This is a roll-up of all Forrester blogs written for Marketing & Strategy Professionals. Role-specific blogs are listed below. Visit Forrester.com to learn how we make Marketing & Strategy Professionals successful every day.
Most of the large marketers we survey tell us their companies are active on Twitter. But just as marketers say they’re not getting enough value from Facebook, Twitter marketers are still looking for greater value as well. In fact, our new report today reveals that only 55% of companies that market on Twitter say they’re satisfied with the business value they achieve:
Why are Twitter marketers still looking for greater value?
Marketers are using Twitter for the wrong objective. Marketers’ most common objective on Twitter is to build brand awareness. But consumers are most likely to become a fan or follower of a company in social media after they’ve already bought from that company. This means that marketers would have more luck using Twitter to engage their existing customers than to find new ones.
Twitter must do more to support marketers. Twitter’s marketing business is still relatively young — its ads have been generally available for only about 3 years — but that business must mature quickly. Marketers say they need more guidance, education, service, and support if they’re going to use Twitter successfully. And just 44% of marketers say they’re satisfied with Twitter as a marketing partner today.
A few years ago in a report I wrote, "What's The Right Customer Experience Strategy?", I asked whether it looked more like Apple or more like Costco. The reality is that Costco outperforms Apple on Forrester's Customer Experience Index. While both companies actually perform well, they differentiate themselves in very different ways to exceed the expectations they've established for their target customers. I recently came across an article about Costco, which reaffirmed why the company continues to perform well through the massive digital change that challenges the business models in many industries. Here are a few takeaways for CX leaders:
Be very clear about your target customers. Instead of trying to be all things to all people, Costco goes deep in serving its target customers, leveraging its strengths (most important, business capabilities) to solve bigger problems for them.
Look beyond the boundaries of your own industry for opportunities to serve customers (Costco is selling cars, helping small businesses with inventory and payroll, etc.). This is where the real competitive scenarios will take place. Costco is competing with USAA (auto program), investment firms, and insurance companies . . . as well as other big-box retailers.
I am a new senior analyst on the customer experience team, based in London, and I wanted to take this opportunity to introduce myself and share some thoughts about my first report. My areas of expertise include digital customer experience, measurement, strategy, customer understanding, and design. For my first report, I have decided to tackle a topic that occupied a lot of my time as a customer experience (CX) practitioner, namely technology.
As a former customer experience practitioner, I found myself gravitating between the driver seat, the passenger seat, and the backseat when it came to technology decisions — part buyer, part advisor, and part bystander. I worked closely with IT on digital CX and had some very fruitful interactions with IT colleagues about customer experience in general — and customer journey and ecosystem mapping, in particular. I also experienced firsthand the fragmentation of IT spending as more business owners spend more from their own budgets on IT in order to win, retain, and engage with customers. And of course, as many of you, I witnessed IT projects derail or gain a life of their own, to the detriment of the customer experience. Technology is everywhere, every business is now a digital business, and customer experience professionals are facing a tsunami of technology choices as the tech industry enters a period of unprecedented innovation and more and more vendors align themselves with the customer experience buzz. In this first report, I want to explore:
How involved are customer experience professionals in technology decisions? Are they in a position to influence these decisions?
Our advertising forecast shows that online video for marketing is big business and is only going to get bigger. In Europe, the CAGR for total ad spend from 2013 to 2018 is 2.19%, but for online video ad spend, it is a staggering 18.83%. The US shows a similar (albeit smaller) skew, with total ad spend CAGR of 4.49% and video at 22.39%.
Video, then, is a big deal, but most marketers aren't realizing the full potential of the medium. Approaches to video online are broader than simply grabbing 30 seconds from your TV commercial and sticking it on an online display network. Broadly speaking, there are three approaches to video:
Linear video — static. Pre-rendered content, where the video plays from beginning to end. It's just like TV adverts or the majority of video content marketing on the Web.
Linear video — dynamic. Where video content is customized per user or segment, often at run time. This approach interacts with consumers' data (e.g., social profile information) and/or context (e.g., location) but does not allow users to directly interact with the material when playing. A great example of this is one directed by Jason Zada and Jason Nickel from production company Tool and is called “Lost In The Echo,” which pulls in pictures from a user’s Facebook page, superimposing those snaps with photos that characters in the video mourn over.
In 2011, the executives at Bertucci’s, a 30-year-old restaurant chain in the US Mid-Atlantic and New England regions, faced a big problem: The restaurant had become nearly invisible to younger generations of diners. Bright lighting and rows of faux-leather booths beckoned parents with messy young children — not ever-shifting groups of young friends on the move. And its traditional table service felt increasingly irrelevant for diners who wanted to get in and get out — or park themselves for hours with a laptop.
Bertucci’s saw that it had to throw out its old restaurant model in order to court (and keep) a younger generation of diners. Rather than rework its existing locations, the executive team decided to create an entirely new brand. “What we wanted to do is cut the competition off at the pass,” says James Quackenbush, chief development officer of Bertucci’s.
Partnering with design and innovation consultancy Continuum, the firm created a new restaurant concept called 2ovens. The success of the pilot restaurant demonstrates the power of following a structured approach to customer experience innovation.
I returned yesterday from a short trip to Brazil - I spoke at eTail in São Paulo on Monday and spent a few days meeting with retailers, vendors and agencies. Some of the takeaways from our conversations:
Omnichannel initiatives are gaining momentum. Omnichannel integration has been a topic of conversation among retailers in Brazil for several years, but it’s now slowly starting to happen. Today, most of the large Brazilian online retailers have established mobile sites or apps; by contrast, initiatives that integrate the online and offline channels are more nascent. Tactics like click-and-collect or ship-from-store, for example, are early stage but being explored by the more innovative players in the market. And while some forward-thinking Brazilian retailers have been quite advanced in terms of understanding cross-channel behavior, most have not taken major steps in this direction. Interestingly, retailers in Brazil have a particularly big opportunity in this area given that Brazilian consumers frequently supply a CPF (roughly the equivalent of a social security number) when they purchase online or offline – the savviest retailers are leveraging this customer data to identify and target omnichannel shoppers.
Our recent report on why Facebook is failing marketers has caused quite a bit of conversation — with some supporting our findings and others disputing them — and we think that’s healthy. We fully stand behind our data and our conclusions, and we welcome the chance to further discuss what’s working and what’s not working in social media. Conversations like these can only push the industry forward and help all social marketers and sites become more successful.
In particular, we wanted to address a few common questions people are asking about our research:
Facebook’s score didn’t look that low. Are they really failing marketers? Facebook offers marketers access to the largest audience in media history and it knows a remarkable amount about each of its users and their affinities. By all rights, Facebook should be driving significantly more value for marketers than other sites and channels — but according to our survey, they’re not. Forrester’s Data Center of Excellence has looked at this data many different times, through many different lenses, and every view of the data supports this conclusion.
Your customers don’t come to your website or your own social channels (such as your Facebook brand page) to discover whether what you offer meets a need or fulfills a desire they have. Instead, people discover you mostly through ads and word of mouth (WOM). To spread your message to a new audience, update your understanding of "reach channels" to include not only traditional tactics such as TV, search, and print but also the three key social tactics for this phase of the life cycle: influencer marketing, advocate marketing, and social advertising.
In my most recent research report, I examine how these different reach tactics are related and how you should balance trust and targeting in your social reach strategy. Specifically, there are four categories of contributors create content on your behalf:
Your marketing team uses social ads to target your prospects and customers precisely.
Employees, resellers, and partners share their experiences with your prospects.
Your customers relate to your prospects as peers.
Influencers shape the conversation about your solutions.
We recently wrapped up our second evaluation of loyalty program service providers. From a potential pool of over 30 loyalty providers, we selected eight leading vendors that offer soup-to-nuts loyalty strategy, technology, and program management services. What has changed since our last evaluation? Notably, we found an increased focus on building programs that go beyond transactional rewards and loyalty technology. Wraparound program management services are still a key component of their solutions, but every vendor included in this Forrester Wave evaluation offers a productized platform that can be configured to meet client requirements.
In our final evaluation of eight vendors in“The Forrester Wave™: Loyalty Program Service Providers, Q4 2013,” we found a relatively competitive field of providers. Each firm has strengths and weaknesses in its current offering, but the leaders differentiate themselves through their forward-thinking company strategies. From a road map and development perspective, further increasing customer engagement capabilities, continually improving technology, and investing in more sophisticated loyalty analytics are major focus areas.
I want to extend my sincere thanks to each vendor in the report — Aimia, Brierley+Partners, Connexions Loyalty, Epsilon, Kobie Marketing, Maritz Loyalty Marketing, Olson 1to1, and Tibco Loyalty Lab — for committing to and participating in the often grueling Forrester Wave evaluation process. In addition, thank you to my CI colleagues Samantha Ngo, Carl Doty, and Shar VanBoskirk for supporting and editing this research.
Since the introduction of the DVR more than a decade ago, consumers have learned they don't have to conform their lives to broadcast programmers' schedules in order to watch their favorite TV shows.
Along come online sources like HuluPlus, or the network's own websites promise even more convenience: Get any episode of any show with no need to remember to record it. But adoption is hampered by the awkward viewing experience of the cramped screens of laptops, tablets, and smartphones.
Welcome to TV viewing in the Age of the Customer. Consumers want their favorite shows when they want them, on their preferred device, with little or no effort on their part.
Linear TV, DVRs and today's online viewing experience all fail on at least one of these dimensions. Viewers increasingly cobble together a mix of sources and devices to create this level of convenience, and each of these players vies to capture more of viewers' time by improving its offering.
In my new report, "How Online Video Will Challenge DVRs' Role," I delve into how these two sources of video entertainment vie to meet consumers' increasing expectations. DVRs have the advantage of incumbency, while online viewing offers greater flexibility.