Social media has forever changed the way travelers interact with each other and companies — and its use is still growing. Forrester Technographics® data shows that 26 million more US online leisure travelers use social media in 2010 than in 2008. In fact, leisure travelers are really connected to travel companies beyond booking: A high 41% of US online leisure travelers have become travel social fans (TSFs) by friending, following, or becoming fans of a travel company or destination on a social networking site like Facebook, YouTube, Flickr, or Twitter. But why do they do this?
As the data shows, discounts are a powerful motivator. One in three friends, follows, or fans travel companies and destinations to learn about the seller's offers and discounts. As a result, smart travel organizations will start using social networking sites as extensions of their Web sites for travel deals. Travelocity, for example, has a 'roaming gnome' on its Facebook page that offers and promotes the company’s "Deals Toolkit." JetBlue Airways has a dedicated Twitter account, @JetBlueCheeps, to push special deals. Who will follow with the holiday season coming up?
One trend over the past year has been a growing interest in markets outside of North America and Europe. We're getting an increasing number of inquiries about markets in Asia-Pacific, Latin America and the Middle East - companies are anxious to map out their strategies for major eCommerce markets like Japan and China, as well as others such as Brazil and Russia. Retailers with an offline presence in affluent markets like the Gulf States are considering supplementing their traditional retail channels with an online one.
If you're looking to expand into any of these areas of the world, I wrote up some observations which were just published in Internet Retailer yesterday. Have a look if you're interested in emerging trends among online buyers in China, Japan, South Korea, Australia, Brazil and the UAE.
I'm in the business of identifying when there's a change in the wind coming that will push us in a new direction. On balance, I've been successful. So much so, that when something I staked my career on becomes commonplace, people are so used to it that they look back and think I was only pointing out the obvious. Like when the most senior faculty member in the advertising department at Syracuse University rejected the "Interactive Advertising" course I proposed to teach in 1996 because online advertising was "just a fad." I took a stand and got to teach the class, over his objections. Fast forward to today and online advertising is so obvious that predicting it is a thankless task.
I say this because I am about to take a stand I want you to remember. Ready? Starting November 4th, Kinect for Xbox 360 will usher us into a new era Forrester has entitled the Era of Experience. This is an era in which we will revolutionize the digital home and everything that goes along with it: TV, internet, interactivity, apps, communication. It will affect just about everything you do in your home. Yes, that, too.
I've just completed a very in-depth report for Forrester that explains in detail why Kinect represents the shape of things to come. I show that Kinect is to multitouch user interfaces what the mouse was to DOS. It is a transformative change in the user experience, the interposition of a new and dramatically natural way to interact -- not just with TV, not just with computers -- but with every machine that we will conceive of in the future. This permits us entry to the Era of Experience, the next phase of human economic development.
To help consumer product strategists and executives answer this question and benchmark their mobile consumer strategy, Forrester fielded a Global Mobile Maturity Online Survey in Q3 2010. We interviewed more than 200 executives in charge of their company’s mobile strategy across the globe (40% in the US, 40% in Europe, and 20% in the rest of the world).
First, only a third of respondents said that they had had a mobile strategy in place for more than a year. Companies in this situation are from many different industries, but online players, media companies, and financial institutions are often more advanced. Forty-five percent of respondents are just waking up to the mobile opportunity and thinking about integrating mobile into their overall corporate strategy — just like they did a decade ago with the emerging online channel.
For the majority of respondents, mobile is mainly seen as a way to increase customer engagement, satisfaction, and loyalty. Mobile is less useful as a way to acquire customers and generate direct revenues — just 2% expect to generate more than $10 million in mobile revenues for 2010. While companies are assigning clear objectives to the emerging mobile platform, 23% of respondents still consider their primary objective with mobile to be to “test and learn.”
Since then, I’ve had a couple of not-so-positive experiences with other companies that have amplified the impact of the experience I had with American Express. I’ve also witnessed another that a colleague of mine had that made the American Express experience even more genuine.
I was so glad to read Malcolm Gladwell’s piece in the New Yorker, because as a Facebook bear, I often feel alone in the wilderness. Finally, I thought, a widely respected contrarian on the topic of social networks! He says the “revolution won’t happen on Twitter.” And I say “no one's revenue will come from Facebook.”
While there is no shortage of bragging about how many people in the world are on Facebook, sadly none of them have generated any significant revenue for other companies. That may very well be The Social Network's bane. I spend much of my day talking with, surveying and interviewing retailers and the general consensus I hear about social networks is that they just don’t drive revenue. Nearly 60% of retailers agree that the returns on social marketing efforts are unclear. Retailers tell us Facebook fans don’t buy after becoming fans, they don’t click on the posts that retailers make, and no one visits or buys from the Facebook stores (unless that’s the only place where your merchandise is available). I contrast social networks with search, which even 10 years ago was regarded as one of the most effective marketing tactics out there even when few retailers were using it. The State of Retailing Online Report from way back in 2001 had 88% of retailers saying paid search was effective. To this day, search continues to retain that honor. Social networks? Not so much. Only 7% of retailers say it’s an effective customer acquisition source.
This promises to be an educational, interactive, and entertaining way to learn the tools that will help you create the online experience your brand deserves. And, if you are attending the forum, we are offering a special discounted rate. For more information, and a detailed agenda, please visit the event page.
For a long time, people have debated the meaning of every part of the acronym RIA (rich Internet application). What is rich? What do you mean by "Internet"? What's an application as opposed to a site that renders content? (The last one has become clearer for some apps that sit outside of the browser but is still contested for functionality that runs within a browser.) The debate was really a way of making the case for player-based technologies like Flash and Silverlight vs. AJAX and dynamic HTML. While the former powered experiences that were more akin to software than sites (generally speaking), the latter enabled more dynamic, yet still page-based, experiences (again, generally speaking). But the lines are about to blur even further as we look at experiences that are increasingly fragmented across interaction points.
What does the future look like? Forrester believes that four attributes will characterize the online experience of the future. As my colleague Moira Dorsey points out in her report, "The Future Of Online Customer Experience," experiences will be: customized by the end user, aggregated at the point of use, relevant to the moment, and social as a rule, not an exception.
Yee Hah! The worst recession since the Great Depression was declared officially over in June of 2009. We should be feeling great, since all things considered, the insurance industry fared pretty well when it came to how it emerged from that dark tunnel. But except for one notable role voice, insurers, unlike their banking peers, are still holding back from growing the business. How do we know? We took a look at nearly 5,000 inquiries that Forrester answered for insurers, bankers, and securities firms in the wake of failure of Lehman Brothers to just after this May’s Flash Crash.
What was on the minds of insurers during these six quarters? For starters, insurers:
Asked more questions than their financial services peers. Of the three segments we looked at, insurers asked half of the inquiries we fielded—2,500 versus nearly 1,600 and 600 for banks and securities firms, respectively.
Framed more than half of those questions around risk. Insurers didn’t veer away from what got them through the recession intact (indeed, from the very nature of their business)—managing risk. Even questions about application development strategies were framed as a risk question, with most insurers seeking validation that they were following in the well-worn grooves of others in insurance (and other industries) before them.
Posed too few questions about growing the business. Unlike their banking and securities siblings who asked questions about growing the business through new product launches, up-selling and cross-selling, or luring new customers away from competitors, insurers, with one big role-based exception, did notreflect that Q2 2009 economic inflection point.
Unfortunately, he never returned, so the only evidence of the journey is the strange “Welshness” of certain Native American tribes in Alabama (musical voices, continuous searching for coal, and trying to get around in circular boats).
Prince Madog actually challenged the Native Americans there to the first Ryder Cup, but that contest was declared null and void after one Native American replaced his ball with a fresh one because it had “gotten wet and dirty.” Nowadays, the American team are given a better chance – last Saturday, Ricky Fowler was only penalized one hole when he did the same. This kept the contest alive for a few more days (the TV networks rule). In fact, the Europe team even contrived to keep the contest going until the last pairing, which may have been leaving it too tight. I must say, the Americans were better dressed then, and their rainproofs did keep out the rain.