Banks to go multi-channel

July 28, 2009 by billjames1

We may be on the brink of ‘multi-channel banking’ – let’s see if the Banks can catch up with the Grocers…

Pink Piggy Money Bank :: Fun Gifts from GettingPersonal.co.uk

A new research report says UK & US banks are in danger of losing online customers unless they improve the levels of personalisation and communication offered. The report from Gartner says people in both countries are heavy users of online banking and over 40% use at least two banking sites, meaning they are in a position to compare features.

The trends observed are interesting:

  • Younger respondents value features that enable customisation of their online banking experience and are looking for additional financial planning tools to help them manage their money more effectively
  • Older customers seek tools that let them use current services more effectively or communicate better and want features that make the online banking channel itself easier to use

Banks can learn from the Grocers:

Retailers have spent ten years working out how to build successful e-commerce businesses and in the last three years have been moving that to a multi-channel mix that involves services like ‘ring & reserve’, range extensions and of course online order tracking.

Banks seem to have been asleep at the wheel, it’s taken them an age to react to the fact that customers are demanding more self-service and looking to manage many of their regular transactions online. But at last the Banks seem to be reacting now that the pressure is on:  There is much talk in the big banks of cost-cutting programmes – I’m told by those who should know that a key focus of this is about getting the optimum number and location of branches and getting those online services to deliver what customers want and need to take the pressure off branches and especially off call-centres.

 So we may be on the brink of ‘multi-channel banking’ – let’s see if the Banks can catch up with the Grocers, especially now that one of the Grocers is a Bank!

Online video going mainstream

March 9, 2009 by billjames1

The latest news to feed into your digital strategy – Online video is poised for explosive expansion in viewing.

Recent figures on digital media consumption in the United States (from investment bank Bear Stearns) say over 70% of internet users now stream video, watching an average of 7 minutes a day.

Based on my own non-scientific research of talking to my 20 year old son, his peers at university and the friends I have still in their twenties and early thirties I can see a real shift in behaviour where the viewing of US TV programmes/movies is often on PC rather than TV.

For me and probably most of my generation the real shift is unlikely to take a grip until we have a simple solution for getting our content from the internet to our big screen TVs. See my recent blog about Placeshifting.

Meanwhile back to the Bear Stearns report, and while video advertising spend is projected to reach $4.3 billion by 2012, they say that nearly 90% of internet users in the United States will be watching video online by then (that’s just four years from now).

According to comScore, the number of online video viewers in the United States rose by 15% over the last year to over 140 million. YouTube was the top site, attracting over half of them.

The number of streams viewed has grown even faster, by 40% over the last year, to over ten billion streams. Nearly a third of them were from YouTube, way ahead of any other site, growing by over 200%.

Video advertising spend has been growing accordingly and is projected to reach $4.3 billion in the United States by the end of 2011.

The Bear Stearns analysts conclude that internet video already has vast reach and is growing. Video advertising is acceptable to the majority of viewers and provides engagement that offers compelling value to advertisers. The viewer base is maturing and there is still much room for growth in monetisation.

So, have you given enough thought to the question of if/how online video fits in your digital strategy?

Agility; rapidly adapting to change

January 30, 2009 by billjames1

From a series of interviews by CVL – with senior execs from Allianz to News International and from Barclays to O2 – the summary is that ‘agile service development’ is all about getting the right product to market faster.

The aim of the survey was to find out how UK business is adopting and implementing smarter ways of getting new services to market. the conclusion was that ‘agility creates both immediate and lasting benefits to business bringing new products to market’.

- agile approaches are difficult to implement but worth the effort as they improve success rates, reduce risk & lead to better quality in a shorter time

- overall efficiency has been improved by those who have made the change, with quality assurance being introduced earlier in the process

Download the report here

£84m spent online on Christmas Day

January 17, 2009 by billjames1

I said back in December we were staying home to do our Christmas shopping, but even so, the biggest e-commerce surprise of the year was Christmas Day and Boxing Day; 4.4 million people actually bought things online on Christmas Day, spending £84million, this on a day when the shops are supposed to be closed!!!!

Generally UK retailers have seen their online sales grow about 30% Year on Year (YoY)
- Argos MCR revenues up 33% YoY
- M&S web sales up 78%, even though overall down 2.2%
- Sainsbury’s 40% growth in last quarter, up 50% to 100,000 orders in run up to Christmas
- Amazon UK peaked on 10th December, selling 1 million products in a day, that’s 11 orders per second
-Tesco Direct (non-food) did £190m in the last quarter of 2008. Food did 2m orders in the last 12 weeks of the year.
- Interestingly, Domino’s are now doing >£1m a week online

USA reported similar performance, a Chase Group report says the online retail channel saw 29% growth in the last 10 weeks of the year.

Online video overtakes film revenue in ‘08

January 8, 2009 by billjames1

We will mark 2008 as the year when global revenues from digital media exceeded revenue generated by cinema and homevideo combined. Online (& mobile) accounted for $90 billion in worldwide revenues whilst the global filmed entertainment market generated $83.1 billion.

This analysis comes from Strategy Analytics: “We’re starting to see now that digital media is becoming a significant part of revenue for a lot of companies,” says director of digital media research Martin Olausson. “A few years back, everyone was still discussing whether movies would be distributed online. That’s not a discussion anymore.”

>>  Based on my own experience of working in/advising on the evolution of online retailing and the eventual (& still incomplete) development of multi-channel retailing, I’d say there are several years to go before this tipping point converts into a mature market.

 Broadband downloading and streaming, terrestrial and video-on-demand (VOD), and mobile platforms are now all ways to watch entertainment content, from feature films and TV shows to made-for-Internet/mobile programming.

 Read more here

TV competing with Internet for attention

November 21, 2008 by billjames1

The advertising market has really been feeling the squeeze lately and in this credit crisis there is some evidence of cut backs already.  The interesting contradiction is that people seem to be watching as much TV as ever – despite the amount of time being spent online.

The new Ofcom report on the International Communications Market is very revealing on the multi-tasking habits of TV viewers who are also Internet surfers – some 74% of UK Internet Users surf whilst they watch TV – and 28% do it most times.

“Preloved” goods in demand online in the recession

October 24, 2008 by billjames1

As we react to the recession and tighten our belts it seems secondhand is one of the big keywords in web searches nowadays. Hitwise says “UK consumers are increasingly turning to the Internet to help them deal with the financial pressures and insecurities brought on by the global credit crunch

Hitwise reports that UK Internet searches for second hand goods have increased by 22% over the last 12 months, while Classifieds websites have experienced a 47% increase in traffic over the same period.

The number of UK Internet searches containing the word ’second hand’ increased by 22% between the weeks ending 13 October 2007 and 11 October 2008. During the 12 weeks ending 11 October 2008, UK Internet users searched for over 22,000 distinct terms containing the phrase ’second hand’ with searches for ’second hand cars’ proving to be the most popular.

Top five UK Internet searches containing ’second hand’, 12 weeks ending 11 October 2008

1. second hand cars

2. second hand books

3. second hand car prices

4. second hand furniture

5. second hand bikes

UK Internet visits to Freecycle  the website that enables people to recycle their unwanted goods by passing them on to others, increased by 35% between September 2007 and September 2008.

“The community aspect has played an important role in the success of Freecycle and lots of people are searching the web for lists in their neighbourhood,” commented Robin Goad, Director of Research for Hitwise. “The site is currently most popular in Wales and the West Midlands and is used most by people with families”.

In one quote from the Hitwise press release they say “Property searches have fallen, but traffic to House and Garden retailers has reached a new high as people look to cocoon themselves in their existing homes

Well that’s interesting but I don’t think the DIY Retailers are feeling the benefit just yet!

Another small step for m-commerce

October 20, 2008 by billjames1

So Paypal has acquired BillMeLater, an interesting move and although it may not seem groundbreaking it does seem to chip away at the banks standard business model. Look at it like this; if Paypal is online payment made easy and BillMeLater is buy online now and pay later then the growth of the combined business must further encourage online sales and take more transactions away from traditional banks.

Another case of putting two things together and getting more than the sum of the parts?

It reminds me of another Paypal related blog – I posted back in April ‘08, Paypal + iPhone = m-commerce

In that instance, two capabilities coming together to drive the use of mobiles in the purchase process.

Here is the announcement.

Economic growth driven by m-banking

October 20, 2008 by billjames1

Interesting story today on the BBC about a move to make mobile banking the primary customer banking system in the Maldives. With support from the World Bank all the banks are being brought together in the one system to drive adoption of mobile banking in the islands, “as an experiement” to set up credit facilities for the locals and in turn to drive GDP growth.

Tom Standage, Business Editor of The Economist magazine, says that mobile banking has been a major success story in the developing world and is in fact ahead of the developed world. He explained that in a typical developing country, for each extra 10% of people with mobile phones, an extra half a percentage point is put on GDP growth a year.

Its worth listening to the audio of Tom explaining this link between growth of mobiles and GDP growth in developing countries. The audio link is embedded within the story.

Predicting the future, a complete waste of time

October 13, 2008 by billjames1

I was asked to play the role of futurologist for a CVL newsletter this month, so I reached for inspiration on style of predictions; I went straight to the wise words of my favourite author on the subject, Scott Adams. He writes in the The Dilbert Future!, “There are many methods for predicting the future. For example, you can read horoscopes, tea leaves, tarot cards, or crystal balls. Collectively, these methods are known as ‘nutty methods’. Or you can put well-researched facts into sophisticated computer models, more commonly referred to as ‘a complete waste of time’.

Shift happens!

So with all that said here is what I think will happen in the next ten years?

Bill’s Prediction No.1 – we’ll be hiding from the data deluge

We’ve been riding the broadband wave for at least 6 years and will continue to do so for several years in our pursuit of ‘always on’ high speed access. The telecoms world has been obsessed with how many households and users have broadband access and how fast that access is, but we will get bored of these figures when we have something else more interesting to talk about.

Fixed line access speeds will improve and the emerging mobile broadband technologies mean we will have enough bandwidth for all our needs wherever we are – but with all this fast access at our fingertips in 10 years what we will really want is to be ‘sometimes off’.

Broadband speeds of 10Mb will be the norm even on the move, but more of us will be seeking out blind spots to hide from the constant deluge of data.

Bill’s Prediction No.2 – where did I put my invisible communication device?

Currently, fashionable trends seem to take about twenty to thirty years before they appear again – just look at how many kids today are wearing skinny jeans, going to open air rock concerts and think that Paul Weller, Chopper bicycles and Blake’s 7 are cool. We could see 1998 technology becoming fashionable again in 2018. What does that mean? It means you and I will be using the latest micro-sized devices and the kids of the day will be showing off their brick-sized mobile phones.

Everyone will have mobile phones and most of us will have a selection to choose from, depending on our mood and what we are doing that day. There’ll even be options to build your phone into your clothes, and some early adopters will be integrating their communications devices into their own bodies to create a cyborg solution.

Bill’s Prediction No.3 – the telly will always be on

Our pattern of TV viewing is on the verge of a major shift – and shift is the key word here – from the ‘sit back and receive’ style we grew up with to a mode in which we enjoy more control over what we watch and when we watch it. As the Personal Video Recorder (PVR) becomes more commonplace in our living rooms more of us are watching ‘timeshift TV’, i.e. watching our favourite programmes when it suits us rather than as scheduled. Within 10 years we will benefit from the ability to enjoy ‘placeshift TV’, i.e. take our TV schedule with us when we travel so those favourite programmes are available on a TV, PC or mobile device wherever we are.

Bill’s Prediction No.4 – shopping only for experiences

As the technology improves, and as we get more and more comfortable with the security and reliability of the ordering and delivery processes, we will do all our ordering online. The actual shopping experience will be much more interesting as stores become showrooms and more retailers focus on creating ‘experience stores’ like this extreme sports store in Florida.

Bill’s Prediction No.5 – these, and all other predictions, will turn out to be entirely untrue

The one thing that is certain with predictions is that they will not be right. History is littered with awsome predictive errors including some made by the most prestigious of scientists Try this for British technological foresight at its finest:

The Americans have need of the telephone, but we do not. We have plenty of messenger boys.

- Sir William Preece, Chief Engineer, British Post Office, 1878.