Is Jon Stewart’s recent online success in China a sign of new opportunities for non-Chinese brands? In China, the demand for global brands and content continues to grow - to the point that it has spread into new industries like comedy shows, where cultural cues are paramount to success. Jon Stewart is just one of many western icons with newfound success in China, all in part to the accessibility of new consumers through the internet.
Online businesses selling anything from humor, makeup, or shoes to baby formula can’t ignore these demands for their products in China: More and more consumers are exposed to global brands of all kinds through online offerings and travel. There are huge advantages to being one of the first brands to be noticed in the market, but just showing up isn’t enough. To be successful, learn from Jon Stewart and:
Localize your offering. Give your consumers things they can relate to and use. Jon Stewart did this by coming up with culturally relevant jokes about China’s culture. For retailers this could mean offering products that respond to needs specific to consumers in China, like Godiva’s Chinese New Year Chocolates.
Develop a fan base online. By giving your very social Chinese consumers a platform to talk about your brand, you can generate free marketing and new insights. Jon Stewart’s fans aggregate his videos in one place and work together to translate and upload subtitles on his video clips.
Chief Digital Officer (or CDO) is the latest in a long line of snazzy C-level titles to emerge over the last few years. At Forrester we’ve been watching this trend for a while now and have made a few comments, but I think it’s time to put a firm stake in the ground.
Don’t hire a Chief Digital Officer!
There. I said it.
Now, why might I say this when a number of high profile firms are in fact hiring CDOs? Well, to put things in perspective I want to look at a tale of three brands, all of which I’ve spoken about in the past:
Last week Forrester published a report on the state of online retail in Canada. We surveyed 1,103 adult online shoppers in Canada to understand what challenges the Canadian public face when shopping online. We found that Canadian online shoppers have many complaints; among them high shipping costs and lackluster product assortments. Furthermore, Canadian online shoppers are acutely aware of the gap between the online experiences of domestic sites versus those in the US. Canadian sites are missing key online capabilities like free shipping, flexible pickup options, a stress-free return policy, and omnichannel payment options in addition to the obvious price discrepancies.
Some of the reports highlights include the following facts:
Shipping costs are too still too high. Despite the eventual arrival of Amazon Prime in Canada and the increasing commonality of free shipping thresholds, sixty-eight percent of Canadian online shoppers we surveyed cited that delivery costs are their primary concern when shopping online.
Product assortment online in Canada is lackluster. Thirty-seven percent of Canadian online shoppers say they can't find the products they are looking for online in Canada. Consequently, 32% of these frustrated shoppers ultimately end up buying instead from US or International sites and incurring the cost of shipping, custom duties and Canadian taxes.
In my new report, "Western European Social Media Marketing Forecast, 2012 To 2017," I'm exploring some of the drivers and inhibitors that will impact social media marketing spending in Europe over the next 5 years. From growing adoption amongst consumers and ever more devices integrating with social networks, to the uncertainty ushered in by the coming European data privacy legislation, I'll look at how these factors will influence the willingness of marketers to spend on social media marketing.
The good news is despite the economic headwinds across Europe, spending on social media marketing is still forecast to rise ― from €1.4 billion in 2012 to reach €3.2 billion in 2017, reflecting a 17.6% compound annual growth rate (CAGR). As social media marketing in Europe heads towards maturity, the pace of growth slows somewhat but the trend continues upwards. We're also forecasting the percentage of online users who are present on social networks in Europe to continue to rise, from 63% in 2013 to more than 70% by 2017, so if you thought social had already reached a point of saturation, think again.
As an avid personal investor I’m often appalled by cable shows that report on the markets as if they were non-stop sporting events. Seriously, how many people care how the NASDAQ or the Dow are doing on any given minute of any given day? But apparently there are enough day traders out there that noon reports from the floor of the New York Stock Exchange are as compelling as half-time reports during the NFL playoffs.
I have to confess that there is one piece of financial analysis that I do look forward to – though in my defense, this is an annual occurrence and not an hourly update. The analysis comes from Jon Picoult, a gentleman who runs Watermark Consulting.
For a while now Jon has been taking the data from Forrester’s Customer Experience Index (CXi) and using it to do a thought experiment. In this experiment he looks at what would have happened if, back when we first published the CXi, an investor had taken two equal buckets of money and created two U.S. stock portfolios. The first portfolio would have consisted of the top 10 publicly traded companies in our index (the customer experience leaders). The second portfolio would have consisted of the bottom 10 publicly traded companies in the index (the customer experience laggards).
In Jon’s model the investor would have held each portfolio for a year, then sold them both and taken his profits (or losses). He would have then used the proceeds to purchase the new year’s leaders and the new year’s laggards, continuing this cycle of selling and buying for all six years that the CXi has been in existence.
Intriguing, right? Even those of us who believe in the business value of customer experience (or in my case can prove it through research) don’t normally look at the impact on stock performance.
The Forrester Research Mobile Commerce Forecast, 2012 To 2017 (US) indicates that nearly 40% of US mobile phone owners will become mobile phone shoppers by 2017. While this statistic sounds impressive, it means that the majority of consumers will be reluctant to purchase products on their mobile phones. Why aren’t all customers attracted to the unprecedented convenience of anywhere, anytime mobile shopping?
Forrester’s Consumer Technographics® data shows that while consumers use the mobile channel to research competitive product pricing while they’re in a store, they often prefer to purchase their desired product off the shelf, even if the physical item in front of them is not the cheapest option. Consumers are driven by convenience, sometimes at the expense of price:
We are in the midst of a mobile mind shift. This is not just about "mobile first" or apps. This is a complete change in the psychology of consumers.
In a change in behavior that can only be called Pavlovian, people with smart mobile devices request information and receive service. What's the weather? That's the weather. Where's the nearest Gelato shop? There it is. Does this laptop have good ratings? Sure it does. What are my friends up to on Facebook? Each request cements the idea that smartphone has everything you need. As a result, consumer start by requesting, then expecting, and then demanding that companies give them instant service. This is the mobile mind shift:
The expectation that any desired information or service is available, on any appropriate device, in context, at your moment of need.
But how far along are people on this shift? Have your customers made the shift? How many of them are demanding mobile utility?
"Logan: That's the way things are. The way things have always been."
In Redwood City this week, the answer I heard from Oracle was an emphatic yes. At Oracle's Industry Analyst World, the company stressed its cloud bonafides against Salesforce, IBM, and SAP with its new Customer Experience (CX) Suite. The CX Suite is a horizontal offering, assembled primarily from acquisitions, newly rechristened as Oracle Marketing (Eloqua), Oracle Commerce (ATG, Endeca), Oracle Sales (Oracle CRM On Demand), Oracle Service (RightNow), Oracle Social (Collective Intellect, Vitrue, Involver), and Oracle Content (Fatwire).
The Software as a Service (SaaS) suite promises to deliver a lower total cost of ownership, easier integration, and faster time to value for a business looking to streamline its enterprise software providers. While Oracle's approach is to lead with SaaS, it also promotes an Enhance, Augment, Migrate strategy, enabling existing customers to extend an on-premises deployment --- think Siebel Loyalty --- with one or more CX products, say Eloqua's email delivery capabilities.
You Can Outrun Your Past
So what does it mean for Eloqua? Marketers using or considering Eloqua should recognize that Oracle:
Mobile banking success is a moving target: Customers needs and expectations are changing rapidly, and eBusiness teams at banks are sprinting to get ahead of their customers’ expectations. To achieve this, firms are rolling out new features, optimizing existing services, and enhancing mobile experiences.
To understand which firms are leading in mobile banking — and to better gauge the mobile banking landscape overall — we used our Mobile Banking Functionality Benchmark to evaluate and rank the mobile banking efforts of 15 of the largest banks in North America, Western Europe, and Australia.
Highlights of this research include these findings:
Chase takes the top spot overall. Chase received the highest overall score among the banks we evaluated, netting a score of 71 out of 100. The bank offers mobile banking services across a range of touchpoints ranging from smartphone apps, strong mobile websites, and two-way SMS. In addition, Chase also has strong mobile money movement features such as bill pay – including the ability to add a payee – and mobile transfer capabilities.
The deluge of customer data shows no signs of abating. The perpetually-connected customer leaves data footprints in every interaction with a brand. This presents tremendous opportunities for customer insights professionals and analytics practitioners tasked with analyzing this data, to not only get smarter about customers but ensure that the insights get appropriately used at the point of customer interaction.
When we asked customer analytics users about the challenges and drivers of customer analytics adoption, we found that data integration and data quality continue to inhibit better adoption of customer analytics while users still want to use analytics to improve the data-driven focus of the organization and drive satisfaction and customer retention.
Forrester’s Customer Analytics Playbook guides customer insights professionals, marketing scientists and customer analytics practitioners into this new reality of customer data and helps discover analytics opportunities, plan for greater sophistication, take steps towards building a customer analytics capability and continually monitor progress of analytics initiatives. It will include 12 chapters (and an executive overview) that cover different aspects of customer analytics.