How To Use Social Data - And How Not To!

Nate Elliott

We work with a lot of different types of marketers at Forrester, and we always customize the recommendations we deliver to different clients based upon their unique situations and needs. But over the past few years there's one piece of advice I've found myself giving nearly every company I work with: "Hire a listening vendor."

I love listening platforms and the social data they create; it's a powerful source of information that, used correctly, can make marketers and their programs more effective. But not enough marketers are taking advantage of these benefits.

No matter what type of company you work for -- indeed, whether you work directly with social media or not -- you should be using social data right now to:

  1. Develop your messaging. If you want to create messages that resonate with your audience, you need to know what they care about. Many of our past Forrester Groundswell Award winners have used private listening communities to craft their marketing messages; increasingly, we're seeing companies use data from public social media to guide their messaging as well.
  2. Source your creative. We know that consumers trust what they hear from other consumers more than any other source of information -- why not use listening platforms to identify positive social content that can be included in campaign creative? I've even seen a UK bank, First Direct, use social sentiment data in an outdoor advertising campaign.
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Want To Raise Your Net Promoter Score? Try Improving Your Customer Experience

Harley Manning

Many of our clients work at companies that use Net Promoter. I recently had dinner with two of them at Forrester’s Customer Experience Forum, 2011. Both are senior people at companies that have been recognized as customer experience leaders in their respective industries.

When a third guest (Forrester’s CEO) asked them why and how they use Net Promoter Score (NPS), they gave remarkably consistent answers. In brief, they use it as a simple, easy-to-understand metric — one number — for aligning the business. Its main appeal is that busy executives don’t need to spend hours studying tables and spreadsheets to get a sense of how their firms are doing. Similarly, frontline employees down to the lowest levels of the organization find that NPS makes intuitive sense.

But there’s a next big (and obvious) question for people like our dinner guests who work to improve the customer experience at their companies: Does improving customer experience raise NPS? Because let’s face it, if your firm ties its overall health back to NPS, then you better be able to connect the dots for what you do, or you won’t seem to matter.

We’ve been wondering about this issue ourselves. So much so that late last year when we ran the big consumer survey that drives our Customer Experience Index, we included the Net Promoter question for two of the 13 industries in our study: banks and retailers. We were looking for a correlation between how people rate the customer experience at a company they do business with and how likely they are to recommend that company to a friend or colleague.

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What The Online Sales Tax Debate Misses

Sucharita  Mulpuru

As the election year approaches, we can bet that the cries to impose tax on online retailers will get even more pronounced as politicians look for ways to close our budget deficit and make villains of small but seemingly rich segments that can afford to bear the burden (e.g., private jet owners, While some journalists are framing companies like Amazon as enabling tax shirkers at the expense of impoverished local school districts, the reality is, the debate is really about big box retailers and physical stores fighting to stop the wallet share war that companies like Amazon are winning online. The NRF has been one of the biggest proponents of making web merchants collect taxes, and it's not surprising that its board is composed of many of the country's largest retailers. Some critical facts:

  • A significant portion of transactions online already collect sales tax because people purchase from online stores like or, so the real amount that is being “lost” is less than the numbers being bandied around would have you believe, and not enough to make up anyone’s deficit, maybe a small city somewhere but probably not much more.
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The Data Digest: Online Shopping — Researching Versus Purchasing

Reineke Reitsma

Recently, my colleague Jackie Anderson published a report, Understanding Online Shopper Behaviors, US 2011, and she indicated that 2010 online retail spending in the US had reached $175.2 billion and will grow at double-digit rates at least for another few years.

But among all the items that can be purchased online, some are more popular than others. We have extracted the top three and bottom three items that consumers research online and purchase online based on data from our North American Technographics® Retail Online Survey, Q3 2010 (US). The data shows that while online consumers are generally comfortable with both researching and purchasing books, hotel reservations, and airline tickets online, they still prefer to purchase footwear, consumer electronics, and household products from traditional channels.

About one-third of US Internet users aren't shopping online yet. The majority of them do use the Internet to research products but don't feel comfortable making the purchases online. The biggest barrier people mention for not buying online is their need to see things in person.

Your Guide To Video Highlights Of Forrester’s Customer Experience Forum, 2011

Harley Manning

Over the past few weeks, Paul Hagen, Kerry Bodine, and I have been posting our takes on Forrester’s Customer Experience Forum, 2011. We’ve included video of moments we like from 10 out of the 11 main-stage sessions (sadly, we don’t have video of the Voice Of The Customer Awards, but at least we have a list of the winners!).

To give attendees and others an easy way to find the moments that matter to them, I’ve assembled this guide to our posts about the event. If you find these posts interesting, you can jump into the discussions that started at the forum in our online Forrester Community For Customer Experience Professionals.


“Customer Experience Is Personal”

Harley Manning, Vice President, Research Director, Forrester Research

Here’s the man-on-the-street video I used in my opening remarks. We took a camera crew to Harvard Square and asked people to describe their best and worst customer experiences. Yikes!

 “What Is the Right Customer Experience Strategy For Your Company?”

Paul Hagen, Principal Analyst, Forrester Research

What is a customer experience strategy? What is it good for? How can you recognize a good one? Hear Paul’s answer, which sets the theme for the rest of the event.

“A Relentless Focus On Members”

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We're Accepting Entries For The 2011 International Forrester Groundswell Awards!

Nate Elliott

For the past five years, we've been running the Forrester Groundswell Awards to recognize the companies that do the best job using social media -- and last year we added an international category for the first time. We were thrilled to recognize some fantastic international social media programs in 2010 -- from companies who both used social technologies in an innovative way and were able to show how their social programs helped build brand awareness, develop new products and services, or generate leads and sales -- and I'm excited to see the entries we receive for 2011.

If you think you (or your clients) have used social media exceptionally well in the past year, and the program was targeted to consumers outside the US, we'd love to see your entry. Feel free to browse the rules here and to submit your entry here -- just remember our deadline is August 3rd. So get busy with those entries -- and good luck!

Customer Experience Is Personal

Harley Manning

Late last year, I attended a workshop at a small but quite interesting conference in London. The two guys running the workshop separated the attendees into small groups where each of us took turns describing the worst customer experience we’d had, and then the best customer experience we’d had.

I thought it was a remarkably effective exercise, and I would have liked to try something like it at Forrester’s Customer Experience Forum, 2011. Of course with roughly 1,200 attendees, we couldn’t do that so instead we did the next best thing. A few weeks before our event we took a camera crew out to Harvard Square and asked some people on the street to tell us about their experiences.

Let me tell you a little bit about Harvard Square. It’s right in the heart of the Harvard University campus, which is right in the heart of Cambridge, Mass. — a town that recently ranked as the country's most well-read city.

The day we were there, it was graduation week. So in addition to the usual students and tourists from around the world, we met parents there for their kids’ graduation and alumni there for reunions.

We heard some fascinating stories, which led us to a few conclusions. For example, it’s very hard to satisfy every customer, every time — even for a customer experience icon like Apple.

Hopefully that first segment scared you just a little because when companies get the customer experience wrong, it makes a big impact.

But of course, there’s good news, too. When companies get the customer experience right, that also makes a big impact.

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It’s Time To Develop Your Digital Customer Experience Strategy

Ronald Rogowski

Today’s digital landscape is complex. As companies use digital interfaces to engage with customers and foster long-term relationships, customer interactions are spanning an increasing array of touchpoints, with customers often crossing multiple channels in the pursuit of a single goal. While this new reality is riddled with challenges, it’s also ripe with opportunities for companies that have a strategic plan for digital customer experience.  

In a recent report, and subsequent Mashable article, I made the case that companies need to develop and execute digital customer experience strategies. As opposed to digital marketing strategies that focus mostly on what a company will provide and where, a digital customer experience strategy determines the “what” and the “where” based on the “who” and the “how.” That is, a digital customer experience strategy balances company goals and strategy with user expectations (the “who”) and describes the intended experience (the “how”). This, in turn, guides specific investments based on what customers need and a well-thought-out way of delivering on those needs that leaves a lasting positive impression.  

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Can Data Visualization Tools Improve The Communication Of Market Research Findings?

Reineke Reitsma

Recently, I've posted a question on our Market Insight Community about data visualization. Why? Because infographics are hot. Follow the infographic (#infographic) topic on Twitter and you’ll see a constant stream of new graphics. A recent example of a market-research-related one is this one from The New York Times that shows you how many households in the US have a similar set-up. And this week I tweeted a link to an interview with a company called Tableau Software that helps organizations visualize big data and works with organizations like The Wall Street Journal and CNN Money to create interactive graphics like this one on foreclosure filings.

But what is the role of data visualization in market research? There are numerous posts and contributions about the importance of storytelling for market insights professionals. Will data visualization tools help in engaging our audience with data? Can it be our way of telling a story? David McCandless talked about the beauty of visualization last year at a TED event. Good design, he suggests, is the best way to navigate information glut — and it may just change the way we see the world.

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Would You Trust Your Son's Customer Experience To This Man?

Harley Manning

Although he just turned 10, my son is very serious about his finances. And his entire life savings (such as it is — he only gets $3 per week for his allowance) is at Citizens Bank. 

Personally I'm more interested in how my kid gets treated by his bank than I am about his account balance. So I was quite keen to hear from Nick Primola from Citizens Financial Group, one of the speakers at Forrester's Customer Experience Forum, 2011.

Nick is senior vice president of direct marketing at Citizens Financial Group, where he’s responsible for enterprisewide direct marketing efforts supporting all of the bank’s business lines. As a self-confessed "data guy," that could have put us at odds. Was he going to be the driving force behind a spam attack on my kid? But as it turns out, Nick has a very enlightened view of how data gets used.

Check him out.