Voices: the CMB Blog

I start to fantasize about Thanksgiving Day as soon as I’ve finished the last of the Halloween candy.  From getting up at the crack of dawn, to saying grace, right up until the end of the fourth quarter of the last football game, Thanksgiving is filled with all kinds of wonderful rituals and traditions I look forward to every year.  But things DO change –just as our forefathers never could have dreamt of the magnificent poultry innovation we call Turducken—few would have guessed how Black Friday’s evolved in just the last decade.  Certainly the fact that many retailers will be starting their “Black Fridays” ON Thanksgiving has gotten no shortage of press. But it’s mobile’s impact on the shopping season that will likely decide the financial winners and losers.

This year, instead of grandma telling the kids (okay, me) to get my elbows off the table, she is going to start telling us all to get that “little computer” off the table. Instead of watching my wife and her sisters retire to the kitchen table with an armload of Black Friday circulars, I now expect them to form an Arthurian-style tablet round table, each sharing best-of links, Likes, and Tweets. Don’t get me wrong; in general, progress is good.  It is just going to change my ritual—instead of getting up ridiculously early to execute the extremely detailed list my wife has put together at retail, I’ll be staying up late with her to nail as many online deals as possible.

Welcome to the world of post-pie commerce, where you’ll barely have to shuffle from the dining room table to the sofa to start getting holiday deals—no more sneaking away to get your laptop (how 2008). The good news is, a lot of retailers are getting wise to some of the nuances of mobile technology’s impact on consumer habits. A recent survey from eBay found two thirds of holiday shoppers wanted the sales to begin after dinner, and that dinner usually ends a bit before 5:30. So eBay’s mobile app will be releasing out mobile only deals right after dinner on the east and west coasts. Smart.

So we know what 2012 will bring, but I’m willing to put my neck on the line (subtle turkey humor) to make a few more predictions for Thanksgiving 2013:

1. Checking in at Black Friday (Small Business Saturday, et al) with location-based deals/ coupons sent real time to mobile devices

2. Black Friday Gamified with manufacturers offering big sweepstakes prizes for those who buy their products at multiple retailers (e.g., win a chance at $10 million if you buy a Pepsi product from WalMart, Target and Lowes all between the hours of 4:00 AM and 8:00 AM)

3. Big data used agilely by retailers to adjust inventory and react to competition by surfing all of the Black Friday chatter sights to see what people are most excited about.

4. Someone trying to brand Sunday.  Maybe “ROBO (Research Online, Buy Offline) Sunday” so the shopping could be done efficiently while out attending church and visiting relatives.   

5. While parents retire to football watching and tablet tripping, the new kids ritual will be starting their holiday wish list via Amazon’s Santa App (or one like it) that will eventually be cleverly linked to parents’ accounts real time. 

And one more for good luck: some clever retailer(s) will seize the opportunity to brand the day before as "eWallet Wednesday" thereby taking advantage of early dismissals from schools and some jobs. The necessary investment in POS technology will pave the way for eWallets to surpass plastic as the tender of choice for Millennials by 2014.

In closing, despite the addition of more microprocessors and silicon chips, for me Thanksgiving will happily continue to be a day filled with thankful reflection, tryptophan-induced sleepiness, and a bottle of antacid  How will your Thanksgiving be changing, or not?

Brant Cruz is our resident segmentation guru and the Vice President of CMB’s eCommerce and Retail Practice.

Happy Thanksgiving from all of us at CMB!

 

 

As a market researcher, there are times I can’t help but look at the upcoming presidential election as the ultimate marketing campaign. A successful political campaign often adapts many of the same strategies used by marketers, and just as savvy marketers have adapted their campaigns to the overwhelming number of Americans who own a mobile device, our candidates have strategically followed suit.Due to the overwhelming and increasing number of voters who own smartphones, it’s easy to see why politicians today are placing so much importance on taking their campaigns mobile.  A study released this month by the Pew Research Center found that 88% of registered voters own a cell phone, and roughly half (48%) of these folks own a smartphone. Of the registered voters who own a cell phone, 27% have used it to stay up to date on the 2012 election or politics in general.

The rise in mobile phone ownership has created opportunities for both the Obama and Romney campaigns to increase exposure in hopes of gaining voters, and one of the biggest ways our presidential hopefuls are getting their message out is through mobile advertising. During this election, both campaigns and their supporters are expected to spend about $159 million on internet ads alone, and it’s expected that mobile advertising will consume a large portion of their online advertising budgets.  The Obama campaign has focused much of this mobile ad spending on an online Google advertising platform, while the Romney campaign has invested heavily into iAd; Apple’s mobile advertising platform made especially for its products including the iPhone, iPod Touch, and iPad. This type of advertising has been used extensively to augment existing television ad campaigns and to encourage voters to visit campaign websites.

The campaigns are also using mobile devices in their fundraising efforts and to keep supporters updated on campaign news and events.  Supporters can easily donate to their favored politician at campaign events by swiping their credit cards on mobile payment platforms like Square; a portable credit card machine that attaches to most mobile devices and can quickly accept electronic payments.  Campaign supporters who have their credit card already on file can also text to donate to either campaign—a major benefit because the less onerous the payment process the more likely people are to donate.

When supporters aren’t at fundraising events or texting donations to their favored politician, they can stay connected to the election using their favorite mobile application. Romney supporters can use their iPhones to upload pro-Romney images to Twitter and Facebook, order tickets to see him speak, and stay updated on campaign news and information, while Obama supporters can use an app to check out ways to get involved with the campaign locally. The Obama for America app enables anyone to look up information regarding news, events, community activities, volunteer activities, the President’s policies, as well as information on how to vote.  Of course voters needn’t limit themselves to partisan apps; there have been ample opportunities for voters to search for information on their own—the Pew study found 35% of smartphone owners have used their phone to fact check a campaign or candidate this election season.

Just four years ago, the internet played a critical (and much discussed) role in organizing, informing and motivating voters. mobile technology deepens and expands this impact— facts can be checked on the spot,  polls conducted, and prospective voters reached anywhere they take their phone. Raise your hand if you had your phone out while you watched the debates.  And who knows, maybe someday we’ll be able to secretly text our votes instead of filling in a box or pulling a lever.

Kathleen is CMB's Field Services Associate. She wants to make sure you get off your phone and vote on November 6th!

 

For more on how mobile is changing consumer behaviors, check out our Consumer Pulse: The New Banking Value Proposition.

 

When I moved to Boston in 1988 for college, I was very excited to receive my first “BayBank card.” For those of you from the area, you’ll recall with a smile that BayBank was the dominant area bank; it subsequently merged with Bank Boston which then merged with Fleet. However, through all those changes everyone (at least in my circle) called their ATM card their “BayBank card.” Getting a BayBank card was really your only option if you valued the convenience of an ATM on each and every corner of the three mile stretch from Kenmore Square to Packard’s Corner in Allston. Back then I needed to get cash in $10 increments as easily as I could grab a slice at Captain Nemo’s Pizzeria on Comm Ave. or talk my way into Father’s First Bar in Allston.

Over time, however, my needs as well as my definition of convenience changed. As time marched on, I started to think about buying a home, saving, and investing. Convenience was still the most important thing to me, but convenience now meant ubiquitous ATMs, a close branch to open new accounts, as well as a host of connected financial products. I liked being able to do all my business in one place. I was an established customer, and pretty pleased with the convenience of one-stop-shopping.

However, I feel like a new definition of convenience is on my horizon having more to do with useful, practical technology solutions. I want to view my investments, credit cards, savings accounts for my kids, and checking accounts all on one screen. I want to work with my bank virtually; I have two checks in my wallet, just sitting there waiting for me to make my way to an ATM machine. There is one up the street, about a half block diversion from my train, but without exception I leave work later than I should in order to collect my children from their babysitter, so I bypass that ATM. So there they sit, my sad paper checks, uncashed in my wallet and feeling very inconvenient.

The latest Consumer Pulse study from CMB uncovers some very interesting findings regarding convenience and perceptions of value among consumers. Nearly half (48%) of bank customers believe banks can differentiate themselves with good service. But they are like me—the definition of “good service” is evolving; convenience is no longer just about more branches and ATMs, but also about innovative technologies and remote banking options.

The study also found that while larger banks have a reputation for offering the most online and mobile services, credit union customers report online banking usage that is just as high as larger bank customers, and they give their institutions higher marks on performance than they’re larger peers. I would never have associated credit unions with convenience, but technology and their smaller customer bases are leveling the playing field. I wish that I had remote deposit capture, and I hear rumors that my big-bank provider has it, but I can’t find any information about it on my online banking portal. Not very convenient.  

My brother-in-law is a 26 years old gadget-guy, and a rabid fan of USAA for both insurance and banking. He was never in the military (his grandfather was), so when I learned about his fandom, I was curious because it didn’t add up. I thought of USAA as traditional player, the epitome of an old-school company.  He cited “great service” as the reason he’s loyal. When I asked what he meant by “great service,” he mentioned that he was first among his friends to have remote capture deposit. Definitions of service and convenience are changing; it will be fascinating to see which financial institutions keep up.

Learn more about how technology is changing the definition of good service:

 Download the full report: The New Banking Value Proposition.

 

 

 

Posted by Christine Gimber, Christine is an Account Executive with CMB’s Financial Services team. A few of the things keeping Christine from cashing those checks are her three little kids, and competing in triathlons.

Thirty years ago, the ATM revolutionized banking convenience by letting customers conduct their business at any time, and without stepping foot in a branch— there are now several generations who can’t remember a time before you could just “hit the machine.”  But all that automation meant fewer bank customers face to face with bank reps and the products they sell. Decades later, rising cost pressures, new regulations, consumer desire for added convenience, and diminishing returns on full-service bank branches have created an economic challenge for banks.

To understand the impact of these changes, through our Consumer Pulse we explored customer perspectives on bank convenience, fees, and branch alternatives. We found what bank customers say they value, doesn’t necessarily match up with what they’re actually doing.  We asked people how important having a branch nearby was to their sense of banking convenience—most (67%) reported it was “very important.”  Taken by itself this isn’t a shocking statistic; we know bank customers appreciate personal service and convenience. But asked how often they actually go to a bank (not an ATM—a full-service branch) nearly half (45%) go fewer than 5 times per year.   

What explains this disconnect between what consumers say they need and what they actually use?  Online and mobile banking services mean customers can conduct most transactions from the comfort of their home or office. Although a trip to the local branch is often unnecessary when you can check your balance, transfer funds, or make payments from your phone, customers find full-service branches appealing. Still, fond memories may not be enough to keep branches, as customers know them, open.  

For the first time in over a decade, banks are closing branches faster than they’re opening them, and banks are looking to alternatives with lower overhead and operating costs. To understand what alternatives were most and least appealing, we asked respondents to participate in a trade-off exercise to evaluate new banking concepts. When forced to choose, customers were willing to give up their local branches rather than see fees rise. These findings suggest branch proximity, while still important to many, is not as critical to a convenient banking experience as it might have been in the past.

One of the alternative banking concepts we tested was the” teller-less” branch. The teller-less branch is largely automated, but sales professionals are available to discuss bank products, and customer representatives are available by phone. In one of the more surprising findings, customers said they would rather have their local branch close altogether than have it replaced with a teller-less branch. This finding, while counter-intuitive, is telling—banks will need to educate their customers on how new banking concepts will affect and benefit them.

While the full-service bank branch may become a thing of the past, banking convenience and service are as relevant to today’s bank customers as ever—even as the modes of service change.

Download the full report: The Future of the full-Service bank Branch here.

Posted by Jim Garrity, Jim is Managing Director of CMB’s Financial Services practice. He hasn’t stepped foot in his bank branch in months.

The day that we all become as tech-savvy and suave as Tom Cruise in Mission Impossible is fast approaching.  How do I know?  A few years after a Cruise movie is on the big screen, his cool gadgets are for sale in a store near you.  Don’t believe me?  Just watch any 24-hour cable news show and you will see that they are all using the same multi-touch wall display that Tom Cruise first popularized in the movie, Minority Report.

Now, Google is saying that we can be just like Tom Cruise in Mission Impossible with the release of his iconic sunglasses that project information onto the lens.  Can you imagine it? You could be walking around New York City with turn by turn navigation, getting information on local restaurants, activities, even places your friends have recently checked in on Foursquare or Facebook, all while strolling along, looking up instead of down at a phone (or a map… remember those?!).

The fervor and excitement this device is creating has endless potential. I think a product like this will influence how retailers reach out to shoppers.  For example, in the future, the customer won’t be sitting at home, miles away from a store location…they will be right outside your door searching for products on their sleek Mission-Impossible-sunglasses.  As a result of this change, more focused local or location-based advertising will begin to replace the need for expansive mass media campaigns.

The shift to more personalized advertising is already taking place with the rapid popularization of the smartphone.  According to our Consumer Pulse report: How Smartphones are Changing the Retail Shopping Experience, released last year, over half of all smartphone owners use their device when shopping in a retail store. Currently, retailers are wary of these customers as “show roomers” who will go in store to browse, but who make their purchases online to find a better price. 

Instead of worrying, retailers need to take action and realize that these tech advancements in shopping can be used to their advantage to create a personalized shopping experience.  Leveraging data already collected from loyalty programs or Point of Sale can provide shoppers with a compelling reason to make their purchases in a retail store, creating and providing a seamless and elevated experience for the buyer.  The resources to make this experience a reality are available; retailers have the data, it is just a matter of learning how to use it effectively.

Someday, when we are all like Tom Cruise and wearing spy-like glasses, advertising will need to be personalized and relevant to the individual.  Such a marketing technique will draw people in, breaking through the mass noise and bombardment of content available all around you.  No longer will accurate advertising and recommendation-engine results be relegated to online sites alone—it will be a part of your everyday life, maybe even programmed into your sunglasses.

What do you think?  Will mobile technology transform the retail shopping experience?

Posted by Kirsten Rasmuson, Kirsten is a Senior Project Manager on CMB’s Retail practice. She’s looking forward to welcoming our new robot overlords.