Don’t worry: I’m not here to support your New Year’s resolution with work-out advice. But if you want to review the six requirements for planning a mature enterprise marketing strategy, then keep reading.
Real-time, contextually relevant customer experiences require a significant investment in enterprise marketing technologies. However, customer insights (CI) professionals often struggle with defining marketing technology requirements to match business objectives. It’s difficult because you must balance multiple stakeholders, accommodate channel-specific processes, and integrate products from different vendors to align with your firm’s enterprise-wide business technology (BT) agenda.
To support CI pros with requirements planning, Forrester offers a self-service assessment tool to help you determine how your firm stacks up using our enterprise marketing maturity model. We believe that customer-focused enterprise marketing initiatives rely on improved capabilities across six core competencies. The first three – strategy, resources, and processes – focus on organizational readiness. The remaining three – data, analytics and measurement, and technology – underscore the importance of the right tools to enable successful execution.
China has experienced a fast expansion of credit card usage in the past 10 years, accumulating more than 390 million credit cards by the end of 2013, around 16 times more than 2003. But Chinese banks suffered from low activation rates of credit cards. In my recent report, I found China CITIC Bank (CNCB) faced a similar challenge; their 21 million credit cards had less than 20% activation before 2012.
In 2012, to increase the number of active credit card users, CNCB decided to revamp its customer analytics capabilities to better understand customer profiles and manage customer relationships. As a first step, the bank used SAS Enterprise Miner to deeply analyze both active and inactive cardholders and their usage scenarios and to measure the effectiveness of its credit card campaigns and programs through cardholder analysis for customer segmentation and marketing program effectiveness analysis including:
Cardholder analysis for customer segmentation.CNCB first collected and classified basic information about its cardholders from past marketing campaigns and transactional data. It defined four basic types of cardholders: inactive users, moderate users, convenience users, and heavy users. The bank spent two months to build data marts from the summarized data. It decided to focus on two groups of inactive cardholders: those who could be swayed by marketing campaigns and those who were heavy users of other banks’ cards but not CNCB’s through the analytics engine.
Industry analysts know that major M&A deals, product announcement, and organizational changes can come at any time. But it still surprises us a little when a major player like Oracle announces a significantacquisition just days before Christmas. At any rate, Santa has come early for both Mr. Ellison and the Datalogix team this year.
We've just published a Quick Take on our perceptions of the deal, which holds a lot of promise. Our biggest concern? Realizing that promise requires some serious integration work, and so far, Oracle hasn't proven that it's especially capable of integrating the stack it's acquired for the Marketing Cloud offering. We also worry that Oracle's Data Cloud -- where Datalogix will sit -- is heading directly for a major privacy warzone. Whether Oracle is ready for that battle remains to be seen.
But the bigger picture is this: the Datalogix and Bluekai acquisitions, along with many others of the past year -- including Conversant by Epsilon, LiveRamp by Acxiom, and Adometry by Google -- are evidence of a fast-consolidating marketing and advertising technology landscape. 2015 will doubtless bring more M&A activity in this space, with a likely run on smaller technology and data vendors that have mostly been flying under the radar. What this race for the ultimate "marketing cloud" will mean to CI pros remains to be seen, but you should certainly anticipate plenty of shakeups in your vendor relationships over the next 18 months.
with Allison Smith, Xiaofeng Wang and Vanessa Zeng
Chinese social platforms have started to engage in commerce via partnerships with eCommerce marketplaces, but online sales conversion rates from social traffic have been disappointing. For example, in May, 360buy (JD.com) — the second-largest B2C eCommerce marketplace — received a level-one access point on WeChat, the hottest social platform in China, but this didn’t deliver the large quantity of fulfilled mobile orders that the company expected. Haoyu Shen, CEO of JD.com, confirmed during the company’s Q3 financial earnings call that the majority of fulfilled mobile orders still originate from JD.com’s own mobile app. Forrester sees two major inhibitors of social commerce in China:
People don’t expect to see commercial promotions of products they don’t want on social media. Consumers normally blacklist friends or public accounts that push these ads, making it difficult to implement traditional B2C or C2C eCommerce models on social platforms. However, if social marketplaces can provide people a tool in those moments in which they actually want to buy a certain product, it may enable social commerce.
Customers have poor discovery and buying experiences on social commerce platforms. Social platforms in China that sell products and services online have limited search functionality, which does not make for a user-friendly customer discovery stage. Chinese consumers have gotten used to being able to compare many products and prices when making online purchases — but current social commerce platforms can’t support that.
Chinese businesses have been in a state of digital transformation for the past two decades. Since the early 1990s, many enterprises owned by national or local governments have been privatized, and many of those realized that they could make information technology their key competency. However, traditional retail and manufacturing brands in China are very fragmented. The country lacks a local version of Wal-Mart or Macy’s — large organizations that dominate specific sectors.
The rise of Internet companies and their new business models is digitally disrupting already struggling traditional brands. Internet companies in China are using their strong capital resources to take center stage in many markets, creating new service delivery models, bringing online experiences offline, and making transactions through online marketplaces instead of in physical stores.
Most of the traditional brands that I spoke with in the course of the research for my most recent report were unable to react properly, as they were using immature digital intelligence to understand online users. But traditional brands have now realized the value of doing business online and intend to apply advanced digital analytics to understand customer behavior across the multitude of digital channels — web, social, and mobile. For instance, Chinese banks are starting to employ digital analytics to understand how people use Internet financing.One of the four largest Chinese banksis accustomed to analyzing transactional data but has limited experience in online user behavior analysis; to offset this, the bank recently announced a plan to implement web analytics tools to understand how customers interact with its website, search engine, and social platforms.
On November 5, Dell announced new data and analytics services at its annual Dell World customer event. Having integrated the analytics products it acquired — such as Kitenga (from Quest), Boomi, and StatSoft — Dell is now trying to build big data analytics capabilities based on a big data platform, visualization, and advanced analytics. These analytics technologies are appealing to technology management teams in end user organizations, but they may not meet the expectations of lines of business, especially for marketers facing increasing and rapidly changing demand for data and analytics.
As part of its effort to enhance its customer analytics offerings, Dell hired new leaders with marketing experience for its analytics business, such as its new GM of advanced analytics for marketing. And the company has started to move analytics offerings into the marketing arena:
Social media analytics is extending to the cloud. Dell hosts its social media analytics products on the Microsoft Azure platform and has started offering social listening products powered by Radian6. The cloud platform helps Dell serve a wider variety of client companies, from large organizations like the American Red Cross to small and medium-size businesses. The vendor is helping marketers optimize their customer segmentation, but it needs to do more to help marketers better recognize and engage with customers.
Master data management services are strongly integrated but are weak on analytics. Dell consolidates data (such as transactional, CRM, and supplier data) from disparate sources into a central repository and distributes it downstream. However, its customer data analytics capabilities are poor and make it difficult to evaluate, for example, average customer lifetime value.
Forrester recently published its 2015 Predictions for Asia Pacific. I wanted to highlight some specific trends around customer insights (CI) and big data, two very hot topics for many AP-based organizations.
We strongly believe that success for many organizations hinges on your ability to close the gap between available data and actionable insight. Marketing is taking the lead here, as CI pros seek to use data to fuel customer engagement improvements. Hence 2015 will be a year of increased fragmentation as reliance on analytics spreads across organizations.
What will this mean for you? More cloud-based and mobile analytics, more demand for interactive and responsive analytics, and more use of specialist and niche BI and analytics service providers. Given this backdrop, Forrester believes that:
Analytics spending will increase by at least 10% across the region. Yes analytics spending will increase, but less of it will be visible in the CIO's budget. Marketing and other business departments will drive analytics investments to address specific challenges and opportunities. The technology management (TM) organization will have little control over the implementation and deployment of niche and specialist BI and analytics services.
Apologies to those purists who recognize this post’s title as a misquote of Mark Twain. In this case I’m not referring to myself, Samuel Langhorne Clemens, or indeed any human being, so I’ve gone with the more popular expression. Instead, I’m talking about campaigns – you know, those marketing tactics declared dead by many, but which brands continue to leverage for cross-channel communications. Back in February, Forrester’s Tracy Stokes used a similar analogy in her excellent post “Digital Marketing is Dead; Long Live Post-Digital Marketing: What It Means for CMOs.”
I’m resurrecting the theme because campaign management is alive and well. That being said, Customer Insights (CI) professionals now approach campaigns much differently than in the past. Smart marketers know they must engage their customers with contextually relevant content that sparks an interaction cycle and provides utility while creating a value exchange. Orchestrated appropriately, campaign management can be a key enabler for post-digital marketing.
Blogged in collaboration with Rebecca McAdams, Research Associate, serving Customer Insights professionals.
Consumers are connected, constantly influenced by marketing messages, their friend’s social posts, blog posts, reviews, mobile messages, and Twitter posts. In fact, US Adults have an average of three connected devices. Consumers are leaving breadcrumbs of information behind, across multiple channels and devices. Marketers are jumping at the chance to connect with their customers through proactive marketing campaigns and even through non-marketing interactions. But which interactions actually drive impact? What interactions are responsible for sales conversions, and which interactions merely "assist" conversions? CI Pros and marketers are stumped; they must measure these complex interactions to help drive future marketing and media investments and to actually measure their marketing efforts.
Many clients have asked me this question, following it up by asking how to extend their web analytics capabilities to mobile in China. It’s not always an easy job. Marketers in China are becoming more familiar with web analytics tools to leverage internal customer data and external data from sources like social media to understand online customer behavior. Most use local web analytics tools like Baidu Statistics or Alibaba’s cnzz.com and are starting to engage with global vendors like IBM (ExperienceOne) and Adobe’s Omniture, but don’t know if effective mobile analytics solutions exist. Marketers in China face challenges in recognizing customers on mobile and analyzing, managing, and monetizing mobile data:
Marketers have difficulty identifying customers on mobile before they log in. Campaign management tools help marketers collect mobile device IDs or even sensitive information like mobile phone numbers. These tools are still web-like in that they can’t identify users until they log in. The marketing manager of one CPG company has made the reorganization of mobile users one of its mobile analytics priorities for 2015.
Mobile data rarely supports marketing decisions. Marketers in China can’t find integrated marketing campaign management solutions that include both web and mobile. The credit card department of a leading Chinese commercial bank found that customer response rates to its mobile campaigns were ineffective due to the gaps between its mobile and online marketing campaigns.
Brands have no idea how to monetize mobile data. Marketers know how to monetize data on mobile traffic and user profiles, but not how to add value from the mobile data itself. Exchanging mobile data with third parties will be a good idea if the data platform can solve data ownership, privacy, and regulatory issues.