I recently had the pleasure of facilitating three customer journey mapping workshops for clients. For me, the most rewarding part of these workshops is when, all of a sudden, you see the light bulb go on for the participants. It can be the realization that their customer has to jump through an inordinate number of hoops to submit a simple service request or have to wait five to 10 days for repair . . . or when the workshop participants realize they have no idea what their customers are doing or thinking, but maybe they should.
Just as the light-bulb moment can be different for each person, the insights they deem most valuable can vary and include:
Ideas for designing future-state experiences. A group of participants from a retailer created a future-state journey map illustrating how customers could sign up for a credit card and rewards program while shopping in-store. They identified scenarios for how store associates could approach customers with credit card offers without seeming intrusive as well as appropriate opportunities to follow up with customers by email or mobile app if they chose not to enroll right away. These types of insights can then inform the design of the new credit card and rewards experience.
A sense of empathy for the customer. We ask workshop participants within the same organization to wear name tags because not only do we not know them but also most of the time they don’t know each other. In one workshop, the organization was siloed, as most are, and each participant owned her own small functional part of the customer journey. But no one had insight into or ownership of the entire process. When brought together to analyze the health of the end-to-end journey, participants walked away with a shared understanding that what they were each doing individually wasn’t working for the customer as a whole.
I recently interviewed a number of companies about their approach to customer loyalty. In each conversation I asked a variation of the question "How do you define and measure customer loyalty?" And what struck me is that while many companies define loyalty using various terms like share of wallet, length of relationship, engagement, and customer value, they often measure it using only transactional metrics. Now, there are various reasons for this. Some don't have access they to the data they need to gage emotional loyalty. Others don't have the analytics capabilities or resources they need to pull the pieces together. But loyalty if multi-faceted, complex, and has emotional and rational aspects that aren't mutually exclusive, and certainly can't be reduced to a single metric.
So what should you do? First, heed my rallying cry: It's time to push past purchase as a proxy for loyalty. Second, Forrester can help. Loyalty may be difficult to measure, but it's not impossible. My latest research report provides a framework that buckets loyalty measurement into four, cooperative levels:
Programmatic measurement assesses loyalty program health. These metrics explain how the loyalty program grows in size, scope, and activity level over time. Sample metrics include enrollment rates, offer response rates, and program usage.
Purchase measurement quantifies the customer relationship. These metrics explain how the loyalty strategy improves customer profitability. Sample metrics include average order value, frequency, and basket assortment.
As I wrote in my previous blog post and report on "The Data-Driven Design Revolution," the digitization of customer experiences — both online and in physical environments — has greatly expanded the depth and breadth of customer data available. This abundance of data has profoundly changed how experience design teams use and manage customer data. Its impact, however, doesn’t end there. This newfound abundance of customer data also fuels new business pressures and experiences. Chief among them being:
Organizational velocity is the new competitive differentiator, driving experiences to operate in real time, all the time. The speed with which companies can convert customer data into insights and insight into action is now a critical differentiator. Companies can no longer rely on linear approaches to data analysis — spending six months to gather data on a problem, many more months to analyze it, and even longer to act on it. Doing so will cause companies to bleed customers away to more nimble competitors. As Marc Andreessen recently tweeted, “Cycle time compression may be the most underestimated force in determining winners and losers in tech.”
Blogged in collaboration with Samantha Ngo, Senior Research Associate, serving Customer Insights professionals.
You’ve heard us saying a thousand times: the buzz about big data isn’t about the amount of data you’ve collected; it’s how you digest that data and turn it into actionable insights. With the revamp to Google Analytics’ (GAs) benchmarking, Google is taking the next steps in allowing us common folk to process data in a platform with a simple UI, built to enable you to draw insights to catalyze actionable improvements to your marketing program.
Google’s vision is there. GAs extended benchmarking capability – available to free and premium users - offers some sparkly new features such as 1600 industry categories (previously 26), size buckets, and location filters that allow for basic segmentation; and, the tool can automatically place you within one of these categories according to your web traffic, etc. Also, you have to give to get: Opting out of allowing Google to collect your information anonymously means you won’t have access to benchmarking features. Given GA’s huge deployment footprint — we’re talking about big time big data and a great opportunity for firms of all sizes and verticals to compare themselves to relevant markets.
But as you excitedly dive into Google’s benchmarking big data lake you should consider that;
This isn’t quite ready for enterprise. For the moment the benchmarks can only be viewed via Google reports; and digital marketers will not be able to suck this benchmark data (via APIs etc..) into their favourite dashboarding or BI tool.
I admit it; I’m a sports junkie. And, this is usually one of my favorite times of the year — the first few weeks of the NFL season. But this year, it’s been more about how poorly the NFL is managing what happens off the field than it is the excitement of what’s happening on the field of play.
Somehow the NFL has forgotten what its carefully built brand stands for. It's forgotten that every experience fans have with its brand — including players’ behavior — makes a difference. And it's lost touch with what matters to its customer base.
With a serious case of misjudgment, the NFL missed the opportunity to have its brand set an example and agenda for the rest of the country to follow with a no-tolerance stand on domestic violence. Instead, the deplorable way it's handled the Ray Rice domestic violence incident as well as others that have since come to light has damaged the carefully crafted NFL brand image, reputation, and ultimately overall success of its $6 billion business. So what can CMOs learn from the NFL experience to avoid missteps and instead build a strong and resilient brand?
Read my new report “How To Build A Strong B2B Brand” (subscription required) to help you avoid the pitfalls the NFL fell into. Expanding on Tracy Stokes' work in our brand experience playbook, my new report applies Tracy’s work to the unique challenges B2B marketers face in building, growing, and managing customer-centric brand experiences.
Yesterday Microsoft announced it would acquire Mojang along with its massive Minecraft gaming franchise for $2.5 billion. By now we've all seen the coverage, including the gratuitous interviews with middle-schoolers about whether Microsoft is "cool" enough to own Minecraft. By and large, we think this is a good acquisition for Microsoft, and we said as much in our Quick Take, just published this afternoon, summarizing the acquisition, its benefits, and its challenges for Forrester clients. Go to the report to read the client-only details of our analysis: "Quick Take: Microsoft Mines Minecraft for the Future of Interactive Entertainment." As we explain in the report, there are specific challenges Microsoft will face that will determine whether this ends up being a sensible acquisition or a sensational one.
Beyond the detailed analysis of the report, it's worth exploring the long-term question of what that sensational outcome would look like. The difference turns on the question of whether Microsoft is ready to invest in the future of digital interactive entertainment. This is a subtle point that has been missed in most analysis of the acquisition. Most people insist on covering the purchase as a gaming industry event. Microsoft, the owner of the Xbox, buys Minecraft, a huge gaming franchise. But that low-level analysis misses a bigger picture that I sincerely hope Microsoft is actively aware of.
Centres of excellence and shared service teams are nothing new. Its a concept that Technology Management teams have been wrestling with for years, if not decades in an effort to streamline underlying technical architecture and simplify application landscapes. In the digital world, its a less well established approach, but one that is gaining momentum as an emerging set of best practices forms around how to organize and manage a global digital strategy.
Pete Blackshaw has led the charge over the last couple of years at Nestle, establishing a widely publicised Digital Acceleration Team. The team focuses on “listening, engaging, inspiring and transforming” across Nestle’s disparate and diverse markets and brands. Its not just an operational centre of excellence, it walks a fine line between dictating to local teams and being a paper tiger with no real influence. And it does so very effectively.
But why “acceleration team” and not “centre of excellence”.
I believe that the language is important. For a local team, the idea that a global “centre of excellence” is going to roll up and tell them what to do can be a very negative experience. Do the global team understand the nuances of my market? Will migrating our lean, agile eCommerce platform onto the behemoth enterprise platform slow us down?
“Acceleration” helps create a more positive and collaborative approach.
I’m not a whiskey drinker, but I do love history, and selling. So when I read this quote from the October 16, 1861 Memphis Daily Appeal in a University of North Carolina blog recently, I couldn’t help get a chuckle and also make a connection to today’s sales enablement challenges.
“Times are tight here, as indeed they seem to be everywhere. Pea-nuts have advanced fifty per cent., and three-cents-a-drink whisky is now so diluted, I am told, that a good sized drink would come near to bursting a five gallon demijohn [a large bottle having a short, narrow neck, and usually encased in wickerwork]. I have noticed several who kept well soaked during the winter season have not been generally more than half drunk during the present, owing to the aqueous element present in the elevating fluids, thus preventing the stomach from holding enough to affect the head.”
This quote relates to sales performance in two ways. First, this article was written at a historically significant time in regard to how your sales force probably sells your offerings today. Second, a trending business strategy — in response to contemporary financial challenges — has diluted the potency of what, until recently, your buyers valued most about your salespeople.
Nearly all marketers say they use social media. But many aren’t getting much value from their investments. Despite marketers’ excitement about social media, many say the channel simply doesn’t offer enough return on their investment; for instance, barely one-half of those who buy Facebook ads say they’re satisfied with the business value those ads provide. The sobering reality is that a decade into the era of social media, many social marketers remain baffled by the channel.
The good news? There are success stories you can study to see how social media can work for companies like yours. In April 2014, Forrester announced the winners of the eighth annual Forrester Groundswell Awards. The awards recognize the very best in social marketing — focusing on programs that go beyond engagement metrics to deliver real business value to both B2C and B2B marketers in a range of industries.
Allow me to make a confession: In the debate over whether people are rational or emotional decision-makers, I have persistently seated myself on the rational side of the table. However, recent research has challenged my views. Witnessing cross-discipline academics reinforce the motivating power of emotion has resulted in a general consensus among fellow rationalists that “reason leads to conclusions; emotion leads to action.”
We are now recognizing the power of emotional decision-making in consumer behavior and — most importantly — the effect that it has on a company’s bottom line. Nothing is more convincing than the data itself. For example, a combination of Forrester's Consumer Technographics® quantitative and qualitative insight shows that when banking providers fail to meet a customer's expectations in moments of high emotional investment, they risk losing that customer altogether:
From the moment they open an account to their on-going interactions with bank employees, customers navigate a series of emotional experiences that directly affect their decision to enhance or withdraw from the brand relationship. Companies that appeal to customer emotions during such engagements master these "moments of truth" and ensure that outcomes are positive — and profitable.