In 2014, Forrester outlined a new approach to marketing that requires brands to harness customer context to deliver self-perpetuating cycles of real-time, two-way, insight-driven interactions. In 2015, we’ll see more marketers obsess over customers’ context. As more interaction data floods customer databases and marketing automation systems, customer-obsessed marketing leaders will strive to orchestrate brand experiences that drive unprecedented levels of engagement. For example, we predict that:
Digital marketing investments will drive brand experiences across the customer life cycle. By the end of 2015, spend on digital marketing will top $67 billion — growing to 27% of all ad spend. In fact, we believe this will surpass TV spend by 2016; there’s more to the story than ad spend. We believe marketers will branch out of expected digital media buys to stimulate more insight-driven interactions with customers throughout the entire customer life cycle. Supported by new streams of situational customer data and powered by the ability to precisely target audiences with programmatic media buying, marketers will deliver highly engaging brand experiences rather than just feed the top of the funnel.
The Greek philosopher Heraclitus said "the only thing that is constant is change." Well, the CI services landscape seems to live and breath this saying. Today’s market demands are leading traditional database marketing service providers (MSPs) to deliver broader digital marketing capabilities, either through partnerships, acquisitions, or organic growth. While this trend has been unfolding for the last couple years, it shows no signs of slowing down. One of the latest examples of this activity is Alliance Data’s acquisition of Conversant for their Epsilon division. This is the latest in a series of moves by MSPs to build a bridge between the data business, digital marketing, and overall customer strategy - all key capabilities in the evolution toward Customer Engagement Agencies (CEA).
Customer Insights (CI) professionals and marketers have managed relationships with their MSPs for decades to execute conventional direct marketing campaigns. While the classic database marketing business won’t dry up any time soon, the CI pros and marketers who manage these vendor relationships are grappling with:
Last month, we had one of our best Forrester Forums For Marketing Leaders that I've been to, and I've been to all of them. With an on-site audience of nearly 1,000 marketing professionals, I really enjoyed hearing from many of you -- our valued clients -- about your thoughts on the need for new approaches to marketing. Next week, I hope our European clients will find our latest thinking on customer context and utility marketing as valuable as your peers in North America did. Forrester's Forum For Marketing Leaders in Europe is finally here, and I look forward to seeing you in London this Tuesday, May 13. Make sure you check out our latest research reports that go in-depth on the event theme, "Beyond The Campaign":
Consumers don’t trust your ads. In fact, fewer than one out of four US online consumers trust offline ads, and the numbers are even worse for digital. It’s time for a new approach to marketing, based on deep customer insights derived from a contextual, self-perpetuating, interaction cycle. Each interaction with your brand teaches you what a customer is trying to accomplish at that moment. You must build a mechanism that allows you to act on that insight, deliver utility in the moment of need, and propel the customer to the next best interaction. We call this mechanism a contextual marketing engine, and our latest research – The Power Of Customer Context – shows you how to build it, and why you need to start now.
We unveiled this new research last week at Forrester’s Forum for Marketing Leaders to an on-site audience of more than 900, and we'll do it again in a few weeks across the pond at our London Forum. What are the key takeaways?
First and foremost, I want to take this opportunity to thank our loyal readers of Forrester’s Consumer Product Strategy (CPS) blog. This will be the final post for the CPS blog, but never fear, future posts from your favorite analysts will still appear on both their individual analyst blogs, and the new role blogs to which they have moved. For more detail on this change and where specific analysts will be, keep reading.
Effective April 29, Forrester streamlined how we create and deliver value from 9 roles to 6. The goal of this change is simple — be more clear and distinct in how we define the roles we serve so you can get more value from the role research that fits you best. For the purpose of this post, I want to ensure that you can: 1) ascertain which of the roles is in fact the best fit for your needs; and 2) find your favorite analysts from the old CPS team.
As of April 29 we now have these 6 Marketing & Strategy roles from which you can pick:
However, one of the questions that we haven't answered yet is how product strategists get their firms to organize for open innovation. Our hypothesis is that this is more of a cultural shift than a straightforward change in organizational structure. We are kicking off some research on this important topic now, and in the spirit of being "open," I'm asking you to either post your comments in reply to this blog post or reach out to directly to my colleague firstname.lastname@example.org to schedule an interview so we can discuss how you are organizing for open innovation at your firm.
In return for your participation, we'll send you a copy of the report (if you're not already a client), and perhaps even feature your organization as an example — depending on your willingness to be included, of course. So please chime in and tell us about your best (or worst) experiences in trying to make your product innovation more open. We look forward to hearing your thoughts.
As a product strategist, do you struggle with a sluggish innovation “process” in your firm? Do you think it takes too long to identify great ideas and turn those ideas into compelling new products and services for your customers? If you’re like most of your peers, the answer to both questions is probably a resounding "yes." That is exactly why Forrester’s Consumer Product Strategy practice developed The Open Innovation (OI) Playbook.
Forrester defines open innovation as:
The act of innovating, whereby new ideas or methods are requested from three broad participant groups: employees, partners, and customers.
This approach to innovation is in stark contrast to the typically closed and often secretive product innovation practices that most firms still use today. Our OI playbook provides you with an end-to-end framework, organized in twelve easy-to-find modules, and designed to give you the insight, tools, and best practices that you need to successfully adopt an open innovation approach within your organization.
To get started, I suggest reading the Executive Overview: “Revolutionize Products And Services Through Open Innovation”. This report will set the stage at a high level for you. Then, depending on where you are in your open innovation journey, you can “pick your spots” by navigating directly to the most applicable chapter for your needs. In general, the OI playbook is divided in to four phases as follows:
We're looking for a new analyst to join Forrester's Consumer Product Strategy practice. Are you experienced in the field of product planning, development, and innovation? Do you have an insatiable curiosity for where the digital economy is headed and how digitally disruptive products are changing the world in which we live? If this sounds like you, keep reading . . .
Digital disruption is transforming consumer products, inverting industry economics, and redefining customer relationships for companies in all industries. Forrester is helping our clients adapt their businesses and innovate their products in response to the unprecedented pace of technology change that characterizes this revolution. We need a Senior/Principal Analyst with cross-industry experience to join the team and help serve Forrester’s clients with forward-looking research and advice on how product strategists can capitalize on digital disruption.
If you’re interested, apply online. We look forward to hearing from you!
Over the summer, I asked you all whether we are finally headed toward a cashless society. Since then the battle for the digital wallet has certainly heated up. Well today, I am thrilled to announce the newest addition to Forrester's Consumer Product Strategy practice. Her name is Denée Carrington, and she will be joining us as a Senior Analyst, covering consumer payments, starting January 3, 2012.
To provide more specifics, here's a sneak peek at some of the coverage areas where Denée will be able to help Forrester clients with consumer payment strategy in the new year:
Defining the future of consumer payments
Managing a portfolio of payment products (e.g. credit, debit, prepaid, contactless, mobile, person-to-person (P2P), etc.)
The business models and profitability of these payment systems
Understanding the dynamics of customer (consumer and merchant) payment behavior
Understanding the payments needs of different markets
Sizing the different payments market opportunities
Driving customer (consumer and merchant) adoption of payments systems
Building and developing new payment systems
Optimizing existing payment products to improve security and increase convenience
It’s a couple of days after Google announced its intentions to jump headfirst into the hardware business. By now everyone — including my colleagues Charles Golvin and John McCarthy — have expressed their thoughts about what this means for Apple, Microsoft, RIM, and all of the Android-based smartphone manufacturers. This is not another one of those blog posts.
What I really want to highlight is something more profound, and more relevant to all of you out there who might classify your day job as “product strategy.” To you, the Google/Moto deal is just one signal — however faint — coming through the static noise of today’s M&As, IPOs, and new product launches. But if you tune in and listen carefully, two things become crystal clear:
The lines between entire industries are blurring. Google — and some of the other firms I mentioned above — are just high profile examples of companies that are diversifying their product portfolio, and the very industries in which they play. There are several instances of this over the past "digital decade." What's different now is the increased frequency of the occurrences.