It’s not news that the digitally empowered customer is changing our world. What is news is 1) the pace needed to catch up to an extremely dynamic and impatient customer and 2) the magnitude of real change needed to meet the challenges (and opportunities) of a customer-led market.
The magnitude and pace of change driven by customers, competitors, and innovation can be dizzying:
As loyalty structures erode, customers are conditioned to rapidly adopt and abandon services.
There is a fundamental division at the heart of the digital economy. Digital tools make it possible for any company to build a direct relationship with its customers. At the same time, new digital intermediaries can use the same digital tools to create unprecedented intermediary roles. Torn between two lovers, anyone?
We’re in the age of the customer, a period during which end consumers have more access to the basic economic resources that help them make more rational and empowered decisions. The theory of perfect competition dictates that market economies flourish best on a foundation of perfect information that enables perfectly rational actors. The digital technologies we all carry in our pockets — not to mention, have surrounding us in our cars, our homes, and even strapped to our bodies — have initiated a chain reaction, unleashing an unprecedented level of information, which has enabled us — if we choose to accept our mission — to behave like much more rational actors than ever before. (Caveat lector, I didn’t say “perfectly rational” for a reason. See our research on how humans make choices to understand more.)
The more those technologies spread, the more buyers and sellers enter the system, the more innovation there is — at lower cost, thanks to the economics of digital disruption – and the spiral feeds itself.
Earlier this year Forrester analyzed recent economic and survey data and reviewed the practices of over a dozen companies that have made customer-focused transformations. We found that customers are now more mobile, consume more reviews, and buy more online than ever before.
So do B2B buyers.
Business buying habits have followed closely in the footsteps of B2C counterparts because, outside of "9 to 5", business buyers are consumers too.
To better address the changing expectations and omnichannel appetites of these empowered business buyers, B2B marketers need to think about spending their marketing budgets, energy, and resources in different ways. With budgeting season upon us, it's time to make sure your 2016 plans will keep you thriving in the digital age, not striving to keep up.
In recent research, Forrester's B2B marketing research team points out the four big bets B2B marketers need to make. In this digital age where customer demands and experiences take precedence over all other ways to achieve and maintain competitive advantage, it's time for you to:
Presenting today with Marketo's CMO, Sanjay Dholakia, gave us the opportunity to talk about what CMOs (both B2B and B2C) need to do to transform marketing into a growth engine. Here's a little retrospective on our conversation in case you missed it.
In 2010, Forrester introduced our "age of the customer"(AOTC) research and defined four investment imperatives needed to better win, serve, and retain customers in this digital age.
Marketo focuses here, not just as a marketing technology provider, but as a practitioner as well. They've been talking about Engagement Marketing - the evolution from mass marketing to transactional to customer engagement -- for more than a year, and practicing it for much longer. Now their advice is as easy as ... well ... learning your alphabet.
Forrester's research shows that technological change reduces competitive barriers. Building and sustaining customer relationships is the exception. In some ways, technology actually enhances relationship creation and maintenance. Top firms recognize this and get customer-obsessed to beat their competition. By investing strategy, budget, and energy in the following four areas, they:
Since I first became the research director of the Security & Risk team more than five years ago, security leaders have lamented the difficulty of aligning with the business and demonstrating real business value. Over the years, we’ve written an enormous amount of research about formal processes for aligning with business goals, provided key metrics to present to the board, and developed sophisticated models for estimating security ROI. Yet for many, demonstrating real business value continues to be a significant challenge. If it wasn’t for the 24 hour news cycle and a parade of high profile security breaches, chances are good, that security budgets would have been stagnant the last few years.
Greetings! My name is Brandon Purcell and I am the new Senior Analyst serving Customer Insights professionals at Forrester. I will cover customer analytics which uses advanced analytics to analyze customer data to optimize customer-focused programs and initiatives to drive acquisition, retention, cross-sell/upsell, loyalty, personalization, and contextual marketing. I am a recovering customer analytics practitioner and come to Forrester from a boutique consulting firm where I led a team of data scientists that helped our clients solve their urgent business challenges by harnessing the latent value in their customer data. A few highlights from my former life:
I helped develop a best in class Voice of the Customer program at one of the country’s largest banks
I created and led many trainings in business applications of predictive analytics
I built a patented algorithm that uses geospatial data to predict a person’s future location
Peter Cerrato is a principal consultant for Forrester's Business Technology consulting practice.
A very strange and sudden thing happened 66 million years ago. A comet crashing into the Mexican Yucatan peninsula near Chicxulub put an end to the long reign of the dinosaurs. But not so fast. We now know that some of those dinosaurs survived the massive Cretaceous-Tertiary extinction event: the smaller, faster, feathered and headed-toward-warm-blooded early ancestors of our eagles and hawks.
Digital technologies have shifted control into the hands of your customers. Your customers are now independent, active agents in everything, from selecting the channels and platforms they prefer, to the very definition of your brands. As CIO, you’re in an enviable position and are more essential to your firm’s success than ever. You have the technology know-how to tap into these digital technologies. And together with your CMO, you can lead your firm to become customer obsessed and create the digital experiences that win, serve, and retain customers. But you have to be willing to change the way you work.
CIOs of customer obsessed firms must embrace an accelerated pace of change and reinvention, for themselves and their organizations. But years of radical IT outsourcing have denuded many technology management organizations. In fact, Forrester's Q1 2015 Digital Experience Delivery Survey found that the top barrier to success was a lack of resources. So your first order of business as CIO? Invest heavily in new skills:
Software engineering.Software (and how well it does or doesn’t perform) underpins the brand for digital businesses, making core software development and delivery skills paramount to your firm’s future success. Agile methods, continuous-delivery techniques, and product management skills will be critical – not just in pockets, but scaled up to address all software engineering needs.
There are some simple guidelines to help measure where you are on the journey:
Where is your innovation happening? Innovate at the point of customer interactions – digital value is determined by how used the innovation is. There is no better way for CIOs to be part of the age of the customer than to deliver digital innovation when and where the customer needs it. The complexity of how to build enterprise-wide digital engagement can only be answered by having a strong BT agenda powered by BT professionals who think and act in an agile, iterative manner. Your customers will engage your enterprise in many different ways: if you are not building an adaptive experience for them they will move on no matter how good your products may be. This type of measurement approach is critical to realizing the effect of the digital experience you are building. In the end, the only thing that truly matters is how your customers are engaging your enterprise.
At Forrester’s Forum For Technology Leaders in Lisbon (June 2-3), Marcello V. Ronco, Senior Vice President and Head of Core Banking Production Line of UniCredit Business Integrated Solutions (UBIS), will be speaking about the bank's BT transformation journey and, in particular, its mobile banking initiative. Marcello is co-leading with Marketing Directors within the organization the restructuring of UniCredit Retail in Italy, Germany and Austria, to realize the company's ambition to become a truly digital omni-channel bank. In his session, Marcello will explain how to change a traditional IT department so that it is set up to support a modern multichannel bank, and why IT plays a strategic role to ensure the right level of customer service through mobile banking.
As I prepared for my role as Forum Chair, I spoke to Marcello about his views on the age of the customer and the impact it has on financial services organizations such as UniCredit. Here is what Marcello shared with me, and I hope you will enjoy his answers as much as I did.
Q: How is the age of the customer impacting your industry (financial services) and the solutions provided by UniCredit Business Integrated Solutions?