The Cloud Will Drive Agility Into Your Customer Experience Ecosystem

TJ Keitt

This past June, Forrester began a conversation about what ails the networks of customers, partners, and employees we call customer experience ecosystems. My colleague Rick Parrish attributed the problems to an unhealthy mix of cumbersome rules, disorganized technologies, and complacent management. The result? Businesses aren't able to leverage those customer, partner, and employee relationships to quickly and effectively respond to market changes. Now, if you've followed this blog, you've seen me argue that you can't resolve these issues without a technology strategy that aligns with your business vision. Why? Because you can only do what your technology allows.

In our new report, Want To Improve Your Customer Experience? Turn To The Cloud, we examine how cloud services can help customer experience professionals drive flexibility and responsiveness into their customer experience ecosystems. At the heart of this report is our read of cloud services' fundamental value:

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Marketers Will Use Customer Context To Supercharge Digital Engagement In 2015

Carlton Doty
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.
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Customer Obsession Set To Disrupt BPM Market In 2015

Clay Richardson

In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?

Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions.  Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market.  In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
 

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Improving The Federal Customer Experience Is A National Security Issue

Rick Parrish
Improving the U.S. federal customer experience (CX) is crucial to our nation’s long-term security. I’m not exaggerating. Improving federal CX is about far more than just boosting an agency’s ranking on the American Customer Satisfaction Index (ACSI) or raising a Net Promoter Score. It’s even about more than influencing the success or failure of major policies – and we all saw how the initial breakdown of healthcare.gov hurt the implementation of the Affordable Care Act.
 
Poor federal CX actually weakens the underpinnings of our political system by making people less proud and optimistic about the country itself. Forrester has the data to prove it. The pilot run of our enhanced CX Index shows that the worse a citizen’s experience as the customer of a federal agency, the less likely that person is to say he is proud of the country and optimistic about its future. Not a particular agency, official, or administration – the country itself.
 
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The Race From Good To Great CX Hits The Gas Pedal In 2015

Michael Gazala
2014 wasn’t a good year to be average. Since 2007, the average customer experience in the industries that Forrester tracks has gone up across the board, and the number of truly awful  experiences has dropped like a rock. So if your CX is average, it’s just not good enough to win, serve and retain customers. And it won’t get any easier next year: With companies investing more than ever to differentiate their customer experience, your average offering will soon be considered poor.
 
In 2015, the race from good to great CX will hit the gas pedal. Smart CX teams will increasingly use customer data from diverse sources like social listening platforms, campaign management platforms, mobile apps and loyalty programs – to personalize and tailor experiences in real time so that they inherently adapt to the needs, wants, and behaviors of individual customers. And as companies strive to break from the pack and gain a competitive edge through the quality of the CX they provide, we’ll see the battleground shift to new areas like emotional experiences and extended CX ecosystems, and into laggard industries like health insurance and TV service providers, and even the Federal government.
 
As we do every year, we’ve just published our Predictions report for CX. I want to share a couple of those predictions with you:
 
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Digital Business Transformation Will Gain Critical Mass In 2015

Martin Gill
In 2014 digital business hit the boardroom and the C-suite offices: At the beginning of 2014, 93% of executives told us that they believed that their industries would experience digital disruption in 2014. But our surveys and interviews also tell us that many executives don’t believe that their firm has the ability to execute on that plan, and many don’t have confidence in the plan itself.
 
As leaders race ahead with their digital business transformations in 2015, eBusiness professionals have to help pivot their firms from planning mode to doing mode or risk falling behind their more digitally savvy competitors.
 
In the report, "Predictions 2015: Digital Business Transformation Will Gain Critical Mass", I outline the key digital business trends that will impact eBusiness and channel strategy professionals in 2015, including:
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Q&A With Ryan C. Green, Managing Director Customer Strategy And Development, Southwest Airlines

John Dalton

In the airline industry, Southwest is no stranger to customer experience accolades. In fact, it consistently earns top marks on Forrester’s Customer Experience Index compared to other carriers – offering enjoyable and easy experiences that meet customers' needs.

It will be a pleasure to hear directly from Southwest’s Managing Director of Customer Strategy and Development, Ryan Green, next month at Forrester’s Customer Experience Forum West in Anaheim, CA. To get an early taste for why Southwest is known for its experience, and the strategy behind it, read on.

Q&A with Ryan Green, Managing Director Customer Strategy & Development, Southwest Airlines

Q: When did your company first begin focusing on customer experience? Why?

A: Southwest Airlines has always been focused on the Customer. Our company started with the vision to give people the freedom to fly and our differentiator has always been policies and services that lean towards the Customer. As a result, we now fly more passengers domestically, increased our airports served dramatically and Southwest Airlines’ Customer complaints are the lowest in the industry. As we’ve grown and the industry has become more competitive we’ve definitely continued uncovering what our Customers need and want from Southwest Airlines and we are focused on giving them that experience to keep them coming back time and again.

Q: What aspects of the experience that your company delivers matter most to your customers? 

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Q&A with Olivier Mourrieras, Vice President, Customer Experience Centre of Competence, E.On -- Part 1

Harley Manning

Here’s an objection I sometimes hear when I talk to people about how improving  customer experience can boost business performance: “Sure, it sounds great for glam industries like automotive or fashion.  But I sell widgets.”

Okay, it’s fair to say that the business value of CX is more obvious for industries that advertise in magazines with slick, glossy paper. But the reality is that focusing on CX can also do a lot for less sexy industries.

That’s why we invited Olivier Mourrieras of E.On to speak at Forrester’s Forum for Customer Experience Professionals EMEA in London on November 17 and 18, 2014. E.On is one of the world's largest investor-owned electric utility service providers. And even though utilities don’t exactly captivate their customers, E.On has made huge, measured advances in the customer experience it provides, resulting in corresponding improvements to business results.

Olivier recently responded to our questions about what E.On has been doing and how it’s evolved. He gave us such amazingly detailed insight that I’ve broken his answers into two parts, with Part 1 appearing below.

I hope you enjoy what he has to say and I look forward to seeing some of you in London!

Q: When did your company first begin focusing on customer experience? Why?

Prior to 2009, customer focus had not been a crucial part of E.ON’s strategy. Customer satisfaction scores were often lower than market average scores across the group resulting in high customer churn.

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Q&A With Siqi Chen, Cofounder And CEO, Heyday

John Dalton

Thinking you know your customers will no longer cut it when it comes to delivering a top-notch customer experience. To create the most compelling differentiated experiences, firms not only need to know their customers but also understand what their customers care about most. 

Siqi Chen, Heyday cofounder and CEO, gets this. The "effortless journaling" app goes the extra mile to deliver a seamless delightful experience — particularly for first-time users "where there aren’t obvious motivations to invest," in Siqi’s words.

I had a chance to sit down with Siqi in advance of his keynote session at Forrester’s Forum For Customer Experience Professionals West to talk about how Heyday competes on experience in the competitive mobile playing field. Hear more of Heyday’s story next month in Anaheim, California, November 6th to 7th.

Q: When did your company first begin focusing on customer experience? Why?

A: We focused on the customer experience from the inception of the company. As a mobile company, the way our customers interact with their devices is intensely personal. We run on a device that is the primary computing device for most people, a device that is with our customers physically for most of their waking life and a device that our customers interact with in the most intimate way: through touch. Because of this, great products on mobile devices require a very high bar for attention to detail and emotional value, in addition to the foundations of speed and value delivered that every great product requires.

Q: What aspects of the experience that your company delivers matter most to your customers?

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Age Of The Citizen: Empowered Citizens Drive Change In Government

Jennifer Belissent, Ph.D.

When I was in high school – and admittedly that was quite a while ago — my neighbor quit his job as an insurance salesman to go into the car phone business. My mother couldn’t understand why someone would give up a good, stable job to sell something that she couldn’t imagine anyone ever using. Who would use a car phone? Why would anyone talk on the phone in a car? 

Fast forward a few years… (OK, a few more than a few)… and most of us can’t imagine not having our phone with us. We use our phone everywhere… And, yes, according to Forrester’s 2013 Consumer Technographics survey, 68% of US online adults use their phone in the car, and 48% even use their phone from the bathroom. Who’s guilty?! As for my mother, she has still never used an ATM card at a bank and still writes checks for cash at the grocery store, but she DOES have a cell phone and just might have used it in the car once or twice.

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