Marketers Will Use Customer Context To Supercharge Digital Engagement In 2015

Carlton Doty
In 2014, Forrester outlined a new approach to marketing that requires brands to harness customer context to deliver self-perpetuating cycles of real-time, two-way, insight-driven interactions.  In 2015, we’ll see more marketers obsess over customers’ context. As more interaction data floods customer databases and marketing automation systems, customer-obsessed marketing leaders will strive to orchestrate brand experiences that drive unprecedented levels of engagement. For example, we predict that:
 
  • Digital marketing investments will drive brand experiences across the customer life cycle. By the end of 2015, spend on digital marketing will top $67 billion — growing to 27% of all ad spend. In fact, we believe this will surpass TV spend by 2016; there’s more to the story than ad spend. We believe marketers will branch out of expected digital media buys to stimulate more insight-driven interactions with customers throughout the entire customer life cycle. Supported by new streams of situational customer data and powered by the ability to precisely target audiences with programmatic media buying, marketers will deliver highly engaging brand experiences rather than just feed the top of the funnel.
Read more

You Need Stickiness To Make Your Mobile App A Destination

Julie Ask
Too many brands fail to leverage the potential of mobile because they act like destinations. Some of you may think being a destination is awesome. Who doesn’t like Paris or Bora Bora? But what does it mean to “act like a destination” in mobile? For most brands, their only strategy to engage their customers is on their own mobile web site or app.
 
Let’s step back a minute and talk about destinations.  
 
Atlantic City was conceptualized as a destination in the 1800’s. Tourism peaked during Prohibition when drinking and gambling rules were not enforced. Consumers had limited options. That changed. Fast forward 50+ years. In 1976, Atlantic City legalized gambling which led to a partial comeback, but they’ve struggled since the early 1990’s because consumers have better options and prefer to spend their time elsewhere. People still go there – just fewer. 
 
Developers have since tried to revitalize Atlantic City as a destination. In May 2012, the Revel Casino opened. Billions were spent to create a destination with shops, restaurants and gambling – everything a visitor could want. How many people visited last weekend? Zero. Revel – this casino - closed its doors in September 2014 with its assets liquidated for small change relative to the investment. 
 
Read more

Applying User Metrics To Score And Rank Mobile Apps: Forrester's App Engagement Index

Nicole Dvorak

Do you measure the success of your app? And if so, how do you define success?

App success depends on both the type of app and the purpose of an app; in general, we can't measure success just by counting the number of downloads or looking at the time spent with the app. But for certain apps, such as communication, dating, games, movies, music, news/media, social networking, and sports, it's easier to define success: The more engaged a user is, the better.

To help marketing leaders and app providers evaluate and benchmark these apps as consumers embrace the mobile mind shift, Forrester has created the App Engagement Index. We use actual smartphone behavior collected from more than 3,000 US and UK smartphone owners who have agreed to supply their data — permitting precise usage analysis at a detailed level.* The Index analyzes every app used by more than 2% of the panelists and rates its user engagement and relative performance across four metrics: 

Calculating the App Engagement index

 

The Index combines these metrics, scores each app from zero (not engaging at all) to 1,000 (the maximum possible engagement), and places it on a spectrum of four segments: addicting, engaging, enticing, and intriguing.

Four segments of the app engagement index

Read more

Don’t Wait For Governments To Pave The Way For Digital Business

Dan Bieler

Digital transformation will fundamentally affect all aspects of business and society, which makes it a key theme not only for business leaders and CIOs but also for governments. Over the past few years, several governments across Europe, as well as the European Union (EU) itself, have each developed their own respective initiative to address the opportunities and challenges that come with digital.

However, from the CIO’s perspective, these digital agendas often fail to meet the requirements that businesses encounter as part of their digital transformation projects. While the digital agendas emphasize infrastructure and regulatory initiatives such as broadband coverage and Net neutrality, CIOs and their business partners would also benefit also from a focus on “soft issues,” such as promoting an interdisciplinary approach in university education and driving digital innovation across industry sectors. We believe that:

  • Governments recognize the digital transformation of businesses and society . . . Governments across Europe, as well as the European Commission of the EU, have recognized the importance of digital transformation to their constituencies and citizens. Various digital agendas have been developed and rolled out over the past few years with great fanfare. But in the end, most digital agendas remain high-level discussion papers.
  • . . . but governments underestimate the magnitude of digital transformation. Most digital agendas lack any real insights about broader business requirements for being successful in the digital economy — let alone any technological insights. Digitization is treated like one of many initiatives rather than the overarching theme for business and society.
Read more

Exploring The Data Economy Opportunity: Some Do's and Don'ts

Jennifer Belissent, Ph.D.

An inquiry call from a digital strategy agency advising a client of theirs on data commercialization generated a lively discussion on strategies for taking data to market.  With few best practices out there, the emerging opportunity just might feel like space exploration – going boldly where no man has gone before.  The question is increasingly common. "We know we have data that would be of use to others but how do we know?  And, which use cases should we pursue?" In It's Time To Take Your Data To Market published earlier this fall, my colleagues and I provided some guideance on identifying and commercializing that "Picasso in the attic."  But the ideas around how to go-to-market continue to evolve. 

In answer to the inquiry questions asked the other day, my advice was pretty simple: Don’t try to anticipate all possible uses of the data.  Get started by making selected data sets available for people to play with, see what it can do, and talk about it to spread the word.  However, there are some specific use cases that can kick-start the process. 

Look to your existing customers.

The grass is not always greener, and your existing clients might just provide some fertile ground.  A couple thoughts on ways your existing customers could use new data sources:

Read more

How To Transform Your Technology Infrastructure: Our New Playbook Is Your Guide

Dave Bartoletti
I want to join Glenn O'Donnell in introducing The Infrastructure Transformation Playbook. The entire I&O team has been working on research for this playbook in the last year, and we think it should be your starting point as you plan your infrastructure priorities for 2015.
 
Cloud and the digital business imperatives you face in 2015 are the external forces driving this transformation. What it means for your internal organization is now's the time to get serious about service design and service delivery. As Glenn, the research director guiding this playbook, says:
 
"Your future lies not in managing pockets of infrastructure, but in how you assemble the many options into the services your customers needs. Our profession has been locally brilliant, but globally stupid. We’re now helping you become globally brilliant. We call this service design, a much broader design philosophy rooted in systems thinking. The new approach packages technology into a finished “product” that is much more relevant and useful than any of the parts alone."
 
Read more

Just published: The Forrester Wave: Cross-Channel Attribution Providers

Tina Moffett

Blogged in collaboration with Rebecca McAdams, Research Associate, serving Customer Insights professionals.

Consumers are connected, constantly influenced by marketing messages, their friend’s social posts, blog posts, reviews, mobile messages, and Twitter posts. In fact, US Adults have an average of three connected devices.  Consumers are leaving breadcrumbs of information behind, across multiple channels and devices.  Marketers are jumping at the chance to connect with their customers through proactive marketing campaigns and even through non-marketing interactions. But which interactions actually drive impact? What interactions are responsible for sales conversions, and which interactions merely "assist" conversions?  CI Pros and marketers are stumped; they must measure these complex interactions to help drive future marketing and media investments and to actually measure their marketing efforts.  

Read more

Customer Obsession Set To Disrupt BPM Market In 2015

Clay Richardson

In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?

Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions.  Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market.  In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
 

Read more

The Problem With "Technical Debt" And Other Agile Terms ...

Phil Murphy

I have a love/hate relationship with "technical debt". Having covered apps modernization, rationalization, and portfolio management at Forrester for more than a decade, I have a keen appreciation for the concept of technical debt - in all its permutations.

So I love the term for the sentiment it expresses about the need for change:

  • As we have modernized applications over the past 4 decades, we have "kicked the can" down the road far too many times - opting for expediant change over "refactoring to make it right"
  • Within any mature single app, technical debt spawned by years of compromise can accumulate to daunting levels
  • The debt eventually reaches the point of becoming a self-fulfilling prophecy - today's debt is too big to tackle, so we kick it down the road and watch it grow out of control
  • Across the entire apps portfolio, the accrued debt cripples firms by gobbling up huge percentages of the available business technology (BT) spend
  • As we rush to build out customer facing and mobile apps to address the age of the customer, the technical debt within the systems of record act like an anchor on change velocity - at both the app AND portfolio levels

And I hate the term because well-intentioned techies wield it like a bludgeon to pound business leaders with an urgency to act. But imagine for a moment how it sounds to business leaders, how they react to the term:

  • "If it's technical, then its your problem Mr App Dev leader, not mine - I'm a business leader"
  • "This debt you want to hand me ... YOU created it, YOU made technology decisions - it's your problem, don't try to hand me a bill to clean up YOUR mess"
Read more

Improving The Federal Customer Experience Is A National Security Issue

Rick Parrish
Improving the U.S. federal customer experience (CX) is crucial to our nation’s long-term security. I’m not exaggerating. Improving federal CX is about far more than just boosting an agency’s ranking on the American Customer Satisfaction Index (ACSI) or raising a Net Promoter Score. It’s even about more than influencing the success or failure of major policies – and we all saw how the initial breakdown of healthcare.gov hurt the implementation of the Affordable Care Act.
 
Poor federal CX actually weakens the underpinnings of our political system by making people less proud and optimistic about the country itself. Forrester has the data to prove it. The pilot run of our enhanced CX Index shows that the worse a citizen’s experience as the customer of a federal agency, the less likely that person is to say he is proud of the country and optimistic about its future. Not a particular agency, official, or administration – the country itself.
 
Read more