The Global Risk Environment Looks A Lot Different In The Age Of The Customer

Nick Hayes

Earlier today, we published a report that dissects global risk perceptions of business and technology management leaders. One of the most eye-popping observations from our analysis is how customer obsession dramatically alters the risk mindset of business decision-makers.

Out of seven strategic initiatives -- including “grow revenues,” “reduce costs,” and “better comply with regulations,” -- improve the experience of our customers is the most frequently cited priority for business and IT decision-makers over the next 12 months. When you compare those “customer-obsessed” decision-makers (i.e. those who believe customer experience is a critical priority) versus others who view customer experience as a lower priority, drastic differences appear in how they view, prioritize, and manage risk.

Customer obsession has the following effects on business decision-makers’ risk perceptions:

  • Risk concerns heighten dramatically across several risk types – especially reputational risk. Reputational risk concern more than doubles for customer-obsessed decision-makers, and other risks also see significant increases, including corporate social responsibility (CSR) and sustainability risk, regulatory and compliance risk, and talent and human capital risk.
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Privacy Won’t Derail Wearables, But Could Undermine Your Company

JP Gownder

Wearables are opening up exciting new scenarios for consumers and enterprise users alike, but the wider conversation on wearables has taken a privacy-oriented turn. The New York Times and WIRED, among others, have covered the emerging privacy concerns associated with wearable devices.

Particular ire has developed against Google Glass. An online activist group, Stop the Cyborgs, opposes Google Glass and related wearables, which the organization says will "normalize ubiquitous surveillance." Stop the Cyborgs offers downloads of anti-Glass graphics for posting in public places and online to spread the message that wearables are inherent privacy violators.

In a major new Forrester report, we present data and insights to help Infrastructure & Operations professionals who are piloting or planning to trial wearables navigate the privacy waters. As a teaser, here are some of our findings:

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Customer Privacy Is A European CIO Priority

Dan Bieler

With Enza Iannopollo

Customers value tailored offerings. And consumers are increasingly aware of what Forrester calls the “privacy-personalization paradox” — that is, the paradox between their desire for personalization and their desire to keep their data private. A 2013 survey by Populus for Sky IQ of 3,097 UK adults found that 51% believe it is useful for brands to know some information about them, and 53% trust brands to act responsibly with their data. The same survey reveals that 79% respondents are careful about the type of information they pass to organizations, 63% worry about how much personal data they have revealed online, 48% say that data privacy is an issue they think about, and 46% do not trust social networks with their personal data.

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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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Mobile App Developers: Stop Capturing Unnecessary Data Before Regulators Stop You

Martha Bennett

The findings presented in an article by German magazine Computerwoche published on Feb 11, 2014, are a forceful reminder that messages about excessive data capture via mobile apps seem to have gone unheeded so far.  As reported, tests by TÜV Trust IT established that “almost one in two mobile apps suck up data unnecessarily”.

What’s “unnecessary” of course depends on your viewpoint: it may seem unnecessary to me if my mobile email app captures my location; the provider of the app, on the other hand, could be capturing the information to provide me with a better service and/or to make money from selling such data to a third party. The trouble is that I don’t know, and I don’t have a choice if I want to use the app. From a consumer perspective, this is not a satisfactory situation; I’d even go as far as calling it unacceptable. Not that it matters what I feel; but privacy advocates and regulators are increasingly taking notice. Unless app providers take voluntary measures, they may see their data capture habits curtailed by regulation to a greater degree than would otherwise be the case.

Let’s step back a moment and consider why so many mobile apps capture more data than is strictly speaking necessary for the functioning of the app:

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Mobile World Congress 2014 Will Push The Mobile Mind Shift

Dan Bieler

Mobility is becoming pervasive in the enterprise. Smart devices, including wearables, are appearing in all sectors, both in developed and emerging markets. Businesses that fail to prepare for the mobile mind shift risk losing their competitive edge. I hope this year’s Mobile World Congress, which kicks off on February 24, will emphasize the interaction between business processes and mobility — in addition to the traditional gadgets.

I focus primarily on themes relating to the connected business and social collaboration, and I will travel to the world’s leading mobile event in Barcelona to gain new insights into several questions in these areas:

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Google's Nest Acquisition Will Force the Internet of Things Privacy Discussion

Fatemeh Khatibloo

This morning, as I was writing this blog post, I got an email from one of my colleagues, saying "Is it weird that since Google bought Nest, I no longer want one?" Her sentiment isn't that unusual because, as it turns out, plenty of people feel like Google + Nest = HAL. (It's hard to miss the resemblance)

 

                         

My colleague Frank Gillett just published a post outlining a collection of ten key thoughts about the acquisition. As the privacy-identity-personal data wonk advising Forrester's marketing strategy clients, I thought I'd drill down on some of the more salient points for those issues. 

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Rumors Of Privacy’s Death Have Been Greatly Exaggerated

Fatemeh Khatibloo

As 2013 comes to a close, it's clear to me that much of the rhetoric about privacy's death was not only premature but downright wrong. Just in this past week, there have been several events that point to how very alive and critically important the topic of privacy is:

  • The US Senate Committee on Commerce, Science, and Transportation released a report (in advance of a  public hearing) about the practices of the data brokerage industry, and how they impact consumers. The report claims that "data brokers operate behind a veil of secrecy, subject to limited statutory consumer protections." This certainly portends the possibility of new legislation being introduced by the committee in 2014.
  • US District Court Judge Richard Leon ruled that the bulk collection of millions of Americans' call records likely violates the Fourth Amendment of the Constitution. While conflating surveillance with marketing privacy is a dangerous thing, I suspect that this ruling will draw further attention to the volume, scale, and methods of data collection, irrespective of who's doing the collecting.
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Is The Data Broker Industry Really Ready For A Sea Change?

Fatemeh Khatibloo

Yesterday, FTC Commissioner Julie Brill published an essay on AdAge.com that calls on data brokers to join -- or, rather, establish -- an initiative called "Reclaim Your Name." The goal of the program would be to provide a single portal where consumers could see what data the industry has collected about them, provide options to opt in and out, and to correct data that might be inaccurate.

While the commissioner's article is a bit heavy on the "big data" rhetoric, her point is well taken: We have entered an era where the volume of data that individuals make available about themselves -- often inadvertently -- is increasing daily. Unfortunately, guidelines for how marketers and the larger data industry collect and use personal data are in short supply. This conflict is one of the major challenges that our industry faces in the coming decade: How can brands excel in the age of the customer if they're constantly under scrutiny about their privacy and data practices?

Acxiom, one of the world's largest data brokers, recently launched its own version of the kind of portal Commissioner Brill calls for. AboutTheData.com lets individuals see a subset of the data Acxiom knows about them, provides correction and opt-out opportunities, and aims to provide consumers with education about the data industry as a whole.

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Acxiom's Untied Kimono

Fatemeh Khatibloo

Yesterday, Acxiom, one of the world's largest data brokers and a key player in the marketing services ecosystem, launched an important new consumer service (still in Beta) called "About The Data."  It's an initiative to show consumers some of the data that Acxiom has compiled about them, to provide education around how certain types of data are sourced and used, and to let users correct and/or suppress the use of these datapoints for marketing purposes. 

This is a big deal. Why? Because it's pushing Acxiom (and, frankly, the entire third-party data industry) way out of its comfort zone on a few levels.

  1. First, this is not a company that is used to dealing with consumers on a mass scale. Acxiom's DNA is fundamentally B2B; learning how to communicate to, and design tools for, individual consumers is a massive undertaking, and it shows in the UI. For example, when I attempted to register my address with a "#" preceding my apartment number, the format was rejected without any indication that symbols were disallowed in that field. As a tech-savant, it only took me one more attempt to figure that out, but not all consumers are so savvy. Similarly, clicking the "Home" button on the navigation bar logs users out without any notice or warning. 
     
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