Companies are in a unique position today, as they have an unprecedented ability to collect information about consumers through various channels and thus create rich and deep profiles of their target customers. However, what is considered a goldmine of information has actually highlighted many pain points, including:
Consumers are being bombarded with multiple surveys across different channels by different departments. As a result, consumers feel more and more that they are being badgered for information about themselves.
A siloed department structure creates little incentive to collaborate across departments. Thus, repetition of similar projects by different departments occurs, contradictory results can be communicated internally, and learning based on a department’s successes and failures from past projects is not communicated across departments.
Yesterday I attended the first day of the ESOMAR Shopper Insights Conference 2011 in Brussels, and I was pleasantly surprised by the innovative thinking by the presenters, both in the methodologies used and in the way they look at the Market Insights profession.
There were a number of presentations on innovative methodologies, such as eye-tracking. All of them had cool videos to share and gave insights into how these methodologies can be used to better understand shopper behaviors. The presentation that really stuck with me, however, was from Stephanie Grootenhuis, from Kraft Foods International, who talked about the “Incite to Action” initiative.
She came on stage, and said: "All the presentations until now have talked about understanding shoppers better and the difficulties you encounter when doing (global) research. But to be honest, that's not my biggest challenge. What my team struggles with is HOW to share our knowledge and communicate our findings effectively into the organization."
Forrester has just released its US Online Retail Forecast, 2010 to 2015, and EU Online Retail Forecast, 2010 to 2015. It is clear from our forecast data that online sales in the US and EU will continue to rise as users become increasingly comfortable buying in the online space. In 2010, US online retail sales grew 12.6% to a total of $176 billion. Similarly, EU online retails sales grew 18% in 2010 to a total of $81 billion. The US and EU markets are projected to grow 12% and 13%, respectively, in 2011.
Why is retail eCommerce continuing to grow?
There is an increase in overall web buyers. There were 5.5 million new US online shoppers who accounted for 30% of the total eCommerce sales. The EU online population grew by 13.4 million users in 2010.
Web buyers are spending more online. 70% of growth in US retail eCommerce sales came from existing shoppers spending more. Similarly, EU average online spend has increased 8% from 2010.
There is an increased level of penetration for online retail. Mobile devices and the proliferation of touchpoints have contributed to the US online retail penetration growing to 8% in 2010. The EU is also seeing steady growth; Forrester is estimating 10% penetration in the UK by 2012.
Forrester’s US Online Retail Forecast, 2010 To 2015, launches today, reporting strong growth in the last year. “The Great Recession” appears to have ended as sales charge ahead, driven by ubiquitous connectivity and an increasing familiarity with the Web. Growth was driven by a few key factors:
Several million new web buyers. In 2010, 5.5 million shopped online for the first time.
Greater spend per buyer online. 70% of the overall growth came from existing shoppers simply buying more.
Online penetration of total retail sales. This rose to 8% during 2010.
According to our forecast, the web channel will grow steadily through 2015, with an emphasis on customer empowerment. Bricks-and-mortar stores will continue to be hampered by this web growth as people become more in tune with the Web and less interested in traffic and long lines. We’ll be continuing our online retail research with our long-standing partnership with Shop.org this year. Next up: The State of Retailing Online report in Q2. If you’re an online retailer, contact me at firstname.lastname@example.org to participate in the survey and receive the report.
We recently published the results of our annual survey of the members of our customer experience professionals peer research group. The group is interesting in that they’re pros: They all work to improve the customer experience delivered by their organizations.
This year, their responses are encouraging — but also very sobering.
Here are some of the encouraging data points. A whopping 86% said that customer experience is a top strategic priority at their company. More than half work at companies that already have a single set of customer experience metrics in place across the entire company, and another 20% said that their firms are considering this move. What’s more, almost as many respondents said that their companies have a voice of the customer program in place, and another 29% said that their firms are actively considering a voice of the customer (VoC) program.
At this point I’m thinking, “Fantastic! Their companies care about customer experience, and they are implementing mission-critical programs that will help them succeed!”
Plus they’re coming from a good place. When we asked our panelists how they’d describe their executive team’s goal for customer experience, 63% of respondents said that their senior executives want to be the best in their industry, while another 13% said that their execs shoot higher and want to be seen as a customer experience leader across all industries.
But saying that raises the question: If the number of fans or followers you have doesn’t tell us whether you’ve succeeded as a company, then what does it tell you? And if your CEO shouldn’t be worried about the number of wall posts you’ve generated, then who should be paying attention to this number?
Since last summer, I’ve been using a structured model to help my clients focus on delivering the right social media marketing data to various stakeholders inside their organization. Social media programs throw off so much data that the key to measuring and managing your programs well is focusing each stakeholder on just the pieces of data that are relevant to helping them do their jobs. If part of your job is measuring the success of your social media marketing programs, then you need to start segmenting the stakeholder groups you’re providing that data to and tailoring the type of metrics, the volume of metrics, and the frequency of reporting you provide them.
In addition to the sessions mentioned by Brad Holmes and Brian Lambert in their blog entries, we dedicated an entire track to sessions that discussed how the decisions made by portfolio teams relate to the efficiency (or not) of sales teams.
Participants in the portfolio track all consider themselves to be sales enablement professionals, but have job titles that include product management, sales operations, competitive intelligence, and marketing communications.
Despite this wide range of responsibilities, each person shares a common goal of improving their areas of responsibility in ways that improve sales efficiency.
Attendees who look at sales enablement through a portoflio lens expressed the following thoughts about the Forum:
We feel empowered by seeing and hearing so many sales enablement professional come together.
We need to make our company executives aware of the industry changes in sales enablement.
We have entrenched behaviors that we need to overcome (i.e. muscle memory).
We face a complex amount of change and need a way to communicate it clearly.
We need to understand how e can overcome organizational silos that increase complexity.
Mondy Beller, the VP of eCommerce for PacSun, spoke just before I did at the Responsys event about the integrated marketing programs PacSun is developing. Here are the lessons I learned from her:
Your biggest priority should be to build a unified customer database. Beller gave some great examples of multichannel campaigns — running email or Facebook messages that match with customers' recent purchases or daily promotions that are running in store. None of these work without a single customer database that stores all of the customer information.
Develop trust with your customers. Beller said PacSun is lucky because its young target audience is both technology savvy and wants to engage in an interactive relationship with PacSun. This makes it easier for PacSun than for other brands to gain customer permission, registrations, and behavioral data. But PacSun still works to nurture trust with its audience. It uses QR codes in stores to get shoppers to log products they browse or to register for mobile promotions. It will also be using iPads to help sales reps show fashions or register customers for email or Facebook while they are in the store.
Use Facebook for research and relationship building. PacSun certainly uses Facebook to distribute promotions. But it also uses it to converse with customers. It reads and responds to comments fans post. It posts questions and conversation starters. And it listens to the community to test product ideas, pricing, and the buzz about current promotions.
I spoke last week at Interact 2011, a Responsys-sponsored event attended by about 600 of its current clients and prospects. The theme of this year's event was "The New School of Marketing," a framework Responsys has developed to help marketers better connect with empowered consumers. The fundamental principles of New School Marketing are that it is: permission-based, automated, cross-channel, and focused on engagement. See what Responsys thinks will change from current approaches to those that are part of New School Marketing:
I found the event to be extremely well produced (not just because it featured a fantastic performance by the iconic Cyndi Lauper -- see photos below) and full of some great marketer stories which I'd like to share in my next several posts.