Prescriptive analytics is about using data and analytics to improve decisions and therefore the effectiveness of actions. Isn’t that what all analytics should be about? A hearty “yes” to that because, if analytics does not lead to more informed decisions and more effective actions, then why do it at all? Many wrongly and incompletely define prescriptive analytics as the what comes after predictive analytics. Our research indicates that prescriptive analytics is not a specific type of analytics, but rather an umbrella term for many types of analytics that can improve decisions. Think of the term “prescriptive” as the goal of all these analytics — to make more effective decisions — rather than a specific analytical technique. Forrester formally defines prescriptive analytics as:
"Any combination of analytics, math, experiments, simulation, and/or artificial intelligence used to improve the effectiveness of decisions made by humans or by decision logic embedded in applications."
Prescriptive Analytics Inform And Evolve Decision Logic Whether To Act (not not act) And What Action To Take
This is this time of the year again! From next Monday (February 27) and March 2, 2017, Mobile World Congress (MWC) will take place in Barcelona. I attended this event (then 3GSM) for the first time in 2005 and it is fascinating to see how the event has morphed from a B2B telecoms technology trade show to the one of the largest business conference around the globe. This year’s MWC theme is “The Next Element” may look broad but I quite like this idea that mobile is elemental and has become part of our daily lives. By analogy with the previous industrial revolution, mobile is like electricity: once you have access to it, it is a disruptive enabler of adjacent technologies powering more powerful innovation. Mobile is barely entering its teen age years.
Consumers now use mobile as a sixth sense. If the human senses serve as effortless faculties through which we access information on the world around us, then mobile has become the sixth sense. It brings digital to consumers in their daily lives. It has truly become the face of digital. That’s the main challenge for marketers: since mobile becomes the primary interface between your brand and your customers, you must leverage mobile to accelerate digital transformation and transform the customer experience you deliver. A lot has to happen behind the scenes for marketers to be able to deliver real-time contextual experiences on mobile. That’s why it makes a lot of sense for marketers to spend time in Hall 8.1 where most marketing, advertising and app vendors will be gathered.
Spark Summit East came to Boston this year and I was there to enjoy it including being interviewed by Dave Vallente and George Gilbert about Apache Spark and AI on The Cube. We talk about the waning of the term "Big Data" , but get quickly into the future of AI and Apache Spark.
Business intelligence (BI) is a runaway locomotive that keeps picking up speed in terms of enterprise interest, adoption, and spending levels. The result: Forrester now tracks 73(!) vendors in the segment. Their architectures and user interfaces vary, but they support similar use cases. Forrester started the original research with fewer than 30 vendors in 2014 and ended up with 73 in the current 2017 update. Expect this dynamic to continue for the foreseeable future. Even though the BI market is quite mature from the point of view of the number of players and breadth and depth of their functionality, it is still quite immature regarding business and technology maturity, adoption, and penetration levels in user organizations. Vendors will continue to seize this opportunity — new players will keep springing up, and large vendors will continue to acquire them.No market, even a $16.5 billion market, can support 73 vendors.
Last November I sat down with Chevrolet CMO Tim Mahoney on stage at Forrester's Age of the Customer summit. We had a wide-ranging talk about disruption, change, and what Chevy executives are doing to anticipate and deal with that change. I just published a summary that conversation, what I might call Mahoney's top recommendations for CMOs in 2017. In that short summary, I quoted Mahoney and then added what follows:
"Our CEO talks a lot about how in the next five years, it's going to change more than it has in the last 100 years when you think about what's going on with car sharing, ridesharing, autonomous. It's a really interesting time to be in an industry that's over 100 years old. Think about your car: Where is it now? It's parked. Next to your home, it's the second-most important investment people make. It's parked 94% of the time. Many younger people are starting to ask, why do I even need a car?" - Tim Mahoney
General Motors is not alone in this ominous premonition. A full 42% of companies we surveyed recently in the US, Germany, and the UK agree that "in the next five years, my organization will have significantly altered its product and/or services.
Most leaders of SaaS providers understand the importance of minimizing Churn and maximizing account enrichment, but few fully appreciate how vital to those goals is a good pricing and licensing strategy. My newly published report Pricing Strategies For Software-As-A-Service is a must read for any business software company that sells or is thinking of selling via a subscription model. Here is a quick overview for anyone who isn't yet a Forrester client.
Some industry experts talk about the "magic ratio" of lifetime customer value to acquisition cost. Aligning the price you charge each customer more closely with the value they are likely to receive from your product is vital to increasing the former and reducing the latter. Simplistic pricing undermines lifetime value by undercharging those customers who get the most benefit from your product. Don't think you can fix this error later if you get it wrong at the start - I've seen many start-up vendors limit their growth potential in this way. Flat rate pricing helped them get traction early on, but then when they wanted to accelerate revenue growth they found it impossible to persuade those early adopters to switch to a variable pricing structure.
This post was authored by Claudia Tajima, Researcher at Forrester.
On the second part of the forth episode of our Futurology webinar series, Mike Facemire, Julie Ask and James McQuivey convened to discuss the future of the connected workplace. Looking forward, they discussed what change in the workplace will look like and what it will take to get there.
The dust is settling after last week’s exciting Super Bowl. Emotions certainly ran high for those watching the game. Here at Forrester, we were also interested in the longer-term sentiment about the ads that aired during the show. So we reached out to consumers again after a week to capture consumers’ reactions to the Super Bowl ads, to ask them which they liked most, and to ask which made a lasting impression.
As my colleague Jim Nail pointed out in a blog post , this year’s ads did not always resonate positively (if at all) with audiences. That said, our ConsumerVoices market research online community members were most likely to mention 84 Lumber, Audi, and Anheuser-Busch/Budweiser as memorable ads that influenced their opinions of the respective companies.
In the case of 84 Lumber’s and Anheuser-Busch’s focus on immigration, sentiment was sharply split. Quite a few consumers were further turned off when 84 Lumber’s CEO declared that the ad was not intended to be pro-immigration, adding more confusion to consumers’ perception of the brand and its values. On the other hand, Audi’s ad addressing gender equality in pay sparked a different controversy. Although Audi is an aspirational luxury brand, the message was seen as bold and received in good faith, producing a more positive sentiment overall.
Happy Valentine’s Day! You know the feeling of being in love: You want to stay with your significant other forever, love them more each day, and tell everyone how great they are. Your customers know it, too! Many companies have begun tracking how their customers feel as part of their CX measurement program. In the CX Index™, we too track how customers felt during their most recent interaction with a brand.
What’s Love Got To Do With It?
We find that customers who give high scores on Emotion are more likely stay with the brand, spend more on products or services, and tell others how much they love the brand. And just like in relationships, there’s a big difference once your customers fall in “love” – customers in the CX Index who rate the brand a perfect seven out of seven on Emotion, or “love” the brand, say they are 18% to 40% more likely to enrich their relationship with the brand. For brands in all industries, this means that there is business benefit to helping your customers fall in love with you (whether via greater revenue, lower churn, or both).
Let’s Talk About Love
Brands benefit from higher customer advocacy loyalty when customers love them -- but how can brands benefit if they don’t know what love is? Forrester analyzed the specific emotions felt by customers during their most recent interactions with brands in the CX Index.
● Baby, don’t hurt me. Brands whose customers score them high on Emotion almost never make customers feel negative emotions like frustrated, angry, or anxious.
Over the past few days, Boston has been slammed by multiple snow storms. This causes challenges for my pending flight to San Jose, but another deadline looms: some roses might not be able to make it to Boston on time for Valentine's Day. Only someone deeply concerned with Supply Chain and Logistics worries about delivery time on Valentine’s Day. But perhaps we all should: it could very easily shape whether you get a kiss or the cold shoulder for Valentine’s Day tomorrow.
According to IPSOS floral tracking study, cut, fresh flowers take center stage for three holidays: Christmas, Mother's Day and Valentine's Day[i]. The US imported 976 million cut flower stems in advance of Valentine’s Day last year, between January 1 and February 14.[ii] You might guess these flowers are from the Netherlands. However, the Netherlands supplied only 2% of all imported volume. Seventy-one percent of Valentine's Day flowers came from Colombia alone and 19% from Ecuador.