Customer Experience And Marketing: Can’t We All Just Get Along?

Kerry Bodine

In my last post, I promised I might have a thing or two to say about marketing. I just didn’t realize it would be so soon!

Last week, Peter Merholz from Adaptive Path posted a rant entitled, "The Pernicious Effects of Advertising and Marketing Agencies Trying To Deliver User Experience Design." In it, he calls ad agencies unethical, poisonous, and “soulless holes” and extols the virtues of user experience (UX) design firms. (Go have a read — you don’t see polarizing tirades like this every day.)

On the surface, this argument pits agency against agency. But I think the issue goes much deeper: the growing intersection — and tension — between customer experience and marketing. Here’s how I see the landscape:

  • Neither customer experience nor marketing are going away. Customer experience is gaining importance in companies — we can see this in the rise of the chief customer officer (CCO) role, which several years ago was virtually nonexistent. But the rise of one discipline doesn’t mean the complete and utter downfall of the other. Even companies like Apple and Zappos — the poster children for great customer experiences — advertise.
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Suits On The Floor, Call Center Disconnect, And Boarding Idiots

Paul Hagen

Most companies have the intention of providing excellent customer experiences. However, most find it difficult to translate those intentions into the cultural fabric of their companies. I like to give companies feedback on how they’re doing — and to see how customer service people deal with feedback. Three recent incidents with employees made me question how well these firms were making this translation:

  • Suits sitting on the floor. Finding an available electrical outlet in O’Hare Airport is a hassle. While looking, I couldn’t help but notice the number of United Airlines customers sitting on the floor, because the outlets in the main thoroughfare were the only ones available . . . some of those people were even in suits. One would imagine that an employee in a truly customer-centric company would be mortified by seeing their customers sitting on the floor like that. When I approached the United Airlines customer service employee to pass a message on to her superiors about it, instead of seeing the problem, she merely gave me a litany of reasons why it wasn’t United’s issue.
     
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Winners Of The 2010 Forrester Groundswell Awards (Consumer International)

Nate Elliott

Social media adoption has grown in leaps and bounds over the past few years, and not just in North America. Did you know that Italian and South Korean online users are more likely to engage with social media than American online users? Likewise, most of the European countries we study have a higher percentage of Conversationalists than we find in the US.

Despite this, most industry conversation around social media tends to focus on the US — and over the past few years nearly all of the entries we’ve received for the Forrester Groundswell Awards have talked about US-focused social media programs. To help recognize the companies that are pioneering the use of social media outside the US, this year we introduced an international category to the awards.

This week at Forrester's Marketing and Strategy Forum EMEA 2010, I was proud to present the winners of the inaugural Forrester International Groundswell Awards, which you’ll see listed below. I was thrilled with the entries we received. We saw dozens of quality entries from around the world, and in the end recognized finalists and winners from four continents, as well as a number of global efforts. I hope that other companies learn from — and rise to the standard of — the entries we saw this year; and I hope that our 2011 international category sees even more — and even better — entries.

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The Data Digest: How Consumers Complain About Poor Service

Reineke Reitsma

Last week my colleague Andrew McInnes blogged about his report "How Consumers Complain About Poor Service",  in which he analyzed Forrester’s Technographics® data to find out how consumers provide feedback about bad service experiences.

His big takeaway is that consumers are still much more likely to provide feedback directly to companies through more traditional channels (like surveys, phone calls, email, and postal mail) than provide feedback through social channels. More specifically, 71% of US consumers who had unsatisfactory service interactions in the past 12 months provided feedback through at least one traditional channel (including email), while only 16% provided feedback through any of the social channels we asked about.

Despite the buzz around social media, this data shows that the majority of customer feedback comes directly to companies via surveys, phone, and email. Organizations should implement sophisticated voice-of-the-customer programs that use text analytics and other technologies to mine this information to better understand customers' needs and the issues they're dealing with, identify best practices, and come up with improvements whenever possible.

Top 10 Web Design Fixes For Improving Business Results Workshop (December 7th, San Francisco, CA)

Ronald Rogowski

Even the best Web sites have usability flaws that stop customers from buying products or services, finding information, and getting help. Yet many of these problems are easy to find and not much harder to fix — if you know what to look for. And the benefits of fixing these common usability problems can be huge.

If you are looking for a fast, objective way to spot the common — but serious — design problems that hurt online business performance, please join me in San Francisco on Tuesday, December 7th, for Forrester’s Top 10 Web Design Fixes For Improving Business Results Workshop.

This one-day intensive session helps participants uncover 10 Web design problems that afflict more than half of the 1,200+ sites tested by Forrester, are easy to spot, and produce ROI when fixed. During this Workshop, participants will learn and apply the same objective techniques Forrester analysts use to find well-known usability problems for research and for clients. These methods apply to any type of site, including B2C or B2B Web sites, extranets, and intranets.

This promises to be an educational, interactive, and entertaining way to learn the tools that will help you find and fix problems that frustrate your customers and limit your business performance. For more information, and a detailed agenda, please visit the event page.

On The Certain Economics Of Relegating Paper Books To The Margins Of The Business

James McQuivey

Time to get my hands a bit dirty. Last week I posted an eBook forecast with a brief explanation of why the book business may complete its digital revolution more quickly than other media businesses have. Turns out this assertion was more difficult to hear than I anticipated and I got some very insistent (and worth reading) comments. The discussion that ensued both on the blog and outside of it was very complex, this is not a simple matter. However, there are parts of it that are very simple that I have to clarify, even though it means rolling up my sleeves a bit. Allow me to draw into this discussion John Thompson of Cambridge University who gave a very worthwhile interview to the Brooklyn Rail this month to discuss his recently published analysis of the book industry,  Merchants of Culture. I will refer to just one of his specific comments:

"There are many people who just love books and they love the ideas that are expressed in books; they love the stories that are told through books and all of it. They’re very attached to it.... They cherish the book. And they believe that this is an artifact that they want in their lives. And some of the technological commentators in this industry just completely miss this point."

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How Zappos Brought Me Back To Forrester

Kerry Bodine

In 2008, after nearly four years as an analyst on Forrester’s Customer Experience team, I left to explore the world of the Mad Men. I led the interaction design team at a top-20 advertising agency in Boston and, after a move to San Francisco, advised marketing agencies on things like their corporate strategies and go-to-marketing messaging.

While it was an exciting time for me, I kept coming back to a belief that I’ve held for years: A great customer experience is truly the best marketing.

And then I read Tony Hsieh’s Delivering Happiness, the story of Zappos’ rise to one of the best-known (and, some could argue, most successful) customer-centric companies. I devoured the entire book, cover to cover, on a flight from JFK to SFO. I dog-eared pages and highlighted passages. I even ignored a really great in-flight episode of 30 Rock in order to keep reading. And as we pulled into the gate in San Francisco, I realized that I needed to return to my passion: customer experience. Ultimately, what really makes me happy is helping companies make their customers happy.

And so here I am. (Thanks, Tony!)

I’m thrilled to be back on Harley’s team and doing a job I love. Here are the types of things I’ll be exploring through my research:

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Insights From US Hispanic Behavior Can Drive Success In The Mexican eCommerce Market

Roxana Strohmenger

In recent years, there has been an increase in the number of US-based companies entering or planning to enter into the Mexican market. For example, Best Buy has rolled out an aggressive plan to invest $400 million to open 20 stores in Mexico over a three-year period. Lowe’s announced earlier this year that it spent roughly $40 million to open two stores in Monterrey, Mexico. And Target is setting its sights on expanding into Mexico, with goals to enter into the market no later than 2013.

Without question, there are many challenges with entering into a new market, such as understanding the country and cultural norms that influence shopping habits, determining how to transfer and modify successful strategies of a winning brand in one country to another, and understanding what the current size of the new market is as well as its growth potential. However, despite these hurdles, my colleague Tamara Barber and I contend that US-based retailers can use the factors that influenced the growth of the US Hispanic eCommerce market as a guide for developing effective growth strategies in Mexico.

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The Co-operative Bank Tops Forrester's 2010 European Bank Customer Advocacy Rankings

Benjamin Ensor

A few months ago I blogged about how the UK’s Co-operative Bank had come top in our UK Bank Content & Functionality Benchmark. The bank has now done it again by coming top in our 2010 European Bank Customer Advocacy Rankings.

Customer advocacy is the perception among customers that the bank does what’s right for them, not just what’s right for its own bottom line. In every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.

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The Data Digest: Forrester's Global Online Population Forecast 2009 To 2014

Reineke Reitsma

In the past five years, the global Internet population has grown from about 1 billion to 1.6 billion, and this growth isn't about to stop any time soon. However, the future growth isn't equally spread across regions. Forrester's ForecastView model shows that the Internet population will increase in every country in the world over the next five years, but emerging markets will grow at a faster pace. In 2014, one-third of Internet users will come from Brazil, Russia, India, or China (the so-called BRIC countries).

The sheer number of online buyers and the increased online spending per capita will position several emerging markets to challenge North America and Europe from an eCommerce perspective. Companies that want to capture this growing number of online users — and their growing funds spent online — will need to look beyond the markets of North America and Europe and approach their online strategies much more globally.

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This graphic comes from the Forrester report 'Global Online Population Forecast, 2009 To 2014' which is available to Forrester clients. A full model with detailed figures of Internet subscribers and penetration rates for more than 60 countries is available to our ForecastView subscribers.