Drive Intelligent Customer Loyalty With Forrester's New Customer Loyalty Playbook

Emily Collins

Over the past year-and-a-half, I’ve seen a surge of loyalty programs in the marketplace. And it’s not just existing programs expanding into emerging channels or revamping their reward mix. Industries that typically shied away from loyalty programs, like utilities, media and insurance, are jumping on the bandwagon. But although marketers understand that value of identifying, retaining, and improving relationship with their best customers, their execution usually doesn’t lead to lasting loyalty. Loyalty programs largely revolve around financial incentives that drive spikes in short-term behavior but don’t necessarily establish deeper or long-term customer relationships.

To add to that challenge, consumers see declining value in the programs that exist in the marketplace, and if marketers want to develop better relationships with their best consumers, their programs need more differentiation. And that’s where customer intelligence comes in. Loyalty programs generate a lot of customer data that often goes unused. Customer intelligence helps marketers create customer insights that improve their strategy and programs through targeting and segmentation, and customized offers. To assist marketers in applying customer intelligence and evolving their customer loyalty strategies, I’m excited to introduce Forrester’s Customer Loyalty Playbook.

The Customer Loyalty Playbook lays out the path to help you establish the right framework and mature your practices around executing loyalty programs that drive long-term customer engagement and incremental value. It contains twelve reports, focusing on four key phases:

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A Vision For Tomorrow's Consumer Data Ecosystem

Fatemeh Khatibloo

PIDM Landscape Wordle

Eighteen months ago, when I started down the path of what would become our body of Personal Identity Management (PIDM) research, there were only a few customer intelligence professionals who gave much credence to the picture we were painting. What a difference a year makes. Today, privacy, data governance, consumer empowerment, and understanding "the creepy factor" are core to the conversations I have with CI pros in both marketer and vendor organizations. 

At the center of those conversations is often the question, "Who are the players in tomorrow's consumer data ecosystem?" We've just published a report, Making Sense of a Fractured Consumer Data Ecosystem, that reviews the strengths and weaknesses of four existing vendor categories plus three emergent business models. These include:

  • Consumer data giants: Companies, like Acxiom, Epsilon, Experian, and Infogroup, that have an opportunity to become consumer-friendly data managers but are at greatest regulatory risk
  • Reputation management providers: Companies, like Intelius and Reputation.com, that could help consumers manage data access but need to focus on their B2C business models to do so
  • Online services giants: Companies, like Google, MSN, and Yahoo, that already have access to highly personal data but serve too many masters
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The State Of Customer Analytics 2012

Srividya Sridharan

I’m excited to announce that our new research on how firms use customer analytics was just published today.  The new research reveals some interesting findings:

  • Customer analytics serves the customer lifecycle , but measurement is restricted to marketing activities. While customer analytics continues to drive acquisition and retention goals, firms continue to measure success of customer analytics using easy-to-track marketing metrics as opposed to deeper profitability or engagement measures.
  • Finding the right analytics talent remains challenging . It’s not the just the data. It’s not the just technology that hinders analytics success.  It’s the analytical skills required to use the data in creative ways, ask the right questions of the data, and use technology as a key enabler to advance sophistication in analytics.  We’ve talked about how customer intelligence (CI) professionals need a new breed of marketing scientist to elevate the consumption of customer analytics.
  • CI professionals are keen to use predictive analytics in customer-focused applications,  Forty percent of respondents to our Global Customer Analytics Adoption Survey  tell us that they have been using predictive analytics for less than three years, while more than 70% of respondents have been using descriptive analytics and BI-type reporting for more than 10 years. CI professionals have not yet fully leveraged the strengths of predictive analytics customer applications.
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How Do YOU Organize For Open Innovation?

Carlton Doty

Quickly: Open Innovation is about engaging external parties (e.g., customers, partners, employees, etc.) to source new ideas for products and services. We've developed a Forrester playbook for open innovation, complete with a self-assessment, a strategic road map, and even a view into the landscape of tools and vendors that can help you along the way.

However, one of the questions that we haven't answered yet is how product strategists get their firms to organize for open innovation. Our hypothesis is that this is more of a cultural shift than a straightforward change in organizational structure. We are kicking off some research on this important topic now, and in the spirit of being "open," I'm asking you to either post your comments in reply to this blog post or reach out to directly to my colleague srose@forrester.com to schedule an interview so we can discuss how you are organizing for open innovation at your firm.

In return for your participation, we'll send you a copy of the report (if you're not already a client), and perhaps even feature your organization as an example — depending on your willingness to be included, of course. So please chime in and tell us about your best (or worst) experiences in trying to make your product innovation more open. We look forward to hearing your thoughts. 

Thanks,
Carl

Revolutionize Your Products & Services: Forrester’s Playbook For Open Innovation

Carlton Doty

As a product strategist, do you struggle with a sluggish innovation “process” in your firm? Do you think it takes too long to identify great ideas and turn those ideas into compelling new products and services for your customers? If you’re like most of your peers, the answer to both questions is probably a resounding "yes." That is exactly why Forrester’s Consumer Product Strategy practice developed The Open Innovation (OI) Playbook

Forrester defines open innovation as:

The act of innovating, whereby new ideas or methods are requested from three broad participant groups: employees, partners, and customers.

This approach to innovation is in stark contrast to the typically closed and often secretive product innovation practices that most firms still use today. Our OI playbook provides you with an end-to-end framework, organized in twelve easy-to-find modules, and designed to give you the insight, tools, and best practices that you need to successfully adopt an open innovation approach within your organization.

To get started, I suggest reading the Executive Overview: “Revolutionize Products And Services Through Open Innovation”.  This report will set the stage at a high level for you. Then, depending on where you are in your open innovation journey, you can “pick your spots” by navigating directly to the most applicable chapter for your needs. In general, the OI playbook is divided in to four phases as follows:

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Take Forrester's Marketing Technology Survey

Rob Brosnan

Using, investigating, or buying marketing technology? If so, we want to hear from you. Take the survey and receive a complimentary copy of the completed research.

Take the marketing technology survey

Forrester's global Marketing Technology Adoption survey investigates:

  • What technologies do marketers currently use, and what do they plan to use?
  • How much do marketers budget for technology acquisition and operations?
  • What are the users' top goals for and pain points from marketing technology?

You can use the survey results to:

  • Provide justification for a business case in your 2013 technology road map.
  • Compare your spend levels and technology use to those of other marketing professionals.
  • Spot trends and see best practices to incorporate into your technology strategy.

The survey will close on Friday, August 3, and the completed research report will publish in early September. Once the research publishes, I will also present the findings in a Forrester Webinar and in advisory sessions to interested clients.

Take the marketing technology survey

Please share this blog post and survey link with friends and colleagues who share an interest in marketing technology.

Thanks in advance for your support and involvement.

A New Wave On The Horizon: Customer Engagement Agencies

Fatemeh Khatibloo

We've spent a lot of time in the past year looking at how the customer intelligence services landscape is changing. For one thing, it's a heck of a lot more chaotic: everyone from management consultants to systems integrators to KPO vendors is putting a stake in the ground of CI services. We've also seen a dramatic shift in the way some digital & direct agencies and database MSPs are thinking about their most strategic client relationships. This change has been so noticeable that, a few months ago, we actually published research that defines a new business model: The Customer Engagement Agency (CEA). 

It's no surprise that clients and vendors alike are excited about this model. These agencies help elevate customer intelligence within the client organization. They bring attention and focus to the importance of customer knowledge, and they work hard at infusing that knowledge throughout every customer touchpoint. They measure customer value, not just marketing campaigns. And they help clients use CI to answer questions about everything from product development to logistics and resource management. 

But, this is an emerging market — the players are evolving from very different backgrounds; they offer substantially different "value-added" capabilities; and many of them have proprietary methods and models that make it hard to compare apples to apples. 

That's why we've just kicked off a Customer Engagement Agency WaveTM that will publish in the fall. If you're intrigued with the idea of working with a CEA, I encourage you to:

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Teradata's eCircle Acquisition: Portfolio Or Platform Play?

Rob Brosnan

Today Teradata announced plans to acquire of Munich-based eCircle, a digital and email marketing provider. With the acquisition, Teradata continues two trends:

  1. Extending core offerings through marketing technology. eCircle joins Teradata’s two prior investments in marketing technology: Aprimo Marketing Studio (AMS) and Aprimo Relationship Manager (ARM), which were separately acquired in previous years. Teradata confirmed that it will position the eCircle product within its standalone Aprimo division.
  2. Complementing data warehousing with big data analytics. Through the acquisition of Aster Data, Teradata moved to beef up its presence in analytics for large-scale data sets, such as log files, clickstream, and sensor data. eCircle’s platform is built on a similar (Hadoop-based) platform, allowing marketers to co-mingle and analyze customer records, campaign data, online behavioral interactions, and more.
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Just Published: The Forrester Wave: Cross-Channel Attribution Providers

Tina Moffett

Marketers and CI professionals frequently tell us that they want a better measurement technique to accurately determine the true performance of channels and customers. I am pleased to announce that today we published The Forrester Wave™: Cross-Channel Attribution Providers, Q2 2012.  This vendor review is a result of countless hours of vendor reviews and assessments, in-person briefing reviews, customer calls, fact checking, and countless hours of intensive research work.

After long days and countless Starbuck lattes, I crawled out of this very intense research process, and a few key takeaways emerged:
 
  • Companies are investing in attribution. Marketers are seeking expert advice for the best ways to measure their channels with more precision. Attribution approach can provide a more concise way of measuring true channel and customer performance. And that’s something organizations are hungry for. To do this, they need help developing attribution models and making sense of all their data.
  • Cross- channel attribution is a relatively immature market. Vendors have fairly immature cross-channel attribution offerings. Most continue to emphasize digital attribution but are rapidly expanding to include additional channels, while also developing future marketing scenario-planning capabilities.
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Joining The CI Analyst Ranks

Emily Collins

I’ve been on the CI team for a few years in a supporting role and, more recently, working behind the scenes with Suresh Vittal to drive our research around loyalty. I’m excited to announce that, going forward, I will be the analyst leading our coverage of the technologies, services, and analytics that support customer loyalty.

My first report in this new role will provide best practices on building a world-class loyalty program. Then keep an eye out for an analysis of existing and emerging loyalty program features. Future research will dive into topics that include reward design, revenue models for loyalty programs, the future of loyalty, and more Wave evaluations of the loyalty vendor ecosystem.

I am looking forward to getting to know many of you better and following the evolution of this exciting space. Whether you have insights to share, questions to ask, or loyalty technology and services that you want to tell me about, I want to hear from you! Please engage with me via our Inquiry and/or Briefing teams, or track me down at Forrester’s upcoming Customer Intelligence Forum (April 18-19 in Los Angeles).