The Customer Experience Index, 2013

Just moments ago we released the sixth annual Forrester Customer Experience Index (CXi), our yearly benchmark of customer experience quality as judged by the only people whose opinion matters — customers.

The 2013 CXi is based on research we did in Q4 2012. It reflects how consumers perceived their experiences with 154 brands across 14 industries. If you’re not familiar with the methodology, or just want a refresher, check out “Executive Q&A: Forrester’s Customer Experience Index, 2013.” We put all the nitty-gritty details in there.  

But what about the big picture? Of course, there are winners and losers (we name them in the report.) There is a tale of two banks — one whose score jumped up by 11 points versus last year, and another whose score plummeted by 24 points.

Through it all, though, one common theme leapt out: 

In 2013, it’s all about value.

Many of the top brands this year, including high-scorer Marshalls, deliver solid customer experience at a manageable price. We saw this dynamic in the hotel space, where Marriott’s Courtyard brand beat out all other hotel brands. And we saw it in the airline industry, where perennial favorites Southwest Airlines and JetBlue Airways once again swept the competition with their combination of great experience at a great price.

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Marketing Mondays: January 14th, 2013

 

Hello Fellow B2B Marketers, this weekly blog post highlights our ongoing research focused on B2B revenue acceleration, as well as an exclusive look into what outputs you can expect in the coming weeks. Kick off your week here every Monday to get a burst of support for your professional success.

Forrester hosts its Sales Enablement Forum in Scottsdale, Arizona, on March 4 and 5, 2013. Attendees will engage as a community with a shared focus on driving revenue, hear success stories in process from their peers and leading B2B practitioners, become immersed in the latest thinking and data from Forrester including face time with analysts, all in the comfort of the Camelback Inn Resort & Spa. Over the next three weeks, Marketing Mondays will spotlight the themes of the forum through a series of Q&A sessions with attending analysts. First up, I will answer frequently-asked-questions as a general introduction to the forum, and then Tim Harmon and Jonathan Silber will delve into the forum’s don’t-miss value for clients who market and sell through the channel.

 

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Connected, Customized, Personalized . . . My Day At CES 2013

After spending opening day at CES, I couldn’t agree more with my colleague Sarah Rotman Epps in her blog post that CES matters more now than ever to every marketer, product strategist, and C-level executive in every industry. Across the CES floor, connected TVs, tablets of all sizes, and a new breed of “phablets,” combining the form factor of tablets and smartphones into one, confirmed the fact that we’ve left the PC-dominated world behind for a mobilized and connected home and work life where content and context will dominate.

What struck me while I walked the floor at CES was that Peppers and Rogers were actually way ahead of their time. Remember them, the ones who wrote The One to One Future way back in 1996, well before the digital age became a reality? Their vision continues to become a technology-powered reality. With CES showing an abundance of new ways to connect with mobilized customers, the ability to target, reach, and effectively communicate with customers one-to-one, customizing and personalizing messages and offers to their unique needs, is increasingly within the reach of the marketer.

Available channels to the customer exploded on the CES floor to include everything from connected TVs and other devices in the home to all types of mobile devices and ruggedly made tablets built for the enterprise and everything in between. All are connected and share content in the right context to the devices consumers or business customers want, when and where they want it — just like Peppers and Rogers dreamed would happen.

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The Art and Science of Building a World-Class B2B eCommerce Business

B2B eCommerce executives today don’t lack for data. What they’re screaming for is insight. With our new playbooks framework, busy executives can go to one place to dip their toes in a subject matter, or fully immerse themselves for deeper insight. Either way, they can move up to speed quickly and smartly about a specific subject. 

Today I’m pleased to announce that Forrester is officially releasing its very first playbook dedicated to B2B eCommerce. Inside you’ll find key insights and critical information specific to the rapidly-emerging B2B eCommerce space. This playbook is designed to help you:

  • Discover the opportunity. Study the fertile landscape that is B2B eCommerce and learn about what Forrester defines as a customer-facing front-end B2B eCommerce market. One that will reach $559 billion by the end of 2013. See how high-performers have developed a compelling vision for the space and a clear business case to prove an always critical return on investment (both documents to be released in the coming months). 
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CES 2013: The Four-Sentence Summary

I know what you're thinking: CES is so last week already. But the lessons of CES will follow -- some would say haunt -- us all year long, so it's worth a sober summary of last week's events. To make this quick, I'll summarize this year's trade show in four sentences. I will then defeat the purpose of a four-sentence summary by explaining each sentence, but you are free to withdraw at any moment. 

  1. The Internet of Things is really an Internet of Sensors.
  2. Your body is a wonderland.
  3. Device makers should invest in better experiences, not better products.
  4. CES is dead -- long live CES.
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"State Of Retailing Online 2013" launches on Shop.org today

Forrester recently completed the “State Of Retailing Online 2013: Key Metrics And Initiatives” report in conjunction with our friends at Shop.org. It is available on Shop.org (with a subscription) now.

Some of the reports highlights include the following facts:

  • Web sales continue to grow (duh!). Retailers we surveyed experienced 28% growth on average in 2012 over 2011. Furthermore, 72% of those retailers are experiencing double digit growth.
  • Key eCommerce metrics are improving. The retailers we surveyed generally responded that site conversion rates, average order values and the percentage of repeat shopper sales all grew in 2012.
  • Mobile growth rates are strong.  Mobile commerce grew at a triple digit pace last year for the retailers we surveyed, but off a teeny base. Furthermore, the debate remains on whether mobile traffic with its anemic conversion rates, actually hurts “the mother ship.” Retailers were split on that assessment.
  • 2013 initiatives will focus on site optimization. Of the retailers we interviewed, site conversion rate and redesigning the web experience – in other words, optimizing the overall online experience -- topped the list, yes, more than even investing in mobile. Many retailers specifically called out plans to focus on the checkout experience and to adjust their site to accommodate a responsive design framework.

Shop.org members can access the document here and Forrester clients will be able to access the document on January 28, 2013.

Build An Adaptive Customer Experience Ecosystem

The way that firms can deliver value to clients has massively changed. Firms can interact with customers in the context of using products (e.g., think Rosetta Stone and language coaches). In fact, customers interacting with each other within the product may deliver more value than the product itself. Companies can harness the data exhaust of product usage and turn it into powerfully useful information to help customers succeed at their goals (e.g., think Nike Plus and fitness).

Firms need to rethink how they operate to capitalize on these opportunities. This means rethinking marketing and support roles that make less sense in a world of such ubiquitous interactions and data. It means rethinking separations between front and back office, both of which have very powerful impacts on customer experience.

How do customer experience leaders reinvent how their firms operate? Two articles give customer experience leaders some excellent guidance. The first is John Kotter’s “Accelerate!” He argues that companies need to build a parallel second operating system for the organization that more nimbly adapts to rapid change and disruption. For customer experience leaders, what does this operating system look like? A second Harvard Business Review article, “Adaptability: The New Competitive Advantage,” provides a nice framework for thinking about this new operating system. Its three imperatives are to: manage complex multicompany systems, read and act on signals, and experiment often. I’ve adapted these into a customer experience context:

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Ultra HD TV: Déjà Vu All Over Again

I swear I've been here before. Not here, as in here at CES, where I spent the week checking my product assumptions against the actual offerings arrayed on the showfloor. But here, as in at a crucial moment in time when a single industry rushes to push a massively expensive, relatively unnecessary technology on unsuspecting consumers. That's the case with Ultra HD at CES 2013. Formerly known as 4k TV (because of the rough number of horizontal pixels employed in the technology) and now already truncated to UHD by company reps on the floor and in the hallways, Ultra HD is supposed to be the next thing every consumer will want.

It ain't gonna happen. The reasons evoke a ready comparison to 3DTV. And indeed, I have been here before, back at CES 2010 where I wrote a piece called 3DTV at CES: Poking Holes in the Hype. That year, some industry thinkers had conducted a survey and concluded that as many as 5 million consumers were ready to jump into 3D with both feet while opening their big, fat wallets. So I wrote the obligatory post that said, pointedly, no. 

The comparison between 3D and Ultra HD is obvious. They were both too expensive at introduction (Ultra HD much more so than even 3D); they both suffered from a dearth of content availability; they both required a complete retooling of the equipment used by video production teams and film studios; and they both landed at a time when consumers were pretty happy with the awesomely large, cheap TV screens they already had. 

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Even The Best Mobile Banking Strategy Can Be A Victim Of Poor Execution

My latest research on Building Next Generation Mobile Banking Solutions has been published for a few days now.  I’ve already gotten phone calls from clients stating this research is not only timely, but speaks to the very challenges their organization is facing when considering how to build next generation mobile banking solutions.   The resounding theme, as my latest research uncovers: Even the best mobile strategy can be a victim of poor execution.  Digital banking executives are feeling the pain of their current mobile banking platform.  While most are plagued with the realization that their current mobile banking platform may not be scalable or flexible enough to deliver next generation mobile banking solutions, others are facing a more disruptive challenge—dealing with the vendor acquisition and consolidation aftermath. Regardless of your current plight, digital banking teams should consider the following as they build next generation mobile banking solutions:

  • A well-defined strategy can fall short in execution. Technology can make or break even the best mobile banking strategy. The pressure is on to get something out the door, but too much focus on short-term delivery has meant that some banks have sacrificed the ability to deliver long-term capabilities.
  • A vendor relationship can hinder or enhance your mobile banking strategy. Banks that are using a vendor that has been recently acquired are burdened with the task of understanding how that acquisition will affect their mobile banking strategy and roadmap.  Specifically, banks are trying to determine if acquisition will require migration to a new platform, dedicated internal resources to support migration activities, or a new vendor altogether.   
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Data Stewardship: It Can Make or Break Your Customer's Trust

You've heard me go on and on about the importance of personal identity management (PIDM), and the principles you'll need to adopt to thrive in a PIDM-enabled ecosystem, for a year now. You've heard statistics like:

  • 44% of consumers have walked away from a transaction on the basis of something they read in a privacy policy or terms-of-use statement.
  • 53% of security breaches in 2012 involved compromised personally identifiable information (PII).
  • Nearly half of US online adults don't even trust their financial institutions to keep their personal data secure.
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