The Data Digest: Behaviors Beyond The Gifts

Anjali Lai

The holiday season is one month behind us, and while the celebratory spirit has faded, the effects live on through the gifts we’ve exchanged. If you think the shiny new object you presented to your loved one had its greatest impact when she unwrapped its box, think again. Apart from the occasional toy tossed to the back of a closet, gifts may have a stronger influence on our long-term behavior and lifestyle than we might think —particularly when it comes to consumer electronics.

For example, according to Forrester’s Consumer Technographics® data, consumers who have received a tablet computer as a gift end up using traditional devices like laptops, desktops, and digital cameras less often. Qualitative insight from our ConsumerVoices Market Research Online Community reveals that sentiments of surprise and delight characterize the experience of these tablet recipients; regardless of their initial technology attitudes, most community members find the devices exceed their expectations and inadvertently change their lifestyle:  

According to the National Retail Federation, consumer electronics stores saw more than $23.4 million in holiday sales in 2013 and even more by the close of 2014. However, the more interesting story is unfolding now, as consumers who have leapfrogged the purchase experience begin experimenting with —and embracing —their new devices.

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Five Myths About Mobile Apps

Thomas Husson

Time spent on mobile is skyrocketing. Since about 80% of that time is spent on apps, many marketing leaders have quickly jumped to the conclusion that the only way to reach and engage their customers is through their own branded apps. Wrong! Here are five — often ignored — good reasons for marketing leaders to broaden their mobile approach beyond their own apps:

1.   Branded apps are relevant. Yes, some of them (Starbucks, Nike, and many others) are success stories. But more often than not, branded apps don’t deliver real mobile benefits and engage only a small subset of customers. It's about time marketers connect their apps to their marketing and CRM systems to personalize and contextualize the brand experience. Marketers should launch fewer but smarter apps.

2.   Apps offer real engagement opportunities. Yes, but only for a minority of apps, according to Forrester’s App Engagement Index. Several of the most engaging apps — Instagram, Pinterest, Snapchat, Twitter, and WhatsApp — either don’t have or only recently introduced mobile advertising offerings. Marketers must identify the overlap between the most engaging apps and the most popular apps among their brand’s customer base. Then they have to mix content and context to tell a story that is relevant to customers in their mobile moments. It will not be about ads but about sparking a conversation instead of broadcasting a marketing message. Marketers should select the most promising partners evolving their apps as marketing platforms.

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You Must Solve Two People-Shaped Content Problems

Ryan Skinner

The problems of content marketing apply to you as a marketer whether you’re actually practicing “content marketing” or not.

In any enterprise, there’s a New York Times-scale amount of content getting produced.[i] And your customers are hoovering up content (from a brand or otherwise, in many channels, interchangably) and making decisions based upon it.[ii]

That means you’re in the content business. And the more customers control the purchase path, the more marketers find themselves in the content marketing business.

Which means you will be dealing with the problems content marketing creates. Two of these problems are particular to marketing teams and governance. These are best explained with analogies:

The Menu Problem – How content gets conceived and planned

The Sausage Problem – How content gets made and delivered

The Menu Problem
Marketers don’t have much experience running editorial organizations. This is best reflected in the low percentage of marketers who report that they follow a content marketing strategy.[iii]

A strategy is necessary.[iv] And no one is taking the responsibility to make one.

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More On New Video Consumption Behaviors

Jim Nail

The press coverage of my report "Making Sense of New Video Consumption Behaviors" -- and especially the number they highlighted that 46% of the "core" TV audience watches linear TV in a typical month -- raised a lot of questions (and skepticism!) on the Research Wonks list serve. I figure if they had those questions, others might, too, so here is the response I posted there:

"The media always looks for the headline-grabbing, shocking, number and the 46% watch linear certainly qualifies. I used this number in passing to set up the report so before I address the methodology questions, let me share the core conclusion of the report: consumer video consumption behaviors are different enough across generations that planners need to break out of past planning routines and account for these different behaviors. Toward the end of the report I say:

A goal of 100 gross rating points (GRPs) against an 18-to-49 audience is merely an average across this entire audience; if the placements are skewed to linear TV, it will likely deliver too many ads to the 35-to-49 segment and not deliver enough to the 18-to-34 group.

The 46% number doesn't comment on the number of hours, and the data we capture is very broad here, but even it shows that linear is still the larger number of hours.

In the report I say that linear is the “main dish” that must be complemented with “side dishes” like streamed sources and addressable plus “desserts” like professional short-form video to present a balanced video ad diet. (Yes, I really tortured that metaphor!)

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Can’t Stop, Won’t Stop: Commerce Platform Tech Spending Grows Unabated

Michael Yamnitsky

Behind every online sale is a set of software tools to manage the shopping experience and order process: the commerce platform.

The technology itself is nothing new. Commercial software packages for digital commerce have been around for 15 years or so. However, we’ve seen commerce-related technology investments accelerate over the past couple of years. Companies are replacing legacy systems from the early 2000s with modern platforms ready to meet the demands of mobile commerce and international sales, and the buyer pool is extending from retail to virtually every industry. 

The journey isn’t quite over. Forrester expects growth in commerce tech spending to continue unabated. According to our recent forecast, we expect the US market for commerce platform technology to nearly double over the next five years, growing from $1.2 billion in 2014 to nearly $2.1 billion by the end of the decade.

Peter Sheldon and I developed this forecast to help tech vendor clients identify and assess new market opportunities. For deeper insight into the target markets most ripe for growth, we segment spending projections by target industry (i.e., retail, wholesale, pharma) and quantify the shift from legacy (i.e., on-premises) to modern (i.e., SaaS/hosted) solutions. For more details, see the recent report we’ve published around the forecast results.

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Digital skills are the golden ticket in 2015

Martin Gill

It’s no secret that digital skills are in short supply. In fact, while some three quarters of executives tell us their firm now has some form of digital strategy (however rudimentary), a paltry 16% say they have the skills and capabilities necessary to deliver it. Even though the average eBusiness team’s staffing budget is growing year on year, finding the skills and capabilities to execute on a digital strategy is becoming harder and harder.

Our latest annual organizational and staffing backs this up. Our September 2014 Global eBusiness And Channel Strategy Professional Online Survey reveals:

  • eBusiness Teams Have An Average Of 95 Employees. The average eBusiness team has 95 team members. As would be expected, the larger the worldwide revenue, online revenue, or total employee count is, the larger the eBusiness team is.
  • Technology And Customer Experience Are Still The Hardest Roles To Fill. Technology, customer experience, and business analytics are the hardest jobs to hire for.  Additionally, technology and customer experience are the most outsourced, and technology is the most understaffed.  
  • The Digital Skills Gap Continues To Widen. Digital transformation brings an increased level of responsibility for eBusiness employees who are often leading the charge for company-wide transformation in addition to handling day-to-day operations. As all business becomes digital business, eBusiness teams will have an increasingly difficult time sourcing talent. 
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Digital Initiatives Expose Gaps In Customer Analytics Capabilities

Michael Barnes

In my last blog post I outlined Forrester’s key customer insights (CI) predictions for 2015. Now I’d like to drill down into some of the key barriers to CI effectiveness we’re seeing among Asia Pacific-based organizations. This content was pulled from my recently published report, which Forrester clients can access here.

Core competencies of effective CI pros have typically centered on customer segmentation and campaign performance measurement. When extending these capabilities to digital marketing strategies, the goal is typically to enable more effective customer acquisition and onboarding by extending reach. In other words, digital innovation often simply means “better campaigns.”

But what happens once that process is complete? It’s not enough to have a world-class digital capability for acquiring new customers. Empowered customers expect the same type of seamless experience, improved efficiency, and heightened responsiveness in all subsequent interactions with your brand.

So why so many firms struggling to realize the full potential of customer analytics to effectively serve and retain their customers? I’ll give you four reasons:

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How To Win A Forrester Groundswell Award For Social Reach Marketing

Nate Elliott

We’re now accepting entries for the 2015 Forrester Groundswell Awards. This is our chance to recognize the very best social marketing programs from the past year, and we’d love to give an award to you for your best work. Our deadline for entries is February 20, 2015.

My favorite category is Social Reach Marketing — where we celebrate the best word-of-mouth and social advertising programs. If you used social media to reach new audiences and generated awareness, this is the category for you.

So what’s the key to winning a Forrester Groundswell Award for Social Reach Marketing? It’s not just a question of whether your word-of-mouth program or your social ads reached lots of people — you need to prove your efforts had a business impact on the people they reached.

Our 2014 winners in this category offer perfect examples:

  • B2C Social Reach winner Morningstar Farms increased favorability, trial, and intent to purchase. MorningStar Farms wanted to introduce its meat-free products to new audiences — a classic use case for social reach marketing. So they worked with House Party, Inc. to identify 3,000 influencers and sent them a "party pack" so they could host meat-free barbecues for friends and family. The social activity around the barbecues created a further 29 million impressions that reached 10 million people. But this program didn’t win an award just because it had big reach — it won because that big reach moved people closer to the point of purchase. Specifically, the parties themselves generated 128,000 trials of MorningStar Farms products, and the brand saw a 40-point lift in favorability and purchase intent from partygoers.
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Defining The Business Case For Your Sales Enablement Investment Projects

Peter O'Neill

We are working on a new report on how to prepare a business case for investment projects around the six goals of sales enablement, including investments in technology — there is a massive opportunity to help salespeople through the use of data analytics and content presentation tools, especially around mobile devices. This report is actually being authored by my colleague Kate Leggett, our research coryphaei on CRM projects who usually serves Application Development & Delivery Professionals. I have asked her to focus this report on the needs of Sales Enablement Professionals: marketers or sales training executives who may see the need for these investments but, because they are the business professionals, do not always have a technology budget to spend.

Our buyer data certainly tells us that this is a priority. Investing in sales technology is now the No. 3 priority among businesses. The following survey data was published in another of Kate’s reports. When asked which departments or business groups their firm are focusing on the most when considering their software strategy and investments, the priority sequence was

  1. IT/technology at 50%
  2. Customer service at 26%
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Is Your TV Advertising Plan Like Tuna Noodle Casserole?

Jim Nail

Even when I was a kid, tuna noodle casserole was a bit outdated, a relic of the 1950s, when recipes on the side of a soup can were considered cuisine. But if your TV plan is heavily reliant on linear TV, it's a lot like that casserole: not appealing to younger viewers whose tastes are more diverse.

I certainly read a lot about how Millennials are leading the growth of streamed TV viewing, and I've seen the occasional stat to back it up. It certainly makes sense. But I decided to dig into Forrester's Consumer Technographics® data to flesh out the picture in this report which was just published: Making Sense of New Video Consumption Behavior.

No surprise; the numbers support the generally accepted wisdom of Millennials being the ones most eagerly adopting new ways to view favorite shows: 34% of Millennials (i.e., 18-to-34-year-olds) report watching 4 hours or more of TV online weekly versus only 12% of Gen Xers (ages 35 to 48) and Younger Boomers (ages 49 to 58). Not that Millennials have totally abandoned linear: 55% still watch 4+ hours weekly compared with 73% of the older segments. But clearly, their video diet is more diverse.

The report also confirms that clips and short form content are more popular on mobile devices than full-lengths shows. 

So now we've confirmed what people have suspected all along . . .

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