Multiconnection World” report.
  • 16. Forrester Research, Inc. (Nasdaq: FORR)is an independent research companythat provides pragmatic and forward-thinking advice to global leaders inbusiness and technology. Forresterworks with professionals in 19 key rolesat major companies providingproprietary research, customer insight,consulting, events, and peer-to-peerexecutive programs. For more than 28years, Forrester has been making IT,marketing, and technology industryleaders successful every day. For moreinformation, visit www.forrester.com.HeadquartersForrester Research, Inc.60 Acorn Park DriveCambridge, MA 02140 USATel: +1 617.613.6000Fax: +1 617.613.5000Email: forrester@forrester.comNasdaq symbol: FORRwww.forrester.comM a k i n g L e a d e r s S u c c e s s f u l E v e r y D a y60960For information on hard-copy or electronic reprints, please contact Client Supportat +1 866.367.7378, +1 617.613.5730, or clientsupport@forrester.com.We offer quantity discounts and special pricing for academic and nonprofit institutions.Research and Sales OfficesForrester has research centers and sales offices in more than 27 citiesinternationally, including Amsterdam, Netherlands; Beijing, China;Cambridge, Mass.; Dallas, Texas; Dubai, United Arab Emirates; Frankfurt,Germany; London, UK; New Delhi, India; San Francisco, Calif.; Sydney,Australia; Tel Aviv, Israel; and Toronto, Canada.For the location of the Forrester office nearest you, please visit:www.forrester.com/locations.