A New Wave On The Horizon: Customer Engagement Agencies

We've spent a lot of time in the past year looking at how the customer intelligence services landscape is changing. For one thing, it's a heck of a lot more chaotic: everyone from management consultants to systems integrators to KPO vendors is putting a stake in the ground of CI services. We've also seen a dramatic shift in the way some digital & direct agencies and database MSPs are thinking about their most strategic client relationships. This change has been so noticeable that, a few months ago, we actually published research that defines a new business model: The Customer Engagement Agency (CEA). 

It's no surprise that clients and vendors alike are excited about this model. These agencies help elevate customer intelligence within the client organization. They bring attention and focus to the importance of customer knowledge, and they work hard at infusing that knowledge throughout every customer touchpoint. They measure customer value, not just marketing campaigns. And they help clients use CI to answer questions about everything from product development to logistics and resource management. 

But, this is an emerging market — the players are evolving from very different backgrounds; they offer substantially different "value-added" capabilities; and many of them have proprietary methods and models that make it hard to compare apples to apples. 

That's why we've just kicked off a Customer Engagement Agency WaveTM that will publish in the fall. If you're intrigued with the idea of working with a CEA, I encourage you to:

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Looking Through The Cloud

SaaS vendors must collect customer insights for innovation and compliance.

As of the end of last year, about 30% of companies from our Forrsights Software Survey, Q4 2011, were using some software-as-a-service (SaaS) solution; that number will grow to 45% by the end of 2012 and 60% by the end of 2013. The public cloud market for SaaS is the biggest and fastest-growing of all of the cloud markets ($33 billion in 2012, growing to $78 billion by the end of 2015).

However, most of this growth is based on the cannibalization of the on-premises software market; software companies need to build their cloud strategy or risk getting stuck in the much slower-growing traditional application market and falling behind the competition. This is no easy task, however. Implementing a cloud strategy involves a lot of changes for a software company in terms of products, processes, and people.

A successful SaaS strategy requires an open architecture (note: multitenancy is not a prerequisite for a SaaS solution from a definition point of view but is highly recommended for vendors for better scale) and a flexible business model that includes the appropriate sales incentive structure that will bring the momentum to the street. For the purposes of this post, I’d like to highlight the challenge that software vendors need to solve for sustainable growth in the SaaS market: maintaining and increasing customer insights.

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From Advertising to Advice - Intelligent Marketing Agents

Alan Turing sculpture at Bletchley ParkBefore the clouds, webs, and distributed networks people had to create their own spaghetti of logic inside a single building using machinery that looked like props from Doctor Who. Spurred by the need to crack the ‘Enigma’ naval communication codes during the Second World War Alan Turing developed an electromechanical device called the Bombe which played a major part in defusing the war. 2012 is the 100 year anniversary of the birth of Turing and he is rightly considered to be the father of computer science and Artificial Intelligence. Turing had both a wonderful and terrible time of it and his life story is well worth a wiki.  

The British genius didn’t just advance computer science using valves and wires. He is almost as famous for his thought experiments concerning how we may build machines and computers that can engage in intelligent discourse with humans. Could machine responses fool us into thinking that they were sourced from a human? To answer this question Turing developed a methodology to test the validity of the machine generated responses, fans of Science Fiction are likely to recognize this as the inspiration behind the ‘Voight-Kampff’ test administered by Deckard in Ridley Scott’s ‘Blade Runner.’

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