Customer Insights And Big Data Analytics Will Sprawl in 2015

Michael Barnes

Forrester recently published its 2015 Predictions for Asia Pacific. I wanted to highlight some specific trends around customer insights (CI) and big data, two very hot topics for many AP-based organizations.

We strongly believe that success for many organizations hinges on your ability to close the gap between available data and actionable insight. Marketing is taking the lead here, as CI pros seek to use data to fuel customer engagement improvements. Hence 2015 will be a year of increased fragmentation as reliance on analytics spreads across organizations.

What will this mean for you? More cloud-based and mobile analytics, more demand for interactive and responsive analytics, and more use of specialist and niche BI and analytics service providers. Given this backdrop, Forrester believes that:

  • Analytics spending will increase by at least 10% across the region. Yes analytics spending will increase, but less of it will be visible in the CIO's budget. Marketing and other business departments will drive analytics investments to address specific challenges and opportunities. The technology management (TM) organization will have little control over the implementation and deployment of niche and specialist BI and analytics services.
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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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Everything You Ever Wanted To Know About Marketing Clouds - Introducing The Forrester Wave: Enterprise Marketing Software Suites

Corinne Munchbach

Today, my co-author Rusty Warner and I published the first-ever Forrester Wave: Enterprise Marketing Software Suites, Q4 2014. Or, as they are popularly referred to, the “marketing clouds.” The evaluation looked at the eight vendors vying to convince marketers of their ability to provide an integrated portfolio of products that span all of marketing’s needs. Integration is increasingly important to marketers in their efforts to understand the full customer life-cycle and be able to execute across all interactions.


 

Forrester defines an enterprise marketing software suite (EMSS) as: an integrated portfolio of marketing technology products that provide analytics, automation, and orchestration of insight-driven customer interactions to support inbound and outbound marketing.

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Chinese Businesses Embrace Social Intelligence

Gene Cao

Chinese people are hypersocial in their lifestyle and daily work, and Forrester forecasts that 681 million of them will be using social media by 2019. Online Chinese are actively engaging with brands and companies on social media: 29 brands or companies on Sina Weibo and 32 brands or companies on WeChat on average. Chinese businesses have realized the importance of social for customer life-cycle management. While they’ve started using social to increase brand awareness — such as broadcasting on Sina Weibo — they can’t recognize potential customers in this one-way communication. They use public WeChat accounts to shorten response times to client service requests — but they can’t predict these requests in advance. To address these challenges, businesses in China are starting to use enterprise-class analytics tools for Chinese social platforms.

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The Data Digest: Knowledge Is In The Eye Of The Beholder

Anjali Lai

Language is evolving; the written word is giving way to visual vocabulary.

Interpersonal communications are shifting from being text-based to image-based, and you don't have to look far for the evidence: We spell using the Emoji alphabet; we comment with photographs; we engage through pictures.

Therefore, it’s no surprise that consumer adoption of visual social networks is growing and that social chatter is becoming increasingly pictorial. Forrester's Consumer Technographics® data shows that US online consumers across generations are interacting with content on Instagram and Pinterest more than before:

 

 

As consumers become increasingly versed in the language of visual content, curated images become a powerful means of expressing opinions, conveying emotion, and recounting experiences. As a result, pure text analytics no longer suffice to interpret social chatter; instead, insights professionals have an opportunity to mine the wealth of media-rich data that increasingly pervades social networking sites.

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When a Dilemma Becomes a Polylemma

Rusty Warner

In the age of the customer, customer insights (CI) professionals must invest in software solutions that will help them orchestrate contextual marketing.  However, as outlined in Cory Munchbach’s report Let’s Revisit the Enterprise Marketing Technology Landscape (Again), the market is in a state of flux.  Not only are we seeing tremendous M&A activity, but a constant stream of new vendors is flooding an already crowded space with innovative solutions. 

How does the CI pro responsible for marketing technology buying make an informed decision when faced with so many options?  Well, to quote Ron Davies (feel free to summon the voices of Three Dog Night, David Bowie or Shelby Lynne, if you prefer), “It Ain’t Easy!”  To help CI pros with their decision-making, my latest brief The Marketing Technology Buyer’s Dilemma provides advice on how to maintain customer focus while navigating market changes.

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Ideation and the Art of Conversation

Rusty Warner

This past Friday I had one of the most enjoyable meetings of my professional life.  I had initially been worried about this particular meeting.  After spending 3 nights in Switzerland, I travelled back to the UK, spent 2.5 hours at Heathrow and then caught a flight to Finland, arriving well after midnight.  Knowing that I would only have a few hours’ sleep in Helsinki before heading 100 km north to Lahti for the meeting, I was concerned that travel and tiredness might take their toll.

I needn’t have worried.  Several participants had enjoyed a late night at Lahti’s famous summer retreat, and they were pleased I had made the extra effort to join them.  As we drove up to the log cabin in the woods, I was reminded of my 4-H camping days back in West Virginia.  Though I had spent childhood summers barefoot, I was surprised when asked to remove my shoes for a business meeting.  But, when in Finland… So we added our shoes to the 9 or 10 pairs already by the front door and joined the others in a family-style sitting room.

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New Customer Insights Analyst Covering Marketing Technology

Rusty Warner

If you haven’t kept up with the activity in the marketing technology space – acquisitions, product enhancements, "cloud" wars, et al., then I don’t blame you. The marketing technology landscape is complex, crowded, and confusing. To compete in the age of the customer, enterprises are quickly deploying technology to manage big data, execute contextual marketing, and orchestrate real-time customer interactions.

Whether you are a marketing technology vendor, buyer, or end user, this is an exciting time, and I am thrilled to join Forrester as a principal analyst on the Customer Insights team. I am based in London, and I will cover marketing technology along with my colleague Cory Munchbach. Together we will help Customer Insights (CI) Professionals as they navigate the digital marketing landscape and make marketing technology investment decisions. With a background that includes more than 25 years’ experience in marketing, customer analytics, product management, and product marketing, with both large and small vendors in the marketing technology sector, I am excited about my new role at Forrester and on the CI team.

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Future-Proof Your Customer Insights Practice with Adaptive Intelligence

Fatemeh Khatibloo

We've been talking about Adaptive Intelligence (AI) for a while now. As a refresher, AI is is the real-time, multidirectional sharing of data to derive contextually appropriate, authoritative knowledge that helps maximize business value.  

Increasingly in inquiries, workshops, FLB sessions, and advisories, we hear from our customer insights (CI) clients that developing the capabilities required for adaptive intelligence would actually help them solve a lot of other problems, too. For example:

  • A systematic data innovation approach encourages knowledge sharing throughout the organization, reduces data acquisition redundancies, and brings energy and creativity to the CI practice.
  • A good handle on data origin kickstarts your marketing organization's big data process by providing a well-audited foundation to build upon.
  • Better data governance and data controls improve your privacy and security practices by ensuring cross-functional adoption of the same set of standards and processes.
  • Better data structure puts more data in the hands of analysts and decision-makers, in the moment and within the systems of need (eg, campaign management tools, content management systems, customer service portals, and more).
  • More data interoperability enables channel-agnostic customer recognition, and the ability to ingest novel forms of data -- like preference, wearables data, and many more -- that can vastly improve your ability to deliver great customer experiences.
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Analytics Helps Retailers Improve Customer Retention

Gene Cao

IBM recently kicked off its big data market planning for 2014 and released a white paper that discusses how analytics create new business value for end user organizations. The major differences compared with last year’s event:

  • Organizational change. IBM has assigned a new big data practice leader for China, similar to what it’s done for other new technologies including mobile, social, and cloud. IBM can integrate resources from infrastructure (IBM STG), software (IBM SWG), and services (IBM GBS/GTS) teams, although the team members do not report directly to them.
  • A new analytics platform powered by Watson technology. The Watson Foundation platform has three new functions. It can be deployed on SoftLayer; it extends IBM’s big data analysis capabilities to social, mobile, and cloud; and it offers enterprises the power and ease of use of Watson analysis.
  • Measurable benefits from customer insights analysis. Chinese organizations have started to buy into the value of analytics and would like to invest in technology tools to optimize customer insights. AmorePacific, a Hong Kong-based skin care and cosmetics company, is using IBM’s SPSS predictive analytics solution to craft tailored messages to its customers and has improved its response rate by more than 30%. It primarily analyzes point-of-sale data, demographic information from its loyalty program, and market data such as property values in the neighborhoods where customers live.
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