Dell Is Testing The Waters Of Customer Analytics For Marketers

Gene Cao

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.
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Customer Insights And Big Data Analytics Will Sprawl in 2015

Michael Barnes

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.
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Screen For These Four Criteria During Your Next Agency Search

Sarah Sikowitz

Being asked to pitch for a new piece of business strikes both excitement and fear in the hearts of many agency folk.  When I started research for my latest report, The Fit Test For Strong Agency Relationships, there was no shortage of people who wanted to weigh in on how to make the process better for both CMOs and agencies. 

After many interesting and spirited conversations, I settled on the four things CMOs should screen for when selecting an agency to help drive their business forward in an increasingly competitive and real-time environment.

Check out my report (subscription required) for a how to guide to screen for:

  • Vision: Does they agency’s vision for the future of consumer behavior, technology and marketing align with yours?
  • Experience: Can the agency provide a fresh perspective to your acute business challenges?
  • Passion: What is the agency doing to create a culture where its employees are passionate about coming to work?
  • Process: Will the agency be able to enact change across your organization?

If you are interested in discussing your next agency search or how to get the most from your current agency relationships, please schedule an inquiry with me.  

The Digital Store Platform Will Support The Retail Store Of The Future

Adam Silverman

The in-store shopping experience is increasingly being transformed into a digitally enhanced experience for both the customer and retailer. Technologies such as beacons, retail store analytics, and store fulfillment programs are rapidly changing the definition of how a retail store operates and engages with customers. While 68% of customers use a mobile device while in a store, retailers are just beginning to take an active role in that in-store digital experience.

Forrester believes that, in the future, retail stores that drive convenience, service, and relevant personalized experiences through the use of digital store technology will succeed. Why? Because today. customers show an affinity for digital store technology. In fact, 66% of luxury apparel customers are more likely to shop with a digitally-enabled associate. Those retailers who wait on the sidelines are at risk of maintaining the status quo and may only grow marginally.

In 2015, Forrester predicts that:

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Insurers Will Pour Capital Into New Digital Innovation Ventures In 2015

Ellen Carney

Think that insurance is a sleepy industry? Think again.  In 2014, global insurance companies raced to out-innovate each other. They turned to new digital innovations to fend off threats from insurance start-ups like MetroMile and PolicyGenius and sorted out new ways to remain relevant as a host of well-known brands like Google and AT&T crept into realms historically owned by insurance firms.   We noted this innovation urgency among European and North American insurance firms earlier this year.

In casting an eye forward, we predicted seven events that would change the insurance landscape in 2015. A major force informing all seven predictions is the fact that smart insurers are recognizing that in the need to generate more good ideas faster, they have to radically change how they develop and execute new thinking. That means that insurers need to short cut the industry’s traditional “we’ll build and control” culture and instead go into the market, spot a hot business technology start-up that brings a lot of what’s needed to create a minimum viable product, and partner with them. And the smartest of the smart insurers are employing two unique industry forces—a very regular flow of premiums and the dynamics of equity markets— to get even closer to the source of new ideas:  By investing in them. In 2015, we’ll see more insurance venture capital startups form in the wake of similar VC business launches from insurers like American Family, AXA, MassMutual, and Transamerica.

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The reports of my death are greatly exaggerated.

Rusty Warner

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.

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Facebook Has Finally Killed Organic Reach. What Should Marketers Do Next?

Nate Elliott

After years of pushing brands’ reach lower with one hand (and opening marketers’ wallets with the other) Facebook has finally announced the end of organic social marketing on its site.

In a Friday night blog post the social giant warned brands that “Beginning in January 2015, people will see less of this type of content [promotional page posts] in their News Feeds,” and admitted that brands that post promotional content “will see a significant decrease in distribution.”

It’s not as if marketers could count on much organic reach or engagement anyway. Ogilvy reported that in February 2014 large brands’ Facebook posts reached just 2% of their fans (a number that was falling by .5% per month). And earlier this year a Forrester study showed that on average, only .07% of top brands’ Facebook fans interact with each of their posts. But Facebook’s latest announcement will certainly make matters worse.

What should marketers do now? Today we published a report called “Social Relationship Strategies That Work” that details several options. Two of the most important things brands can do are:

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US Mobile Payments Will Reach $142B By 2019

Denée Carrington

The media frenzy around mobile payments — most recently Apple Pay — has reached fever pitch and led some industry spectators to conclude that a payments revolution is at hand. Not so. The adoption of mobile payments is an evolution — not a revolution — and the evolution is well underway. Although the landscape of mobile payment providers is in an ongoing state of flux, the ecosystem and mobile capabilities are maturing and consumer and merchant adoption is accelerating.  Over the next five years, US mobile payments will grow from $52 billion in 2014 to $142 billion by 2019 with both national brands and local merchants.  Over the next five years, we can expect: 

  • Consumers undergoing a mobile mind shift will create new mobile moments in commerce. Over the last five years, US consumers have adopted smartphones at a breakneck pace – growing from just 19% in 2009 to 66% in 2014.As consumers integrate mobile into every aspect of their lives, they are turning to their mobile devices to get things done wherever they are. Consumers are undergoing a mobile mind shift: “the expectation that I can get what I want in my immediate context and moments of need. Their increasing reliance on their mobile phones gives rise to higher expectations — it has ushered in the emergence of mobile moments in which businesses can find new opportunities to meet or surpass customer expectations in payments and commerce.
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Ready to Write Your Digital Strategy? Read This First.

China Will Become The First $1 Trillion Online Retail Market By 2019

During Tuesday’s 11.11 (Singles’ Day) Shopping Festival, Alibaba set new online retail records: 278.5 million orders with a GMV exceeding RMB 57 billion ($9.3 billion) (43% of which came from mobile devices). This comes on the heels of the world’s biggest IPO earlier this year, in which Alibaba raised $25 billion. Alibaba’s smaller rival JD.com, which raised $1.7 billion in its own IPO, received more than 14 million orders (40% of which came from mobile) on Singles’ Day 2014, an increase of more than 120% over November 11, 2013. Powered by the cash that their IPOs generated and growing demand among Chinese consumers, Forrester forecasts that China will become first $1 trillion online retail market by 2019.

Several factors contribute to this tremendous growth, including:

  • The rise of mobile shopping
  • eCommerce’s increasing wallet share and category expansion
  • Improving logistics
  • Penetration into lower-tier cities
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