The State Of Customer Analytics 2012

Srividya Sridharan

I’m excited to announce that our new research on how firms use customer analytics was just published today.  The new research reveals some interesting findings:

  • Customer analytics serves the customer lifecycle , but measurement is restricted to marketing activities. While customer analytics continues to drive acquisition and retention goals, firms continue to measure success of customer analytics using easy-to-track marketing metrics as opposed to deeper profitability or engagement measures.
  • Finding the right analytics talent remains challenging . It’s not the just the data. It’s not the just technology that hinders analytics success.  It’s the analytical skills required to use the data in creative ways, ask the right questions of the data, and use technology as a key enabler to advance sophistication in analytics.  We’ve talked about how customer intelligence (CI) professionals need a new breed of marketing scientist to elevate the consumption of customer analytics.
  • CI professionals are keen to use predictive analytics in customer-focused applications,  Forty percent of respondents to our Global Customer Analytics Adoption Survey  tell us that they have been using predictive analytics for less than three years, while more than 70% of respondents have been using descriptive analytics and BI-type reporting for more than 10 years. CI professionals have not yet fully leveraged the strengths of predictive analytics customer applications.
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Officially Introducing The Always Addressable Customer

Melissa Parrish

Today, at long last, we published our report officially introducing the always addressable customer, though I (and others) have been talking about it for a while now. Just to refresh your memory, always addressable customers are people who own and use at least three web-connected devices, go online multiple times per day, and go online from multiple physical locations — and it's already 38% of US online adults.

This report was a true collaboration among many people on the Interactive Marketing research team, including Lizzie Komar, who was a pretty new Research Associate at the start of our journey, and who shares her thoughts about the report and its findings in the following guest post:

The Always Addressable Customer report is finally available to Forrester clients, and we‘re really excited about it.

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How Do YOU Organize For Open Innovation?

Carlton Doty

Quickly: Open Innovation is about engaging external parties (e.g., customers, partners, employees, etc.) to source new ideas for products and services. We've developed a Forrester playbook for open innovation, complete with a self-assessment, a strategic road map, and even a view into the landscape of tools and vendors that can help you along the way.

However, one of the questions that we haven't answered yet is how product strategists get their firms to organize for open innovation. Our hypothesis is that this is more of a cultural shift than a straightforward change in organizational structure. We are kicking off some research on this important topic now, and in the spirit of being "open," I'm asking you to either post your comments in reply to this blog post or reach out to directly to my colleague srose@forrester.com to schedule an interview so we can discuss how you are organizing for open innovation at your firm.

In return for your participation, we'll send you a copy of the report (if you're not already a client), and perhaps even feature your organization as an example — depending on your willingness to be included, of course. So please chime in and tell us about your best (or worst) experiences in trying to make your product innovation more open. We look forward to hearing your thoughts. 

Thanks,
Carl

HTML5 – Maturing Desktop Browser Support Opens The Door To Enhanced Commerce Experiences

Peter Sheldon

 

eBusiness and channel strategy professionals are no strangers to HTML5. Ubiquitous support for the next generation of open web technologies (HTML5, CSS3, and JavaScript) across smartphones and tablets has made it easy for mobile development teams to start leveraging these technologies. However, fragmented browser support for HTML5 and CSS3 features on desktop browsers has thus far dampened the appetite of developers to embed HTML5 into their desktop eCommerce sites.

As we roll towards 2013, the tide is turning; leading online brands, including Apple, Best Buy, Four Seasons Hotels, and Rue La La to name a few, are now putting the features of HTML5 to use on their desktop sites with the goal of enhancing the online experience for customers using modern browsers like Chrome, Firefox, and IE9. We are at an inflection point: With consumer adoption of HTML5-“capable” desktop browsers widespread and web developer understanding of the technology rapidly maturing, HTML5 is no longer an emerging toolset for mobile and tablet development. Instead, it is fast becoming the de facto standard for web experience innovation across touchpoints.

As eBusiness teams evaluate the business case for HTML5 on the desktop, it is important to remember that this not an all-new technology— it is a collection of individual features that extend the existing W3C HTML standards. The decision to start using HTML5 or CSS3 does not require any changes to or throwing away of existing code. Instead, eBusiness teams can simply enhance the user experience of existing sites by incrementally using the new features of HTML5. HTML5 puts more tools in the box, but it doesn’t change the fundamentals of how to build the website.

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At HP, Reality Is Fast Becoming Perception. Shouldn’t Marketing Act?

Peter O'Neill

 

What is going on at HP? Or rather, what is not happening at that company?   Ex HP- marketer Peter O’Neill here with some observations.

I am sure you’ve all consumed the numerous stories about HP over the last 18 months: CEOs being fired and hired in an almost show-business fashion; a board not paying enough attention; business strategy speculation (is the PC business in or out? – imagine this, for a while, the PC business unit actually ran ads arguing against their CEO’s plan!); multiple tablet announcements, and withdrawals; plus a long list of failed, mistimed, or simply stupid acquisitions. Clearly, many journalists, who are not technology market experts, now see HP as being run incompetently.

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Measurement: How To Quantify The Quality Of Your Customer Experience

Kerry Bodine

Despite the fact that measurement is deeply embedded in business functions like finance and IT, companies still struggle with measurement when it comes to customer experience. In fact, I was chatting to a seasoned executive next to me on a plane a few weeks back, and he said, “This customer experience stuff is so important. But you can’t really measure it, right?” Wrong! Customer experience can be measured — you just have to know how.

In Forrester’s soon-to-publish book, Outside In, Harley Manning and I illustrate the importance of measurement through a case study about JetBlue. The JetBlue customer experience was designed to “bring humanity back to travel” with features like more legroom, seatback TVs, and snacks that people actually want to eat. But for many years, the young airline didn’t measure how well it delivered on all that — and as a result, JetBlue employees really had no way to assess how well they performed their jobs every day.

To remedy the situation, JetBlue implemented a comprehensive set of measurement tools. The workhorse of the program is an email survey that asks passengers to grade each part of their end-to-end travel experience, starting with making a reservation and continuing on through the end of a flight. When the survey responses come back, an internal system attaches operational data like what channel the customer used to book her flight and whether that customer experienced any problems on board, like a broken TV. In addition, JetBlue looks at what customers say they’re going to do as a result of their experience, like fly JetBlue again or recommend the airline to a friend.

These are the three building blocks of a solid customer experience measurement framework:

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The Data Digest: Tablet Ownership In The US And Europe

Reineke Reitsma

Earlier this year, Forrester’s published its tablet forecast for the US. With 55 million iPads sold through December 2011, and an estimated 5.5 million Amazon Kindle Fires sold in their first quarter on the market, tablets have gained unstoppable momentum. Forrester forecasted that tablets would reach 112.5 million US consumers — one-third of the US adult population — by 2016. Since then, a slew of new tablets have been unveiled, including the recently announced Windows Surface and Google Nexus 7.

For now, the US is definitely the leading market for tablet adoption. Forrester’s European and North American Technographics® Surveys show that both uptake as well as interest are highest in the US.

 

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NFC: What Lies Beyond Contactless Payments

Thomas Husson

Forrester estimates that close to 100 million Near Field Communication (NFC) devices will ship in 2012. As it finally moves past the chicken-or-egg stalemate of the past five years, contactless technology is once again causing buzz in the mobile world. The 2012 London Olympics will be a showcase and marketing catalyst for NFC services. Will NFC join the cemetery of overhyped telecom acronyms, like DVB-H, or will it scale to enable new product experiences? We expect NFC usage to remain niche in 2012 and even 2013. However, moving forward, NFC will be embedded in most smartphones — and in a greater range of connected devices — enabling many more use cases than just contactless payments.

NFC Is Emerging As The Global Mobile Contactless Standard

With 100 million NFC mobile devices expected to ship globally by the end of 2012 and a growing NFC infrastructure, NFC is emerging as the standard for contactless solutions across the world. Pioneering countries include South Korea, Poland, Turkey, the UK, the US and to a lesser extent France.

Expectations For The Uptake Of Mobile Contactless Payments Are Too High

Turning adoption into mass-market usage among consumers will require not only a lot of market education but also, more importantly, the construction of a value proposition for consumers and merchants that goes well beyond convenience and speed to adding value to the entire commerce process. My colleague Denée Carrington has just published a report on this topic: “Why The Digital Wallet Wars Matter.”

NFC Will Open Up Many Other New Product And Service Experiences

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Facebook Data . . . Oh, The Possibilities For Marketers!

Gina Fleming

 

Recently, there has been concern over privacy regarding data on Facebook. Since the recent Facebook IPO, many people have been wondering if the company is facing pressure to find a new source of revenue. The question in many people’s minds is whether it will come from advertising and/or other sources — or whether Facebook will monetize the massive amount of data that the company has on consumers. After all, most people are on Facebook: Forrester’s North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US, Canada) shows that almost seven out of 10 US online adults have a Facebook account. What’s more, that survey shows that the typical US online adult with a Facebook account has more than 180 friends on Facebook and spends an average of 7 hours each week on the site.

MIT’s Technology Reviewrecently published an article on the topic, “What Facebook Knows.” The article highlights how massive Facebook’s consumer database is and compares Facebook with a country — with 900 million members, it would be the third-largest globally. People share all kinds of information with Facebook: their demographic details, personal information, interests, and even their contact information.

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Epsilon Emphasizes Email Product (At Last!)

Shar VanBoskirk

 

I had breakfast a week ago with Taleen Ghazarian, the VP of Strategy and Planning and Bob Zurek the new SVP of Products from Epsilon.  The meeting was to re-introduce me to Zurek (full disclosure, he is a former Forrester analyst; worked on a lot of our CRM research several years ago) and brief me on his plans for Epsilon’s new platform.  I think Epsilon’s focus on product innovation is overdue (no argument from Zurek or Ghazarian there).  But I agreed with Zurek’s vision for where to take things.  Specifically, his plans are:

Aggressive: Customers told us as part of our most recent email vendor Wave evaluation that they felt disappointed by Epsilon’s unfulfilled promise of a technology update.  Well, Zurek’s charter is create a technology that not only updates any places where current Epsilon tools fall short, but to actually create a brand new platform that out performs any competitors.  We’ll see of course, how it delivers.  But I admired Zurek’s passion and commitment, and his recognition that Epsilon had to over perform here in order to stay competitive in the digital space.

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