What did we find this year? In 2016, the average US online adult receives an overall score of 40 and fits into our Social Savvies category. Social Savvies consider social tools a part of their everyday lives. On average, US online adults score highly for explore and discover— they use social tools to discover new products and also to explore them when they’re considering their purchases. Compared to last year, US consumers are slightly more social media savvy in 2016: The Social Technographics Score for the average US online adult has increased from 37 in 2015 to 40 in 2016.
Yesterday, Ping Identity announced it has acquired Austin, Texas-based UnboundID. Although the financial terms were not disclosed, Forrester estimates the purchase price in the $50M-$75M range, based on typical M&A SaaS revenue multiples of 6X to 8X and Forrester’s estimation of UnboundID’s annual revenue.
This acquisition is not particularly surprising, as UnboundID and Ping have had a healthy reseller relationship since April 2015, so the purchase merely consummates the existing relationship. It also demonstrates how reselling relationships can help software vendors validate how they complement each other and set the stage for a complete acquisition.
For me, there are three key takeaways from the Ping Identity/UnboundID merger:
1. Customer identity and access management (CIAM) demand is strong and growing. UnboundID’s focus on customer IAM complements Ping’s existing strengths in enterprise IAM and provides further evidence of the strong demand from today’s digital businesses to build compelling, identity-centric digital customer experiences. Forrester has seen a steady increase in the number of CIAM-related inquiries from enterprise clients looking to provide a holistic, omnichannel customer experience that doesn’t compromise on security or privacy. The Ping/UnboundID combination is now positioned to meet that growing demand.
Forrester’s POST methodology for social marketing success dictates four steps:
Often, marketers lead with T, but they need to start with P. The $64,000 question about People is not whether customers use social media, but rather if they want to engage with brands on social media at all, and if so, how. That’s right, the first and most important question is not whether your competitors are on social media or if the latest social network has the coolest ad format; it’s what your customers want from your brand. Marketers need to know this to guide how (or if) they add social to their overall marketing strategy.
Traditional manufacturing businesses must rework the structure and culture of their organization to address rapidly changing client expectations. Bosch is a fascinating example of how a traditional manufacturing firm can successfully transition into a leading digital business. Our discussions with Bosch highlight that:
The shift from selling products to outcomes-as-a-service requires business model change. In order to sell business outcomes, Bosch combines business process expertise with technical know-how and an outside-in approach.
Digital transformation depends on successful cultural transformation. Bosch’s digital transformation is based on a fundamental cultural transformation that takes every Bosch employee and customer along.
Bosch’s software engineering division acts as a catalyst for digital transformation. Bosch believes in a central coordinating role for its software engineering division as part of the digital transformation process.
Last week, my colleague Lori Wizdo and I were discussing our most recent advisory engagements on the topic of lead-to-revenue management (L2RM). Lori is kicking off the latest research for her next Forrester Wave™ evaluation of L2RM automation, and we were considering how we should modify the evaluation criteria from the previous Forrester Wave published in 2014.
As we wrote three years ago in the Forrester playbook on this topic, L2RM is not “demand gen on steroids”. It is marketing's chance to catch up with an already evolved buyer. Lori noted that we are observing the transformation of B2B marketing from a
"supplier of leads to the load-bearing sales force to the architect of customer engagement across the life cycle”.
Initially, we discussed L2RM, our playbook, and the associated Forrester Wave with marketing ops staff and with the marketing executives responsible for demand generation. But in recent months, we have noted a step change in our engagements. We are currently working with three chief marketing officers (CMOs) on this topic. They are using L2RM to transform their organization and culture.
And our L2RM playbook is not just high-level strategy advice (I remember a B2B marketer telling me at a conference this year “We see you analysts at Forrester as the high priests of B2B marketing”). Heh! We do details as well - here is one of the graphs from the playbook, where we leverage the concept of that business school classic, the results chains.
Finovate, KPMG, and CB Insights are all reporting on record investments in financial technology (fintech) in 2016.[i] According to Finovate, the total number of deals year-to-date stands at 737, double last year’s 371. The amount invested has more than doubled, too — from $8.4 billion raised during the same period a year ago to $17.4 billion year-to-date.
There seems to be a lot of optimism in fintech, especially when you consider this chart:
Source: Yahoo Finance.
The share prices of fintech darlings in peer-to-peer (P2P) lending, small-business lending, and mobile payments have collapsed post-IPO. And devaluations aren’t affecting only publicly owned companies. Zenefits — which offers cloud-based software to manage payroll, health insurance, and other benefits — was valued at $4.5 billion in May 2015. Since then, Fidelity, which led the funding round, has written down the value of its investment, now estimating Zenefits' share price at $5.60 — down from $14.90 a year earlier.[ii]
This post is part of a series dedicated to the challenges, opportunities, and realities of federal customer experience. Interested in learning more? Check out our recent webinar to learn why CX success is vital for government success.
In my last post, I explained how forces arrayed against federal customer experience (CX) improvement hinder Washington’s efforts. Luckily, there’s a way out of this quagmire. To overcome anti-CX forces and achieve all the advantages of better federal CX, customer experience professionals should:
Form an unstoppable coalition. Don’t try to fight alone. Instead, join forces with like-minded feds to share information, challenges, and solutions. Start by leveraging the large network of the General Services Administration’s CX Community of Practice, which has over 500 members from more than 70 federal, state, and local government organizations. Then tap into the bureaucratic muscle of the senior program managers, OMB staff, and other officials on OMB’s new Core Federal Services Council, the “government-wide governance vehicle to improve the public’s experience with federal services.”
However, at $2.4 billion, the Fleetmatics deal is much bigger than most telcos have been willing to contemplate to date, underlining Verizon's commitment to the IoT space. But this deal won’t transform Verizon’s enterprise revenue composition overnight. While it will help improve Verizon's position in terms of IoT revenues, Fleetmatics had revenues of $285 million in 2015 – compared to Verizon’s $132 billion.
The price it is prepared to pay for Fleetmatics shows that Verizon expects to see impressive long-term benefits from the deal. Forrester expects that Verizon will ultimately extend Fleetmatics’ business model beyond global fleet and mobile workforce management solutions to more general tracking and tracing solutions for nonpowered objects like skips, agricultural equipment, machinery, and other connected assets.
Verizon has its work cut out: The acquisition is the easy part. But successful integration will be much harder, as this deal is about supporting customers with their business processes rather than just selling them new products.
You can't win, serve, and retain powerful customers without being insights-driven. It's one of the principles of customer obsession: customer-led, insights-driven, fast, and connected. So what does it mean to be insights-driven? We think we know based on conversations with over 50 companies over three years.
We have identified 40 public companies and a horde of venture-backed startups that work in a fundamentally different way: They harness and apply data at every opportunity to differentiate their products and customer experiences. That makes them faster and fleeter than you. In fact, using data from PitchBook and Morningstar, we forecast that, collectively, these insights-driven businesses will make $1.2 trillion dollars in 2020 (see the first figure).
What does it mean to be insights-driven? It's easiest to see by example. What if you could:
Optimize the driving experience by mining car performance data for insights to continuously improve car software? Tesla does.
Improve student loan re-financing prices and risk by finding insights in a borrower's credit card transaction history, college, and grades? Earnest does.
Win a football championship by gathering data and using insights to improve recruiting, training, and half-time pep talks. FC Midtjylland does.
Earn the best on-time arrival of any major airline by measuring when the airplane door closes -- and everything leading up to it. Alaska Airlines does.
Since 2007, Forrester has helped consumer brands evaluate the experience they deliver to their customers with our Customer Experience Index (CX Index™). This methodology powerfully demonstrates to business-to-consumer (B2C) companies the link between CX and customer loyalty. Business-to-business (B2B) firms can benefit from a similar methodology to assess their emerging CX practices. Using the B2C-oriented CX Index as a foundation, we created the Forrester B2B Tech Customer Experience Index, which we are unveiling today.
The B2B Tech CX Index is designed to account for the key differences between B2B and B2C technology companies in managing a customer experience:
The number of stakeholders within a single account. In a single B2B account there are numerous "customers" -- individuals who interact directly with the vendor or its products. This can include business analysts, procurement officers, tech management executives, systems administrators, end users, and help desk staff. Because B2B tech companies have to account for many different stakeholders, the B2B Tech CX Index captures this range of customers by surveying both business leaders and technologists.