We’ve been telling you that you need to transition from strictly managing an IT Agenda to owning a BT Agenda, too. 2016 is the year that needs to happen: your CEO will be looking for you to drive digital in your company — and increasingly digital is becoming your business.
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers.
The scary news? Only a quarter of businesses have a coherent digital strategy to create customer value as a digital business. The onus is on you to deliver that strategy. As CIO, you need to offer a holistic view on the digital transformation that encompasses not just how your firm can harness emerging technology to create customer value, but how your team can help drive synergies across the customer experience ecosystem. We believe the only way to achieve this is a customer-obsessed operating model that will permeate throughout your business and focus on six elements: structure, talent, culture, metrics, processes, and technology.
Here are three things you can do in 2016 to win at driving digital:
In the coming weeks Forrester will publish its annual set of predictions for our major roles, industries, and research themes — more than 35 in total. These predictions for 2016 will feature our calls on how firms will execute in the Age of the Customer, a 20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.
In 2016, the gap between customer-obsessed leaders and laggards will widen. Leaders will tackle the hard work of shifting to a customer-obsessed operating model; laggards will aimlessly push forward with flawed digital priorities and disjointed operations. It will require strong leadership to win, and we believe that in 2016 CMOs will step up to lead customer experience efforts. They face a massive challenge: Years of uncoordinated technology adoption across call centers, marketing teams, and product lines make a single view of the customer an expensive and near-impossible endeavor. As a result, in 2016 companies will be limited to fixing their customer journeys.
CMOs will have good partners, though. As they continue to break free of IT gravity and invest in business technology, CIOs will be at their sides. 2016 is the year that a new breed of customer-obsessed CIOs will become the norm. Fast-cycle strategy and governance will be more common throughout technology management and CIOs will push hard on departmental leaders to let go of their confined systems to make room for a simpler, unified, agile portfolio.
CMOs historically focused narrowly on marketing and promotion. That’s not enough in the age of the customer. The CMO of 2015 must own the most important driver of business success -- the customer experience -- and represent the customer’s perspective in corporate strategy. Andy Childs at Paychex is a great example -- he owns not only traditional marketing but strategic planning and M&A.
I’m not a whiskey drinker, but I do love history, and selling. So when I read this quote from the October 16, 1861 Memphis Daily Appeal in a University of North Carolina blog recently, I couldn’t help get a chuckle and also make a connection to today’s sales enablement challenges.
“Times are tight here, as indeed they seem to be everywhere. Pea-nuts have advanced fifty per cent., and three-cents-a-drink whisky is now so diluted, I am told, that a good sized drink would come near to bursting a five gallon demijohn [a large bottle having a short, narrow neck, and usually encased in wickerwork]. I have noticed several who kept well soaked during the winter season have not been generally more than half drunk during the present, owing to the aqueous element present in the elevating fluids, thus preventing the stomach from holding enough to affect the head.”
This quote relates to sales performance in two ways. First, this article was written at a historically significant time in regard to how your sales force probably sells your offerings today. Second, a trending business strategy — in response to contemporary financial challenges — has diluted the potency of what, until recently, your buyers valued most about your salespeople.
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.
With 2013 coming to an end, it’s time to bring out the crystal ball and make some predictions about 2014. Those who follow Forrester’s research will know that we’re living in the age of the customer, a period in which customer obsession will be the key to winning in all markets. Computing is a critical technology element in the age of the customer: The use of tablets by sales professionals creates richer experiences for prospects and customers, even as the use of wearable technologies by health professionals helps phlebotomists find the vein in a patient’s arm more quickly. Computing is a front-line, customer facing experience that helps companies win and serve customers more effectively.
With that context in mind, I present six meta-trends that will be critical for computing in 2014:
Business leaders have revenue growth first and foremost on their minds. On average, 70% of these business leaders place a high or critical priority on revenue growth, customer acquisition and retention, and addressing rising customer experience expectations for 2013. Our data suggests business leaders are 50% more likely to identify these as critical initiatives than they do margin improvement or reducing operating costs. Growth and customer experience improvement take business priority.
At least once a week I get a client inquiry wondering what is "the next big thing in interactive marketing," seeking to identify what will out-tweet Twitter or out Goog Google. Well, in his new report, Competitive Strategy In The Age Of The Customer, my colleague Josh Bernoff articulates what is next for all businesses: A disruptive shift, where the power of customers means that firms must focus on the customer now more than any other strategic imperative. In fact, the only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, delighting, connecting with, and serving customers. In this age, companies that thrive, like Best Buy, IBM, and Amazon, are those that tilt their budgets toward customer knowledge and relationships.
The zinger in this report for interactive marketers is to: Prioritize word of mouth over mouthing off. Cut your ad budget by at least 10%, and spend the money on connections that have a multiplier effect like social, devices, and content. Ads are far more effective when customers are primed to believe them.
This means that interactive marketing of the future is really focused on interactivity -- not just on pushing out marketing messages through digital channels. Three ways to get started creating more interactive marketing relationships: