Benchmark Against Your Biggest Competitor — Yourself!

Diego Lo Giudice

As firms face growing competition for customers, they naturally seek to compare themselves with their peers and competitors, but there is a trap: Leaders don’t compare themselves with competitors anymore. Instead, they compare their current performance with where they need to be as a leader, and that’s what the business expects.

In the past, it was common to benchmark organizational performance against “industry averages,” and being “above average” was considered good. Today, “above average” is no longer good enough; fickle customers demand exceptional experiences. Delivering those experiences requires exceptional performance; anything less means that another company may steal your customers.

When we talk with leading modern application delivery organizations, we find that new benchmarking trends are emerging, making traditional benchmarking less attractive. Why?

  • Benchmarking is for followers, not leaders. Organizations want to be “unicorns,” like the Etsys, Netflixes, Googles, and Salesforces of the world. They don’t want to be losing “horses.”  


  • Most benchmarking approaches target the IT of the past, not BT. Benchmark methodologies and data were created and heavily used when software delivery capability was considered a cost, not a differentiator. In business technology, software is a key differentiator, and BT leaders want to be the best and continuously improve.
Read more

Forrester's Top Trends For Customer Service In 2016

Kate Leggett

It’s a no-brainer that good customer service experiences boost satisfaction, loyalty, and can influence top line revenue. Good service — whether it's to answer a customer's question prior to purchase, or help a customer resolve an issue post-purchase should be easy, effective, and strive to create an emotional bond between the customer and the company. Here are 5 top trends - out of a total of 10 - that I am keeping my eye on. My full report highlighting all trends can be found here:

Trend 1: Companies Will Make Self Service Easier. In 2015, we found that web and mobile self-service interactions exceeded interactions over live-assist channels, which are increasingly used by customers as escalation paths to answer harder questions whose answers they can’t find online. In 2016, customer service organizations will make self-service easier for customers to use by shoring up its foundations and solidifying their knowledge-management strategy. They will start to explore virtual agents and communities to extend the reach of curated content. They will start embedding knowledge into devices — like Xerox does with its printers — or delivering it via wearables to a remote service technician.

Read more

Apple's Real Innovation And Responsibility Is The App Store

Ted Schadler

Apple announced today that it sold $144 million in its App Store on January 1st and more than $20 billion in 2015. Wow. This from a company that launched $0.99 songs in 2001 on iTunes and didn't even consider apps to be useful when it introduced the iPhone in 2007. From public filings, Apple App Store net revenues (the 30% that Apple makes on digital media and app sales plus some other bits and pieces) grew from nothing in 2000 to $19,909 in fiscal year 2015 (see Figure 1). As you can see, growth is slowing down (though from a large base).

Figure 1 Apple's Reported App Store Net Sales. Source: Apple 10-K Filings

This App Store revenue breaks down into:

  • Media, including music, video, and books. Apple launched iTunes (the original App Store) in 2001 with the blessing of the music industry. For the first time, publishers had a paid outlet for digital music. It's only grown from there.
  • Apps. I remember vividly when my neighbor John told me he was coding apps on his nights and weekends (it was a brunch with snow outside in early 2009). That phenomenon -- developers flocking to this new computer opened my eyes to the power of smartphones. Apps and in-store purchases are more than half of App Store revenues.
  • In-app purchases. Apple keeps 30 cents for every dollar spent in an app, too. (It's why Amazon won't let you buy books in the Kindle app -- it doesn't want to give Apple that 30 cents.) 
Read more

Three Billion Smartphone Customers Are Ready. Now Go Make Them Successful.

Ted Schadler

If I hear one more story about "the next big thing" only to find it's a niche product like a skateboard or a toy like a consumer drone or a convenience tool like a smartwatch or a fancy way to open a door or detect smoke, I think I'll puke. The last big product innovation was smartphones. And it was a doozy. Most people don't really need another gadget. They need the game-changing gadget they have to do more.

I believe we are still at the beginning the biggest technology-fueled shift we've every seen, the mobile mind shift. A smartphone in the hands over three billion people is a game-changer. But only if we embrace it as a platform to deliver everything someone needs in the mobile moments of their day.

On your smartphone today:

  • Can you always get a great Internet connection . . . you can afford?
  • Can you manage every aspect of your complex digital life?
  • Can you vote?
  • Can you schedule a doctor appointment, renew your dog license, apply for a mortgage, replenish your cupboard, or do your job?
Read more

Enterprise And Midsize Customer Service Solutions - What's The Difference?

Kate Leggett

When looking to purchase a customer service solution, buyers have to remember that more features is not better; many times more is just more. In fact, when you don't need or can't use extra features, more is sometimes worse.

With this in mind, we see that customer service solutions fall into two primary groups to choose from: 

  • Customer service solutions for enterprise organizations. Customer service vendors focused on large organizations — organizations with typically 1,000 or more agents who are primarily phone agents — offer robust case management, agent guidance in addition to CTI integration, reporting, analytics and data management capabilities. These vendor solutions can scale to serve very large agent populations, in the tens of thousands or higher. These products have been traditionally been sold as on-premise products, but many deployments are now shifting to the cloud. Many vendors offer deeply vertical solutions, and have pre- and post-sale company resources dedicated to support their vertical products. Vendors in this category also target midsize organizations, offering prepackaged versions of their solutions with more affordable price tags. The leading vendors in this category are highlighted our most recent Customer Service Wave for enterprise organizations.
Read more

Categories:

The Forrester Wave: Customer Service Solutions For Enterprise Organizations, Q4 2015

Kate Leggett

The customer service vendor space is a mature space. Yet there have been many changes in the last five years and clearly more to come. Two driving factors will accelerate these changes:

  • Big fish eat little fish, and each bite broadens the reach of the big fish. The customer service market has consolidated in the last five years. Big vendors like Microsoft, Oracle, Salesforce and SAP have made acquisitions to round out their core customer service or broader CRM portfolios.
  • Vendors from adjacent markets emerge as competitors. The most interesting disruptor to the current customer service market is coming from cloud contact center providers. They provide an end-to-end solution for customer service: a unified communications infrastructure, routing, and queuing engines for omnichannel interactions. Many offer integrated workforce optimization for agent quality management, scheduling, and forecasting. They also have lighter-weight agent desktops that can be easily hardened or acquired. These vendors were not included in this years wave, but they may well be candidates for the next evaluation round.
Read more

Your Digital Experience Technology Strategy Starts With A Customer Journey Map

Ted Schadler
In a recent Forrester survey of 1,821 enterprise business and technology decision-makers, we learned that the top three investments firms are making in customer experiences are in digital customer experiences. 55% prioritize online experiences; 41% are adding or improving mobile experiences; and 39% are improving cross-channel experiences.
 
None of that happens without big investments in digital experience technology. As firms like Rewe Group, The Home Depot, Schneider Electric, and Westpac have learned, digital experience strategy shapes the technology you need — an investment that can take five years and cost between $20 million and $200 million. 
 
Application development and delivery professionals should follow the lead of customer experience teams and start with a customer journey map highlighting the digital interactions. We have just published the strategy report, the first of three reports in a planning sequence from our digital experience delivery playbook
 

Four Themes Drive Digital Experience Technology Strategy

To find out how advanced firms are building their digital experience strategy, we interviewed technology executives and their marketing and business counterparts in eight enterprises. We also interviewed 13 software vendors, digital agencies, and systems integrators. We found four consistent investment themes among these experts:

Read more

Deliver Business Value With Modern Metrics And Analytics

Diego Lo Giudice

Modern application delivery leaders realize that their primary goal is to deliver value to the business and its customers faster. Most of the modern successful change frameworks, like Agile (in its various instantiations), Lean, and Lean Startup, which inspire developers and development shops, put metrics and measurement at the center of improvement and feedback loops. The objective of controlling and governing projects to meet vaguely estimated efforts but precisely defined budgets as well as unrealistic deadlines is no longer on the agenda of leading BT organizations.

The new objective of BT organizations is to connect more linearly the work that app dev teams do and the results they produce to deliver business outcomes. In this context, application development and delivery (AD&D) leaders need a new set of metrics that help them monitor and improve the value they deliver, based on feedback from business partners and customers.

So what do these new metrics look like and what can you do with them? In the modern application delivery metrics playbook report “Build The Right Things Better And Faster With Modern Application Delivery Metrics,” I describe:

  • Preproduction metrics. Leading organizations capture preproduction data on activities and milestones through productivity metrics, but they place a growing emphasis on the predictability of the continuous delivery pipeline, quality, and value.
Read more

Knowledge Management Delivers Real Results For Customer Service

Kate Leggett

Why the continued focus on knowledge management? It’s because customers increasingly leverage web self-service as a first point of contact with a company. In 2014, web self-service was the most commonly used communication channel for customer service, exceeding phone use.  And good web self-service relies on a solid foundation on knowledge management. Companies are also investing  in knowledge management solutions to add order and easy access to content for customer service agents.

Knowledge delivered to the customer or the customer-facing employee at the right time in the customer engagement process is critical to a successful interaction. When done correctly, knowledge delivers real, quantifiable results like:

Reducing customer service costs: For example,  Dignity Health, a California medical group  relies on a knowledge base to help them maintain a 73% call resolution rate and has resulted in a $580,000 annual savings. 

Increasing customer satisfaction: For example, Zuora, a US-based subscription billing provider, uses web self-service to deliver knowledge relevant to the stage in the customer journey — including sales and onboarding — to drive product adoption and decrease churn. Zuora structures knowledge to encourage customers to learn how to use the product, instead of simply providing a fix. Increased customer engagement moved Zuora's NPS by 20 points, increased site traffic by nearly 100% year-over-year, with 55% of traffic driven by their self-service site.

Read more

CA Technologies Dials Up Its Efforts In The “Better Software, Faster” Game

Diego Lo Giudice

I am just back from the CA World 2015 in Las Vegas, where everything was cool: from the weather, with unexpected but welcomed temperatures in the low 50s; to the event theme, with a strong focus on Agile, DevOps, APIs, and security; to Fall Out Boys and Sheryl Crow’s concerts. 

As digital pervades all industries, and software becomes the brand, CA Technologies, which has traditionally had a stronger focus in the IT operations or “Ops” world, is making huge efforts to conquer the hearts and minds of the developers of large-scale development shops, or the “Dev”world. No doubt CA has been building a stronger DevOps in the last few years. Its goal is to partner in a larger industry ecosystem and be better positioned to serve the many organizations that are struggling to scale Agile and consistently build better applications faster. To make a stronger play in the Agile and Dev side of DevOps, CA made two brilliant acquisitions in 2015 which CEO Mike Gregoire highlighted in opening session of CA World: Rally Software, a leader in Agile project management at Scale, and Grid-Tools, a leader in Agile test data management and test optimization and automation.

With its revamped Dev strategy, CA aims to enter the Olympus of those large software and enterprise companies that have moved thousands of internal developers, testers, operations pros, and even managers to Agile and DevOps. With this transformation, CA will position itself to better serve current and future clients’ new needs to develop more software at speed. While CA started this transition much later than its competitors like IBM, Microsoft, HP, and other large software players (and even traditional end user enterprises), we recognize it’s still in time!

Read more