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Archive for October, 2009
Better customer experience leads to competitive advantage and higher turnover
It was often believed to be true, but now it’s also proven: companies that have better customer experience management capabilities, along with a strong customer orientation, enjoy a real competitive advantage. 81 percent of companies with a ‘high customer-experience maturity’ reported they outperform their competition and companies that reported outperforming competitors also reported plans to spend more on future investments in customer experience capabilities. This follows from the Customer Experience Maturity Monitor, a study of the current state of customer experience management within Fortune 500 companies by Peppers & Rogers Group, Harris Interactive and SAS.
40 percent of European companies integrate customer satisfaction as a Key Performance Indicator for rating their management, which is almost twice as much as the rest of the world. Companies that establish a customer orientation to enable a focus on the customer experience realize benefits in the short-term, but also position the company for enhanced long-term success.
Below you see the Customer Experience Maturity Model, which shows how companies progress in the maturation of their customer experience excellence along a continuum ranging from product centricity, to customer focus, to experiential mastery.
M-Commerce wins ground
Amazon.com is extending its 1-Click checkout experience to mobile customers with the introduction of Amazon Mobile Payments Service. It is optimized for the mobile phone experience, enabling customers to make payments conveniently from any mobile device. There are more mobile payment networks available, like Bango, but with the announcement of Amazon the mobile commerce (m-commerce) market finally seems to win ground.
Retailers contemplating how to sell to the 40 million-plus active users of mobile Internet in the U.S. alone (per researcher Nielsen Mobile) could start their mobile approach by providing shopping info via a mobile device. Recent research from Shop.org found that half of consumers aged 18 to 34 are using their mobile devices to shop offline more efficiently and with better information.
Fast growth in m-commerce sales
Global m-commerce is accelerating in global consumer adoption faster than the pundits anticipated. A nice reflection of this is eBay’s recent announcement regarding its mobile app for the iPhone and its m-commerce site which have generated $380 million in sales so far this year. With the assumption that the current pace continues, the m-commerce channel for eBay will be 5-6% of its total revenue for 2009, achieved without an elaborately defined effort – just an experimental toe dip.
Little in-house development
InternetRetailer.com found that 83.4% of retailers in m-commerce use vendors to build and help maintain their mobile sites and apps. Numerous vendors are building m-commerce sites and apps, but five have emerged as leaders. mPoria, CardinalCommerce, Moonshadow eCommerce, Usablenet and Digby are the players to watch in mobile commerce technology.
