Part 2: What Do I Do With My Data?

Kara Hoisington

Kara Hoisington in an Associate Consultant in Forrester's Customer Experience Consulting practice

Organizational Alignment Is Key To Data Sanity

During the first part of this series, I talked about how clients are constantly asking us what to do with their data and how they usually go right to “what technology do I need to solve this?” We learned in that post that technology is most likely not the issue (or solution). In this post, I will go to the core of the issue: your organization.

Many companies are their own worst enemy. They have set up systems and priorities that don’t align, leaving everyone in a lurch when it comes to sharing insights and making data more actionable. IT doesn’t talk to marketing. Marketing only gives requests to data analysts. Analysts don’t ask questions. This chain leaves everyone with just a sliver of the story.

In order to break down silos and open up a dialogue across business units, you have to start by asking, “What do we want from the data?” This question will start a path that first leads to where the data needs to end up and which audience is digesting it. From there, dig into where it lives (possibly in a top drawer, behind the socks . . . ) and see if what you need is there. In order to have that conversation, marketing, technology management, and analysts need to get in a room together to discuss possibilities and limitation.

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Better Customer Experience Correlates With Higher Revenue Growth In Most Industries

Harley Manning

Does customer experience really matter to business success — or is CX just the latest flavor of hype? Recently, Forrester completed a six-month research effort aimed at answering that question by examining the relationship between superior customer experience and superior revenue growth. 

Why did we pick revenue growth as the measure of business success? Because it’s the No. 1 priority of global business leaders recently surveyed by Forrester.

So with that in mind, here’s what we did: Aided by some long-suffering research associates, some of our top industry experts and I picked pairs of competitors where one of each pair had significantly higher customer experience quality than the other (as rated by their own customers). We did this for five very different industries: cable, airlines, investments, retail, and health insurance. Then we built models that compared the compound annual growth rate in revenue of the CX leaders to the CX laggards between 2010 and 2014.

The results were intriguing. There was a clear correlation between superior customer experience and superior revenue growth for cable companies, airlines, full-service investment firms, direct investment firms, and retailers. However, the magnitude of the difference varied widely by industry, with cable coming out on top: 35.4% for the CX leader versus 5.7% for the CX laggard. Even more interesting, the results were a virtual draw for health insurers — superior CX didn’t seem to matter much when it came to revenue growth.

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Book Mini-Review: "Customer Experience: What, How, And Why Now"

Harley Manning

Over the weekend, I read the manuscript for Don Peppers' upcoming book, Customer Experience: What, How, and Why Now.

Because Don is a talented writer, and because I love customer experience, it wasn’t hard for me to start reading it. It was, however, hard to stop reading it. If you’re also into customer experience, you’ll no doubt have a similar reaction when it comes out.

What I like most about the book is that Peppers consistently grounds customer experience in business fundamentals. For example, he points out that the decision to focus on customer experience should never be binary: You don’t have to be customer-centric or product-centric, nor does spending to deliver a better CX mean wasting money. The reality is that focusing on customer experience can lead to new and better products and help create an even more profitable business — provided that you understand it.

Of course, learning to understand the practical aspects of customer experience can be hard work — much like attending a particularly tough business class. But that’s not the case here. Peppers makes the nuts and bolts of customer experience engaging and even visceral. To see what I mean, check out two of my favorite quotes from the book:

  • "If you think about it, a customer is really just a bundle of future cash flows, with a memory. And these future cash flows will increase or decrease based on how the customer remembers being treated, today."
  • “Customers don’t necessarily stay because they’re satisfied, but they often leave because they’re not.”
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Does Facebook still like the "like"?

Erna Alfred Liousas
Change is constant, especially with Facebook. Not too long ago it changed its algorithm to allow users to see their favorite content within their New Feeds first. Then it introduced Instant Articles to help publishers create interactive articles on Facebook. This week, Facebook updated its logo and its algorithm again. This update helps users prioritize stories and posts by allowing them to select the friends and pages they'd like to see at the top of their News Feed. And now for the grand reveal...
Facebook will no longer use likes in its cost per click measurement definition.
Yes, you read correctly, Facebook is discounting the value of its likes to the point where it doesn't factor into their click metric.  
Why is this happening now? 
At the end of the day, ads cost money. If Facebook wants to keep that ad revenue flowing, they've got to connect those ads to the things that drive the bottom line -- items that tie back to business goals, to justify the expense to marketers. Going forward, these clicks will factor into CPC:
  • Clicks to visit another website
  • Call-to-action clicks (Shop Now)
  • Clicks to install an app
  • Clicks to Facebook canvas apps, and
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Customer Experience Pros Should Shift Their Focus From Needs To Expectations

Ryan Hart

Expectation Maps Are A Smart Way To Visualize Customer Journey Emotion

Talking to clients, it’s interesting to see and hear how the topic of “customer needs” still comes up as frequently as the sun comes out in Singapore. In a day and age when customer “needs” such as food, clothing, and human interaction are largely met, it makes sense for CX professionals to shift focus toward dynamically changing and ever-evolving expectations of what a quality experience should feel like.

When making a purchase online, for example, the “need” is for the item to get to the address provided in the time stated — that’s a given. It gets emotional when there’s a disconnect between the picture of the product purchased and the actual item received. Wildly exceeding or failing to meet expectations elicits emotional reactions that shape customer perceptions of the quality of a given experience.

Culture and language also have a very powerful influence on customer expectations, and companies need to be mindful of this when going after customers outside of their home markets and localize those experiences appropriately.

My latest report, part two in a three-part series on tools CX pros can use to customize customer experiences in markets they operate in overseas, explores expectation mapping as a tool to capture diverse emotional elements to augment your existing customer journey work.

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Expect Faster Adoption Of Apple Pay In The UK

Thomas Husson

At the beginning of the year, Forrester made the call that the future of mobile wallets lies beyond payments. By adding marketing value beyond payments — such as integration of loyalty rewards, coupons and many other services, wallets will become marketing platforms complementing merchants' own integrated apps.

Consumers want a better shopping experience, not better payment systems. By adding support for rewards programs (from the likes of Walgreens or Kohl’s) and store-issued credit and debit cards, Apple will make this fall a first step in building a more integrated mobile wallet. The rebranding of Passbook to Wallet represents an explicit push by Apple toward a more comprehensive, consumer-friendly solution.

Less than a year after launching in the US, consumer adoption of Apple Pay is modest but encouraging, all the more Apple Pay has quickly become a trusted solution.

I believe adoption in the UK will be faster than in the US for a number of different reasons:

  • The NFC and contactless ecosystem is much more mature in the UK.
  • There is no consortium of retailers like MCX with ConcurC led by Walmart willing to launch a competing offering. That said, Zapp is likely to be main competing service when it launches in October with the backing of Sainsbury’s, Asda, House of Fraser, Thomas Cook, HSBC, First Direct, Nationwide, and Santander. Barclays, the one major UK bank not backing Apple Pay, just announced today they will also support Zapp at launch.
  • The inclusion of Transport for London as a partner is a way to raise awareness and accelerate daily usage.
  • Apple will benefit from a larger installed base of compatible devices (iPhone 6 and 6+) and from the awareness created by the media buzz from the US launch.
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Three Ways To Improve Federal Digital CX On A Shoestring Budget

Rick Parrish

Have you read the results of the Government Business Council’s new “Digital Disconnect” survey?

The results are fascinating, and I could go on for quite some time about them (just ask my dogs, who have been listening to me rant about the survey all morning). However, at the moment, I will focus on the result of just one question.

That question is: “Which of these pose a significant challenge to your agency’s ability to digitally optimize its public services?” The top selection was “budget constraints.” About 64% of respondents said budget is a challenge to improving digital public services.

No way am I going to say that budget isn’t a problem. It’s a huge problem. That’s why Congress needs to fund the digital services groups and other digital customer experience (CX) initiatives that the administration advocates. But too often I hear budget used as an excuse for not doing anything, despite the reality that feds can make real digital CX gains on a shoestring budget and that good digital CX is often actually cheaper than bad CX.

A few weeks ago, I blogged about how feds can use CX guerrilla tactics to make gains without budget, personnel, or authority. Back in April, I wrote about overcoming the top five excuses for not improving federal CX, and budget was among them.

Today, I’d like to mention a few more ways that federal agencies can improve their digital CX on the cheap. Here they are:

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When Was The Tipping Point For CX? It Looks Like It Started "Tipping" In 2010!

Harley Manning

Last week, I stumbled across "The Behavioral Economics Guide, 2015" (which you can find here).

I’m kind of a Daniel Kahneman/Dan Ariely junkie so I immediately started scrolling through it looking for articles of interest. And there, on page 8 . . . big score! A graphic that plots the relative Google search frequency of the term “customer satisfaction” against the search frequency of the term “customer experience.”

Here’s why this chart floats my boat: For two years — from 2008 to 2010 — we see the terms coexisting as if people couldn’t quite make up their minds as to whether they were really different or not. Then in 2010 — pow! “Customer experience” starts shooting up like a rocket, while “customer satisfaction” takes a deep dive.

(Coincidentally, in 2011, the attendance at Forrester’s CXNYC shot up to more than 1,300 people on-site, from just more than 800 people on-site in 2010. That led us to add a CX Forum West — now CX San Francisco — and CX Europe starting in 2012.)

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Pitting Big Data Versus NPS Isn’t The Way To Success In CX Measurement

Maxie Schmidt-Subramanian

You might have seen a recent blog by Tony Cosentino on how “Big Data Analytics Will Displace Net Promoter Score (NPS) for Measuring Customer Experience” because “NPS is prone to error, lacks a causal link with financial metrics, and lacks actionable data.” And while Mr. Cosentino’s blog highlights a critical issue in CX measurement, it only tells part of the story.

The problem in most CX measurement programs — whether that company uses NPS or not! — is that CX pros rely too much on surveys. That’s because of a number of factors:

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Digital Storefronts Give Way To In-Store Experiences

Adam Silverman

Last year I wrote a blog post covering the deployment of digital storefronts, highlighting the challenges that these deployments have in driving customer engagement and commerce. In fact, my observations during the holiday season of 2013 led me to the insight that digital storefronts do not add a tremendous amount of value to shoppers.

Fast forward to early 2015 and a new evolution of digital store technology has emerged from eBay Enterprise. This new deployment feels less like a digital storefront and more like a well-integrated set of technologies that helps both customers and associates. Within the Rebecca Minkoff store in Soho where this technology is deployed, eBay Enterprise modified its digital storefront solution by:

  • Moving the technology inside the store. The eBay Enterprise giant 'connected wall' is deployed near the entrance of Rebecca Minkoff’s flagship store, poised to engage customers with interactive product imagery and information while they shop. The key here is that the 2015 technology serves to augment the store experience by adding value within the context of the customer’s shopping journey, while its 2013 cousin attempted to overhaul the store experience entirely. It’s worth noting that the display is visible from outside the store as well, moonlighting as a marketing tool to draw in curious passersby.
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