The Transition to EMV Presents New Opportunities for Mobile Payments

Merchant EMV hardware and software upgrades at the POS pave the road for additional contactless mobile payment transactions. Most new EMV POS hardware equipment also comes Near Field Communications (NFC) ready.  In timely fashion many new mobile payments types are hitting the market (Apple Pay, Android Pay, Samsung Pay, PayPal) to take advantage of the new NFC/EMV payment acceptance hardware being installed in merchant locations.  This creates a new opportunity for both in-store and eCommerce merchants if leveraged appropriately.   
Tapping and paying with a mobile device removes the EMV experience friction points.   Tapping and paying with a mobile device is just as frictionless as swiping a card through a mag-stripe terminal. Consumers will find the NFC transaction more convenient than an EMV card transaction, which requires dipping it in an EMV terminal, waiting for it to read the card, remembering a PIN and then pulling it out of the reader.  Consumers will likely gravitate to the NFC simpler transaction process and become more habituated to using their mobile device to pay in-store.  Furthermore, as mobile payment providers move toward digitizing consumer loyalty credentials in-app will also help reduce additional check-out friction points.   
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Does The New Facebook Reactions Get A ‘Like’?

Erna Alfred Liousas

This week Facebook released “Reactions” for two pilot markets: Ireland and Spain. The new reactions available for posts? Love, haha, yay, wow, sad, and angry.

Myself and Forrester analysts Jennifer Wise, Samantha Ngo, Brigitte Majewski across mobile, social, and advertising pow-wowed on this new addition.  Here are our thoughts: 
  • Facebook wins from this move. Hello new and granular consumer data. Facebook can continue to optimize its own news feed experience, and grow monetization of its data with improved audience profiles and targeting for ads – on its site, and everywhere else.  
  • Brands may get better sentiment data... Marketers need to go beyond counting likes, so what about counting “angries” vs. “yays” instead? Counts can suddenly mean positive or negative sentiment. Funneling these sentiments into consumer insights can help 1) inform ad targeting with refined consumer preferences and affinities, 2) test emotional story arcs, and 3) fuel retargeting. A clothing retailer could target consumers who react “wow” to dress posts. But the big “if” is: will Brands own Reaction data? We’re hoping yes. 
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Amazon Web Services Pushes Enterprise And Hybrid Messages At re:Invent

The hordes gathered in Las Vegas this week, for Amazon's latest re:Invent show. Over 18,000 individuals queued to get into sessions, jostled to reach the Oreo Cookie Popcorn (yes, really), and dodged casino-goers to hear from AWS, its partners and its customers. Las Vegas may figure nowhere on my list of favourite places, but the programme of Analyst sessions AWS laid on for earlier in the week definitely justified this trip.

The headline items (the Internet of Things, Business Intelligence, and a Snowball chucked straight at the 'hell' that is the enterprise data centre (think about it)) are much-discussed, but in many ways the more interesting stuff was AWS' continued - quiet, methodical, inexorable - improvement of its current offerings. One by one, enterprise 'reasons' to avoid AWS or its public cloud competitors are being systematically demolished.

Not headline-worthy, but important. And, as I and a number of my colleagues note in our Quick Take view on this week's show, AWS is most definitely turning up the heat. Frogs, we're told, don't know they're being boiled alive if you just turn up the heat slowly. CIOs, hopefully, are paying more attention to the warmth of AWS, all around them.

Is Your Business Social Enough To Create Great Customer Experiences?

TJ Keitt

Your customer experience (CX) is the product of the interactions between your employees, partners, and customers within your operating environment. Forrester has labeled this as a customer experience ecosystem. It's important to understand CX ecosystems' two components — the people and the operating environment — for two reasons: 

  1. People participate in the ecosystem if they get value from it. Each actor in the CX ecosystem is asking, "What's in it for me?" Employees want things like professional development, recognition, and advancement. Business partners want access to customers, sales support, and strong revenue growth. And the customers expect quality products and services that meet their needs.
  2. The operating environment affects people's definition of value. Every ripple in the operating environment changes what employees, partners, and customers value and how they expect that value to be delivered. The economic downturn, for example, meant that many workers valued stable work over things like personal fulfillment — which is reflected in Gallup's report that just 32% of US workers are engaged. Many software companies transitioning from delivering server-deployed software to cloud services has changed how those vendors' traditional channel partners are compensated, going from large payouts on perpetual licenses to annuities from subscriptions. And disruptive sharing-economy upstarts, like Uber, have reset consumers' expectations of how they find and use services as diverse as car services, hotels, and office rentals.
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New Fraud Targets: The Impacts of EMV Chip Card Migration Brings New Challenges

EMV chip card arrival to U.S. shores does not mean fraud is going away.  It will most likely shift to new channels and verticals post EMV implementation.  Past EMV transitions throughout the rest of the world have shown that EMV plays a big role in reducing in-store fraud.  Consequently, fraud flows to other channels such as Card-Not Present (CNP) environments where cards and users are more difficult to authenticate, as well as SMB in-store merchants where hardware and software has not been installed.  In this post we'll look at some of the impacts of EMV chip card migration in the U.S.
The U.S. will Most Likely See an Increase in eCommerce Fraud
 The U.K. saw an increase of 62 percent in card-not-present fraud after its implementation of EMV, as criminals shifted their efforts to other channels of least resistance*.  France, Canada and Australia all cite higher than 50% more instances of CNP fraud in the years following EMV implementation.  
  • Prepaid eGifts will become a particularly vulnerable fraud target.  Online gifts  require little information to send and receive, and as a result become a high-value target for fraudsters.  The growing trend of electronic gifting helps satisfy consumer demand for an instant product that is sent to anyone’s inbox around the world in seconds.  While physical gift card shipment usually takes a few hours or few days to process the merchant has time to verify the validity of the receiver.  Most fraud decisions about eGifting have to be made in real-time.  
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Merchants That Accept EMV Chip Cards Reduce Some Payment Risk, But Not All

Much has been written about the impacts of the recent U.S. October 1, 2015 Fraud Liability Shift milestone and the migration to chip cards.  Some retailers geared up for the fraud chargeback liability shift long before October 1st by upgrading POS software and hardware systems to accept the new EMV chip cards.  Most U.S. merchants are still sitting on the EMV sidelines and have not made the commitment to upgrade.  
When considering EMV acceptance upgrades retailers need to look at their total risk profile when it comes to fraud, security, and PCI Compliance.  The EMV chip card standard was developed as a way to minimize in-store fraud.  After October 1, 2015 card present merchants will be accepting more risk as transactions made with counterfeited EMV cards will now be the merchant's responsibility if it decides not to accept EMV chip technology at the POS.  The benefit of the investment in new payment system upgrades needs to outweigh the risk of fraud and customer perception for the merchant.    
Fraud and EMV in the Context of Risk
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Fingerprint authentication enters online banking at Bank of America - and signals FIDO's first major adoption event

Andras Cser

Bank of America's website and press release says that you can use your TouchID on iOS to sign into BofA's mobile  application on iOS.

This move is a major milestone in FIDO's and fingerprint biometrics' adoption in the mainstream consumer authentication market. Forrester expects fingerprint authentication will greatly improve the customer experience - no more fumbling with hard-to-type passwords on small smartphone keyboards. It's important to note that matching the fingerprint to authenticate the user happens in the mobile application on the mobile device. As such it is not a true two factor, strong authentication where the match happens on the server side.

The Data Digest: Wear, Why, And What Next?

Anjali Lai

For US online adults, wearable technology is no longer the stuff of myth. Over the past year alone we’ve witnessed the launch of the Apple Watch and iterations on early wearable products. Wearable devices are now making their media cameo across a variety of channels and topics ranging from politics to pop culture.

According to Forrester’s Consumer Technographics® survey data, around one-fifth of US online consumers use a wearable gadget. While the adoption rate is higher among young, wealthy males, wearables are already breaking into segments that aren’t typically considered among the early adopters. Most individuals tend to use the technology for health- and fitness-related activity; however, consumers demonstrate a growing interest in using wearables for several different functions:

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Microsoft Begins To Bridge The Smartphone/Laptop Divide With Windows 10

Tim Sheedy
On 6th October, 2015 Microsoft launched a number of new devices into the market, including the Microsoft Surface 4, Surface Book, and a number of new Lumia smartphones. While the hardware is certainly attractive, that is not enough to peak my interest, nor that of my clients. What is interesting, however, is the introduction of the Microsoft Display Dock and Continuum for phones. This new technology allows users to connect their smartphone to a screen, keyboard, and mouse and use the smartphone on a large screen – running universal Windows apps designed for the PC and phone. Suddenly the power of Windows 10 as a universal operating system can be realized.
While not a complete PC experience, it will be enough for a lot of users within your business. Most firms have employees that only require casual PC access (think site staff in construction firms, store management in retail, traveling sales staff, factory floor management teams etc). At present we spend more than we need to in order to serve these employees – often providing a dedicated PC or laptop for them – along with their smartphone. In a world where universal Windows apps are readily available, many or all of these users could be given a smartphone and a Display Dock to use with a screen on-site or at home – helping you save money and direct this spending perhaps to rewriting your internal applications as universal Windows apps. Even a communal screen and dock would be enough in some workplaces.
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Introducing The Marketing Measurement and Insights Playbook

Tina Moffett

It’s no secret that marketers are under increasing pressure to be accountable, while an increasingly fragmented media environment compounds the perennial challenges of marketing measurement.  Meanwhile, consumer insights pros are improving skills and gaining ever more powerful tools to harvest and analyze the data from web, mobile, and social marketing. The scale and speed requirement of today’s marketing world strained legacy marketing measurement approaches like attribution and marketing mix modeling .  

We knew the convergence of different marketing analytics approaches was inevitable so earlier this year, my colleague Jim Nail and I began sharing our ideas on where marketing measurement was headed.   We agreed each approach provides only a partial answer to the marketing ROI puzzle and they shared enough methodological similarity that merging them was plausible.

We’ve just completed research that shows that our intuition is correct and in our new report, Embrace Unified Marketing Impact Analytics to Deliver Value Across Interactions, we dubbed this converged approach as Unified Marketing Impact Analytics (UMIA), defining it as:

blend of statistical techniques that assigns business value to each element of the marketing mix at both a strategic and tactical level. 

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