An Updated Look At The Web Analytics Market

Joe Stanhope

I’m pleased to announce that we’ve published "The Forrester Wave™: Web Analytics, Q4 2011." The Wave methodology is Forrester’s time-tested, exhaustive, and transparent approach to vendor evaluations. This research is based on data gathered through extensive vendor briefings, product demonstrations, customer reference calls, and online user surveys. We evaluated seven leading vendors against 80 criteria and gathered reference feedback from more than 160 user companies.

This Wave focused on established vendors that offer web analytics products targeted at enterprise clients. We evaluated the following companies: Adobe, AT Internet, comScore, Google, IBM, Webtrends, and Yahoo. Forrester clients can read the full report and access the underlying scorecard details for each vendor. And don’t forget that the Forrester Wave scorecard also includes an interactive tool allowing users to customize the Wave model with personalized criteria weightings. 

I’ve been asked several times why this Wave focuses on web analytics as opposed to a broader digital analytics or online marketing suite approach. I’m not ruling those options out for the future, but today the answer is simple: because web analytics is still challenging. My research agenda is heavily influenced by the questions and projects we address for our customers. As of this writing, more than half of my client inquiries are still about the technology, processes, staffing, and best practices of web analytics. That tells me that web analytics is a topic that still deserves our attention.

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Kick Out The Tills, CI Professionals

Rob Brosnan

Mike Brown, CIO of Lowe’s, in an interview with Bloomberg on the purchase of 42,000 iPhones as point of sale (POS) devices:

Forget about the competition, we are playing catch-up with the customer psyche.

CI professionals need to follow Brown’s lead. A substitution of tablets and smartphones for cash registers promises both to improve customer experience and to transform face-to-face customer interactions into a stream of behavioral and contextual data. The benefits of digitizing human channels through consumer devices include:

  • Adding clickstream analysis to human interactions. As sales associates interact with customers, their devices can relay clickstream data back to the company’s data warehouse. For example, Pfizer’s tablet program allows it to track doctors’ content consumption patterns during sales presentations. Using interaction management, firms can test real-time content variations to optimize the sales process.
  • Expanding customer data integration options. By using the phones for mobile POS, employees will pull in customer identity. Firms can also add new methods for data capture – such as Bump-style, near-field communications – into its consumer and enterprise apps. As sales associates transfer a shopping list to the customer’s phone, the device can capture and associate customer identifiers and contextual information with the interaction.
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The Greatest Thing To Come Out Of The Mind Of The Late, Great Steve Jobs: His Perspective

Harley Manning

Those of us who work in the field of customer experience are especially hard hit by the passing of Steve Jobs. He symbolized the power of experience — how much a great experience can transform a product, a business, an industry, and even our daily lives.

Do you remember personal computers before the mouse, how you bought and listened to music before iTunes and the iPod, or how many animated films you watched in theaters — with or without the kids — before Pixar?

Steve Jobs even changed the way many of us think. If you own an iPhone or an iPad, you’ve probably found, as I have, that you don’t bother to memorize very much anymore. Why should you when you can dig up facts anytime, anywhere with just a few taps on a touchscreen?

Now please don’t get me wrong: I don’t idealize the man. For one thing, many people contributed to the success of everything I just mentioned. And not all Apple experiences are perfect, and Jobs didn’t succeed at everything he did (remember the NeXT Computer?).

But to go cynical is to miss the point, or more specifically, the point of view — the one that makes Jobs an icon for customer experience professionals. He put it out there when he famously said, “You've got to start with the customer experience and work back to the technology — not the other way around.”

Frankly, “the other way around” is how most companies still operate. Not just technology companies but firms in every industry. Someone has an idea (maybe great, maybe not), and that turns into a product or service in the marketplace. The customer experience that results is whatever it turns out to be.

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Apple’s Product Strategists Maintain The Company’s Premium Positioning In The Mainstreaming Smartphone Battle

Thomas Husson

My colleague Charlie Golvin and I took the time to step back from the flow of news following Apple’s announcement today. Here below is our take from a consumer product strategy perspective.

Apple’s product strategists face an ongoing paradox: maintaining premium leadership with an annual product renewal while tapping the rapidly mainstreaming global smartphone market

Today, Apple’s product strategists revealed their newest premium smartphone: the iPhone 4S. Just like the 3GS at its introduction, the 4S relies on a leap in processing power and a new interaction paradigm but eschews technology upgrades upon which product strategists building Android-based devices rely today, such as LTE and behemoth screens.

Apple’s new iPhone lineup provides a complete portfolio of products, from the premium 4S in memory configurations up to 64 GB, to the 8 GB iPhone 4 which will allow all of Apple’s carrier customers (including new partners Sprint and KDDI in Japan) to offer a mid-tier iPhone. Apple’s product strategists have opted to add an entry-level option for its GSM-based carrier partners by maintaining the 8 GB iPhone 3GS.

With the iPhone 4S, have Apple’s product strategists designed a product that will maintain Apple’s leadership in the high-end smartphone battle? Forrester believes so — even though Apple chose not to include features that its competitors use to command a premium position, including:

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Online Retail In Germany -- Isn't It Time For A Multichannel Approach?

Martin Gill

 

Following on from my European eCommerce overview a couple of months ago, I’m continuing to build a deeper view of how the online retail markets are evolving in the major European markets. 

This month I turn to Germany, the second-largest online retail market in Europe, and one with a number of interesting characteristics. When we compare Germany to other European markets we see that:

·         eBay and Amazon.de are hugely influential. While eBay and Amazon see strong sales in Germany, their influence extends beyond their direct sales as many German web shoppers turn to these sites ahead of search engines to research products. Major retailers such as Conrad are trying to leverage this consumer behavior.

·         Consumer electronics is hotly contested. We looked at Redcoon.de in some detail in our recent Website Functionality Benchmark of European Consumer Electronics Retailers, but with consumer electronics  the number one online category in Germany, other specialist retailers such as ComputerUniverse are looking at new ways of influencing online shoppers with rich product information and ratings and reviews.

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Are You Ready For A World Of Consumer-Managed Data?

Fatemeh Khatibloo

It has been a few years since Forrester delved deeply into the issues surrounding consumer privacy, and in that time, an awful lot has changed:

  • Facebook Connect, Google ID, Yahoo Identity, and Sign In With Twitter have emerged as a whole new way of being recognized across a myriad of websites across the Net. As little as a decade ago, most adults online couldn’t have imagined the convenience of single sign-on.
  • At the same time, data capture methods have not only proliferated, they’ve become exceptionally sophisticated. Tactics like Flash-based cookies and deep packet sniffing surreptitiously collect behavioral data about online consumers, while loyalty and membership cards provide more insight into consumers’ purchasing habits at the line item level than ever before.
  • All that extra data is hard to protect without big changes to governance policies and technology stacks, and when data breaches happen, they're public and ugly.
  • Finally, legislators have forged ahead with regulations to protect consumer data. Europe's answer is the Data Protection Directive – a regulatory framework that governs the capture, management and use of consumer data, while in the US, congressional leaders, egged on by consumer advocacy groups, are introducing bills designed to limit data capture and to provide remediation in cases of data and security breach.
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The Rise Of The E-Channel – Traditional Channels Beware

Tim Harmon

 

Lurking in the tech channel shadows are the various manifestations of the newly emerging e-channel: online application stores, online communities, group buying sites, and e-purchasing services. For example, the number of small to medium-size businesses (SMBs) that sourced software products from online application stores increased almost 40% from 2009 to 2010. (I’ll publish the 2011 channel numbers next quarter.)

Joining the application store ranks of Intuit Marktplace, NetSuite SuiteApp.com, and salesforce.com AppExchange this year have been Adobe Marketplace, Cisco AppHQ, Constant Contact Marketplace, Microsoft Dynamics Marketplace, and Microsoft Office 365 Marketplace. Online communities OfficeArrow, OpenForum, and Spiceworks now offer software products. You could imagine e-purchasing services, like Rearden Commerce and Concur, expanding their travel services domain to other B2B products and services (like software). And this is just the tip of the iceberg – believe me, there are a lot more tech vendors and communities that will launch e-channels in the next six months.

All this e-channel activity, from both the provider and customer sides, has got to toll a warning bell for traditional channel companies – and their vendor partners, who have to keep them appeased. Perhaps most vulnerable are the DMRs (direct market resellers) (although the DMR gorilla, CDW, is taking strategic steps to expand its services portfolio in becoming more of a solutions provider).

I’ll be researching the impact of this emerging e-channel further, so if you have ideas or perspective to help guide my research, please share.

The Who And How Of Customers’ Technology Decisions

Tim Harmon

 

Tech marketers often fret over their marketing mix, but it’s usually couched in terms of “how” – e.g., “How do customers get information about us?” or, “Do we have the right mix of web content, events, blogs and [now, of course] social media conversations?”

We know that all those “how” things are not equal. Customers utilize web content more than events, and events more than blogs. But every bit as important (if not more), and sometimes not taken into consideration, is the “who” of the “how.” In general, customers highly value tech vendors’ websites and events, industry analysts’ research reports and blogs, channel partners’ online videos, and social media conversations with peers. But customers’ go-to information source preferences vary by industry, company size, and geography. [For more information, see the Forrester report on “The Who And How of Influencing Customers’ BT Decisions.”]

With social media stacked on top of websites stacked on top of events stacked on top of collateral … well, I don’t have to tell you how complex marketing-mix allocation budgeting has come to be. But designing your mix model on a “who-what” framework simplifies the model, and goes a long way to ensuring that you’re investing in the information sources that customers are tapping. 

The Data Digest: Use WOM To Reach Consumers In Metro China

Reineke Reitsma

Companies like Coca-Cola, Nike, Unilever, Procter & Gamble (P&G), McDonald’s, and Johnson & Johnson have done a great job converting their brands into household names in Metro China, mainly by investing big in advertising and promotions. Having pockets deep enough to put these messages in front of the Chinese people is great, but if your firm is interested in entering this market of 1.37 billion people but doesn’t have access to the advertising financial resources of a Coca-Cola or P&G, what do you do?

Start thinking about word-of-mouth (WOM) campaigns. Due to historic events and their family teachings, Chinese people tend not to trust content coming from strange sources. However, Chinese people are known to be loyal to their friends and family. Forrester Technographics® data shows that “recommendations from friends and family” (44%) is the primary source of content people trust in Metro China. Interestingly, among the top five sources, we also see “email from people you know” (40%) and “social networking site profiles from people you know” (25%). These are both forms of word of mouth that have transitioned from the offline world to the online world.

 

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Google Shakes Up Web Analytics, Again

Joe Stanhope

 

Google changed the web analytics market forever with the introduction of Google Analytics in 2005 (for a dose of nostalgia check out Brett Crosby’s original blog post).  It was easy to use, delivered as a service, integrated with Google AdWords, and most of all it was FREE! This was revolutionary, and in the beginning it was an exciting way to democratize analytics, giving companies of all sizes access to tools that had traditionally been the domain of large, well funded corporations. It’s no surprise that in terms of sheer adoption, Google Analytics became – and still is – the most popular web analytics tool on Earth, serving hundreds of thousands of businesses.

But then something interesting happened: Google Analytics took on a life of its own. Strictly speaking, Google Analytics was not the leading offering in terms of features and functionality, and Google didn’t even offer direct services or support. So what accounts for its success?

  • Community. Google cultivated a large, active, and cooperative community of users, bolstered by strong online resources and their base of certified partners.
  • Ease of use. Google innovated in usability, making analytics accessible – even appealing – for non-analysts and marketers.
  • Enterprise penetration. Google Analytics gradually found its way into the enterprise as a secondary tool – sometimes by design, sometimes not! – for marketing applications and audit or backup purposes.
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