What’s a Store Anyway? The Rise of the Mobile Shopper

November 25, 2011

Posted by John Squire in Benchmarking on November 4th, 2011

Around this time last year, Susan Etlinger, an analyst with Altimeter Group said something that stopped me in my tracks. In the context of discussing ecommerce, Susan asked, “what’s a store, anyway?”

Not that long ago, it would have been clear that a store is where you go when you want to buy something. Obviously it had to be a physical place. But starting in the 90s, people began shopping online using their PCs and a web browser. We had to come up with the terms “brick-and-mortar” and “ecommerce” to distinguish a physical store from one on the Internet. Now with the rise of mobile commerce, stores have become entirely portable; since most people never leave the house without a phone, a store can go wherever you go.

That conversation with Susan came back to me as I started thinking about what this year’s online retail trends were likely to be. It doesn’t take a crystal ball to say that this is going to be a breakout year for mobile shopping. IBM data suggests that an unprecedented 15 percent of people will shift their shopping from the PC to a mobile device this holiday season. This prediction is based on October 2011 figures which show that nearly 11 percent of people who logged onto a retailer’s site used a mobile device, up from the 4.2 percent recorded on October 2010. Furthermore, if current consumer trends stay true to form, we expect that 15 percent of all online sales—not just traffic—will come from mobile devices. That means people are using their mobile devices not just to browse for or research products and services, but to buy them.

What we’re watching is the rise of the post-PC consumer (by the way, here’s a detailed read on IBM’s strategic decision to sell its PC division to Lenovo, by Mark Dean, one of the original engineers who created the PC) and that’s where Susan’s observation about the changing nature of stores gets really interesting.

Global brands need to think about their consumers in an entirely different way. IBM data shows that mobile shoppers are even more laser focused than their PC-using counterparts: 44 percent of mobile users will abandon a site if they don’t find what they want on the very first page, versus an overall online rate of just over 37 percent. Mobile users, it would seem, don’t have the patience or the inclination to sift through a site for what they want. And why should they? With a simple flick of a finger across a screen, they can obliterate one brand in favor of another.
Over the long haul, this trend is only going to get bigger.

Right now, we’re experiencing the voracious adoption of mobile phones across the globe. Relatively tech-savvy people with some amount of money to spend are driving the spike in mobile commerce. But in the future, mobile shopping will spread everywhere. Think about the many millions of people who don’t have broadband access in their homes and who don’t own a laptop (and perhaps never will). We can anticipate that one day, when these people shop online, they’re going to do so using a mobile device.

The onus is on retailers to remember that their brands have become entirely portable. The empowered consumer quite literally has retailers, their brands, and their stores right where he wants them: in the palm of his hand. That means that relevance—a tailored, personalized, wow-they-really-know-what-I-like approach to marketing—is more important than ever.


Is your data secure in the cloud?

November 25, 2011

One of the main concerns from end users about cloud storage is its security. “I am legally obliged to keep my data inside the country’s boundaries; where would you store it?” “How do I know it’s safe?” “How do I know I’m the only one that can access it?” These are all questions that cloud computing vendors and resellers have been striving to answer, and reassure their customers about since this service delivery model was first introduced.

However, today there is a variety of ways in which cloud solutions providers i.e. vendors, resellers and Managed Service Providers (MSPs), can near-guarantee data security and among the most sophisticated near-guarantee of security is encryption. This is a simple yet effective process that will put many customers’ minds at rest, and is therefore a powerful tool for the channel.

Before data leaves the end user’s datacentre it is encrypted at the source and it stays so while it gets transmitted to the cloud, essentially the data is encrypted at rest and in flight to ensure the data remains secure, where it also remains encrypted. Therefore, anyone trying to intercept this data while it is being transferred would only capture encrypted files; access to confidential content is hence not possible.

In order to access data in its un-encrypted form, it needs to be unlocked and the only key resides with the customer, ensuring that the stored version of the data is as safe and secure in the MSP’s datacentre as if it was in-house. Depending on the required level of security, keys can have between eight and 32 digits. So far, so secure.

Safeguards can be applied at various levels to ensure the security of customers’ data from cradle to grave including encryption key escrow management capability. This allows for an additional security provision to be put in place should a customer lose or forget their encryption key. Measures of security (or lack thereof) will often be a deal breaker so any reseller or cloud service provider looking for that extra element of differentiation should certainly look into having as many of these security measures in their portfolios. Amongst the most important factors is to ensure that the underlying technology vendor has a third-party certification of the encryption elements in its products, like a governmental body. It is not enough that a vendor claims their product is secure and it incorporates some form of cryptology. The real question is whether anyone has actually verified that the encryption was implemented properly so it cannot be defeated. This is the comfort level that a recognised third-party certification provides.

In the cloud data centre itself, the security of the data is protected even from datacentre operations staff due to its encrypted format. Cloud operations personnel do not have unauthorised access to the decryption key, meaning that customers should feel safe in the knowledge that their data is visible only to them. Building a level of trust such as this is “key” (excuse the pun) when establishing channel relationships, as trusted resellers are the ones to whom happy customers will return, and will be recommended to others.

It is details such as this that give good relationships the advantage; in order to provide the best possible service it is necessary to understand the technology being utilised and leverage it to each customer’s advantage. Thus, fears about the security of data in the cloud should be greatly reduced. Customers who feel happy with the level of security, support and flexibility provided are the ones with whom relationships will flourish.


Follow

Get every new post delivered to your Inbox.

Join 753 other followers