Today, the gap between customers’ expectations and the service they receive can be huge. There’s an explosion of communication channels that customers use—voice, digital channels like email and chat, and social channels like Facebook and Twitter. There’s also an explosion of touchpoints, like smartphones, tablets, and self-service kiosks. Customers expect efficient, consistent, personalized service experiences across these channels and touchpoints.
There’s no denying that mastering the service experience is hard to do. Yet focusing on leveraging digital channels is one way customer service leaders can move the needle on customer experiences.
This week Wal-Mart announced that it would put significant weight behind the new Boxee TV box, a $99 set-top box that competes with the market-leading Apple TV and the runner-up Roku boxes. Wal-Mart also sells the Apple TV and Roku devices, so it might not seem like a big deal, but it is. Because Wal-Mart is going to promote Boxee TV with in-store displays and outbound marketing support. Why? Because in addition to the regular apps like Hulu, Netflix, and the rest, Boxee gives Wal-Mart customers three things they can't get from Apple or Roku:
Regular TV shows from local broadcasters. Boxee's new box has a digital tuner that lets you tune to digital signals from ABC, CBS, CW, Fox, NBC, PBS, and Univision through either an over-the-air antenna or via ClearQAM.
Unlimited DVR. Not only will Boxee let you watch these channels, it is offering unlimited cloud DVR for $9.99 a month (in only the top eight markets for now) to record any shows from those networks, without managing a hard drive or paying extra if you want to store hours and hours of video.
Multidevice viewing. This is the real coup for Boxee. Because its DVR is in the cloud, it can send your recorded content to any device you log in to -- whether it's in your home or in your hands while traveling for business.
This week the news broke that Newsweek, one of the most recognized magazine brands in the world, will cease publishing its print edition after nearly 80 years and go all digital in 2013. The news got quite a bit of attention globally — it even made it into the printed edition of a Dutch newspaper. Of course, this didn’t come as a complete surprise, and Forrester has published enough about digital disruption and the media meltdown to know that newspapers and magazines have to change their strategy.
But the news got me wondering to what extent consumers use their digital devices for media consumption at this moment. Forrester’s North American Technographics® Media And Advertising Online Benchmark Survey, Q3 2012 (US) shows that about one-fifth of US online adults consume magazine content digitally, meaning they visit magazine websites or read digital publications.
This is lower than for newspapers, where about one-third of the US online population reads newspapers digitally — and 14% digital only (compared with 5% for magazines). Those who read digital magazines only are far more likely to be male, the average age skews younger than 35 years old, and only one-quarter of them regularly spend money on magazines.
It's now a year later and a lot has happened. Digital Disruption will soon be available as a hardback book (also as an eBook, natch). You can pre-order a copy now at Forr.com/DDbook. To complete the book I had to get far outside of my comfort zone -- I work with media companies and consumer product companies primarily, but to prove that digital disruption is a fundamental change in the way we all do business, I had to interview people in the pharmaceutical industry, the military camouflage industry, and I even recently spoke to the CIO of a cement manufacturer! And to my pleasant surprise, they were every bit as digitally disruptive as their counterparts in the consumer-facing enterprises that we think of when we imagine digital disruption.
One of the main reasons every company can be and eventually must be a digital disruptor is the rise of digital platforms. These platforms are founded on a set of devices, wrapped together with software experiences that identify each customer individually, and are open to app contributions from thousands of partners. The platform owners that matter today are Amazon, Apple, Facebook, Google, and Microsoft.
Earlier this week I caught up with Discover’s Mike Boush to talk about his keynote at the upcoming eBusiness Forum, where he’ll explore innovations in eBusiness at Discover. Here’s a snippet of our conversation, and a sneak peak of Mike’s session at the event:
Q: What digital initiative have you undertaken in the last 12 months that you're most excited about?
A: I love what we're doing with partnerships online. It's creating a whole lot of value for customers and, frankly, getting us out of the "must be built at Discover" mentality. It started with an integration with PayPal in order to deliver peer-to-peer payment services. The program leverages PayPal’s huge delivery platform, and customers love it. Then we introduced an integration with Amazon that lets customers pay for their Amazon.com purchases with the cash they earned through our Cashback Bonus rewards program. This really highlights the difference between competitors' "points" programs and our straightforward cash, and the transparency shows just how great our program is. And recently, Google announced our integration of Discover card enrollment into the Google Wallet from our website, which is convenient for customers and helps position us in the mobile payments space. These integrations are just a sample of what we've done, but they become powerful illustration of what we can do when we team up and innovate with other great companies.
Q: What gets in the way of delivering the right experience to your customers?
I had the chance to catch up with Bert DuMars, VP of Digital Marketing & eCommerce at Newell Rubbermaid, in advance of his keynote later this month at the eBusiness Forum. I spoke with Bert about the impact of digital channels on the overall shopping experience, and how Newell Rubbermaid is charting a course for profitable eCommerce growth. Here are some of his thoughts.
Q: What digital initiative have you undertaken in the past 12 months that you're most excited about?
You have heard the word disruption; you know what that is. And you have heard the word digital. You know what that is, too. But put them together – digital disruption – and they add up to much more than the mere sum of their parts. Digital disruption, when properly understood, should terrify you.
Three sources of digital power – the prevalence of free tools and services that enable disruptors to rapidly build products and services, the rise of digital platforms that are easily exploited by aspiring competitors from all directions, and the burgeoning class of digital consumers ready to accept new services – have combined to unleash a disruptive force that will completely alter every business on the planet. Digital disruption isn’t disruption squared. It’s the disruption of disruption itself.
Most people I meet think they get digital disruption. And a survey of global executives we conducted shows that 89% of executives believe that digital will disrupt their industry. But they don’t realize just how big a deal disruption will be when it finally hits them.
I have been writing and speaking about digital disruption for years – full time for more than a year now – and it still manages to surprise me. In the month of October, I’ll keynote several Forrester Forums and there confess that digital disruption is even more powerful than I thought it was when I wrote the original Disruptor’s Handbook in 2011. What have I learned?
It’s amazing how quickly the world of digital experiences is changing technology, and vice-versa. I’ve covered web content management (WCM) since I joined Forrester in 2006, and that particular market has changed quite in a bit, due in large part to the disruptions caused by digital experiences. These days, many more stakeholders participate in the WCM decision-making process, traditional technology decision-makers can no longer afford to make technology decisions in a silo, and key WCM players are refining and expanding their strategies. I’ll tackle this in more depth with Ron Rogowski next month at our Forum in Orlando but, if you’re a digital experience (DX) decision-maker, you should keep in mind:
· Don’t hold your breath for a true DX suite. Though some of the vendors are promising integrated suites that contain content management, commerce, analytics, optimization, etc., none has best-of-breed offerings in all of these areas. And even if one were available, haven’t you already made too many investments to do yet another rip-and-replace? Some of the vendor strategies remind me of the great promises of the all-encompassing enterprise content management suite (remember how that turned out)?
Digital disruption is forcing business leaders in every industry to rethink their strategy. Music, media, and publishing have been turned upside down. Now, non-digital products and services — from airlines to automobiles — must consider new competitors, new economics, and new customer relationships. For example, game-changing, disruptive mobile experiences and apps on platforms like Amazon.com, Apple, eBay, and Google give those firms control of consumer mobile devices and platforms, allowing them to both "tax" sales and hijack payments as well as threatening to further strangle already-squeezed margins for eBusiness professionals.
I'm going to tell you a story of opportunity. I will warn you in advance that it paints the art of the possible, but ultimately it's a cautionary tale.
I have a 17-year-old son. He's a high school senior and attends a private high school in our city. In Forrester terminology, you could call him "empowered." So much so that over his first three years he rarely wore the required school uniform. Now, the school uniform is far from draconian. It's a polo, color of your choice, with a school logo. I actually think they look good, but he says they itch. To get around it he simply wore the polo of his choice under a sweater. It would seem all polo collars look the same. This worked well until a new principal came in last year and figured out what was going on. A new dress code was instituted that required that students also wear school approved outer wear so that a school logo was always visible.