Is Your Company A Place Where Employees Grow And Thrive, Or Wither And Leave?

David Johnson

As Forrester's Customer Experience Index (CX Index™) proves, the key determiner of a company's success is customer satisfaction. We can also prove that there is a strong correlation between employee satisfaction and customer perception and opinion, which is more pronounced with those employees who have a greater impact on your customers. To improve customer satisfaction, these employees have to feel that they can succeed. If they can’t succeed, they will burn out, and burned out employees aren’t going to help your company win, serve and retain customers. Forrester believes that you as an I&O leader can play the decisive role in customer satisfaction, if you choose to.

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Forrester’s Security & Risk Research Spotlight – The IAM Playbook For 2015

Stephanie Balaouras

Once a month I use my blog to highlight some of S&R’s most recent and trending research. When I first became research director of the S&R team more than five years ago, I was amazed to discover that 30% to 35% of the thousands of client questions the team fielded each year were related to IAM. And it’s still true today. Even though no individual technology within IAM has reached the dizzying heights of other buzz inducing trends (e.g. DLP circa 2010 and actionable threat intelligence circa 2014), IAM has remained a consistent problem/opportunity within security. Why? I think it’s because:
 

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Business As Usual Not An Option For Customer-Obsessed CIOs

Steven Peltzman

As Forrester’s own Chief Business Technology Officer, I’m immersed in our strategic view that consumers and businesses alike demand outstanding customer experiences and expect them more than ever before. In fact, it’s so important to us that we are being measured against the Customer Experience Index (CX Index™) on delivering a great customer experience.

The trouble is I’m experiencing many of the same blockers that our client CIOs say they have: the over-customized legacy infrastructure that won’t go away, constrained budgets, and less resources than we wish we had. Sound familiar? Through it all, we’ve made great progress — an improved website, a great iPad app, cloud infrastructure, etc. — and there’s more to come.

That’s all good, but good is not good enough in the age of the customer. With the threat of Digital Disruption all around us, we feel a great urgency to do more and do it quickly.

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Today's Forecast: Partly Cloudy With A Chance Of Hybrid Deployment

Rusty Warner

I’m a big fan of the cloud – and not because I live in the United Kingdom, which actually gets a lot more sunshine than people think. Seriously, I like the cloud because of the opportunities it brings for enterprise marketing technology deployment. Note that I said “opportunities,” as in potential; although Forrester’s research shows SaaS is the leading factor driving system replacements and net new investments in business applications, there is still work to do where marketing technology is concerned.

But what about all the so-called “marketing clouds” on the market? Surely, they offer cloud-based solutions, right? Cloud-based, yes; exclusively in the cloud, no. Of the eight modules in the Adobe Marketing Cloud, Adobe Campaign and Adobe Experience Manager remain largely hosted or on-premise solutions today. Within the Oracle Marketing Cloud, loyalty and marketing resource management (MRM) modules offer on-premise deployment options. Last week, IBM announced the IBM Marketing Cloud – based on the Silverpop acquisition, with IBM Campaign (formerly Unica) retaining a “marketing software” description. Even the majority of Salesforce Marketing Cloud customers employ a hybrid model for customer data management.

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The Digital Bolt-On Conundrum

Nigel Fenwick
What’s the difference between a digital bolt-on and transformative digital disruption?
 
In the two years I’ve been on the road talking with executives around the world about digital business and delivering keynotes on digital transformation, I’ve been most frequently asked about bolt-on vs. transformation; what’s the difference? 
 
A digital bolt-on is a digital project that is added to the existing business model that might improve the customer experience in a small way, but doesn’t fundamentally change how value is created for, and/or delivered to, the customer. For example, when a company updates a website and provides customers an electronic ordering platform, they are not changing the existing business model; they are simply providing an alternative channel through which the customer can buy products. The value proposition remains the same: buy and experience our product and you’ll gain value from the experience. Digital (in this case an online sales channel) has been bolted to the existing business model in much the same way a teenager bolts a spoiler onto an old car to make it "go faster".
 
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Gainsight's Pulse Conference Underlines The Importance Of Customer Success In A Subscription Economy

Kate Leggett

I attended Gainsight’s Pusle conference on customer success, held in San Francisco, on May 12 and 13. This conference, which focused on the economic value of customer success, actionable customer success best practices and insight from customer success practitioners, drew over 2000 attendees across 20 countries. This was more than double the size of last year's conference. The speaker list read like a who’s who in the world of young B2B SaaS companies: Apttus, Box, Zuora, Yelp, Satmetrix, MindTouch, Zendesk, Influitive, InsideSales, Docusign, Atlassian amongst others, as well as more established companies such as SAP,  ATT, Salesforce, LinkedIn, Workday. It also drew a long list of VC luminaries including Roger Lee from Battery Ventures, Jason Lemkin from Storm Ventures and SaaStr, Tomasz Tunguz from Redpoint Ventures and Ajay Agrawal from Bain Capital Ventures,. 

So why the interest in customer success? 

  1. Our world has moved to a subscription economy. Categories like media and entertainment and telecommunications have fully embraced this model. Other industries like  publishing, computer storage, healthcare, are moving in this direction. This shift is most notable in B2B software.  
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The Data Digest: Customer Service Has Gone Digital

Anjali Lai

In the past week, I have booked a flight using a travel voucher, questioned a charge on my credit card bill, and bought an electric toothbrush. What do these experiences have in common? In each case, I had a relatively complex question and I received a helpful answer – without talking to anyone in person or by phone. Instead, with a little online research, I was able to identify which blackout dates applied to my travel voucher, clear the charge on my credit card bill, and learn the best settings for my toothbrush.

Essentially, I sought answers immediately by turning to digital channels first. In this regard, I’m not the only one. For the first time in the history of our research, more US online adults report using company websites than speaking with agents by phone when resolving customer service needs. Forrester’s Consumer Technographics® data shows that 76% of consumers turn to FAQ pages, and usage across other digital channels is growing notably:

The fact that technology is disrupting the way in which customers seek information is not merely a trend – it’s at a tipping point. In the age of the customer, consumers expect accurate answers with greater speed and less friction than before; as companies offer them detailed online content with increasingly effective navigation strategies, consumers will embrace self-service digital channels at the expense of offline communication.

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The Forrester 2015 Book Club

Great books, from great clients... Forrester's Board of Clients were in Cambridge this week. This brilliant cross-section of our 2,400 clients tells us what we are doing right, what we can do better, and where we should go. 

I always love the pre-meeting dinner. It typically turns into an intellecutal/techie slug-fest fueled by good wine. We did it this year in the restaurant where Mitch Kapor famously told Steve Jobs, "I'll make you a deal. You stay away from commenting on my dietary habits, and I will stay away from the subject of your personality."

Some random thoughts/conclusions from our discussion... Only one board member had a smart watch (not Apple), but 50% think they will wear one within two years. Moore's Law grinds onward, but corporate organization and culture lag dangerously far behind. Big companies must innovate outside of the core, but then must know how to successfully bring it back inside.

And over dessert we talked about our favorite book of the moment. This year there was a dystopian, sci-fi overtone. Here's the list:

The Circle, by David Eggers. 
 
Nexus, by Ramez Naam
 
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Take Investment Protection Off Your List Of Evaluation Criteria

Andre Kindness

Historically I have not been a big fan of Interop for a variety of reasons. However Greg Ferro, George Stefanick, Ivan Pepelnjak, and Harvard Business Review IT Director Ken Griffin — to name a few — changed the breakout sessions experience for me. During Greg’s data center network session, he said something that was priceless. He was giving some guidance around refresh cycles and told the audience to not worry about investment protection. It was so refreshing to hear it. I wasn’t the only one nodding my head: Investment protection is hogwash.

Greg made the case that moving to a 3-year replacement cycle changes a customer’s buying and design criteria. Right now, customers have to guess what is going to happen over an 8- to 10-year cycle; this long term guess creates the desire to protect that amount of spending with “investment protection” features. By considering flexibility, growth, and scalability of the network over that period, customers lean towards chassis switches with ports, which can cost 5 to 10 times as much as a pair of 1RU switches with the same type of ports. By selecting chassis switches, Greg says customers have doubled or tripled their project cost.

However on a 3-year replacement cycle, customers can choose right-sized equipment (which is probably a 1RU switch), do less maintenance, and gain faster access to new features. In addition, the risk could be lower.  For example if bad decision was made, a company is only stuck with selection for 3 years. Or, the company can choose to replace the network earlier and take smaller hit on capital expense line than if the compay bought chassis switches.

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We Have Metrics — Now What?

Daniel Brousseau

Convergences are cool when they happen, and for the past two months, I’ve been experiencing one around customer experience measurement. Today, I was on the phone with a massive government agency talking about the way it measures customer experience and why it’s not working. Next week, I’ll have another discussion with a major communications company about rebuilding its customer experience (CX) measurement system from brownfield and will also meet with a leader from a major software company on overhauling customer experience measurement globally. Two weeks ago, I met with the head of digital at a top-five bank about rethinking how to measure the digital customer experience.   

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