Monthly Archives: May 2013

What component of Commerce is growing at an 86% growth rate?

MCommerce is growing at 86%, according to a report from the Baymard Institute that tested 18 sites including Amazon,  Walmart, Best Buy, 1-800-Flowers and more.

But, give your target market some consideration.  Consider that 37% of RueLaLa  business is coming from mobile, going up to 50% in the next year, and roughly 85% of traffic comes from iOS (Apple) traffic with less than 5% from Android.

Does that mean you should focus on iOS?

Consider that Android market share is at 59% and Q1 2013 accounted for 75% of mobile market share growth.

See more statistics at IDC.

As you might imagine, statistics might lead you down the wrong path if you do not know the source platform of your customer.

Or, maybe you should ask the customer to jump on iOS given given the amount of revenue iOS users spend. The iOS market is delivering 3 times more revenue than Android. Source.

And, tablet buyers are growing online sales faster than smartphone sales. Source.

mCommerce Sales by Device

Keep in mind that consumers are beginning the purchase search on mobile and often finishing at the desktop.  So, if consumers are often beginning the purchase mobile and finishing at the desktop, does that beg the question that something is wrong with ‘Useability’ at checkout?  I know of one company that changed one field at checkout that equated to a $300 mil increase in revenue. Unusual, yes.  However, this is an indicator that ‘checkout’ related to mCommerce might be a good finishing point after reviewing how the top mCommerce sites are approaching usability from the opening page.

Big Data: Combine Structured with Unstructured Data for Best Results

With unstructured data, knowing what questions to ask is often difficult, but with the help of structured data (the relational data), one may develop a better process.

Unstructured data, sometimes categorized into a subcategory of ‘Big Data’ is comprised of word files, email, social media, video, audio, HTML, XML, PDF, Excel, image files and more.

Manufacturers, services companies, and government organizations are all taking advantage of unstructured data to improve their organizations’ responsiveness. This has resulted in hundreds of millions of dollars in cost savings and additional revenue for those companies.

Examples of Unstructured Data

Customer Interactions

Social Media

Operational/Process Documentation

News and Information

Call center recordings and logs

Customer surveys / feedback forms

Customer emails Field service reports Warranty claims Sales call logs

Reviews/ratings on community websites

Internet message board and forum posts

Twitter posts Blog posts Facebook entries

Voice of the Customer documentation

Documentation related to regulatory requirements

Meeting transcripts

Contracts and service level agreements

Financial analyses/reports

Documents, spreadsheets, and emails

News/RSS feeds Competitive websites

Third-party information services

Specifically, there are many insights that decision makers gain by unifying both unstructured and structured data in their analysis. Some of the major insights are: the status of customer opinion/sentiment, competitive intelligence, early detection of quality issues, ideas on new products or product enhancements.

Potential Insights

Insights

Typical Unstructured Data Sources

Customer opinion/sentiment

Internet message boards and forums, online communities such as Twitter and Facebook, blogs, customer surveys

Competitive intelligence

News feeds, information services, regulatory filings, field marketing reports, sales engagement reports, competitive websites, online communities, blogs

Product/service enhancements or new product/service ideas

Call center logs, customer surveys

Product/service quality, including early warning on quality issues

Internet message boards and forums, online communities, blogs

Industry-specific insights, such as:

            ·  Optimized treatment guidelines (healthcare)

            ·  Equity analysis/investment portfolio recommendations (financial services)

            ·  Scientific /legal discovery (pharmaceutical)

            ·  Optimal project staffing plans (consulting services)

            ·  Physician notes in healthcare documentation/claims

            ·  Customer and investor sentiment as shown on Internet message boards and forums, news feeds

            ·  Regulatory filings, patent filings, papers in scientific publications

            ·  Skills and experience descriptions in staff resumes

While unstructured data has great value, the real value of unstructured data is found when it is combined with the core structured data.

For example, the realization that customer sentiment is negative is even more valuable when combined with the recent sales transactions and customer information to understand how that sentiment has affected the demographics of the audience or the mix of products and services that was purchased.

A disjointed approach leads to a multi-stage process to handle and/or analyze data, making it virtually impossible to include rapidly changing data in an analysis.

One is going to need a hybrid platform a hybrid search-analytic platform that unifies structured and unstructured data and provides self-service exploration capability. You are going to find that Oracle Endeca  provides the platform designed to complement traditional BI platforms, which are typically tuned to serve reporting demands on structured data only.

Unifying unstructured data with structured data, therefore, can often be accomplished through a complementary architecture that is neither difficult nor expensive to implement.

With these changes, organizations provide their decision makers clear visibility into market dynamics, customer sentiment, and internal business operations.

Drive Mobile Revenue by 16+% with Improved Loyalty

With the growth in mobile devices, the ‘User Experience’ becomes more critical than even just a year ago for driving customer loyalty.  I recently read a report on how customer experience drives 16% Increase in customer loyalty. And, customer loyalty drives revenue. It’s pretty simple logic.

It’s time to apply this to the mobile experience.

This Temkin Group report makes for some interesting reading. See Temkin Group. The difference in revenue can be in the tens, if not hundreds of millions of dollars; depending on a company’s size.

ROI of Customer Experience

Reprinted with permission from the author.

I also recommend reviewing Temkin’s other reports for sale. See Research. By the way, I receive no remuneration for any recommendation.

With the rapid adoption of mobile devices, I believe customer experience can become a key differentiator for companies to separate themselves from the crowd.

It’s pretty obvious the old model of measuring performance based on outdated product-centric metrics like units sold per quarter or by geography needs to be complemented with other measurements.

Have you made an attempt to correlate customers of your mobile web site to business performance based on user experience?

Most of your competitors are still ‘just looking’ at the data. At least the statistics bear that out. Last year estimates from a variety of surveys show over 35% of respondents are ‘looking’ at correlating experience to customer acquisition, revenue generation, and shareholder value. A much smaller percentage are actively monitoring and acting on such information.

I highly recommend a visit to Gartner’s CRM Excellence Awards page where you can see the Gold and Silver winner case studies of ‘Customer Experience Excellence’.

Are you monitoring what customers are posting about experiences on Facebook, Twitter, or any online forum?

Mobile device consumers have higher expectations for what they get from a provider, and they are the most likely to switch if their expectations are not met.

Did you know that half of mobile search conversions happen in an hour?

That’s the research from Google’s survey of 6,000 smarphone users as of March 2013. And, there’s more. Forty-five percent of mobile searches are conducted to help make a decision, and that number jumps to two-thirds when happening in a store.

Understanding How Mobile Drives Conversion

What’s it all mean? Develop the metrics for measuring mobile user experience now. The window is still open for laggards, but in the mobile world 18 months is last decade’s two year window.