This is a roll-up of all Forrester blogs written for Marketing & Strategy Professionals. Role-specific blogs are listed below. Visit Forrester.com to learn how we make Marketing & Strategy Professionals successful every day.
Would you classify your marketing organization as "highly accountable"? What I mean is, are you always able to accurately measure the true business value of your marketing efforts, and do your senior leaders trust the results? If you're like most marketers, the honest answer to that question is a resounding "no". Proving the business value of multichannel marketing is getting progressively harder—and more important—because:
Traditional marketing measurement practices are rooted in stable but inflexible tactics that leave marketers ill-equipped to keep pace with the real time nature of channel digitization.
CFOs wield ever-more influence over marketing budgets, which is driving your CMO to lean harder on you to measure business results with scientific rigor.
Your customers are in control; uncertainty and unpredictability are the norm; and marketers that can't adapt appropriately are doomed to fail.
This is where you come in. I believe that Customer Intelligence professionals are remarkably well positioned to address these challenges head on, and improve marketing accountability across the enterprise. Why? Because you sit at the cross-section of unfettered access to mountains of customer data from a dizzying array of online and offline sources. "Big data" as the recent article data, data, everywhere in The Economist puts it, is big business. CI professionals are right in the middle of it all helping firms capture customer data, analyze it, measure business results, and act upon the findings.
Plenty has been said today about how Nestle failed. But I keep thinking about another question, “Is it too late for Nestle?” And maybe it’s the eternal optimist in me, but I don’t think it is. Nestle still has a chance to shape the tone of the discussion by sharing next steps in social communities. Interestingly, Nestle did respond to the Greenpeace allegations in a March 18 statement on its website, and they told traditional media outlets on Friday that they would remove a questionable supplier from all parts of their (very complex) supply chain by mid-May. But that word isn’t getting out - Clearly, traditional outreach isn’t enough. Bjorn Edlund, former EVP of Communications for Shell, joked at Friday’s conference: “The best way to hide data is to put it on your corporate website.” Case in point.
Over the past few months, we’ve fielded multiple requests related to the online shopping market in Asia. Retailers and vendors alike are looking to position themselves for long-term success given the rapid online growth rates in the region: By 2013, for example, close to half of the global online population will live in Asia, with some 17% of the global total coming from China alone. To see how US online retailers are taking advantage of this shift, we took a look at the top 50 online retailers on the Internet Retailer Top 500 list and mapped their transactional sites in Asia. A few observations follow.
Japan tops the list, especially for companies with only one web site in Asia. What was interesting as we worked through the list was that relatively few of leading online retailers in the US operate transactional sites in Asia, and far fewer operate in multiple countries. Several top online apparel retailers, for example, operate a web site for Japan only: Lands’ End, L.L. Bean and Cabela’s have all taken this approach.
Consumer technology companies have the broadest regional reach. By contrast, online retailers in the consumer technology arena tend to have a broader regional presence. Dell, Apple and SonyStyle operate in multiple Asian markets, with Dell and Apple having the most transactional web sites in the region despite Sony's Asian roots. Office Depot also has a strong commitment to the region with eCommerce sites in Japan and China, as well as in South Korea.
I thought I would expand a little on my aside comment in last week's blog which was actually about HP. In the introduction to the blog I noted that we analysts seem to be abusing Twitter. I was so provocative that I named my colleagues “adolescent journalists” because they broadcast tweets ad verbatim as the HP speakers went through their presentations. I have noticed this has gotten progressively more (as far as I am concerned, worse and worse) over the last 12 months at various analyst retreats.
Many of these colleagues have responded to my blog and basically asked “What’s your problem with this?” Well, I certainly do not want to be seen as a “grumpy old man” (though I love those books) - ie. Someone who is not up to the times. While I am turning 54 years of age today, I think I do understand Twitter, and use it; and I think I can blog adequately as well. Then again, we analysts at Forrester have been well trained by our Marketing analyst colleagues who are at the forefront of all these developments. Our latest research on “Using Twitter for eBusiness” discusses how companies use Twitter but it doesn’t address the usage I am on about here. So, the issues I have with our just typing in every 140 characters of whatever the person on the stage is saying is as follows:
My colleague Julie Ask just published a piece on the reality of mobile coupons in response to questions like “do consumers use mobile coupons?” “should we be developing a mobile coupon offering?” and “what technologies should I adopt to support mobile couponing efforts?” – questions that she and I get asked with some frequency.
I was involved in some of the initial structuring of this report and then also involved in the editing phase. And I would love to recommend it to interactive marketers. Here are the most important takeaways:
Consumers like the promise of mobile coupons, but there is not yet mass adoption. Mobile coupons promise to be a convenient way to aggregate customized discounts all in a single place (your mobile phone) that is much easier for storage than say an envelope of clipped paper coupons.
Mobile coupons appeal to advertisers too, but technology hurdles prevent mass utilization. Advertisers love the idea of being able to offer targeted promotions that are cheaper to deliver and redeem than traditional coupons. But the reality is that scaling redemption technologies and processes at check out is pricey for the limited coupon-using audience today.
Advertisers should start small mobile coupon trials now. Mobile coupons don’t need to be your top marketing priority for 2010 (that honor goes to paid search, display ad, advanced email and social media) but we do recommend now as a good time to start a trial. Vendors like cellfire can outsource the management and distribution of mobile coupons and offer flexible terms in an effort to sign up new advertisers.
Identified the 10 highest-ranked public companies (CXP Leaders) and the 10 lowest-ranked public companies (CXP Laggards).
Calculated the average annual total returns of the Leader group and the Laggard group
Compared the results for each group to the S&P 500 index for years 2007 – 2009.
Andrew’s analysis confirmed Watermark’s findings: The customer experience leaders consistently outperformed the other two groups; the customer experience laggards consistently fell short.
Does this prove that good customer experience leads to good stock performance (or that the CxPi picks hot stocks)? No. Stock performance relies on many factors, including human irrationality.
However, the correlation does highlight a relationship we all intuitively understand: Companies that treat their customers well perform better than companies that don’t. (And it sure looks like treating your customers poorly is a very bad idea, especially in an economic downturn.)
I've been analyzing consumer technology uptake for years — helping retailers, for example, understand the barriers to and drivers of online buying behavior. Forrester's Technographics® research shows that preferred online payment methods differ greatly between countries, and companies need to understand this complexity of payment options and how that affects consumer behavior.
Unlike in North America, where the top payment methods tend to be similar in the countries surveyed (the US and Canada), the payment preferences of online buyers in Europe differ both between countries and from their North American counterparts. For example, the popularity of prepaid cards is unique to Italy: Roughly a third of Italian online users have taken advantage of prepaid cards. Global organizations need this detailed understanding of consumer payment preferences across markets in order to be successful internationally.
First of all, let me welcome you to Forrester's new blogging platform. Hopefully you'll find this blogging environment an easy way to access our blog-worthy ideas and community comments
Next, I wanted to officially announce (drum roll please) that I am back leading Forrester's email marketing research. Some of you may know that I did a lot of work in email marketing until 2007 when Julie Katz took the helm, joined subsequently by David Daniels following Forrester's acquisition of Jupiter. I'm excited to be back in the space and already have a stream of research underway.
First up is a piece on how the recession has affected consumer attitudes toward email marketing.
Then next quarter look for three pieces:
*One on the integration of email and social media
*Another updating our email marketing review methodology. See here for the older version.
*And then the third doing a best and worst of email marketing. This piece is also an update of some similar research we did here a few years ago.
What email marketing research would you like to see from us? I'd love to include your ideas in my research plan.
No one that manages a P&L will ever look back at 2009 and say "what a fun year!" eBusiness executives are certainly glad to have 2009 behind them and report to us that 2010 is not as fraught with economic concerns. We just published the results of our most recent survey of 100 eBusiness and Channel Strategy executives and found that although overall budgets for eBusiness aren't increasing that dramatically, our respondents aren't feeling the heat to cut back like they were last year.
Even better, our survey respondents are increasing their budget for new innovation and technology. In 2010, the percentage of the online budget dedicated to new investment and innovation is expected to increase or significantly increase at 52% of firms. Hooray! It's a battle cry for all eBusiness execs to step up their games, and for senior executives in their firms to step up their commitment to and support of the channel. Spending (by our respondents) will focus on analytics and then ratings and review platforms.
Analytics have been a constant in our surveys, and ratings and reviews don't surprise us. Social media is hard for eBusiness execs to get their heads around because many social efforts clearly drive marketing objectives like brand engagement, but the impact on actual sales and conversion is fuzzier. Ratings and reviews are a clearer conversion tool for retailers in particular. My colleague Brad Strothkamp wrote a blog post though about the use of ratings and reviews in financial services, which is not nearly as black and white an issue.
This is probably one of the top 10 inquiries I get from clients. Should I have a mobile coupon offering? If so, what form of mobile technology should I use? Our new report, "Mobile Coupons: Gold Rush or Fool's Gold?" addresses this question in more detail. This question was especially important in 2009 with the poor economy as consumers sought savings and deals.
Do consumers use mobile coupons today? A few do. Our surveys show that a few percent have at least trialed mobile coupons. There have been some usability issues - how to opt in to programs, download a coupon application, breadth of offers available - as well as demand. Heavy users of mobile coupons are not necessarily heavy users of mobile data services. My grandmother cuts more coupons than anyone else I know. She has a prepaid 100 minute per month voice plan. Will she ever use mobile coupons? Probably not. She turns 90 this summer. A lot could change in 10 years, but until her arthritis is so bad that she can use scissors, I think she'll still be clipping coupons from the newspaper. I see more opportunities in luring young mobile-savvy cell phone users into opting in for programs.
That said, I'm optimistic. The main reason ... every grocery store and many retailers that I know are using mobile coupons. Target launched a few weeks ago. Target takes providing an amazing guest experience very seriously. When you ask, "are mobile coupons ready for primetime?" Target adopting and rolling them out is a clear "yes" for a leading US brand. Safeway. Best Buy. Krogers. JC Penney. These are just a handful of the companies rolling out mobile coupons. With their marketing power and ability to drive awareness and motivate adoption, I expect we'll see a significant jump in adoption and usage this year.