Learning From Digital Innovation At Commonwealth Bank Of Australia

Benjamin Ensor

There are a number of firms that we watch closely at Forrester because they stand out for sustained innovation. Behind the technology giants like Google and Apple, there are a number of established firms that are using technology to adapt rapidly and successfully to changing customer behaviour and needs. One of them is Commonwealth Bank of Australia. Over the past four to five years CommBank has introduced a series of digital innovations to serve its customers better including:

  • Finest Online. In the course of its "Finest Online" project from 2007 to 2009, Commonwealth Bank of Australia redesigned its NetBank Internet banking service with the objectives of building an excellent customer experience and driving online sales. The bank implemented new content and functionality to support the customer journey and integrated new secure site sales processes with in-person channels and the bank's multichannel customer relationship management (CRM) system. The two-year, cross-organizational project boosted online sales, increased customer satisfaction, and improved the bank's image. (Forrester clients can read our case study.)
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Thoughts From My Pilgrimage To Mobile's Mecca

Thomas Husson

Once again, I've just spent a couple of days in Barcelona at Mobile World Congress (MWC). Year after year, the show is opening up to non-telecom players and going beyond mobile. Think about the rise of personal cloud-based services delivering consumer experiences across devices, Sony's marketing efforts to promote seamless entertainment across different screens, or the emergence of the "phablets" acronym (devices in between a phone and a tablet, such as Asus Padfone or LG Vu).  

While it is difficult to summarize all the news and announcements, here are some thoughts on MWC 2012:

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Is It Time For Customer Decision Management?

Rob Brosnan

The essential shape of the enterprise marketing landscape hasn’t changed much over the years. In last week’s Revisiting The Enterprise Marketing Software Landscape, I dissect technologies into the four basic categories of marketing management, brand management, relationship marketing, and interactive marketing. Consumers are rapidly changing behaviors, and marketing as a practice is evolving dramatically, but the technologies that marketers buy continue to come in essentially the same containers.

Notice, however, all of the decision management systems employed across the marketing landscape. From interaction management to online testing to recommendations to contact optimization, marketers are using automated systems to make an increasing number of customer-facing decisions. Viewed from the perspective of those decisions, the landscape of marketing technologies is shifting under our feet.

So is it time for a new take – say, customer decision management (CDM) – on marketing technology?

Why Do We Need Customer Decision Management?

Given that we’re already awash in marketing technology, do we need another three-letter acronym? Yes, because customers are:

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Customer Intelligence Teams Need Analytics "Translators"

Srividya Sridharan

Any big data or analytics conversation would be remiss without the mention of "data scientists." Much has been written about data scientists– who they are, who they should be, and where to find them. My colleague James Kobielus wrote an interesting series of blog posts about the skills required to become a data scientist.

From a customer intelligence (CI) perspective, we outlined four segments of CI professionals — marketing practitioners, marketing technologists, marketing scientists, and customer strategists. Of these, marketing scientists typically orchestrate the customer and marketing analytics function. They manage the reporting, analysis, and predictive modeling processes using marketing and customer data.

In a CI context, we find that the role of the marketing scientist has evolved from being a pure data analyst drowning in data analysis to that of an analytics translator — someone who is equally comfortable with building advanced predictive models and also adept at embedding the output of the models into customer-facing processes. What type of marketing scientist does your analytics team have?

We recently published a report on why "Customer Intelligence Needs A New Breed Of Marketing Scientist" (accessible to Forrester clients). In the report, we highlight ways to develop analytics translators across the staffing cycle — starting from attracting the right talent, nurturing the relevant skills, training with new skills, and incenting them based on business impact.

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Which Market Leads In Online Retail Sales: UK or US?

Reineke Reitsma

We recently ran a poll on Forrester's Facebook page: “Which market do you think has a higher percentage of sales coming from online channels — US or UK?"

While most respondents thought the US leads in online retail sales, the answer is actually the UK. Per Forrester's ForecastView latest estimates from the Forrester Research Online Retail Forecast, 2011 To 2016 (US) & (Western Europe), online retail sales in the US will top $200 billion, representing close to 7% of total retail sales of $3 trillion in 2011. Online retail sales in the UK will be £30.2 billion, representing 10% of total retail sales of £297 billion (per the Economist Intelligent Unit- EIU) in 2011.

The UK continues to have larger online channel share because:

  • The online buying population as a percentage of total population is higher in the UK.
  • UK online buyers’ average spend levels are slightly higher than those of US online buyers.
  • The UK population is more deal-sensitive and more prone to buying online.
  • Thanks to Tesco, online food (grocery) sales are a large contributor to online retail sales in the UK.

And? Did you guess right?

US Online Retail Hits $200B

Sucharita  Mulpuru

eCommerce sales continue to grow rapidly, having topped $200 billion in 2011. As web shopping has been on an upward trajectory for over a decade now, these figures should shock few. We expect online sales will grow from 7% of overall retail sales to close to 9% by 2016. Key drivers of this growth include:

  • Aggressive deals, particularly during Q4. During key time periods in the last holiday season (e.g., Thanksgiving, Cyber Monday), more than 70% of online holiday buyers (in a joint survey with Bizrate Insights) say that they purchased online instead of in stores because deals online were better.

  • Innovative new business models. Among the most rapidly growing business models of the last decade were the flash sales sites, companies like Gilt Groupe and Woot. An earlier study that Forrester conducted with online shoppers showed that the majority of consumers said they spend less at traditional retailers after shopping at these daily deals sites.

  • More online loyalty programs. While over the years physical stores and brands have managed to capture greater shopper data with loyalty programs and private label credit card programs, online retailers such as Amazon.com have essentially created loyalty programs of their own with shipping clubs.  In fact, during the holiday season in 2010, 9% of online buyers said they belonged to such a program, while in 2011 12% of online shoppers affirmed the same (again, a joint survey with Bizrate Insights).

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Online Retail Goes From Strength To Strength Across Europe

Martin Gill

Concerns over crumbling economies, the collapse of the euro, and enforced austerity measures can’t have escaped your attention if you live in Europe. It’s easy to believe that consumers aren’t spending, that business growth is almost impossible and as retail giants like Tesco post gloomy results, hard times are ahead.

But the news is considerably more positive for eBusiness professionals.

The European Commission has high hopes for online growth. Its “Single Digital Market” strategy aims to double online sales by 2015. While its initiative may have some positive impact, it’s simply too short a timescale for such a radical shift.

That said, online retail in Europe is on a firm growth trajectory. Online retail sales will continue to outperform overall retail sales figures in terms of percentage growth for many years to come in Europe. In times of austerity, more and more shoppers are turning to the web to find deals and offers and to save money.  As the web becomes an increasingly mainstream part of the lives of many Europeans, eBusiness professionals must adapt their strategies to accommodate consumers who are finding information about products and services and increasingly transacting across multiple touchpoints

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Dear Marketer: The Oval Office Called. It Wants Its Privacy Back.

Fatemeh Khatibloo

 Yesterday, the White House released a long-awaited set of recommendations that are focused on helping individuals take greater control of how their data is collected and used for online marketing purposes. It includes what's being referred to as a "Consumer Privacy Bill of Rights."

The language is vague. The timeline to completion is long. The guidelines, for now, are "opt-in" for organizations. All true.

But folks? The glory days of scraping and selling and repurposing customer data are over. The Oval Office has spoken on the issue of privacy and personal data, and its bill of rights is crystal clear: Tell me what you’re collecting, how you’re using it, protect it well, give me a copy, and give me a chance to correct it, delete it, or opt out entirely.

Sound familiar? It should.  

We've written about personal identity management because we recognize that:

  1. Individuals want relevant offers and content, along with all the other great stuff that comes with sharing personal data.
  2. But, they are worried about privacy, security, and identity on the Web — and these concerns are only increasing.
  3. So, Do Not Track, the Privacy Bill of Rights, and similar guidelines will gain widespread approval and adoption . . .
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Participate In Our 2012 Customer Analytics Adoption Survey

Srividya Sridharan

Does your firm use customer analytics to optimize relationship marketing efforts? Does your firm use analytical techniques to understand and predict customer behavior? If so, we want to hear from you.

We are launching our first Customer Analytics Adoption Survey for customer analytics users. With this survey, we want to understand how you use and apply customer analytics in your organization. In particular, we’re fielding questions to understand the goals and challenges with using customer analytics, the descriptive and predictive analytics techniques and models you use, the business impact of customer analytics, the customer metrics you track, and how you prioritize customer analytics initiatives across the customer life cycle. We encourage you to participate in this survey, as this information will help you benchmark your customer analytics adoption against peers and assess future opportunities.

Click here to take the 2012 Customer Analytics Adoption Survey now. We will send you a complimentary copy of the completed research with aggregate results, scheduled for publication in Q2 2012. Please feel free to share this link — http://forr.com/Cust_analytics — with clients and analytics colleagues involved in customer analytics.

Thank you in advance for your time; we look forward to sharing the results with you.

Forrester’s Voice Of The Customer Awards 2012 — Nomination Period Begins March 5th

Adele Sage

It’s that time of year again. We’re already in the midst of planning our annual Customer Experience Forum, and now we’re gearing up to collect and evaluate nominations for our Voice Of The Customer Awards — which we’ll present at the Forum.

If you’re new to the awards, here’s some background: Forrester's annual Voice Of The Customer Awards recognize organizations that excel in collecting, analyzing, and acting on feedback from their customers, incorporating customer insights into everyday decisions. We conduct the awards for three basic reasons: 1) to emphasize the importance of voice of the customer (VoC) programs; 2) to celebrate organizations that are leading the way; and 3) to highlight best practices.

If you (or, if you’re a vendor, your clients) have a strong VoC program, we encourage you to participate. It's free and it offers a great opportunity to earn some solid PR while sharing your wisdom with other customer experience pros. Also, we only reveal the names of the finalists and winners, so the potential downside is limited.  

You can find all of the information you need on our VoC Award home page. The 2012 nomination form will become available there on March 5th. In the meantime, you can review this year's timeline, get answers to FAQs, and check out information about past winners.