Use The Customer Experience Ecosystem Playbook To Drive Differentiation

Paul Hagen

Even companies that make customer experience a strategic priority struggle to implement major long-lasting improvements. That's because they fail to connect behind-the-scenes activities to customer interactions. These firms need a new approach to customer experience management: one that considers the influence of every single employee and external partner on every single customer interaction. Forrester calls this complex set of relationships the customer experience ecosystem.

Healthy customer experience ecosystems create value for all of the actors in the system. To nurture a healthy ecosystem, firms must balance the needs of and engage all of the parties involved. Customer experience leaders need to:

  • Engage employees to meet business and personal objectives.
  • Engage partners to drive results for their organizations too.
  • Engage customers to create experiences that meet their needs, are easy, and are enjoyable.
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Project Glass: Google’s Transparent Product Strategy Is Great Marketing, Too

Sarah Rotman Epps

View this post as it appears on ReadWrite.com.

Google’s Project Glass deserves plaudits for innovation, not just for the device itself but also for the process by which Google is developing and marketing the product. Studying product strategy and marketing as a Forrester analyst for almost nine years, I have never seen a company do what Google is doing: launch an entirely new form factor in such a transparent, inclusive way.

The Google Glass Rollout

A bit of history: Google debuted Project Glass publicly in April 2012, first on Google Plus and then on Sergey Brin at a charity event for fighting blindness later that week. From the beginning, Google X (the R&D lab that developed Glass) asked for feedback from the public on its Google Plus page.

At Google I/O last June, Google demoed videos taken with Glass while skydiving and mountain biking (notably, the top comment on YouTube as I write this article is how Glass will revolutionize POV porn) and offered developers an opportunity to buy an “Explorer Edition” for $1,500.

Google Glass In The Real World

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You Asked, We Answered! Q&A From Our Co-Creation Webinar

Kerry Bodine

On February 14, Amelia Sizemore and I delivered a Webinar about customer experience co-creation. We received so many questions that we couldn’t answer them all during the call, so I’m answering them (in brief) here:

How is co-creation different from human-centered design?

Co-creation is a process of face-to-face active collaboration with your company’s employees, partners, and customers. It’s not an explicit step in a human-centered design process – it’s a methodology that can be applied to any stage in that process.

How does co-creation fit with journey mapping?

Co-creation can help you explore and address misperceptions in your current customer journey maps. For example, you might plot out the customer’s journey as you perceive it, and then bring customers into a co-creation workshop to poke holes in it, point out inaccuracies, and tell you about steps you’re missing.

Once you’ve had customers define what’s really happening today, you can involve them in co-creating the ideal customer journey for tomorrow.

During the co-creation process, is there room for negotiation? What if customers want an experience that just isn't possible from a business perspective?

The term “co-creation” might sound like this activity is focused on defining polished solutions. However, its primary purpose is actually to unearth deeper insights.

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Social Media Spending In Western Europe Is Expected To Reach 3.2 Billion Euros By 2017, But There Is A Catch

Jitender Miglani

The European economy is still struggling for growth after the global recession. While overall GDP growth was positive in 2010 and 2011, it again turned negative in 2012. A slow economic recovery is projected through 2017, but growth is not expected to reach 2007 levels during the next five years. Despite this weak macro-economic environment, spending on social media has continued to grow in Europe and will continue to see double-digit growth over the next five years as well. Why?

  1. The continuous shift of ad spending from traditional media to online media. The megatrend of the past decade — advertising dollars shifting from offline to online media — is expected to continue in this decade as well. Internet advertising’s share of overall advertising spend grew from 1% in 2001 to 22% in 2012 for Western Europe. There still exists a significant gap between the time spent online by consumers and the share of online spend in overall advertising spend, but this gap will decrease over the next few years with the continued shift in spending.
  2. Social media’s increasing share of online ad spend. Currently, display ad spending is nearly four times higher than social ad spending in Western Europe, and search advertising is eight times larger. However, social will experience faster growth than display or search in the coming years. Social’s share of overall online spending will increase as companies spend more to engage with consumers on social media platforms for marketing and sales initiatives.
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When Should You Favor Customer Experience Over Profits? Never!

Harley Manning

Last month, I was in Europe with a group of customer experience professionals from various divisions of the same large company. Although their expertise was at varying levels, no one was clueless, and everyone seemed highly motivated. About halfway through the all-day session, one of the attendees asked me a question that I’m going to paraphrase here.

After some preamble about the pressures the company was under to increase revenue and profits, he asked, “Given that, when should we put aside the need for profits and fund customer experience projects instead?”

His question surprised me. And I clearly surprised him when I responded, “Never.” I let that hang in the air for a moment so that it could sink in. Then I added, “You should never put aside the need for profits when you fund customer experience projects.”

I could see that people were a little confused, so I went on. “You should only fund customer experience projects that will produce profits. That’s why you do those projects in the first place. And if you have other kinds of projects that will produce better business results, do them instead. But if you take the time to create the business models for your CX projects, you’ll probably find that they’ll produce better ROI than most of the initiatives they’re competing against.”

To be clear, the guy who had asked the question seemed very bright and had a lot of expertise in his area (metrics and measurement). But he had fallen into the same trap that so many customer experience advocates fall into. He wasn’t thinking of improving customer experience as a path to achieving business results. Instead, he was thinking of it just as a generally good thing to do for customers (which it is, but that’s not why you should do it).

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The Data Digest: Using Internet-connected Devices While Watching TV

Reineke Reitsma

On Sunday, February 24, TVs around the world were tuned to the 85th annual Academy Awards show (aka The Oscars). While the very first Academy Awards ceremony took place in 1929 — with guest tickets costing only $5 and fewer than 300 people attending the event in the Hollywood Roosevelt Hotel’s dining room — today the event is broadcast live to millions of fans across 200 countries. But The Oscars’ impressive growth in viewership is not the only thing that signifies the changing times; the technological advances that the awards program has embraced position the event as a leader in the modern-day media consumption landscape.

In 2011, Oscar.com’s supplementary footage offered an overwhelmingly popular second-screen viewing experience; it won an Emmy Award for Outstanding Creative Achievement in Interactive Media. Several weeks ago, the Academy launched a second version of the official Oscars app that engages consumers all year round but provides exclusive real-time updates during the dazzling event itself.

The Academy’s mobile development, which allows consumers to connect with supplemental real-time content for an enhanced entertainment experience, is a timely one: Forrester’s North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US) shows that 69% of US online adults use Internet-connected devices while watching TV today. Not surprisingly, younger consumers are most likely to turn their devices into TV companions: 61% of 18- to 24-year-old multitaskers use a mobile phone to interact with programming-specific content.

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Penny Arcade's Influence On Tech Products Versus Forrester Research

Zachary Reiss-Davis

Your perpetually-connected customers are seeking information from a much broader range of sources than ever before. If you just work with the same traditional influencers you have for years — industry analysts and mainstream media — your message risks getting lost in a sea of noise.  Instead, leading marketers are identifying key online influencers for their products and marketing to them specifically.  These influencers are highly specific, and are not the same for any two products or solutions, or even two different audiences of a single product. 

The value of reaching out to a non-traditional list of influencers was illustrated this week by Microsoft’s marketing campaign for the new Surface Pro. 

Mike “Gabe” Krahulik is the author of the long-running Penny Arcade, a popular webcomic about video game culture.  He said on Twitter he was “interested in the Surface Pro,” and due to the target audience and popularity of his comic, Microsoft sent him a demo unit.  Gabe’s not a technology journalist; he’s not an industry analyst; he’s just someone with a passionate and tech-savvy following — a following which includes perpetually-connected customers who influence technology purchasing.

What happened next? Gabe wrote a full-length, relatively positive, review of the Surface Pro and its applications for media professionals that was not only read by his audience, but became a top link on TechMeme, a tech news aggregator.

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Smart Move: Facebook buys Atlas

Nate Elliott

Facebook just announced that it's buying marketer-side adserver Atlas from Microsoft. I think it's a great move.

It's always been clear that for Facebook to realize its potential, the company would have to start powering advertising beyond its own site. Facebook has collected an incredible amount of data about people's affinities and preferences, but it lacks the brand ad units to help marketers effectively leverage that data. Although the statement announcing the deal focused on Atlas' measurement tools rather than its ad targeting technology, we expect that Atlas will soon be using Facebook's data to target sponsorships, in-stream ads, and other rich ad formats across the entire Web — and that's big news. The question now is how quickly and successfully Facebook can integrate its data with Atlas' tools, and whether they can avoid a privacy backlash as they do so. History suggests they'll struggle on both counts.

If you want to hear more about how Facebook can turn its affinity data into something that's useful for marketers, stop by my SXSW session, Affinity, Intent & The War For Marketing Dollars, at 5 p.m. on March 10 at the Four Seasons.

Rough But Open Road Ahead Of Barnes & Noble

James McQuivey

Today, Barnes & Noble revealed the details behind the company's prior warnings that things in the holiday quarter didn't go well. Specific weak spots are appearing everywhere for the company, in its retail business, in its college store business, and in its Nook device business. Even the growth in sales of media for Nook devices, at nearly 7% over the same quarter in the prior year, was not growth enough to inspire confidence. Especially given that future sales of electronic content depends on robust sales of the hardware itself. 

The company's dilemma will one day be a classic case study of the effect of unrelenting digital disruption, both how a traditional company can innovate under digital pressure as well as how hard it is to steer such a traditional ship in a digital direction. At this point, no single recommendation, no matter how digitally disruptive, will fix the company's problems. But once the company gets through the widely discussed option of splitting the company into two units -- the retail arm (with website) that company chairman Riggio wants to buy and the Nook unit (with college business) that Microsoft and academic publisher Pearson are already invested in -- there will be a chance on both sides to practice a fundamental tenet of digital disruption: openness.

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Brand As Publisher Or Brand As Newsroom? My POV: Brand As Storyteller.

Tracy Stokes

Oreo’s recent quick-thinking “Dunk In the Dark” response to the power outage at this year’s Super Bowl put the spotlight on real-time branded content and reinvigorated the discussion about how brands need to become not just publishers but newsrooms. What’s driving this need? Today’s perpetually-connected consumers — 42% of US online adults and 37% in Europe — can engage brands at any place, any time, and at any velocity. Because of this, the sheer volume of creative content that brands must now churn out is forcing marketers and agencies to reexamine how they think about — and how they resource for — content. This challenge is not to be underestimated. But before you think about scale and real-time response, think about the story you want to tell to create brand advantage. To do this well, you need to first be true to yourself, second know your audience, and then engage your customers with a good story:

  • Know who you are. There’s a lot of content out there you can develop or share. So where do you start? Start with your brand. Guide your content development by your brand’s North Star, and make sure there is a logical connection between the content and your brand. 
  • Know your consumers. Figure out what your consumers need. What do they care about? What are they passionate about? Scott Monty, global head of digital for Ford, recently commented that Oreo succeeded at the Super Bowl: “Because they related to us, not because they forced us to relate to them.” 
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