(By Any Other Name) RIAs Will Power Future Online Experiences

Ronald Rogowski

For a long time, people have debated the meaning of every part of the acronym RIA (rich Internet application). What is rich? What do you mean by "Internet"? What's an application as opposed to a site that renders content? (The last one has become clearer for some apps that sit outside of the browser but is still contested for functionality that runs within a browser.) The debate was really a way of making the case for player-based technologies like Flash and Silverlight vs. AJAX and dynamic HTML. While the former powered experiences that were more akin to software than sites (generally speaking), the latter enabled more dynamic, yet still page-based, experiences (again, generally speaking). But the lines are about to blur even further as we look at experiences that are increasingly fragmented across interaction points.

What does the future look like? Forrester believes that four attributes will characterize the online experience of the future. As my colleague Moira Dorsey points out in her report, "The Future Of Online Customer Experience," experiences will be: customized by the end user, aggregated at the point of use, relevant to the moment, and social as a rule, not an exception. 

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An Experience With An American Express HERO

Ronald Rogowski

Ever since I signed my daughter up for a frequent-flier program, she's been receiving at least one credit card offer from American Express every week. Problem is, she's 2. It's unnerving to say the least to have these kinds of offers coming to your kids, but it's not hard to imagine how it happened. In fact, I know exactly how it happened since I had the same issue with my 4-year-old about a year ago — one company shares a contact list with or sells it to another, and somehow nobody filters for age (if that's even in the database, though one would assume it is). And voilà, mail campaigns are targeting your kids.

We started receiving these emails for about six months, about the time we took a family trip to Chicago. Finally, I got fed up and put in a call to American Express, which, to be fair, is not the real culprit here. However, I called, and after negotiating the IVR system (that seemed determined to give me an unwanted download on my account status, though that's a bit off-topic), I was routed to a representative who listened to my problem and expressed genuine shock at the situation, immediately making me feel like there was someone who understood — someONE, not some nameless, faceless database that was spitting out those credit card offers. It put me at ease to the point where I would have felt comfortable if the representative told me she had to mail some forms that I'd have to fill out and return. Instead, the representative asked me to wait a moment while she sorted this out. Clearly, this was not a typical request, so I figured it would take some time. However, after a few short minutes of waiting, the representative came back to tell me that she had submitted the necessary paperwork and that the mailings should cease within a few weeks. She apologized for the inconvenience in a human — not robotic — tone and sent me on my way.

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The Right Customer Experience Strategy

Paul Hagen

What is the right customer experience strategy? My new report on customer experience strategy investigates this question. To give it some context, consider customers’ expectations of Costco versus Apple. Costco customers expect barebones service in return for low prices, while Apple customers expect innovative products at relatively high prices. These firms deliver radically different experiences, yet they both delight customers. Should your company be like Costco or like Apple or something else entirely?

The report uses Michael Porter’s three generic company strategies as a starting point to understand core value propositions that should drive the right customer experience strategy.

In researching the report, Adaptive Path’s VP of Creative Services Brandon Schauer was invaluable in pushing my thinking toward using Michael Porter’s generic strategies as a starting point. He had a couple of powerful insights that I think are worth mentioning:

  1. “For customer experience leaders, the first big hurdle is to discern the organization’s business strategy.” I’ve talked with many firms in the process of changing their company strategy, which creates a moving target that is both a challenge and an opportunity for customer experience leaders.
     
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How Good Is The Brand Experience At Hotel Sites? Not Very

Ronald Rogowski

As part of Forrester’s ongoing initiative to provide annual industry benchmarks of online customer experiences, we recently evaluated the Brand Experience of four hotel brands’ Web sites (Crowne Plaza, Hilton, Marriott, and Sheraton). Using our Web Site Brand Experience Review methodology, we set out to test 1) how well the sites supported their key brand attributes in a manner consistent with other channels (Brand Image), and 2) how well the site supported user goals (Brand Action).  

The results were disappointing. None of the sites passed our Brand Action Review. Actually, that's not terribly surprising since our data show just how challenging the online booking experience is for travelers. Our review found that most sites suffered from common problems that plague sites across all industries, such as missing or misplaced content and illegible text. Again, not surprising. But what was surprising was that only one site, Sheraton, passed our Brand Image Review.  After all, hotels (at least those on the nicer end of the spectrum like those we reviewed) take great pains to keep their lobbies clean, their grounds manicured, and their rooms inviting. But the underperforming sites suffered from poor quality in their visual designs, bland imagery, and just-the-facts content that failed to hit on key brand attributes. In contrast, Sheraton stood out for its high-quality visual design and messaging that's consistent with how the brand is presented in other channels.

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Ease Of Use Is Now “A Federal Case” For Mortgage Paperwork

Harley Manning

When I was kid, when we thought someone was overreacting, we used to say “don’t make a Federal case out of it!” Maybe people still say this, but I haven’t heard it in a while. I suspect that it went into the Museum of Way-Historical Sayings. Still, I’m sure you get the idea: If the Federal Government is involved, it’s a big deal.

I thought of this expression this morning when I read an article in The Wall Street Journal. There is quite a battle going on over an attempt to make mortgage-disclosure documents easier to understand. On the one side, we find our Federal Government in the persons of Elizabeth Warren and Treasury Secretary Timothy Geithner. On the other side, you find the mortgage industry (or at least a big chunk of it — the article could have offered some more details IMHO).

Now if you’ve ever taken out a mortgage, you know that the documentation you received was close to the polar opposite of “easy to understand.” You may have thought (as I did) that the difficulty stemmed from a failed attempt by lawyers and bankers to communicate effectively. But apparently not! (Or at least that’s not the only reason — I’m pretty sure that most lawyers don’t have John Grisham potential).

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Gaylord Hotels Prioritizes And Delights

Paul Hagen

I recently talked to a business analyst at Gaylord Hotels who shared how the company is changing its customer interactions using sentiment analysis derived from its Clarabridge software. Three points were particularly illustrative of a company maturing in its delivery of customer experience:

  • Success is about being great at key interactions, not every one. Originally the hotel believed that during a stay, guests experienced 100 different things — 80 that staff needed to do great and 20 that staff needed to do satisfactorily to satisfy customers. After watching sentiment data for the past couple years, the company realized that in fact only five activities most strongly correlate with guests recommending the hotel to others. For example, the first 20 minutes is absolutely essential, a period that the hotel had broken into several discreet steps but that guests viewed as a single experience. Hotel management now works with staff on executing on these five critical activities perfectly, while on the other 95, they only need to perform adequately.  
     
  • Prioritizing investments based on target customer needs saves misspent money. While some managers felt that it was necessary to renovate rooms in a wing of the hotel to transform the property and improve customer satisfaction, analysis showed that the hotel was getting no negative comments about it, particularly from its most important segment of guests. Based on the findings, the hotel decided to invest that large sum of money in other areas, such as a technology solution that helped people find their way through the hotel, which was generating more negative sentiment.
     
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Setting And Meeting Experience Expectations

Paul Hagen

One of my favorite customer experience graphics here at Forrester speaks to companies “making promises” through marketing and branding channels, while “keeping promises” by delivering value through other channels. However, there are external forces at play that raise people’s expectations. Companies like Google make us wonder why we can’t have good search when looking on a manufacturer’s site for a product; Trader Joe’s makes us wonder why floor staff at other stores isn’t as friendly and helpful; and Zappos makes us wonder why products don’t always arrive ahead of schedule.

I’ve taken liberties and updated the graphic to reflect that the “promises” companies make are really “expectations” that they set, and those are influenced by lots of external factors. In order to meet customer expectations — thus delivering a good experience — companies have to account for those factors that may lay outside of the firm or even the industry.

 

Why Does It Matter?

About 67% of companies that we surveyed describe their customer experience goal as simply trying to differentiate from competitors in their industry. But, they must also factor in the expectations set from outside of their firm or industry. Does this mean that every company needs to deliver a Zappos-like experience? Absolutely not! But it does mean that companies need to understand clearly what their customers really expect from them.

Live Streaming From Forrester Customer Experience Forum 2010 — Day Two

Harley Manning

It’s Day 2 of Forrester’s Customer Experience Forum 2010, and I'm incredibly excited to see this morning’s opening speech by our own James McQuivey. He's going to demo Microsoft’s new interface that uses gestures and natural language commands with help from the company that built it, PrimeSense. You may have heard of this as Project Natal or Kinect — but hearing about it does not do the trick. You have to see it and then hear James’ take on what it means for e-tailers, financial planners, media companies . . . wow. Forgive me if I seem a little blown away, but I’ve been watching the rehearsals, and all I can say is that I have to have one of these! Check back throughout the day for more about this speech and others.

Today's Live Stream

8:30-8:35 a.m.
Day 2 Opening Remarks
Harley Manning
, Vice President, Research Director, Forrester

8:35-8:45 a.m.
What Our Ethnographic Research Tells Us About . . . You!

Victoria Bough
, Vice President, Practice Leader — Customer Experience & Customer Intelligence, Forrester

8:45-9:30 a.m.
How Radical New Interfaces Will Transform Consumer Product Experiences

James McQuivey, Ph.D.
, Vice President, Principal Analyst, Forrester

Sponsored by RightNow

Live Streaming From Forrester Customer Experience Forum 2010 — Day One

Harley Manning

Welcome to all of you at Forrester’s second annual Customer Experience Forum in New York City! And to all of you who can’t be here — we’ll miss you. Sales for the event were so far beyond our goals and expectations that we are flat out amazed. There are about 900 people here from many industries, especially financial services. Attendees come from many professional roles: We’re seeing a good mix of people who work in marketing, eBusiness, customer intelligence, and customer experience (of course), including a strong contingent of senior managers and executives. So please keep checking in here for the latest updates and discussions around our theme of customer experience breakthroughs!

Today's Live Stream

8:30-8:50 a.m.
Welcome And Setting The Stage 
Harley Manning
, Vice President, Research Director, Forrester

8:50-9:35 a.m.
Engage Online Customers With Emotional Experience Design

Ron Rogowski
, Principal Analyst, Forrester

Sponsored by Rightnow

Entries For Forrester's Voice Of The Customer Awards 2010 — Wow!

Harley Manning

We just finished judging the entries for Forrester's Voice of the Customer Awards 2010. Announcing the winners will have to wait until we’re onstage at the Customer Experience Forum in New York on June 29. But there is something I want to announce right now: I am really impressed by the entries! :-)

Because I was also a judge last year, I couldn’t help but notice some big changes from last year. Here they are in no particular order:

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