Q&A With Francesca Nieddu, Managing Director, CRM And Sales Planning, Intesa Sanpaolo Group

I have just returned from our Forum For Marketing Leaders in San Francisco, and am now looking forward to being the host at Forrester's Forum For Marketing Leaders in London (May 13-14). Our analysts are excited to share with the European audience our latest Forrester thinking on brand-building in the post-campaign era and how to balance achieving business objectives whilst delivering highly contextual, real-time customer value. We will be joining forces with key industry keynote speakers such as Kristof Fahy, Chief Marketing Officer at William Hill, Amy Nelson-Bennett, President at Molton Brown Global, and Francesca Nieddu, Managing Director, CRM and Sales Planning, Intesa Sanpaulo.

As we make our final preparations for the event, I caught up with Francesca Nieddu from Intesa Sanpaulo about the marketing opportunities and challenges specific to retail banking. Here's what she had to say:

Q: Retail banking marketers aren't typically known for being customer-centric as they tend to focus their marketing efforts around products. What was the biggest barrier you faced as you attempted to pivot?

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Get Ready For The Next Stage Of Online Video Advertising

Guest post by James McDavid

Today we’re publishing two reports exploring the current state of online video advertising, one focused on US and Canada and a second on Europe. This is a piece of research Forrester has conducted periodically over the past five years, allowing us to map the growth of the medium as it has risen to become a major component of the marketing plans for many brands, and this long-term perspective has allowed us to identify both the good practices and the bad habits that have taken root in the practice.

Amongst the positive elements are:

  • Many publishers now take great care to ensure that video content on their site is presented in an uncluttered fashion. This is allowing marketers who’ve bought in-stream ads access to consumers without having to compete against a barrage of banners on the same page.
  • Publishers in the US are leading the way here in delivering ‘clean’ viewing experiences – The New York Times and USA Today are good examples of how to present video in a way that benefits both advertisers and consumers.
  • The adoption of interactive ad formats has also gathered pace, bringing new and engaging approaches to in-stream video ads and facilitating a break from a ‘TV-lite’ medium toward something with its own creative boundaries to play with.
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How To Make The Most Of Your Investments Across The Marketing Mix

Over the past few years, the rise of the always addressable customer combined with a challenging economic environment and stagnant markets has created a perfect storm — challenging marketers' ingrained assumptions about how to best invest their budgets. And with that comes one major recurring question that senior marketers must face. While simple, it still proves daunting for marketers: How can I make sure that I have best allocated my marketing and communication investments to support my brand in the marketplace and clearly drive positive outcomes? We at Forrester have created a brand-new research framework — called playbooks — designed to effectively answer this crucial question, not only helping marketers figure out where to start but also providing a practical step-by-step guide to help achieve mastery in a given area.

Today I'm pleased to introduce you to the marketing mix optimization playbook to help you master the art of multichannel planning and the science of marketing mix modeling. With this playbook, we will help you to:

  1. Discover: Chart a new course for marketing planning to drive effectiveness. Marketers will learn to better orchestrate their programs across platforms by mixing art and science and adopting the RaDaR framework. 
  2. Plan: Build a link between marketing investments and business outcomes. Marketers will learn how to assess their maturity and competencies for a modern marketing mix modeling initiative. 
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Q&A With Veronique Tordoff, UK Market Customer Experience Leader, Philips Electronics

Companies are grappling to maintain their traditional sources of competitive advantage in the age of the customer a world where empowered consumers, commoditized products, and intense competition stretch organizational capabilities to their limits. Enter the customer-obsessed CMO who can transcend the operational status quo and lead a companywide journey to establish new sources of competitive advantage. In my presentation at Forrester’s Outside In: A  Forum For Customer Experience Professionals EMEA  in London next week (November 6th to 7th), I will be explaining how CMOs can positively change the corporate culture around customer obsession. I will also be leading the track “Why We Need To Build A Customer-Obsessed Corporate Culture,” which takes a closer look at the challenges involved.

In preparation for the event, I caught up with one of our industry speakers from this track, Veronique Tordoff, UK market customer experience leader, Philips Electronics, to talk about how Philips Electronics is dealing with these challenges. Check out a preview of Veronique’s session in the below Q&A, or join me in London to hear the full story.

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How Marketing Mix Modeling Is Adapting To New Technologies And A Heightened Demand For Marketing Accountability

Marketing mix modeling solutions have been around for quite some time, providing marketers in several key categories with complex statistical models that aim to find the correlation between past marketing activities and business outcomes, like sales or market share.

However this space has recently seen significant changes, due to a few specific dynamics:

  • The proliferation of digital and social media with increasing importance in the marketing mix.
  • Marketers' increased demand for tools that are not only able to deliver insights on past campaigns but also able to give forward-looking recommendations on how to improve marketing return on investment (ROI) in the future.
  • The rising role that sophisticated software plays in integrating the ever-growing number of data streams and in enabling complex analysis to be navigated and customized via powerful graphic user interfaces.

To help navigate this complex and highly relevant space for senior marketers, our research team has published the first Forrester Wave™ for vendors in the marketing mix modeling space. We screened more than 30 vendors, shortlisted six that we consider to be the key players in this very fragmented market, and ranked them according to more than 40 different criteria. The evaluation uncovered a market in which:

  • MarketShare, Marketing Management Analytics, and ThinkVine lead the pack.
  • SymphonyIRI is a Leader but lacks collaborative functionalitites.
  • Marketing Analytics and Ninah are competitive Strong Performers.
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Time For Marketers To Move To Adaptive Planning?

Marketing planning has changed little in the past century. It's essentially a linear process built on the development of rigid 12-month plans built around brand and channel metrics. This approach is coming increasingly under strain as the combined effects of the growth of digital marketing platforms and a volatile economy demand marketing plans that deliver clear business outcomes and can adapt and improve to meet evolving market dynamics.

Over the past 12-18 months, we have come across several marketing organizations that have decided to do something about this situation and look for new ways to improve their approach to marketing planning by adopting some principles borrowed from a relatively new methodology originally conceived for software development efforts: agile development.

From the interviews that we did with marketers that are experimenting with this new approach, several of the key principles of "agile" development looked particularly relevant to innovating their approach to marketing planning:

  • A clear definition of business outcomes and associated business metrics
  • A dedicated cross-functional team
  • A deliberate test-and-learn approach
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Are Marketing And IT Finally Having A Go At Working Effectively Together?

With the increasing richness and complexity that digital channels and social media bring to the marketing equation, senior marketers increasingly realize that, to be relevant in shaping their brands’ interaction with customers, their teams need to embrace new technologies with the help of the IT group.

In my latest joint research effort with my fellow analyst Nigel Fenwick from Forrester’s CIO role, I explore how marketing and IT can successfully work together in enabling organizations to master the customer data flow.

Our early findings were not very promising . . . What clearly emerged from our interviews with CMOs and CIOs was how deeply ingrained the stereotypes about the two teams are. We heard that:

  • IT is the department of “no” and does not care about customers or what’s happening in the market.
  • Marketing is having all of the fun and spending money without rhyme or reason.
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Highlights From My Latest Report On Loyalty Marketing

We have just published my new report on loyalty marketing: "A New Approach To Brand Loyalty."

From the interviews with more than 50 marketing leaders, we have learned that more than 40% of chief marketing officers (CMOs) admit that their brand loyalty programs underperform or produce erratic results, or they simply do not know how the programs are performing. The survey also shows that for most CMOs, loyalty marketing is often seen as a means to an end, not a strategy, and that their approach, while necessary, has unclear objectives and focuses too much on short-term financial goals.

Other key findings from the report:

  • Marketers are primarily focused on customer acquisition (65%), increased brand awareness (40%), and marketing return on investment (39%), as opposed to initiatives addressing customer loyalty, such as increasing customer retention (31%) and customer lifetime value.
  • The majority of respondents indicate that customer retention (79%) and revenue growth (53%) are the key metrics used by senior management to evaluate loyalty marketing initiatives, as opposed to Net Promoter Score (24%) and customer satisfaction (24%).  
  • Lack of differentiation (91%) and promotional clutter (73%) are seen as the main reasons why loyalty initiatives are often not delivering the goods. For more than half of the respondents, loyalty marketing initiatives are not aligned with the brand they are promoting.
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Please Take Our Survey On Loyalty Marketing

Loyalty currently is at the top of my research agenda. Why? I think that marketing organizations have been approaching loyalty with uneven success by adopting established approaches mainly based on points or rewards. Maybe we should look at loyalty from a wider perspective and try to embed it in our efforts to build a better brand experience for all customers. I’d really like to know what you think about this topic.

If you're a senior marketer, I'd appreciate it if you'd take the time to answer here .

What can you expect when you click on that link?

Your answers will help me get a better understanding of how marketers see loyalty initiatives as a component of their plans, if they are happy with their loyalty programs and if there are common pains that marketing organizations share around loyalty. Why? Well, we think that loyalty needs to become a higher priority for marketers to get the best returns in the future, and we think that to do so, we maybe need to rethink our overall approach to loyalty, moving the focus from rewards to a consistently satisfying brand experience.  

At least, that’s what I’m thinking right now . . . you tell me. I look forward to your responses. 

On Boutiques.com And Why Brands Need A Content Syndication Strategy

Last week, The New York Times broke the news that Google is launching a new eCommerce platform targeting fashion brands: Boutiques.com: http://nyti.ms/9DlCu. (Disclaimer: I worked for four and a half years at Google, but I was not involved in this project.)

 The launch pushes the envelope of how technology can help consumers navigate and discover fashion products and trends by:

  • Taking vertical search accuracy to the next level.
  • Using social as a centerpiece of the experience, giving celebrities, fashion bloggers, and ultimately everybody the capability to create a "personal boutique" with the fashion items they love for all to have a peek.
  • Taking advantage of the latest visual search technology that helps users in mixing and matching colors, patterns, and trends.

I think that the approach to product discovery of Boutiques.com is a very interesting development in eCommerce as well as for brand marketers. Why?

  • Boutiques.com offers a much richer way for consumers to explore brands online by shifting the focus from product to the context in which the product will be ultimately used. I would expect Google to target notoriously difficult categories to contextualize like furniture and cars.
  • Data, data, data . . . retail aggregators like Boutiques.com have the opportunity to develop unique insights on demand trends that many brands will be happy to pay for.
  • As cross-brand navigation becomes an easier and rewarding experience, the current cornerstone of today’s brand digital presence — the Web site — will face increasing competition from innovative retail formats, and as a result, brands will need to develop a syndication strategy for their branded content across platforms.
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