This is a roll-up of all Forrester blogs written for Marketing & Strategy Professionals. Role-specific blogs are listed below. Visit Forrester.com to learn how we make Marketing & Strategy Professionals successful every day.
The power of celebrity is like catnip for marketers. Celebrity or athletic association adds an aspirational edge through outright paid endorsement or coveted “as seen on” editorial placement. In the world of beauty, brands from Cover Girl to L’Oreal add a sheen of glamour to their brands through celebrity spokesmodels. In the field of sports marketing, brands from Nike to Gatorade borrow equity from high-powered athletes to bolster their athletic credentials. And in retail, mass retailers from Macy’s to Sears offer eponymous product lines from celebrities as diverse as Sean Combs to the ubiquitous Kardashians. Q scores are tracked, contracts are negotiated, and millions of dollars exchange hands. But is it worth it?
If you ask consumers how important celebrity endorsement is to their brand selection, most will vehemently deny it. In fact, our North American Consumer Technographics® data shows that only 19% of consumers rate celebrity or athlete endorsement as important when picking a brand. But most people will probably tell you that advertising doesn’t affect them either. So we decided to dig a little deeper. Forrester conducted a driver analysis in the big-box retail category to identify which category attributes and behaviors have the most meaningful impact on key outcomes like being a more trusted or essential brand. Our research showed that in big-box retail, celebrity or athletic endorsement:
I remember my first day at high school. Yikes it was scary. The older kids were BIG! The teachers were BIG (the phys ed teacher was even a little mean), the school was BIG . . . Everything felt so BIG! But as the year ticked by, l became familiar and comfortable with my classmates, teachers, and the school -- the place shrunk to a more comforting size.
Today marketers feel about data as I did about my first day at big school -- it’s BIG. There is lots of it, and it’s coming at them from many directions and in many forms. But data does not feel so big and daunting to the marketer who recognizes their customers buried in the fog of big data. The fact is, customer recognition is the key for marketers to make sense of big data; and it is at the heart of all effective marketing activities. I write about this in my most recent report: “Customer Recognition: The CI Keystone.”
So what is customer recognition?
Recognition associates interactions with individuals or segments across time and interactions. The strength of recognition is gauged on its ability to associate interactions to anything from individuals to a broad segment; and to persist those associations across different touchpoints over time.
Keys are needed for recognition at touchpoints. There are many types of keys, ranging from IP addresses, to cookie-based TPIKs, to phone numbers and customer account numbers. At Forrester we call them touchpoint interaction keys (TPIKs)
We’ve probably all heard some story about over-the-top customer experience in our day. Like the story about the family on vacation at the Ritz Carlton, Bali. The family of a child with a severe food allergy was on vacation. The food they’d brought for their child spoiled en route. When they arrived, the manager of the hotel consulted with his executive chef who was unaware of any shops on the island that stocked the specialty items that had spoiled. But he did recall a shop in Singapore, where his mother-in-law lived, which stocked food the child could safely eat. So what did he do? He called his mother-in-law had her get the items and jump on a plane to Bali. For those of you who are curious, that’s a 3-plus-hour flight!
Stories such as these stand out for obvious reasons. But they don’t scale. That’s why companies need to focus on delivering great experiences, day in and day out, with products and services that meet customer needs, are easy to use, and are enjoyable.
It’s this last piece — enjoyability — that’s so hard to pin down. Why? First off, enjoyability is subjective. What one person thinks of as fun, another person thinks of as foolish. Skydiving, anyone? (I’ve tried it and think it’s kind of cool, but maybe it’s not your thing.) What’s more, many of the things that we think benefit customers, such as providing seemingly unlimited product configurations or service choices, are actually the opposite of enjoyable because they cause anxiety and hurt the decision-making process. And to top things off, it’s hard to sustain an enjoyable experience from start to finish. Ever been to a theater to watch an otherwise-satisfying movie only to be disappointed with the ending? How about being treated like royalty when considering signing up for a service only to be disappointed by how you were treated once you became a paying customer?
You don’t need to be a fine woodworker to sit in a chair. An inability to precisely construct an angled mortise and tenon joint does not preclude you from resting your feet. Similarly the time is rapidly approaching where you won’t need to be a marketing scientist to deploy analytics. Ignorance of neural networks will no longer impede your ability to use them to improve a campaign. The democratization of predictive modeling or other trends involving the intersection of customer analytics and marketing technology is much of what I will cover for Forrester Research.
In my new role as a senior analyst I look forward to helping Customer Insight professionals increase marketing and business returns through becoming more intelligent enterprises. This might involve guiding clients on technology decisions, organizational strategy, or benchmarking to their peers. What topics would you like to see me cover?
Only days before the New Hampshire primaries, an article appears on the Des Moines Times-Courier website: “Candidate Chris Christie Hiding Past As Exotic Dancer,” and quickly goes viral, appearing in millions of Twitter streams, Facebook feeds, and email inboxes. Most people see the headline and shake their heads – “Politicians!” As a result, Christie loses the New Hampshire primary, even though the New York Times had revealed that the Des Moines article was a piece of native advertising paid for by a competitor. Christie’s campaign crumbles – from presidential favorite to footnote.
This is the kind of native advertising horror story that’s got old-school journalists hiding under their beds. They ask: “What happens when people don’t know who paid for the content?”
The example, and any horror story like it, is hyperbolic. It’s not going to happen. (And if politicians wanted to tar an opponent, there are far slicker ways to do it.)
In fact, native advertising’s been going on for decades. The original soap operas were native advertising. So are those boring “Invest in Tackyvania” inserts in The Economist.
The journalists and editors are worried about the skyrocketing popularity of native advertising online for a couple of reasons:
1) Online, it’s often not clear what’s a native ad and what isn’t.
2) They worry about how it reflects on their editorial content (and authority).
I spent several days in Buenos Aires last week which was fantastic – great fun and really helpful in terms of understanding what’s happening in the eCommerce market. Wednesday was the annual eCommerce Day event: It was packed with well over a thousand people in the audience. I presented on global eCommerce trends that are set to impact the market in Argentina, and also met with a number of online retailers.
A handful of takeaways from these conversations:
eCommerce in Argentina is still at an early stage. There is tremendous interest in driving eCommerce in Argentina, but the real growth is yet to come. Today’s roughly $2B online retail market is dominated by MercadoLibre, with traditional retailers like Falabella, Garbarino and Walmart increasingly making the online channel a priority. Newer entrants like Dafiti are also carving out a niche in categories such as apparel.
Intra-regional cross-border eCommerce is very limited today. There was much discussion about cross-border eCommerce with China, but today little cross-border eCommerce exists within Latin America itself. Online retailers are anxious to tap into consumers in other countries in the region, but few have made concerted efforts in this area.
Most mobile initiatives are relatively new and focused exclusively on smartphones. Most online retailers’ mobile initiatives are in their infancy in Argentina. Many larger retailers are just rolling out mobile offerings (both apps and websites), and virtually all are focused on smartphones rather than tablets.
Interest in customer experience at pharmaceutical companies has shot up in the past few years. This came home to me more than a year ago at our 2012 Forum For Customer Experience Professionals East, where every meeting I took was with one or more decision-makers at pharma companies.
But there’s another reason why I’m looking forward to Tony’s speech. In talking to him during the run-up to our event, I’ve gotten a good look at what he’s doing and why it matters to so many people. Because let’s face it: The prescription drugs we take go right to the most important experience in most of our lives — our health.
Why does customer experience matter to a life-sciences company like Lilly, and what is it doing to make it better? We recently put some of these questions to Tony, and you can read his answers below. I hope you enjoy them and that I get to see you in Los Angeles where we can all hear Tony in person.
Q. When did your company first begin focusing on customer experience? Why?
A. Lilly’s focus on customer experience actually can be traced back to the company’s beginning in 1876 when Colonel Eli Lilly went against the trend of the time and focused on developing products of the highest quality to provide the best experience for his customers.
eCommerce is becoming more globally pervasive. Therefore, retailers must continually adapt their expansion strategies to reflect changing retail consumption behaviors. But what makes a country ready for eCommerce? When making investment decisions, it's certainly important to get the facts about macroeconomic conditions, Internet access, and consumer market size. However, there is much more driving the eCommerce market.
In order for firms to get a full view of a country’s online retail readiness, they must also consider its online activity, consumer payment behavior, and postal courier infrastructure. In a recent study conducted by Forrester's ForecastView team, we investigated 55 global economies to discern the readiness of each eCommerce market. The underlying quantitative framework captures 25 variables under four pillars: consumer behavior, merchant adoption, macroeconomic conditions, and the retail opportunity. The analysis is distilled in the Forrester Readiness Index: eCommerce (FRI).
Tag management tools are much more than the management of tags. Strategic use can:
give control of digital marketing campaigns to marketers – relieving significant IT burden,
significantly reduce digital marketing implementation and operational costs,
garner support for digital marketing programs – even in highly regulated firms – by offering detailed multi-stakeholder visibility and control of scripts and digital data,
reduce the “stickiness” and dependence on digital technology vendors, and
enable digital data syndication, which in turn drives dynamic segmentation and bottom-up attribution programs.
Forrester is currently assessing the tag management capabilities of top global brands, advising on their strategies and guiding them with their digital marketing road maps. Also; tag management research is ongoing with a few papers due for release later this year.
Mobile is fundamentally changing how businesses need to think about customer and employee engagement. Why? Consumers and employees expect anywhere anytime access to information and services in their moment of need. They expect highly contextual or relevant experiences that allow them to complete tasks quickly.
Mobile strategies have moved well beyond shrinking desktop experiences down to small screens.
I get asked a lot, “Well, who is doing this well?” My answer: “Very few companies.” Sophistication in mobile services has become less obvious. Companies with a solid vision are working hard in the background to put infrastructure in place – to create a services layer and APIs – that allows access to their core. As Scott Wilson of United so eloquently said, “We needed a single source of truth.” I would add that you need one ready to deliver real-time information in a consumer's or employee’s context. Expect it to handle a lot of volume as well.
When it comes to benchmarking, too many business professionals are sitting in their inflatable kayaks on the surface of the Gulf of Alaska. They can’t see below the surface to see what their competitors are doing. They treat mobile as a project rather than a product.