Back in my early days as an industry analyst, one of my first client events was, in essence, a field trip to Portsmouth, New Hampshire, to take a tour of C.S. Longlines (which AT&T’s analyst relations [AR] team arranged). It was the ship from which tens of thousands of fiber optic cable was laid. I was barely over the US legal drinking age and just learning what bandwidth even meant. So as you can imagine at first, I had some serious doubts about how interesting this would be. It was actually fascinating. And that’s something I can say about only a few of the hundreds of events that I’ve attended since.
I was engaged before I even started. I knew enough about what we were going to see, and it piqued my interest.
It was immersive. We were on a big ship in a harbor — enough said.
My experience was customized. There was no predefined path throughout the ship. We toured what we wanted to see versus what AT&T’s AR team wanted to show us (though I am sure that the team eventually showed us all of it)
I joined Forrester earlier this year as an associate forecast analyst on the ForecastView team, focusing on digital marketing (DM) topics. The ForecastView team’s goal is to answer the questions “How much?” and “When?” To this end, we publish five-year forecasts that provide forward-looking, quantitative guidance around the key issues that our research analysts are discussing as well as the important trends that Forrester’s Technographics® survey data reveals. To learn how our forecasts can help you with your investment decisions, see our ForecastView overview.
On the DM forecast team, we evaluate various facets of the digital marketing space, including online display, online video, social media, paid search, email marketing, mobile advertising, and ad tech.
Our latest report, the Forrester Readiness Index: Digital Marketing, 2016, touches on many of these areas. In it, we quantify the digital marketing readiness of 55 countries across six continents based on data collected for 23 variables — ranging from display, search, and social ad spending to per-capita online traffic and video consumption to penetration rates for PC, smartphone, internet, and broadband usage to GDP growth, number of businesses, and the percentage of businesses selling online. It provides one of the most comprehensive and digestible evaluations of the global digital marketing landscape available in one place.
Forrester’s Digital Transformation Europe 2016 Forum in London starts today, and our first industry speaker will be Blake Cahill, Head of Digital, at Royal Philips. Over the past 20 years, Blake has led a series of marketing, creative, client management, product innovation, and thought leadership projects for both Fortune 500 organizations and digital start-ups. At Philips, Blake is helping to lead the Dutch company’s international rebranding and expansion into new technologies and markets. In his presentation, he will talk about the role of digital marketing in the transformation of Philips into a global digital business, and in entering the Chinese market, providing key best practices and lessons learnt.
As I prepared for my role as Forum co-chair, together with Benjamin Ensor, I spoke to Blake about his views on the age of the customer and the impact of digital on companies like Royal Philips. Here is what Blake shared with me, and I hope you will enjoy his answers as much as I did. If you would like to attend Blake's presentation in person, there is still time to register!
Q. How is digital transforming Philips' business and, as a digital marketer, how are you collaborating with and/or advising your peers in other parts of the business on the transformation?
As all organizations operating in Australia understand, the line between brand, marketing, and customer experience (CX) disciplines has blurred as people gain access to companies, services and products on their own terms. How can you thrive in this dynamic environment? Start by effectively coordinating between brand, CX, and marketing teams.
We’ve filled our agenda with senior CX and Marketing professionals from leading organizations across Australia, and beyond. Key topics they’ll cover include:
Driving business results, competitive advantage, and growth by delivering the right customer experience.
Identifying the key practices and behaviours that fuel CX innovation.
Building and maintaining a brand in a digital world.
Instilling an understanding of customer emotions into design experiences and branding strategy.
Systematically improving CX through effective measurement.
Two years ago, digital executives at Scotiabank looked at the state of mobile banking and recognized the opportunity to roll out targeted mobile marketing to existing customers using the firm's mobile apps. At the time, too few banks were leveraging mobile as a marketing, sales, and cross-selling touchpoint — a problem that is still evident among US banks.
But rather than simply throwing random banner ads at mobile banking users, the digital team at Scotiabank opted to take a targeted approach that served up relevant offers in the user's context, made the "buy" task flow as convenient as possible, and put the bank in position to expand the effort in future years.
As a result, digital executives at Scotiabank have seen mobile cross-selling rates — as measured by year-over-year growth in unit sales via mobile banking — more than double, up 165% since the firm launched this effort.
Scotiabank’s mobile cross-selling initiative is just one example of a brand embracing the idea of mobile moments. Forrester’s wider research shows that mobile moments are becoming a major battlefield in banks’ efforts to win, serve, and retain customers.
Over the past decade, digital executives and teams at banks have made strides in digital selling by upgrading and improving their public websites — and more recently their mobile apps and sites. But conversion rates on many banks’ websites remain low — in some areas, well below 10% — even as consumers’ expectations for digital experiences rise.
To take their digital selling to the next level, digital marketing and sales teams at banks should look outside the banking industry for fresh thinking. One area to look for inspiration is retail: By adapting digital tactics that best-in-class retailers use, banking digital teams can make adjustments to their websites and mobile apps that boost conversion rates and sales overall. Forrester has just published a new report that outlines “What Banks Can Learn From Retailers' Websites.” Here are just three of the ideas we discuss in the report:
Merchandise around customers’ needs and journeys rather than product silos. Retailers have found success by merchandising entire site sections, and even microsites, around customer journeys and events. Yet our research finds that virtually all banks still use products as the organizing principle on their websites. In 2013, Wal-Mart created a complete "back to college" microsite with digital marketing on key landing pages. As a result of this and other digital merchandising efforts, Wal-Mart increased the number of back-to-school products sold on its website by 30% year-over-year.
The dictionary defines “readiness” as the state of being fully prepared for something. It is easy to compare how well prepared companies are for digital marketing by looking at their digital marketing staff strength as a percentage of their total marketing staff and at their digital marketing spend as a percentage of their total marketing spend. More-prepared marketers prioritize digital in their marketing planning. More-prepared marketers run best-in-class digital marketing programs and communicate with the customers across multiple devices. More-prepared marketers measure how well their digital programs accomplish their business goals and how channels work together to accomplish a desired outcome.
In the past, Forrester has developed tools and frameworks that help firms assess their digital marketing maturity. Forrester has now launched a new research framework: the Forrester Readiness Index (FRI) for digital marketing. This framework is a quantitative assessment that provides insights into the digital marketing environment and available opportunity for 55 countries across the globe through 23 quantitative variables.
In my last blog post I outlined Forrester’s key customer insights (CI) predictions for 2015. Now I’d like to drill down into some of the key barriers to CI effectiveness we’re seeing among Asia Pacific-based organizations. This content was pulled from my recently published report, which Forrester clients can access here.
Core competencies of effective CI pros have typically centered on customer segmentation and campaign performance measurement. When extending these capabilities to digital marketing strategies, the goal is typically to enable more effective customer acquisition and onboarding by extending reach. In other words, digital innovation often simply means “better campaigns.”
But what happens once that process is complete? It’s not enough to have a world-class digital capability for acquiring new customers. Empowered customers expect the same type of seamless experience, improved efficiency, and heightened responsiveness in all subsequent interactions with your brand.
So why so many firms struggling to realize the full potential of customer analytics to effectively serve and retain their customers? I’ll give you four reasons:
The term "selfie" entered our lexicon only recently, thanks to the ease with which they can be taken and distributed via cell phones and mobile data connections. But the practice of taking a photo of oneself is decidedly not a newphenomenon.
Last week, I did something I don't often find myself doing: I watched live TV. I landed on The Voice for a while and caught a Nissan commercial/music video featuring the contestants on the show. This reminded me of the similar ads American Idol used to produce with Ford. While my friend had a visceral reaction to the ad ("It doesn't make me want to buy a Nissan"), I spent less time extolling the virtues and necessity of branding and more time thinking about what these ads are: they're native.
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.