Update: My post below created a great deal of discussion about Twitter Auto DMs and whether they are welcome and worthwhile or unwelcome and damaging to senders' reputations. Because of the diversity of opinion, I created a brief 10-question survey and invite you to complete the survey and then share it with your followers on Twitter. The survey should take less than 3 or 4 minutes to complete, so please visit: http://blogs.forrester.com/augie_ray/10-11-02-please_complete_a_brief_su... or http://www.surveymonkey.com/s/CFSTQ3D. I'll share all of the data here on the Forrester blogs in a week or two!
Imagine how different the healthcare debate would have been if trips to the Registry of Motor Vehicles were a breeze.
Here in the US, midterm elections are in full swing. The themes feel familiar: Voters dislike various social and economic situations; candidates promise change. Across parties, many people seem to agree that the current government can't do what's necessary, a belief crystallized in comments about "politics as usual" and "Washington insiders."
The call for an overhaul makes me wonder: Why do we feel so unsatisfied with the government's performance and so unhopeful about its chances for improvement? A number of big reasons come to mind, such as high unemployment, rising public debt, various domestic and foreign policies . . . To me, those issues matter, but they have little impact on my day-to-day relationship with the government.
Most of my interactions with the government happen around taxes and transportation. Most of those interactions stink. At the Registry of Motor Vehicles (RMV), the experience is marked by long lines, complex processes, and dismissive employees. On the subway, it's much of the same. I once asked a subway attendant here in Boston if a ticketing kiosk would give me change for a $20. She responded, "Yeah, it'll give you change. It'll give you lots of change." Then the kiosk spit out 18 one-dollar coins.
A few years ago, I took the helm of customer & market intelligence (CMI) for a large vendor. Executives wanted analysis that was more relevant — intelligence that was “deeper,” “more actionable,” and provided “knock-out punches.”
As a CMI leader, you likely hear the same thing. But, as you try to improve, you get feedback such as “the material is not helpful,” “looks the same as before,” or “isn’t specific enough.”
In hindsight, if I were to join a CMI team again, I would take a completely different approach — instead of trying to refine the research itself, I would change the design point.
CMI’s sales-oriented purpose is to prepare sales teams for customer conversations!
Earlier this week, during an interview with Forrester, a CMI leader commented, “CMI can make a strategic impact on sales because it prepares sales teams about important topics and potential surprises in customer conversations.”
But across the tech industry, CMI is not succeeding:
A Forrester survey of technology buyers shows that only 38% of sales “reps understand the customer’s issues and are able to identify how the vendor can help.”
Preliminary data from a Forrester study of marketing executives shows that 65% claim that one of their biggest strengths is “knowledge of the markets and customers we serve.”[i]
We are currently cranking the data collected in our 2010 Marketing Organization and Investment survey, and the results already look spectacularly significant. So, over the next months, we’ll be reporting and commenting on how tech marketing organizations are assigning priorities and allocating their budgets for 2011. We have even designed a benchmark framework where we can compare various tech vendors’ marketing spends against each other (small versus large, country versus country, market versus market, previous year versus next year) and make some calls for you. And this year’s survey includes vendors headquartered in Europe as well!
For me, the most important data point in last year’s survey was the background of tech vendor CMOs, especially product vendors. Twenty-eight percent of those CMOs have an engineering background, and another 15% are from sales. With all respect, neither background is an optimal preparation to be running marketing in today’s tech industry — where IT is now BT, customers care less about speeds and feeds and more about business outcomes, and brand and multichannel experience count as much as in other industries. I’ll be talking about this at Forrester’s Marketing & Strategy Forum EMEA in London on November 18–19 in my “Marketing Is the New Differentiation in the Tech Industry” presentation.
Ever wondered how consumers in emerging markets feel about online security? Forrester Technographics® tracks this kind of information in 17 countries worldwide, including China, India, Brazil, and Mexico. We found, for example, that in Latin America there are huge differences between Mexico and Brazil: 65% of Mexican PC owners are concerned that their PCs will become infected with malware, compared with 48% of Brazilians. However, Brazilian PC owners are much more hesitant to share any information online. Ninety-three percent of Mexican PC owners and 95% of Brazilian PC owners use some form of security measure on their home PCs.
Although Mexican PC owners are more concerned about malware and are more likely to share personal details online, they do less to protect themselves than Brazilian PC owners: They’re significantly less likely to install a pop-up blocker, spam filter, or antispyware. My colleague Roxie Strohmenger has published other posts on how Latin American consumers feel about technology, and how Brazilian and Mexican consumers show different interests and behaviors. You can check them out here.
This led to some very interesting briefings and an enormous amount of thinking and debate. The upshot: It's time to bury the marketing funnel.
The marketing funnel, shown below on the left, is a simple and broad-ranging model, which is part of its appeal. However, it's from an earlier era and does a poor job of summarizing how we think about customers and marketing today. Luckily, the customer life cycle, shown below on the right, is as clear and usable as the funnel but provides a far better fit with marketing in the 21st century.
I could write an entire report about why the customer life cycle should replace the funnel — and in fact, I have — but here are just some of the reasons:
The role of marketing. At its worst, the funnel portrays marketing as a conveyer belt with the job of delivering a continuous supply of customers to the business. On the other hand, the customer life cycle portrays marketing as the function that is responsible for orchestrating the total brand experience.
The value of the customer. In the funnel, a prospect is a prospect, and a sale is a sale. It's a volume-based model. On the other hand, every customer group has its own life cycle, including its own lifetime value, and its own journey.
I'm thrilled to be blogging from Forrester's 2010 Consumer Forum at the Hilton Chicago in downtown Chicago. We've got a crowd of 600+ folks on-site and are excited for another great event.
We've heard time and again that organizations need help responding to empowered consumers, and we're aiming to address that head on with our event this year.
During these two days on the main stage, our roster includes fantastic stories of firms that have empowered their customers and employees, such as Vail Resorts, Southwest Airlines, the NHL, ESPN, and Kellogg. Plus, Forrester's very own Charles Golvin, Josh Bernoff, and Ted Schadler will present keynotes. There's more! We're also running 20 track sessions and countless one-on-one meetings with 30+ analysts. We're packing in as much great content as we can to make this a fantastic event.
If you can’t attend, be sure to check out the highlights of the speeches and the Twitter stream below. And join us next year! We'll have an equally exciting lineup of speakers and content in 2011.
On Thursday and Friday of this week, I'll be attending the Forrester Consumer Forum. I hope to be updating blog readers and Twitter followers on interesting news and information. I'm not quite sure which speakers I'll be able to hear, since the analyst experience at these forums can be busy and unpredictable, but I hope to attend presentations by the following folks:
Larry Bruck, Senior Vice President, Global Media and Marketing Operations, Kellogg
Perry Cooper, Senior Vice President Of Digital Media, National Hockey League (NHL)
Robert Katz, Chairman and CEO, Vail Resorts
John Kosner, Senior Vice President and General Manager, Digital Media, ESPN
Kevin Krone, Vice President Marketing, Sales, and Distribution, Southwest Airlines
Tim Suther, Chief Marketing Officer, Acxiom
Various Forrester thought leaders including Ted Schadler, Josh Bernoff, Charles S. Golvin and Carrie Johnson
After years of looking at how the online markets of Asia Pacific are emerging from an online shopping perspective, we are thrilled to announce our first online retail forecast for China, Japan, South Korea, India and Australia.* Some findings from the forecast:
Japan still takes the top spot in the region. Japan retains its dominance in the region with some $45 billion in online retail sales this year. Indeed, while China’s combined B2C and C2C spending surpasses B2C spending in Japan, Japan is still the leader in traditional online retail sales. And despite the fact that online consumers in Japan are purchasing across a wide variety of categories, some category purchases like beauty have shifted online in Japan in a way they have not in the US or Europe.
China’s growth rates will propel it ahead of Japan in the very near future. China’s combined B2C and C2C sales — the two are nearly impossible to separate** — are poised to reach $49 billion in 2010. China’s CAGR will be double that of the US, Western Europe and Japan, and it’s clear that China will be the eCommerce market most likely to rival that of the US.
Australia’s robust growth will be driven by an increasingly vibrant online retail sector. The online marketplace in Australia is marked today by a large number of cross-border transactions, but there is growing momentum among local players. Though less than half the size of the online retail markets in Japan and China, Australia’s growth rates are slightly higher than those of Japan and its US and Western European counterparts.