A Smartphone From Amazon: Ingredients For Success

Julie Ask

Amazon plans to launch a smartphone this fall, according to The Wall Street Journal (reported based on undisclosed sources in the SF and Seattle area who have seen the device).

A few common questions:

1) Will they succeed?

Well, it depends on Amazon’s definition of success.

Is it about media? Amazon is still somewhat new to developing, building, distributing, and supporting hardware. If this device adds to its portfolio of PC, Kindle, and Fire TV to be yet another screen for Prime subscribers, that may be enough. The notion of subsidized hardware to support an extended media play is interesting. My colleague James McQuivey leads our research there.

Is it about commerce? mCommerce is a big deal in mobile, but not a big deal within the broader context of consumer spending. Offline commerce dwarfs eCommerce and eCommerce dwarfs mCommerce. The big opportunity in mobile is the influence of sales locally. But Amazon also plays in this space.

Is it about payments? I’d say unlikely in the near term, but I like the idea of using my Amazon account (linked to my credit card) for quick and easy online payments. However, it’s hard to imagine the same level of convenience translated into the physical world – with the greatest possibility in  mCommerce. My colleague Denee Carrington is our expert here.

2) Should you build on their platform?

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A Mistake To Avoid When Using CX Metrics For Employee Incentives

Maxie Schmidt-Subramanian

Do you use your customer experience (CX) metrics to incentivize frontline employees in your company? Here is a cautionary tale I came across in my wireless provider’s store.

While I was chatting with the representative who took care of my problem, I overheard another representative ask a customer for a 9 or 10 on the satisfaction survey. Don’t stop reading — we all know this happens; this is not what this is about. Given that I am a CX analyst with a passion for CX measurement, I asked my service rep what this was all about. What he said about the employee perspective on this blew me away: He said that the company basically said, “Southwest [Airlines] gets nearly only 9’s and 10’s on the survey (meaning the NPS question) so we should be able to do that, too.”

Setting targets for CX metrics requires more than that — benchmarking is a part of it, but it also requires a solid baseline and a realistic stretch target, with realistic being the operative word here. It is probably no surprise to you that the experience those two companies provide is hardly comparable. If you look at Forrester’s 2014 Customer Experience Index (CXi), Southwest Airlines is the industry leader among airlines with a CXi score of 81. And its score is way ahead of the average score for wireless providers of 71 (and also way ahead of my wireless provider’s CXi score).

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The Customer Life Cycle Gets A Customer-Obsessed Makeover

Corinne Munchbach

Last week at Forrester's Forum For Marketing Leaders in San Francisco, we bid farewell once and for all to old marketing — the marketing of campaigns, outbound messaging, and funnels. In its place, we unveiled a new and improved customer life cycle: the blue print for customer obsession. Attendees got a sneak preview of the content, but all clients have access as of today to a new report, which elevates the life cycle from its marketing home and into the whole enterprise. As your customers take a very nonlinear approach to getting what they want out of their brand relationships, companies must put the customer at the heart of everything they do to create contextual, useful engagement. The customer life cycle involves the entire brand experience, from messaging to product usage and ongoing interactions, and incorporates the ongoing relationship firms must have with customers, making it the marketing vision that will drive CMOs' success in the age of the customer.

The new version has two new phases — use and ask — that, with the original four phases, more completely captures the entire relationship a customer has with a brand.

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Create Marketing Your Customers Can Use

Melissa Parrish

Half of US online adults have reached 'always addressable' status: using at least three connected devices and accessing the web multiple times per day from varying locations. It’s perhaps no surprise that this customer base has grown quickly since we first introduced it in 2012, when 38% of US online adults were always addressable. And for marketers, this is seemingly good news — now you have more opportunities to meaningfully engage with these customers than ever before. So what's the bad news? These customers tend not to trust or pay attention to advertising, and worse, largely find brand messages irrelevant.

There is a silver lining, though. Forty-six percent of always addressable customers don't mind getting emails from companies they've opted in to as long as the offer is relevant, and 27 percent are willing to share information about their interests to receive more relevant advertising. This leaves marketers with a great opportunity to engage with these willing customers, just as long as you embrace customer obsession.

But first, you must accept a hard truth: Your customers are done with traditional, campaign-based marketing. More often than not, customers are interacting with a brand outside of typical campaigns, and it's marketing's job to identify the context of those interactions and build upon them to create new forms of useful, continuous engagement. At the center of this contextual marketing is utility — becoming visibly and functionally useful to your customers. You can offer this utility either organically or transformatively, depending on your level of maturity across four key elements: customer addressability, data maturity, partner compatibility, and digital commitment.

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It's Time For A New Approach To Marketing

Carlton Doty

Consumers don’t trust your ads. In fact, fewer than one out of four US online consumers trust offline ads, and the numbers are even worse for digital. It’s time for a new approach to marketing, based on deep customer insights derived from a contextual, self-perpetuating, interaction cycle. Each interaction with your brand teaches you what a customer is trying to accomplish at that moment. You must build a mechanism that allows you to act on that insight, deliver utility in the moment of need, and propel the customer to the next best interaction.  We call this mechanism a contextual marketing engine, and our latest research – The Power Of Customer Context – shows you how to build it, and why you need to start now.

We unveiled this new research last week at Forrester’s Forum for Marketing Leaders to an on-site audience of more than 900, and we'll do it again in a few weeks across the pond at our London Forum. What are the key takeaways?

If you weren’t able to make it, here are a couple of short video highlights from the main stage. For all the gritty details, make sure to check out this must read research. 

Augmented Reality Graduates From Gimmicks To Utility

Julie Ask

Augmented reality has represented the potential for the magical enhancement of our physical world through digital content. (See report) Too many of the use cases today - especially in marketing - have been gimmicks leaving a user to scratch his head and think, "I don't get it." Some have offered entertainment. Some have delivered games and rewards (e.g., Zappar). A few have offered true utility in a consumer's mobile moment - Amazon, Yelp, or the Commonwealth Bank of Australia (see case study) by simplifying the discovery and consumption of simple, 2D information. 

Finally, we are beginning to see more examples of how augmented reality can offer true utility to consumers in those mobile moments when they are struggling to complete a task. In this example, Mitek uses AR to help correct or guide a consumer's use of the camera to send or input information to a bank or service. This offers one example of why companies need to continue to revisit emerging technologies. They can very quickly move from gimmicky to reality. Mobile shifts consumer expectations very quickly. 

 

here is a link to the research on managing an application portfolio for value

George Lawrie

http://www.forrester.com/Optimize+LongTerm+Application+Effectiveness+And...

 

 

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Winners Of The 2014 Forrester Groundswell Awards

Nate Elliott

Today at Forrester's Forum for Marketing Leaders in San Francisco, I had the pleasure of announcing the winners of the 2014 Forrester Groundswell Awards. This is the eighth edition of our awards and the first time we've had a chance to present them at our flagship marketing event — and I'm thrilled I had a chance to share these great stories of social success with the more than 700 people in attendance. Once again, this year our awards were based on Forrester’s Marketing RaDaR model and the way social programs can support the Marketing RaDaR. That means we presented awards in three categories:

  • Social reach marketing. This category recognizes social programs that effectively delivered marketing messages to new audiences — whether by word of mouth or by using paid social ads.
  • Social depth marketing. This category recognizes social programs that helped prospects explore products in detail and make a purchase decision — such as corporate blogs and communities and marketers’ on-site ratings and reviews.
  • Social relationship marketing. This category recognizes social programs that engaged existing fans and customers in order to increase their loyalty and lifetime value — something that most commonly happens through branded profiles on social networks like Facebook and Twitter.
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Dropbox For Business Pursues A Sensible Consumerization Path Into The Enterprise

Ted Schadler

Dropbox has 275 million users. It's steadily improving the business capability of its Internet file system. That makes it important to understand what Dropbox is doing and why it matters to business. Here's what they are doing:

  • Last week, Dropbox secured a $500 million line of credit. My take is that Dropbox will use this money to build datacenters as well as global business capacity. Today, the company uses cheap storage from Amazon S3, but it keeps all the juice (like user permissions, search metadata, and application data) in its own data centers. This cheap funding (debt is much cheaper than equity) gives it a reasonable capital structure to buy lots of servers to build global applications.
  • Yesterday, Dropbox made its new Dropbox for Business "linked folders" generally available. This feature lets technology managers give employees a business Dropbox that it can secure and own. Employees can link the business Dropbox to their personal Dropbox so they see all their files in a consistent way. When an employee leavers the firm, the business Dropbox disappears from personal devices (if it works as designed). Customers like Facebook are using this product and seeing a big shift in its employees moving business files from a personal Dropbox to the new business Dropbox.
  • Dropbox has attracted 100,000 disrupters -- many of which are targeting mobile moments. Mobile moments open up a universe of new personal and business applications to get things done in a small moments of need. This level of partner investment is a huge deal because it signals that Dropbox is becoming a file system for the Internet era. Using Dropbox, these innovators can simply inherit the entire file management and storage sub-system they need.
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IBM Announces Intent To Acquire Silverpop And We're Not Surprised

Corinne Munchbach
IBM has announced its intent to acquire marketing automation company Silverpop for an undisclosed sum. This acquisition is — on the surface — just another tactical play by a large marketing technology vendor to bring on additional capabilities to support a strategic platform narrative. While Forrester clients can look for our analysis of this announcement in a forthcoming Quick Take — which I will be publishing in collaboration with my colleague Lori Wizdo — Forrester’s initial thought on the news is that we’re not surprised. Given that the various competitors in this space have been adding capabilities left and right through acquisitions, IBM is simply doing the same — checking the box to build out an expansive product line portfolio. The marketing automation vendor landscape (both business-to-business [B2B] and business-to-consumer) shrinks further, and we continue to wait for examples and proof that these mega vendors can deliver the integration they promise.
 
So what does Silverpop bring to IBM’s Enterprise Marketing Management solution?
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