Recently, Forrester released a report entitled “What Drives Retention and Sales In US Banking?” that tackles this question from the consumer point of view. Using regression analysis, we uncover how these drivers vary for acquisition, retention, and cross-selling in US retail banking.
What did we find? For one thing, consumers value trustworthiness from a bank above all else for both sales and retention. This comes as no surprise to us; with so many financial institutions to choose from, consumers want to do business with a bank that they trust. This finding also supports the key theme that Harley Manning and Kerry Bodine focus on in their recent book, Outside In: Treating your customers well and providing them with a positive customer experience pays off.
The graphic below shows the drivers of retention for the US retail banking customers: The perception of trustworthiness is off the charts as a driver of retention, and offering good customer service is the second-most influential driver. What our analysis shows to not impact retention — and even shows a negative relationship with retention — is having low APR and many locations.
Demonstrating the revenue return on marketing investment is the No. 1 issue for B2B marketing executives. In Forrester’s Q4 2011 B2B Marketing Organizations And Investments Survey, when we asked marketing execs to identify the most important metrics for their marketing organization, 56% identified a revenue-related metric — compared with 44% for customer satisfaction and 40% for brand awareness. So, it’s no wonder that marketing automation solution vendors vociferously tout the ability of their solutions to track the revenue performance of marketing campaigns and programs.
But, looking at marketing automation solutions solely through the value lens of revenue performance management masks a more fundamental benefit. Marketing automation can transform a company’s marketing operations. These solutions deliver scalability, root out excess cost, improve marketing execution, and provide the basis for continuous incremental process improvement.
Still many marketing execs hold back on investing in marketing automation. They fear the concurrent assimilation of new tactics, processes, and automation will unduly stress their marketing organization. But the transformation is necessary, and the stress unavoidable. Marketing execs need to proactively address the “people part” of their lead-to-revenue transformation.
Over my last two-plus years at Forrester, I’ve spent a lot of time thinking and writing about how the people, processes, and tools that touch digital media buying must transform. In this age of always addressable customers, where hyper-connected, on-the-go consumers’ expectations of brands are higher than ever, we all know in our gut that our media planning, buying, optimization, measurement, and messaging must get smarter, faster, and more audience-obsessed.
But where and how to start?
We at Forrester have created a brand new research framework — called playbooks — designed to not only help you figure out where to start but also to give you a practical step-by-step guide to the how to help you achieve mastery in a given area.
Discover what the future of digital media buying will look like in our vision module; get a handle on the latest trends in key paid digital media channels including display and video in our landscape module; and learn how to make the business case to invest in upgrading your digital media buying in our business case module (to be released in the coming months).
Here’s one of the biggest trends for off-domain social initiatives that I’m tracking as I kick off a new overview of social tools for B2B marketers: Marketers like you no longer want just the perfect point solution for each new social marketing campaign; instead, they want integrated solutions and are starting to use larger software packages aimed at providing complete digital marketing solutions.
This is welcome news because successful social programs should be part of your comprehensive marketing plans; they can’t exist as their own island. Several years ago, B2B marketing organizations could run their social marketing initiatives in a silo, but today they must coordinate them with their lead origination and lead nurturing programs as well as with other awareness campaigns.
The three leaders in the most recent Forrester Wave™ evaluation of email marketing vendors reflect this change in their products; they all promote their social offerings front and center on their home pages, often with the same prominence as their traditional email offerings. Screenshots of each of those home pages are below.
ExactTarget expanded into social marketing beginning with its acquisition of CoTweet some time ago in March 2010.It now has a “Social Marketing Hub” as a part of its “Interactive Marketing Hub” — email marketing is just one of three product categories on its website, getting equal billing with both social and mobile marketing.
Today Forrester is releasing a report entitled “Key Trends in B2B eCommerce for 2013” that, for the first time in over 10 years, sizes the US business-to-business (B2B) eCommerce market in the US. Forrester estimates that by the end of 2013, customer-facing front-end B2B eCommerce will reach $559 billion. This figure includes transactions placed online (independent of whether payment is taken online or not), but does exclude EDI-based commerce.
By comparison, US B2C eCommerce will be a $252B market--which would make B2B eCommerce fully twice the size of B2C eCommerce. In addition to sizing the US B2B eCommerce market, “Key Trends in B2B eCommerce for 2013” explores three important trends in B2B eCommerce for the coming year:
Ever-Growing Demand For B2C-like B2B eCommerce Experiences. With key B2C sites having set a high standard for what constitutes a compelling online customer experience, B2B eCommerce companies are now actively retooling their existing B2B sites or building whole new sites to deliver B2C-like eCommerce experiences.
Increasing Channel Conflict Between Direct Sales Organizations and eCommerce Operations. As the eCommerce option becomes a more viable alternative to a traditional direct sales model, companies are increasingly migrating their offline customers to more cost-effective, self-serve, online-only environments. In addition, they’re now focusing their sales reps exclusively on acquiring and retaining higher-margin and higher-volume key account customers.
That’s pretty damning. Consider that customer experience occurs at three levels: meets needs, easy, and enjoyable (emotionally engaging). So what the judge is really saying with his ruling is that the emotionally engaging iPad differentiates itself based on customer experience — whereas the Samsung Galaxy does not.
As a result of this ruling, Apple must run ads in newspapers, magazines, and on its website publicizing the fact that the two designs are different.
Does anyone else see the irony in that? I don’t know whether Apple can get away with what I’m about to suggest, but here’s the ad I’d love to see it run:
"Official Government Verdict: The iPad Is Cool And The Samsung Galaxy Is Not Cool
According to a recent ruling by an appeals court in the UK, the Samsung Galaxy isn’t cool enough to be considered a copy of the Apple iPad. Here is what the judge said in praise of the iPad:
'The extreme simplicity of the Apple design is striking. Overall it has undecorated flat surfaces with a plate of glass on the front all the way out to a very thin rim and a blank back. There is a crisp edge around the rim and a combination of curves, both at the corners and the sides. The design looks like an object the informed user would want to pick up and hold. It is an understated, smooth and simple product. It is a cool design.'
If you search for “the death of email” on the Internet, you might be surprised by the number of articles on the subject. Why are so many people talking about it? Is this 40-year-old method of communication really under threat from social media? Does it mean that marketers will spend less on email marketing solutions? We paid close attention to these questions and many more when building the Forrester Research Email Marketing Forecast, 2012 To 2017 (US). We believe that spending on email marketing solutions will continue to grow. Why? We will see:
1. An increase in the number of active email users. Our email address is our online address, and it offers us universal interoperability. As per our forecast, we expect the number of active email users in the US to grow to 227 million by 2017.
2. The evolution of email clients. Over the past 40 years, email clients have evolved from text-based to desktop to web-based to mobile clients. As per our forecast, 178 million users —78% of all US active email users — will also access their emails through mobile email clients by 2017.
3. Email’s integration with social media. Email marketers have started leveraging a combination of email and social media marketing to get the best results. They are providing links to share via social media in their email messages and are encouraging their social media followers to subscribe to their email lists.
Mobile phones and tablets are becoming the remote controls of our daily lives. Smartphones are the new digital hub for a growing percentage of consumers, while tablets are starting to rule the personal computing landscape at home and at work. In a previous post, I elaborated on why I think tablets are not mobile devices per se. Moving forward, new mobile form factors will emerge, and we expect wearable computing to gain traction. The definition of mobility is likely to evolve, but what’s certain is that increasingly connected devices will enable us to interact with the world around us by leveraging a host of new technologies packaged into smarter devices — be they QR codes, NFC, image recognition, Bluetooth 4.0, new sensors, etc. The physical world will be a catalyst for spontaneous interactions and for commerce via mobile devices. I think we’re only scratching the surface of new mobile behaviors (and what those will lead to), but mobile devices will become the primary digital connection to your customers.
First, our final lineup of external speakers is confirmed. All of our main-stage speakers are from companies featured in our new book, Outside In — some of them are even the subjects of case studies in the book.
Many of you have asked us to feature more business-to-business content in our events, so in response, we have both Randy Pond, EVP of operations, processes, and systems at Cisco Systems, and John Taschek, VP Mof market strategy at salesforce.com. Both companies are in the book, and Randy is the executive sponsor of the program that won one of our 2012 Voice Of The Customer Awards.
In addition to Randy and John, we have Dr. Jim Merlino, the chief experience officer for Cleveland Clinic, a world-famous, $6 billion healthcare provider. The work he is doing is as applicable to organizations outside of healthcare as it is relevant to all of us who have ever been (or will ever be) patients.
We’re also excited about our main-stage panel on building a customer-centric culture with Nancy Fratzke of US Cellular and Kelly Harper of BMO Financial Group. Transforming a culture is one of the hardest things any of us will do, and both of these panelists have successfully done it.