Customer insights professionals consistently ask me what other companies are doing to turn their customer data into actionable insights. To answer this question, Forrester partnered with Burtch Works, an analytics executive recruitment agency, to survey customer analytics and measurement professionals about their current efforts. I’m quite thrilled to share the results in my State of Customer Analytics 2016 report.
This goal of this report is to give CI pros, marketers, and anyone tasked with gleaning insights from massive amounts of customer data a concrete snapshot of what others are doing in the space. Here are a few of the key questions we set out to answer:
What are the top data sources companies are using for analytics and measurement?
What types of analyses are they doing?
How and where are they applying insights?
What challenges do they face?
In analyzing responses, we segmented companies based on their customer analytics sophistication so readers can see what separates leaders from laggards. My hope is that as you read through this report, you will be inspired to evolve your own customer analytics maturity. Please feel free to reach out to me via inquiry if you’d like to discuss how to do so.
Forrester’s CX Index shows that, across the board, companies are getting better at delivering quality customer experiences (CX). But in as much time as it takes to open a celebratory bottle of champagne, the tide of rising customer expectations threatens to push the product or service CX pros have been working on for so long toward obsolescence. Essentially, customer expectations are rising faster than companies can conceptualize, design, and deliver improved experiences.
Now, imagine if you could better manage your customer’s expectations before the delivered experience — first by elevating your customer’s positive emotions as early in the interaction as possible and then initiating a positive emotional momentum that will carry throughout their journey with your brand. It’s called anticipatory CX and it is the most powerful element of CX that you’re not currently paying attention to. Consider the following:
Evolution gave us anticipation as a motivating force. People are wired to anticipate future happy experiences as opposed to negative events. When you think about the BBQ this weekend or your friend’s wedding next month or a vacation later in the year, you’re anticipating a positive experience. Your brain’s intrinsic anticipatory-reward system has kicked in.
Unilever is the latest in a long string of enterprise giants to acquire digital. It acquired the digital-native startup, Dollar Shave Club, for $1 billion. I've been telling the Dollar Shave story lately as a way to describe the disruption possible when a company uses digital technology to establish a direct relationship with a customer. Dollar Shave Club is in its customers' daily shower and conscienciousness. It's a digital disruptor, not because it has a revolutionary product. It's because it has a revolutionary relationship.
What should you take away from this Dollar Shave Club deal?
Digital disruption starts with a direct customer relationship. Sure, sometimes digital is about new products and services. But it's always about a direct relationship with customers. That's what's so scary to traditional industries with their indirect distribution models. Unilever has sold through distribution for time and memorial. It doesn't know its customers except through the lens of research and somes times purchased sales data. No longer. Now it can know its customers as Under Armour is starting to.
Digital strategy is about bridging the gap between your core capabilities and what customers want. For large firms, you don't need to reinvent your core capabilities to become digital. You instead need to recognize that digital is the way customers want to buy, engage, and get service, so you must give them the tools they expect. Dollar Shave Club sells razors. It just sells them conveniently at a great price. That puts digital within reach of every company.
There will be a lot more digital direct deals like this. Direct customer relationships are one vector of our digital future.
It’s not infrequent that a merger or acquisition takes place in a particular coverage area and, as an analyst, I’d typically expect to be ready to discuss the event at a moment’s notice.
Not so when it came to last Monday’s news about eBay acquiring predictive analytics startup SalesPredict.
There are a little over 20 vendors vying to provide predictive modeling solutions to B2B marketers and sales professionals. It’s a “new-ish” technology, and one might reasonably expect consolidation or merger activity. But for most folks, this particular collaboration was an eyebrow raiser and I needed to talk to some people first.
Founded in 2012, SalesPredict builds predictive algorithms that help B2B firms identify correlative relationships between the presence of various attributes and/or buyer behaviors to positive or negative outcomes. I had met with Yaron Zakai-Or, CEO and co-founder, and Sahil Mansuri, VP of Marketing, several times in my role as analyst. I imagine Sahil’s background in marketing helped them to grow their base within 6 months to 60 customers. But it didn't hurt that at SalesPredict, it was always about powerful technology without bounds. Co-founder Kira Radinsky, a self-proclaimed “data scientist at heart,” says that that founding SalesPredict was part of her vision “to bring about a major change in how business is conducted by unifying micro- and macro-economic predictions.”
This didn’t go unnoticed by eBay, with its own goal of increased sophistication in artificial intelligence, machine learning, and data science to support its structured data plan. In fact, that is exactly how eBay described the acquisition - frankly reminding me of how broad the use cases of predictive technology really are.
This post is part of a series dedicated to the challenges, opportunities, and realities of federal customer experience. Interested in learning more? Register for our complimentary government CX webinar next week, and be sure to join me as I host Forrester's first-ever CXDC Forumon Sept. 12th in Washington, DC.
It's been 23 years since the White House first told federal agencies to improve the experiences they provide to customers. Yet three presidents, two executive orders, and a bevy of memos and committees later, federal customer experience (CX) is still in crisis. In fact, federal agencies have:
The lowest average score on Forrester's CX Index. The federal average of "poor" was worse than all 17 private sector industries we rated and far below the overall average of "OK." In fact, even the weakest performers in most industries still outscored the government average. The National Park Service and US Postal Service, the highest-rated federal agencies, scored only as high as the average for banks.
A near-monopoly on the worst experiences. Seven out of the 10 worst organizations in the CX Index – and five out of six in the "very poor" category – were US federal agencies. Only internet service providers and TV service providers came close to matching this level of underperformance.
Shockingly bad websites. Forrester's Consumer Technographics survey shows that only 53% of customers agree that federal websites are "exactly what [they] should be." Fewer than three in five customers consider federal sites easy to use or well organized.
The web impacted more than a third of total retail sales in 2015 and will impact 48% by 2020. Smartphones are becoming consumers’ most widely used mobile device, and consumers are using them to find information about a product irrespective of their location. They use them to research products, even when they are shopping in physical stores; to compare prices with online retailers; to check specifications; and to read user reviews. This behavior is making the web a more powerful medium — one that retailers can no longer ignore. We expect web-influenced retail sales in Asia Pacific to reach $2.1 trillion in 2020, up from $1.2 trillion in 2015.
South Korea leads in web-impacted sales . . . High penetration rates for the internet, smartphones, online retail, social media, online payment options, and messaging platforms are powering the web’s impact on retail sales in South Korea. Similar factors mean that Japan, China, and Australia closely follow South Korea in terms of web-impacted sales.
Mobile banking adoption has reached critical mass. Rapid progress in mobile technologies and consumers' ever-increasing expectations and changing behavior have left many banks around the world playing catch-up. In the meantime, a cluster of banks is racing forward by putting customers at the center of their strategy, striving to anticipate customers' emerging needs, and by embracing an agile and iterative approach to speed up the development of new mobile capabilities that differentiate them from their peers. Today, these banks are delivering outstanding services to their customers in mobile, and in 2016, Westpac in Australia is leading the pack.
To help digital business strategy leaders better understand the landscape of mobile banking, identify best practices, and benchmark their own capabilities in this area, Forrester conducts an annual functionality benchmark applying 40 criteria. This year, we evaluated 46 leading retail banks from more than a dozen countries across four continents, and have just published the findings in our "2016 Global Mobile Banking Functionality Benchmark" report.
Here are some of the highlights from the global benchmark report:
The report is based on Forrester's CX Index™ methodology, which measures how well a brand's customer experience strengthens the loyalty of its customers. We use this methodology to create an annual benchmark of CX quality at large US brands. Between our Q3 2015 report and our 2016 report we saw modest but clear progress among many of those brands, as 58 out of 319 had a significant improvement in their experiences.
Twenty-eight brands gained 5 points or more. The 28 brands were scattered across 12 industries plus the US federal government, where three agencies made big increases.
Five industry averages rose. Every year we show the range of scores by industry together with industry means. In 2016 the bar went up significantly for five industries: wireless service providers, traditional retailers, hotels, internet service providers (ISPs), and US federal government agencies (which is more of a sector than an industry but you get the idea).
The percentage of Good and Okay scores rose slightly. The percentage of Good and Okay brands each increased by two percentage points. Those gains came equally from declines in the Poor and Very Poor scores, which each shrank by two percentage points.
(Confusing messages. Image by Wikimedia Commons user 'Melburnian')
Again and again, we hear examples of companies struggling as they try to realise the benefits of moving to cloud. They know what they want to achieve as a business, they know that cloud can help, but they cannot translate that understanding into the way they specify, procure, and run the technology.
There are plenty of organisations willing to help, offering everything from design and migration services through to management of infrastructure and applications on an ongoing basis. Even in the public cloud world, it's easy to find companies eager to take your money, and then start and stop workloads on your behalf.
"Cloud computing changes the way that applications are designed, built, and run. It is often part of a broader organizational change, as enterprises move to embrace digital opportunities. Providers of managed cloud solutions need to recognize this shift: They must do more than simply run a customer’s computers. But CIOs seeking a trusted partner to assume this broader role find that too many managed cloud offerings fail to rise above basic management of infrastructure."
Over the next few weeks US voters will focus on Hillary Clinton, Donald Trump, and their running mates at the Republican and Democratic National Conventions. Their messages will carry well beyond traditional TV with the help of livestreaming. The Republican National Convention in Cleveland will provide a 360 livestream. This will be one of the first high profile events streamed in 360 degrees. Twitter announced a dealwith CBS to livestream the conventions whenever they are in session.
Image: Facebook Live has a map of every current live broadcast globally.