We've been talking about Adaptive Intelligence (AI) for a while now. As a refresher, AI is is the real-time, multidirectional sharing of data to derive contextually appropriate, authoritative knowledge that helps maximize business value.
Increasingly in inquiries, workshops, FLB sessions, and advisories, we hear from our customer insights (CI) clients that developing the capabilities required for adaptive intelligence would actually help them solve a lot of other problems, too. For example:
A systematic data innovation approach encourages knowledge sharing throughout the organization, reduces data acquisition redundancies, and brings energy and creativity to the CI practice.
A good handle on data origin kickstarts your marketing organization's big data process by providing a well-audited foundation to build upon.
Better data governance and data controls improve your privacy and security practices by ensuring cross-functional adoption of the same set of standards and processes.
Better data structure puts more data in the hands of analysts and decision-makers, in the moment and within the systems of need (eg, campaign management tools, content management systems, customer service portals, and more).
More data interoperability enables channel-agnostic customer recognition, and the ability to ingest novel forms of data -- like preference, wearables data, and many more -- that can vastly improve your ability to deliver great customer experiences.
I love Wendy's Dave's Hot 'n Juicy 3/4 lb Triple burger as much as the next neanderthal, especially after riding 50 miles in the rain. And I love mobile payments because while I often leave my wallet at home, I'm Strava-ing the ride so I always have my phone.
Now while Wendy's mobile payments app has the potential to make it easier to eat burgers on the road, it's getting bashed in the app store. And it has one more annoying problem that I'd like to focus on here: I have to read off a six-digit code to for a counter clerk to enter to make it work. While reading off a code to inhale a burger when starving may not sound like much, it's harder than swiping a debit card, so it ain't easy enough.
In our research for The Mobile Mind Shift, we found that what matters most is delivering a great mobile moment -- a point in time and space when someone pulls out a mobile device to get something they want in their immediate context. Getting the mobile moment right is critical to being present in the small and important moments in your customers' lives. Two principles define a great mobile moment:
Deliver huge customer benefit and value to the firm. If the moment isn't hugely beneficial to a consumer then the mobile moment won't exist at all. The app must do something truly useful it won't earn a place on the screen.
Bank of America CEO Brian Moynihan just announced that more than 10% of all consumer deposits are done through mobile devices. That's in Q1 2014, and it's up from 6% in Q1 2013. (What you see in this picture is my local Bank of America branch, which I never visit any more.)
I love this from the Wall Street Journal's MoneyBeat blog:
Banks that don’t offer a full suite of mobile banking services may run the risk of alienating customers. All told, about 60% of smartphone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision, up from 7% in the second quarter of 2010, according to data from New York-based consulting firm AlixPartners.
A mobile transaction costs 10 cents. An ATM transaction costs $1.25.
Here's what this means for you: Find a mobile moment where you can make your customer's life easier and you'll make money three ways. First, you'll make the customer happier with a better experience. Second, you'll keep him from switching to a competitor. And third, if you engineer it right, your own processes will be simpler and you'll save money, too. That's mobile mind shift thinking.
It's not just banking. Where are the mobile moments like this in your business?
Coffee-lovers just about anywhere around the world are intimately familiar with the sweet feeling of indulging in a Starbucks Frappuccino – but their blended beverages of choice might be starkly unique. Although the Starbucks brand is familiar to consumers worldwide, the taste of a Starbucks beverage varies regionally according to the diversity of palates. Chinese consumers may seek out a Red Bean Green Tea Frappuccino while their Japanese counterparts prefer a Coffee Jelly; Argentinians may count on that Dulce de Leche Granizado Frappucino where Brits treat themselves to a classic Strawberries and Cream.
The Starbucks Frappuccino phenomenon is a metaphor for any global retailer’s optimal international approach. By catering to consumers’ varying tastes, global companies can hone a strategy that is sensitive to diversity — the “art of thinking independently together,” in the words of Malcolm Forbes.
When it comes to eCommerce specifically, consumer tastes differ not only in relation to products but also to purchase methods. According to Forrester’s Consumer Technographics® data, more than half of metropolitan Chinese online adults regularly buy products through both traditional and mobile devices, but only one in four US online adults and even fewer European consumers do this.
It’s that great time of year when I finally get to talk publicly about our CX Forum East in New York at the end of June. If you’ve ever been to one of our events you know that we always have a theme, and this year that theme is “Why Good Is Not Good Enough.”
We picked our theme because of the good news/bad news story told by our Customer Experience Index (CXi) results this year. First, here’s the good news: The number of brands in the “very poor” category of the CXi is down to one out of 175 brands we studied. What’s more, only a handful of brands – 10% – are in the “poor” category. Taken together those findings show that as customer experience improvement efforts got traction over the last year, the number of truly awful experiences dropped like a rock.
Now for the bad news: Just 11% of brands in the CXi made it into the “excellent” category.
Taken together, those two pieces of news mean that most brands are bunched up in the middle of the curve – not awful in the eyes of their customers but not differentiated, either. I think of this situation as “okay is the new poor” or, in my darker moments, “the year of ‘meh.’” Regardless, it adds up to the same thing: A merely good customer experience is no longer good enough if you want incremental sales, positive word of mouth, and better customer retention.
At the beginning of the year in our yearly mobile predictions report, my colleague Julie Ask and I made the following call: "mobile will affect more than just your digital operations — it will transform your entire business. 2014 will be the year that companies increase investments to transform their businesses with mobile as a focal point." McDonald’s France is a great example of such a trend.
In France, you can now order a Big Mac anytime, anywhere on your smartphone, tablet, or desktop and pick it up later at any of 1,200 McDonald’s restaurants. But mobile ordering and in-store pick up are just the first steps of a broader and more ambitious strategy: differentiating McDonald’s brand experience and powering a future relationship marketing platform by enabling direct behavioral customer insights. Although it started with a mobile ordering and payment app nationwide, McDonald’s France aims to transform all points of customer engagement by building a platform to extend new services to loyal customers and evolving the entire organization.
Despite a less mature mobile ecosystem and lower mobile usage than in the US, McDonald’s France was the first subsidiary of McDonald’s to launch a mobile ordering offering at scale. Such an ordering service is only at pilot stage in the US. France is McDonald’s second-biggest market after the United States, with €4.35 billion in turnover in 2012. Most other countries had piloted mobile payments so far. With more than 16 million members, McDonald’s Japan mobile couponing and in-store contactless payment services is the only other mobile service for McDonald’s (and the vast majority of brands) that has scaled massively, but it does not yet offer the same value.
My latest report, 5 Steps To Create And Sustain Customer-Centric Culture, is now live on Forrester.com. The report answers the question I hear most often from clients: What are the steps in the process to actually transform organizational culture to be customer-centric? We interviewed companies that have successfully completed this transformation, and companies that are in the midst of that process right now. We learned that there are five steps companies must take to create and sustain customer-centric culture:
Step 1: Secure Executive Support (No, Really). We do not want to sugarcoat this step. Customer experience professionals who don't already have commitment from their executives need to either get it or give up their hopes of transforming their organization's culture. Every successful transformation we studied began with a customer experience epiphany by a CEO or COO. If that realization hasn’t happened yet, CX pros can help create the spark of inspiration with executives. For example, Brad Smith, the Chief Customer Officer at Sage North America, established a program where executives sign up to spend time in the call center or join sales teams on customer visits. And he created a new leadership routine of bringing customer stories to their monthly meetings. His goal was to get senior leaders to see the importance of customer focus.
We've been having an intersting conversation with clients and internally about the baggage associated with Data Governance. As much as we (the data people) try, the business thinks it is a necessary, but the commitment, participation, and application of it is considered a burden worth avoiding. They wonder, "Is this really helping me?" Even CIOs roll their eyes and have to be chased down when the data governance topic comes up. They can't even sell it to the business.
So, the question came up - Do we need to rebrand this? Or worse, do you abandon data governance?
Well, I don't know that I'm convinced that Data Governance needs a new name or brand. And, with regulatory and security risks it can't be abandoned. However, what organizaitons need is a framework that is business oriented, not data oriented. Today, Data Governance is still stuck in the data, even with strong business participation.
Big data is the catalyst. If you thought your data was challenging before, chaos and messiness takes on a whole other meaning with big data. Scale now forces us to rethink what we govern, how we govern, and yes, if we govern. This is to both better manage and govern process-wise, but it also drives us to ask the questions we didn't ask before. Questions about meeting expectations for data over meeting expectations to fit data into systems.
If you think Big Data is something only B2C marketers need worry about, you’d be wrong.
As business buyers turn to the digital world to help them explore and solve pressing business problems, marketers will find that the data needed to propel their firms into the digital future is increasingly big.
The challenges we face in closing the gap between the amount of data available and our ability to get value from it are equally big. Nevertheless, to become customer obsessed requires understanding your buyers much better and data is the key to that understanding. During Forrester’s Forum for Marketing Leaders last week, I told B2B marketers that it’s time to make a date with their big data destiny. (The prior link is to our forum coming up in London -- you can also listen to my April 30 webinar to learn more on this topic.)
My colleague Brian Hopkins believes that - to exploit the business opportunity hiding in big piles of data - marketers must understand that data is increasingly:
As digital marketers, we know the importance of tracking, measuring, understanding, and meeting customers’ expectations at their preferred interaction points. We have convinced our budget masters of digital intelligence’s importance to the business as a whole and our spend on digital measurement and marketing technologies continues to increase—exciting vendors and enticing new ones to continually improve products.
But despite this increased investment in technologies, the same stubborn problem remains: different teams are working with siloed data sets while failing to understand and delight the customer across a variety of digital touch points. Why? Because while technology has provided the pieces for digital marketing, these pieces have not come together to deliver completed suites. Achieving this suite goal requires more than just an investment in technology; it requires a considerable effort and a strategy supported by executives that:
Recognizes the multi-channel digital customer experiences firms wish to project using customer insights
Realigns teams and processes to for better cross functional cooperation
Builds skills set and focuses more investment in staff and partnership