The Guts To Grow: What Amazon.com, Trader Joe's, And Westin Hotels Have In Common

Sucharita  Mulpuru

I received a curious email from one of the founders of eBags the other day. In it, he said that by bringing customer service back to the US and away from an offshore vendor, the company actually reduced customer service costs by 34% (yes, reduced!) while still growing sales by double digits in Q4. It reminded me of another article not too long ago from the Wall Street Journal that cited Qantas as having one of the world’s best check-in experiences because the airline invested in RFID tags for passengers, a decision that the article pointed out no other airline has yet copied. These examples stood out to me because these companies managed to pull off a very difficult trick: to make contrarian investments that industry peers would consider hogwash that nonetheless pay off in spades. It’s more likely that such investments would backfire, but when they work, they succeed beautifully. Three cases in point: 

Read more

Facebook Or Google: Who Will Win the Customer Engagement Battle?

Fatemeh Khatibloo

Plenty’s been written already about Facebook’s IPO filing yesterday. I won’t rehash the many excellent analyses that you’ve surely already seen.

Instead, I want to take this blog post into thought-experiment territory. I want to think about a world in which Google and Facebook are primary competitors in a mano-a-mano battle—not just for our eyeballs, but for our data, too. For the right, as it were, to be our “digital identity.”

---------------------------

Over the holidays, my mother—67 year old tech-accepter, Kindle-owner, smartphone-avoider—called me into the office to show me her Facebook newsfeed. “How,” she asked, “do they know that I’m interested in Persian classical music and that I live in Los Angeles?” As I was explaining behavioral targeting and computational advertising, I glanced over at the computer, only to see her click through and order tickets from that Facebook ad.

So I asked, “Do you trust Facebook?” To which she replied, “Of course not!” as she entered her credit card number, home address, and email address for a very spendy concert ticket.

“Do you trust Google?” I asked. “More than Facebook, I suppose,” she answered. “But Facebook shows me stuff I like more often than Google does.” 

---------------------------

That experience, plus a brainstorm with my colleagues on the Customer Intelligence team here at Forrester got me thinking: What if, as a consumer, you had to choose between Facebook and Google? Which service is more valuable to you? Which will BE more valuable in the future? I decided to compare the competitors (and let there be no mistake—Facebook’s S-1 filing very clearly identifies Google as Enemy No. 1) across the dimensions of Forrester’s customer engagement cycle:

 

Read more

Why Facebook Is Still A Tough Sell For Retailers

Sucharita  Mulpuru

As the Facebook IPO nears, all eyes are on the valuation the company will command.   The vast majority of that valuation will come from the company’s digital advertising business.  As for commerce, don’t expect much.  About a year ago, I asked the question Will Facebook Ever Drive eCommerce? and the answer hasn’t significantly changed in the time since.  Not only has Facebook seemingly been much more focused on the display ad side of the business all but dismissing retail (they rejected a keynote slot at the annual Shop.org summit last year and rumor has it that they turned down the slot following Bill Clinton at this year’s National Retail Federation big show, the trade show in all of retail), but the numbers that retailers have shared with us are no more encouraging:

  • Stores or fan pages on Facebook have yet to generate any significant revenue for companies as few shoppers visit brand pages or Facebook stores after becoming a fan
  • Few shoppers buy after seeing information posted on Facebook; a holiday study we did with GSI Commerce showed that less than 1% of revenue from retailers was attributable to social networks
Read more

Ways Manufacturers Can Drive Higher Conversion Rates Through The Online Retail Channel

Andy Hoar

In a keyword-driven Web world, brand manufacturers get more than their fair share of Web shopping traffic.  But because most manufacturers maintain a relatively small direct-to-consumer business, they largely rely on online retail partners to convert leads that originate on their websites.  Disintermediated from the final sale, manufacturers often know little about how to optimize the lead referral process that begins on their own websites.

To gain some valuable insight into how manufacturers can help optimize sales conversions downstream, Forrester teamed up with Channel Intelligence, a company that tracks the purchase path of leads from manufacturers’ websites to online retailers’ websites.  Forrester and Channel Intelligence analyzed over 44 million clicks across 150 manufacturer websites spanning two full years of closed-loop sales data (2010-2011).  In our new report, “Top Three Ways Manufacturers Can Drive Higher Conversion Rates Through the Online Retail Channel,” we identify clear best practices from the clickstream analysis.  A sample of key findings:     

  • Be direct and aggressive with “Buy” button language and placement. For example, manufacturers that put the word “buy” first on a purchase button see 53% higher average conversion rates downstream at online retail websites than those that display the word “buy” as the second or third word (e.g. Where To Buy).
  • Be maximally transparent on price.  Manufacturers that display both MSRP and actual retail prices experience a 111% higher conversion rate downstream on online retail websites than those manufacturers that show an MSRP but no actual online retail prices.
Read more

Categories:

Just Published: The Forrester Wave: Cross-Channel Campaign Management, Q1 2012

Rob Brosnan

Cross-channel campaign management (CCCM) tools face mounting pressure to evolve in the face of continuous, interactive, customer-led dialogue. CCCM capabilities have matured dramatically, but marketers often ask, “Are the applications resilient enough to meet the massive challenges marketing organizations face today?”

Forrester clients can see how much progress vendors have made in “The Forrester Wave™: Cross-Channel Campaign Management, Q1 2012”. We identified, researched, and scored 12 products from 11 providers: Alterian, Aprimo, ExactTarget, IBM, Infor, Neolane, Oracle, Pitney Bowes, Responsys, SAP, and SAS. Our approach consisted of an 81-criteria evaluation; reference calls and online surveys of 156 companies; executive briefings; and product demonstrations.

We found that marketers need CCCM applications to:

  • Manage a complex array of marketing processes. The campaign design process alone is elaborate – and happily vendors provide strong, yet simple, design tools. Yet CCCM tools also aid marketers in planning (budgeting, spend management, and calendaring), analysis, tactical execution, and reporting.
  • Develop more strengths in digital and emerging media. Although most vendors have extended their applications, many client references told us that vendors need to clarify their approaches to social, local, and mobile applications, and how real-time decisioning can be applied beyond offer management.
Read more

CI Fail: Contextual Relevance Gone Bad

Srividya Sridharan

Rarely do moments like this occur. Last week, while watching the evening news (yes, I still watch news), I was horrified by the continued coverage of the cruise ship disaster in Italy. But, while watching the coverage, I was wading through my mail and opened a direct mail piece (also a rare event) that I had just received. To my horror, I found an offer from American Express to sign up for the Costa Concordia cruise. Worse still, it offered to “immerse” me in a truly European experience. To make things even worse, notice the typo in the headline?

While marketers strive to achieve messaging relevance that would make you stop what you’re doing and take notice, this execution in particular was a case of bad timing and lack of foresight into the implications of marketing campaigns already in flight.

What lessons does this highlight for customer intelligence (CI)?

  • Agility. In our research, we find that direct mail is one of the top channels that CI professionals favor over other channels. Despite CI’s heavy use of direct mail, this faux pas no doubt occurred because of the cycle time between the cruise ship disaster and the direct mail drop.
    • CI Pros: Speed up CI processes to provide greater organizational value. Apply principles of agile development to CI, especially to channels that are not inherently real-time, such as direct mail in this case.
Read more

Frequently Asked Questions About Forrester's Customer Experience Index, 2012

Megan Burns

Since publishing our Customer Experience Index, 2012 last week, we've gotten a flood of questions about the research, methodology, and results. I'm putting the finishing touches on a full Forrester report that answers the ten most common questions but thought I'd give everyone a sneak preview with a blog post summarizing a few of the answers.

1. Who are the people rating the brands in Forrester's Customer Experience Index?

To produce the CXi each year, Forrester conducts an online survey of US individuals ages 18 to 88. This year, there were 7,638 such folks who answered the survey during October 2011.  We weighted the data by age, gender, income, broadband adoption, and region to demographically represent the adult US online population. The sample was drawn from members of MarketTools' online panel, and respondents were motivated by receiving points that can be redeemed for a reward.

2. Which touchpoints are consumers rating when they answer the CXi questions?

The short answer to this question is "any touchpoints they used to interact with the brand." We don't direct consumers to think about any specific touchpoints as they rate their interactions. Instead, we want them to consider all of their interactions with that brand over the past 90 days, regardless of how they happened.

Read more

Upcoming Keynote On Channel Enablement At Distree EMEA Next Week

Peter O'Neill

 

Peter O'Neill here. I’ve been invited to speak, again, at the annual Distree EMEA event in Monte Carlo next week. Now in its tenth year, Distree gathers together top executives from tech industry vendors and distributors plus, in recent years, retailers from around EMEA for three days that include a trade show, presentation sessions, and meetings to discuss industry-specific channel topics. The 2011 event drew 950 delegates from 127 tech vendors and over 400 distributors. One of the event highlights for everybody is a process to request and set up formal one-on-one meetings between the various players, similar to our own one-on-one sessions at the Forrester Forums (only their software is better). A total of 5,000 such sessions are scheduled: some at tables in larger rooms around the trade show, many others in private meeting rooms elsewhere in the conference center.  I still have some slots open for those of you who are interested and are going to the event.

My keynote presentation continues on from my speech last year (still being watched on YouTube, I am told) where I described what changes we see happening in the channel due to recent industry trends.  The title is "The Emerging Engagement Channel Model” and leans heavily on Tim Harmon’s October reports with his permission. I will discuss the effect of industry trends such as cloud, consumerization of IT, app stores, and “Apple takes a bite at B2B business” (see below for the agenda).  

Read more

Just Published: A Forrester Wave™ For Mobile Marketing Strategy

Melissa Parrish

We’ve all seen the headlines:  2010 2011 2012 is the year of mobile!  Mobile marketing spend will outpace email search display!  Jump on the bandwagon now or else!  

. . . And while I’m bullish about mobile marketing — I better be, since it’s my primary coverage area these days — the importance of having a sound strategy and the right partners to execute often gets lost in all that hype. That’s why I’m extremely proud to have just published The Forrester Wave™: US Digital Agencies — Mobile Marketing Strategy And Execution, to help marketers identify the right agency partners to develop and build smart mobile marketing strategies that deliver real business results.

You’ll notice from the (rather long) title that I focused specifically on US-based digital agencies. Admittedly, this is a narrow view of a very wide array of service providers that help marketers create mobile programs.  However, to deliver the kind of value people expect from Forrester’s trusted Wave methodology, it was necessary to zero in on just one part of the market to ensure a level field for all players.  

Even with this focus, we screened scores of agencies for this study and ultimately ended up with nine agencies to evaluate:  AKQA, iCrossing, Ogilvy, Possible Worldwide, Razorfish, Rosetta, SapientNitro, TribalDDB, and VML. These top performing agencies were included in our evaluation because they all:

• Offer comprehensive mobile marketing services.
• Met – and mostly exceeded — a minimum revenue requirement from mobile marketing offerings.

Read more

Categories:

Will 2012 Be The Year Financial eBusiness Teams Fully Embrace Video?

Benjamin Ensor

I love video as a communication media. The combination of sound and moving pictures so much more engaging and more memorable than text.

We wrote in our research last year about how we're starting to see video being used more and more by eBusiness teams as an efficient and effective way to educate customers about products, encourage sales and deliver customer service.

With the Academy Awards coming up, we thought it would be both fun and helpful to highlight some of the best examples we've seen of online video in retail financial services in the past year.  With the help of the rest of team, I've drawn up a list of our favourites in five categories:

Product marketing video
DNB's S for Savings Plan video (Norway).
PayPal’s future of shopping video.

Service marketing video
Commonwealth Bank of Australia's Welcome to NetBank video.
E*Trade's Take Control In 3 Easy Steps video (US).
Mint.com's 90-second overview (US).
Lloyds TSB's money manager video (UK).

Educational (‘how to’) video

Read more