The Data Digest: Consumers See Less Value In Email Promotions

Reineke Reitsma

Email marketing is at an important crossroads because email is losing its appeal for consumers. Research shows that younger people in particular feel email is too formal. Forrester’s European Technographics® surveys show that consumers’ attitudes toward email marketing have only grown more critical over time. In 2007, 24% of European Internet users agreed that email was a good way to learn about new products, but only 12% agreed in 2010. And 54% of European online consumers state that they delete most promotional emails without reading them.

Are consumers deleting your promotional emails as well? Are you wondering what content and updates your customers value? You should just ask them! Surveys, social media, and offline anecdotes will give you insight into what email content, offers, and even style your users like. For instance, the BBC's GoodFood magazine asked its Facebook fans, "What theme would you like to see in today's newsletter?" and used the results to craft its email content.

Video Highlights From Forrester's Customer Experience Forum East

Harley Manning

Thanks to everyone who made our customer experience event a success! That includes both our many industry speakers as well as our terrific, highly engaged audience and sponsors. You rock!

On June 26th to 27th, we had just under 1,400 people at the Marriott Marquis in Times Square. That was up slightly from last year, even though we're offering a second customer experience forum in November in Los Angeles as an alternative (we've pretty much reached capacity at the Marriott). The packed house was a tribute to just how many companies have woken up to the importance of customer experience (CX) as a way of doing business. Personally, I love the positive energy that comes from being around so many people who care about CX.

Our production team just finished editing the video highlights of our main-stage speakers from the event and collecting them on a single page for your viewing pleasure. You'll notice that all of the speeches were themed around Forrester's upcoming book about customer experience, Outside In, which will be available to the general public on August 28th. Forum attendees didn't have to wait until August, though, because we gave them a free digital copy of the uncorrected proof at the event. (With an uncorrected proof, you get a bonus: typos and formatting errors!)

So for all of you who attended, here's a reminder of what we saw. And for those who didn't attend, I hope these videos convey some of the energy and insight that we felt in New York. Enjoy!

Mobile Commerce Will Be Worth 19 Billion Euros Within The EU-7 By 2017

Michael O'Grady

Mobile commerce is taking off in Europe. Retail and travel spend via a mobile phone increased by 70% in 2011. Impulse-buying categories that require little intensive research — such as books, computer software and video games, music, videos and DVDs, and event tickets — are driving a large part of these mobile retail sales. Understanding mobile buying behaviors, the evolution of mobile buyers, and relative mobile spend across Germany, the UK, France, Spain, Italy, the Netherlands, and Sweden are the focus of the Forrester Research Mobile Commerce Forecast, 2012 To 2017 (EU-7), >, and report which has just been published.

The forecast combines insights from the Forrester Research Online Retail Forecast, 2011 To 2016 (Western Europe) with an understanding of smartphone adoption rates and how online buyer sophistication differs from mobile buyer sophistication for each EU-7 country. Smartphone owners are more predisposed to become mobile retail buyers if they have already bought online or if they have already bought mobile apps and digital content. By 2017, mobile retail, travel, and daily deal spend in the EU-7 will rise to €19.2 billion, which will represent 6.8% of online spend. Mobile’s share of total travel spend will be much higher than that seen in retail, as more than 35% of travel bookings for leisure and unmanaged business travel were made online in the EU-7 in 2011.

Read more

One Fifth Of European Mobile Users Use Mobile Banking

Benjamin Ensor

The longer we spend researching mobile banking, the more convinced I become that mobile banking is the most important innovation, or cluster of innovations, in retail banking in years, arguably in a century. Here’s why I think mobile banking is a much bigger deal than cash machines (ATMs), credit cards or home-based online banking:

  • In developing economies that lack a dense infrastructure of branches, ATMs and fixed-line telecoms, mobile banking and payments are bringing millions of people into the formal banking system for the first time.
  • In developed economies mobile banking will become the primary way many, perhaps most, customers interact with their banks. Banks need mobile banking to provide a platform for mobile payments and to protect their retail payments businesses from digital disruption as mobile payments start to replace card payments in shops.
Read more

The Impact Of Corporate Culture On Digital Intelligence

Joe Stanhope

I just finished reading Corporate Culture: The Ultimate Strategic Asset by Eric Flamholtz and Yvonne Randle. The book is based on the premise that company culture is a critically important yet often uncredited driver of success and failure, even correlating to financial performance. And, like other aspects of modern corporations, culture requires active management. Companies with great cultures don't get there by accident. The book is a worthwhile read for those with an interest in general management and the implications of culture for mid-sized to large companies.*

The book defines corporate culture as the "values, beliefs, and norms that influence the thoughts and actions (behavior) of people in organizations." The connection between cultural attributes and actions made me think about applying the concepts of culture directly to digital intelligence. Why is culture important in the context of digital intelligence? Because simply hiring people or implementing technology isn't enough to achieve digital intelligence proficiency. I see proof of this on a daily basis as I work with clients who struggle with digital intelligence despite substantial investments in the best technologies and most talented teams. These organizations have many of the individual pieces but cannot put the puzzle together. Culture is the connective tissue that binds technology, people, and action together.

To take the idea a bit further, let's look at the five key components of corporate culture according to the book and their digital intelligence implications:

Read more

Revolutionize Your Products & Services: Forrester’s Playbook For Open Innovation

Carlton Doty

As a product strategist, do you struggle with a sluggish innovation “process” in your firm? Do you think it takes too long to identify great ideas and turn those ideas into compelling new products and services for your customers? If you’re like most of your peers, the answer to both questions is probably a resounding "yes." That is exactly why Forrester’s Consumer Product Strategy practice developed The Open Innovation (OI) Playbook

Forrester defines open innovation as:

The act of innovating, whereby new ideas or methods are requested from three broad participant groups: employees, partners, and customers.

This approach to innovation is in stark contrast to the typically closed and often secretive product innovation practices that most firms still use today. Our OI playbook provides you with an end-to-end framework, organized in twelve easy-to-find modules, and designed to give you the insight, tools, and best practices that you need to successfully adopt an open innovation approach within your organization.

To get started, I suggest reading the Executive Overview: “Revolutionize Products And Services Through Open Innovation”.  This report will set the stage at a high level for you. Then, depending on where you are in your open innovation journey, you can “pick your spots” by navigating directly to the most applicable chapter for your needs. In general, the OI playbook is divided in to four phases as follows:

Read more

Marissa Mayer Doesn't Fit Yahoo!'s Needs

Shar VanBoskirk

Yahoo! announced tonight that Google's Marissa Mayer would take over tomorrow as Yahoo!'s CEO and President.  Obviously Mayer has long experience in the space and brings good competitive knowledge, particularly related to search marketing.  But I'm disappointed by this choice, here's why.

*Yahoo! needs a strategic visionary, not a product engineer.  Yahoo!'s fundamental problem is that it has too many disparate products with no clear unifying thread that ties them all together. And Mayer's background is in product development...not corporate strategy, not marketing, not brand definition...the areas where Yahoo! has the most critical need.

Read more

Strategy: The First Step Towards Creating A Great Customer Experience

Kerry Bodine

Great customer experiences are the result of countless deliberate decisions made by every single person in your organization on a daily basis. To align those decisions, employees and partners need a shared vision: a customer experience strategy.

When most people talk about strategy, they’ve often got a road map or some sort of plan in mind. But your customer experience strategy is actually a description of the experience that you want to deliver. Without that beacon, employees are forced to set out on a random walk, and their decisions and actions will inevitably be at odds with each other, despite all best intentions.

In Forrester’s soon-to-publish book, Outside In, Harley Manning and I illustrate the importance of a customer experience strategy through a case study about the Holiday Inn. In the majority of its 750 properties with on-site restaurants, the iconic hotel chain was losing dinner customers to casual restaurants like Outback Steakhouse and Chili’s. Even worse, it was losing breakfast customers to nearby gas stations — and you better believe that Holiday Inn got worried when gas stations started to provide better breakfast options than it did.

So what did Holiday Inn do?

Well, I’ll tell you what it didn’t do. It didn’t start randomly making one-off changes to the menu or the pricing. Instead, Holiday Inn stepped back to define a customer experience strategy.

Read more

Is Responsive Design The Future of Cross Touchpoint Web Development?

Peter Sheldon

If you’ve been chatting with your web development team recently, you might recall them talking about responsive design. But, what is responsive design and why should eBusiness professionals be taking it seriously?

First, responsive design is not a technology, it’s a development philosophy - an approach to web development that forces user experience developers to design and optimize from the outset for multiple touchpoints including (but not limited to) the desktop, tablets and mobiles. Until now, many eBusiness teams have either developed their mobile site by coding a separate set of templates, or outsourcing to a 3rd party vendor or agency whom in many cases scrapes or proxies existing content from the desktop site. As many retailers and other eBusiness teams start to develop optimized tablet sites, there is a distinct concern that supporting 3 different sites for desktop, tablets and mobile is becoming increasingly expensive and is causing a drag on innovation momentum.

With a responsive site, developers use a single set of front-end code to build a site that responds within the constraints of the device to deliver an experience that is contextual to the size and orientation of the screen. Responsive design allows eBusiness leaders to consolidate their teams (UX designers and developers) back into a single ‘web’ team aligned around a single technology (CSS3 & HTML5) and writing a single set of code. Some eBusiness leaders are referring to this consolidation as back to “one-web” and are increasingly intrigued by the potential cost and efficiency benefits that moving to a responsive site has to offer.

Read more

How eCommerce Markets Evolve

Zia Daniell Wigder

One of the topics I’ve spoken about at recent industry events is how global eCommerce markets evolve – more specifically, how markets shift from an early stage to one in which consumers spend lavishly online and buy across a wide variety of categories.

After interviewing dozens of companies about their experience expanding into different global markets, and after reviewing internal and external data, we’ve noted that markets tend to go through four phases as they reach the stage of well developed eCommerce. We identify these four phases as the following:

Phase 1: Connecting and Entertaining. In this phase, consumers are starting to go online and connecting with others through the online channel. Some 10-15 years ago, consumers were likely to go online and engage through email or chat; today, social networking has joined the ranks of one of the early activities of online users. Socialbakers’ estimates of Facebook users by country indicate that the network’s top five markets outside the US are Brazil, India, Indonesia, Mexico and Turkey – in such markets, the number of Facebook users today often surpasses the total number of online users just five years ago.

Read more