Carrier IQ: When CI Should Be Damned

Did you see the news about Carrier IQ covertly capturing Android users' activities for analysis by carriers? Trevor Eckhart, who analyzed the application, writes:

Carrier IQ software, which consists of embedded software on mobile devices and server-side analytics applications, enables mobile operators and device OEMs to understand in detail a wide range of performance and usage characteristics of mobile services and devices. These include both network-facing services such as core voice and data offerings, as well as non-network-facing capabilities such as music players, cameras and other side loaded media, in order to assist with product and service development and roll-out [emphasis added].

Customer Intelligence is not a spying operation. The promise of CI is not reductively commercial. Instead, proper CI practices help businesses – with their customers' consent – to understand the preferences and needs of their customers. Firms also use CI processes and technologies to determine and enforce an optimal and respectful relationship with customers.

What lessons does the Carrier IQ incident highlight?

  • CI pros have an ethical responsibility to customers. CI pros are customer advocates after all. They cannot truly represent customers unless they also help their employers understand appropriate boundaries for data capture. Helping customers also helps businesses, protecting firms from the risk of public outrage and litigation. CI pros: Help your employers understand when data capture goes too far.
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Australian Online Shoppers Are Ready For Mobile Commerce

For a moment, allow me to speak as an Australian consumer, rather than as an eBusiness analyst. As a consumer, let me say this: In Australia, in 2011, I am truly surprised when I visit a favorite shopping site using my iPhone, only to find I must zoom, pan, and squint to achieve anything useful. It's not a good experience, and it makes it harder for me to shop. The contrast with the great experience I have with the best mobile shopping apps and sites could not be greater.

It turns out I'm not the only Australian online shopper to use mobile apps and the mobile web, according to my new report, "Mobile Technographics: Australian Online Shoppers." In fact, it turns out that Australian online shoppers tend to be sophisticated mobile users — even more advanced than the wider community of Australian Internet users as a whole. And for Australians who regularly shop online in certain product categories, the average level of sophisticated mobile behavior is even higher. For example:

  • 84% of Australian online adults who have mobile phones use them for more than voice — uses that range from SMS to consuming mobile video.
  • 49% of Australian adult mobile phone owners who regularly shop online for apparel, footwear, or accessories are also in Forrester's Entertainers category, meaning they buy content, apps, or personalized services for entertainment on their mobile phones at least weekly.
  • 38% of Australian adult mobile phone owners who regularly shop online for computer hardware, software, or peripherals are also in Forrester's Connectors category, meaning they use mobile email at least once a month, or they use another efficiency or productivity application like mapping.
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Agile Commerce Is For Life, Not Just For Christmas

 

EBay is now the latest entrant into the field of retail experimenters that are trialing the concept of a “virtual store.” 

EBay joins Occado and Tesco in embracing the increasing number of Multidevice Buyers in the UK who use their smartphones not only to inform their offline shopping journeys, but to buy products as well. EBay’s pop-up store in the heart of London promises to allow shoppers to browse products in person and purchase via a QR-code-driven mobile shopping experience. 

While eBay's store is very deliberately designed as a temporary pop-up, others are approaching the same challenge in a completely different way. House of Fraser recently launched a concept store in Aberdeen that carries no stock but offers shoppers the opportunity to sip a free cappuccino while they browse House of Fraser’s website on dedicated Internet stations.   

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Benchmark Your eBusiness Strategy And Results

I'm so excited to announce that today we have launched Forrester's new free eBusiness benchmarking tool. With the tool you can compare your key performance metrics against your peers'. Plug in the answers to a few questions about your eBusiness budget and metrics and our tool will instantly compare your answers to similar size companies for five key benchmarks:

  1. The size of your annual eBusiness budget 
  2. The number of staff dedicated to your online division
  3. The percent of overall sales that occur online
  4. The size of your eBusiness team
  5. The percent of customer service interactions that occur online

The tool will not only show side-by-side results, it'll also produce a nifty PDF for you to print out and show to your colleagues. But wait there's more! We have a suite of research that helps our clients act on results, outlining how to improve those five key metrics to keep up with competitors and align with best practices. We've summarized all of our advice on how to use the benchmark tool and to improve results in an accompanying report called "Benchmark Your eBusiness Strategy And Results" (sound familiar?) and I encourage you to read it. 

We also have a whole body of research that we think help turbo charge your eBusiness results.

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It's Time To Make Facebook Marketing Work

Nearly a billion people around the world use Facebook — and it's no surprise marketers are chasing all those users. In fact, Facebook says 96 of the top 100 marketers are on the site. But I haven't spoken to many companies that are thrilled with their Facebook programs. Marketers worry about how few fans they have, about how few comments and wall posts they get, and about the ROI of their Facebook spending — and many of them have good reason to worry. In fact, we think most Facebook marketing programs are entirely too unfocused, too under-resourced, and don't make enough use of the entire platform.

So how can you make your Facebook marketing program work? We recommend following four steps:

  1. Set clear objectives. If you don't know what you're trying to achieve with Facebook, you run the risk of not achieving anything at all. Are you trying to drive brand impact or sales? Generate word of mouth, increase loyalty, or provide customer service? Deciding on a few clear objectives for your Facebook program will answer most of the other questions you have — like who should fund the programs, or how you measure success.
  2. Provide value for your fans. Once you've figured out how Facebook can drive value for your company, make sure it's driving value for your fans as well. Otherwise, why would anyone bother to hit the 'like' button? According to Carolyn Everson, VP of global marketing solutions for Facebook, the brands that succeed on Facebook are "the ones that give people a reason to be fans." This doesn't have to mean discounts and coupons — exclusive content and information works just as well.
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My Forrester EMEA Forum Speech On The New-Fashioned Brand

Two weeks ago we held our 2011 Forrester EMEA Marketing & Strategy Forum in the UK. We had a great turnout, as well as fantastic speakers including Sir Martin Sorrell of WPP, Georges-Edouard Dias of L'Oreal, Ian Maskell of Unilever, and dozens of others, and I also had the pleasure of giving my first Forrester keynote. My speech covered how companies fail when they try to build old-fashioned brands, and what they must do to build new-fashioned brands. If you missed the event, then here's a highlight from my speech:

 

How Customer Experience Pros Can Cut Through The Controversy And Capitalize On Net Promoter

Net Promoter is both popular and controversial, so naturally we in Forrester’s customer experience (CX) research practice get lots of questions about it from CX leaders whose companies have adopted it or plan to adopt it in the future. Overall, we know that Net Promoter can effectively support CX efforts when companies implement it correctly. But we also know that correct implementation from a CX perspective is in no way a given.

Here’s what CX pros in particular should do to make sure that they ( . . . and their companies, and their customers . . . ) get the most out of the Net Promoter methodology:  

  • Use the Net Promoter language to explain customer experience efforts. Perhaps the most valuable thing that Net Promoter provides is a clear language with which to discuss customer loyalty. CX pros can capitalize on any momentum around Net Promoter at the corporate level by connecting planned experience improvements to it. Wherever possible, explain how a change to the experience will help reduce Detractors or increase Promoters.
  • Focus on the system more than on the score. The Net Promoter Score (NPS) is only valuable if it helps an organization improve customer loyalty. CX pros must ensure that they have a system in place to examine the drivers and root causes of NPS determination, identify the ones that are related to the customer experience, and initiate improvement efforts accordingly.
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Four Reasons Why ExactTarget's IPO Helps CI Pros

ExactTarget filed an S-1 last Wednesday, November 23, the first step towards an initial public offering (IPO) by the end of March, 2012.1 The company grew substantially over the past several years and is tracking a 55% growth rate in 2011. ExactTarget now services about 4,600 direct clients and reports $148 million in revenue through September 30, 2011. Congratulations to Scott Dorsey and his team for guiding the company to this point.

How will ExactTarget's IPO benefit CI Pros? The IPO can:

  • Provide additional capital for research and development. The funds ExactTarget will raise through the IPO will help transform the company from an email service provider (ESP) into a full-fledged marketing technology platform. Increased R&D will allow the company to evolve through organic development and acquisitions. Both moves will help it to fill out its cross-channel campaign management and Customer Intelligence offerings. CI Professionals at mid-to-large enterprises should expect to see the company move more aggressively to offer enhanced enterprise marketing capabilities.
  • Enhance attractiveness to partners. ExactTarget's IMH has yet to catch on with heavy hitters in analytics, offline channel management, and marketing resource or operations management.2 The quarterly and annual disclosure requirements on ExactTarget could help clarify the company's plans to potential partners and assuage concerns about future competition. Stronger partnerships will lead to additional IMH applications for CI Pros.
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The Battle For The Digital Wallet

Over the past couple of years I have been intrigued by the concept of a 'digital wallet' that will combine mobile payments with a variety of other benefits for customers. The more people I talk to, the more convinced I am that mobile digital wallets will mark a big shift in retail payments. A mobile digital wallet is more than just a mobile payment system because it combines:

  • Mobile payment. Digital wallets are likely combine several different payments systems into a single service, including mobile contactless payments, online (i.e. web) payments, and over-the-network mobile payments, making it easy for customers to make a variety of different types of payment from a mobile device.
  • Barcode scanning. Scanning barcodes or QR codes will let customers get more information about products, and let them pay for items on their phones before showing an on-screen receipt to leave the store.
  • Loyalty rewards. Instead of carrying (and sometimes forgetting) a separate loyalty card, digital wallets will track customers’ spending and offer merchant-funded rewards, either on the phone or at the point of sale.
  • Coupons and offers. Digital wallets are likely to offer customers coupons and location-based offers.
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The Data Digest: Black Friday - Understanding The Purchase Path Of Online Holiday Shoppers

Successfully reaching online shoppers during the critical holiday season is crucial to the Q4 success of eCommerce businesses. Forrester recently published its “US Online Holiday Retail Forecast, 2011”; it predicts strong growth despite the current economy. My colleague Sucharita Mulpuru shared in her blog that November and December alone are expected to pull in nearly $60 billion in online revenues in the US, a 15% increase over 2010 and about one-third of the overall volume of online sales for the year.

But what are the drivers for purchasing? How do consumers discover a good deal? Forrester collaborated earlier this year with the eCommerce company GSI Commerce to answer these and other questions and to create a picture of online buyers’ purchase journey in various categories during key periods of the Q4 2010 holiday season across 15 eCommerce sites.

We found in this study that search and email were the most effective tactics in driving sales, and shoppers were heavily influenced by retailers’ marketing efforts during key dates such as Cyber Monday and the Thanksgiving weekend. But in many cases, it's a combination of marketing tactics that makes people buy: More than half of US consumers purchasing products online in the soft goods category experienced two or more marketing touchpoints prior to the completion of their transaction.*

 

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