Brands In China Have High CX Aspirations But Most Fail To Deliver

Ryan Hart

With recent drops in global stock markets and all eyes on China’s economy, the timing of the China CX Index report couldn’t be more serendipitous. While customer experience (CX) most likely doesn't have a direct impact on all this sudden share volatility, our research shows that there is a strong correlation between CX and revenue growth.

Forrester’s Business Technographics™ data shows that CX improvement is a growing priority for companies in China: 70% of tech and business decision-makers indicated that improving the experience of their customers was a high or critical priority for 2015 and 2016. However, CX Index scores reveal that these aspirations have yet to manifest themselves in actions and — more importantly — results.

Evolved from the inaugural assessment we completed last year, The China Customer Experience Index, 2015 now includes loyalty elements to the mix to gauge how well brands in China are at delivering quality customer experiences that create and sustain customer loyalty. This year, we examined 60 brands across five industries in China: banking, insurance, retail, eCommerce, and mobile device manufacturing.

At a high level, the results of 9,000 customer surveys in China revealed that:

  • No brands stand out as especially good or bad. The good news: No brands ended up in the very poor category. The bad news: none achieved excellent scores either. The vast majority of brands (80%) rated as just OK; 5% landed in the poor category, and 15% qualified as good.
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The Data Digest: Social Media And Social Revolution

Anjali Lai

In chaos theory, the butterfly effect posits that seemingly small changes at one moment in time can result in large, dramatic changes at another. The subtle flap of a butterfly’s wing can trigger a violent hurricane that occurs miles away or days later. Rationally, the idea may seem like a stretch, but in a digital sense, we are witnesses to – and victims of – the butterfly effect every day through social media. A few individuals’ posts online can escalate into a chorus of voices that mobilizes communities and creates new standards. We saw this last year after a homeless man in Boston turned in a backpack and, more recently, when Cecil the lion was killed in Zimbabwe.

Social media has always been a catalyst for bringing people together as well as an outlet where consumers can vent. But when a surge of voices results in change, social media posts are more than ephemeral cybertext. And, according to Forrester’s Consumer Technographics® data, consumers around the world leverage social media to generate buzz about current events, although members of some countries are more vocal than others: 

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Forrester’s Summit for Marketing Leaders Is Coming To Sydney September 15th!

Michael Barnes

I really cannot believe it’s been nearly twelve months since our last Sydney event. But it’s official, we’re now only four weeks away from Forrester’s Summit For Marketing Leaders in Sydney.

This year’s theme is “Connect, Engage, Deliver.” Why that theme? Well, we know from our research that firms in Australia and New Zealand are prioritizing customer experience, but struggling to deliver results. That’s why we’ve tailored this event around three key topics: how to connect with distracted, empowered customers; how to engage customers once those connections are made; and how to nurture customer obsession as a strategic imperative throughout the organization.

Our agenda is packed with marketing executives from leading organizations focused on customer obsession. Key topics they’ll cover include:

  • Driving brand leadership in the age of the customer.
  • Creating seamless brand experiences across the digital and physical divide.
  • Understanding the emotions which drive CX for your brand and how to create them.
  • Reinventing digital user experiences to define and deliver superior CX.
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The A, B, C, D and E's of Marketing Engagement

Laura Ramos

Presenting today with Marketo's CMO, Sanjay Dholakia, gave us the opportunity to talk about what CMOs (both B2B and B2C) need to do to transform marketing into a growth engine. Here's a little retrospective on our conversation in case you missed it. 

In 2010, Forrester introduced our "age of the customer"(AOTC) research and defined four investment imperatives needed to better win, serve, and retain customers in this digital age.

Marketo focuses here, not just as a marketing technology provider, but as a practitioner as well.  They've been talking about Engagement Marketing - the evolution from mass marketing to transactional to customer engagement -- for more than a year, and practicing it for much longer. Now their advice is as easy as ... well ... learning your alphabet. 

Forrester's research shows that technological change reduces competitive barriers. Building and sustaining customer relationships is the exception. In some ways, technology actually enhances relationship creation and maintenance. Top firms recognize this and get customer-obsessed to beat their competition.  By investing strategy, budget, and energy in the following four areas, they:

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Lead-to-Revenue Management Is Not Demand Gen On Steroids

Lori Wizdo

Key Takeaway: Forrester's Lead-to-Revenue Playbook is designed for business and consumer marketers who must power up their lead-to-revenue processes to achieve new customer acquisition, current customer expansion, and overall revenue growth.  You can read the Executive Overiew of the playbook by clicking here. (Registration required if you're not a Forrester client).  Or you can just take a look at the documents comprising the playbook by clicking here (no registration required). 

Why Read: After bagging impressive early wins, lead-to-revenue management (L2RM) pioneers find it hard to sustain ongoing improvement. Our findings indicate that many B2B marketers launched their L2RM initiative by simply scaling and standardizing their legacy marketing practices. They have not undertaken the fundamental changes needed to transform the lead-to-revenue process to deal with today's digitally empowered buyer.  Here’s what many B2B marketers find:

  • L2RM creates significant organizational stress and disruption. Many L2RM pioneers jumped into L2RM initiatives without a full understanding of the potential disruption. In practice, L2RM exposes siloed marketing, introduces process rigor that frustrates creative marketing minds, taxes marketing bandwidth, exposes skills gaps, and challenges the traditional dynamic between sales and marketing.
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Social Marketers: Give Away Your Ad Budget

Nate Elliott

Social marketers have worked for years to justify ad budgets—and that effort is finally paying off. But if you’re a social marketer, and you want your social advertising to succeed, you’d be better off giving that money to your media buying team instead.

We recently surveyed 173 of the most avid social marketers in the world and found that the large majority are buying ads on social sites like Facebook and Twitter. More than two-thirds said they would increase their social ad budget this year. And in most cases, they told us the social team or social agency was responsible for this social ad spending.

But it turns out social teams aren’t very good at spending social ad dollars. Sure, social practitioners claim they’re as good as media buyers at getting value from Facebook ads — a claim few can back up — but even the social marketers themselves they admit to lagging far behind their media-buying peers on other sites.

When social teams run the social ad budget, just 59% of marketers say they get value from Twitter ads; when media teams are in charge, Twitter delivers results 79% of the time. Likewise, social teams only get value from YouTube ads 64% of the time; media teams find success on YouTube 80% of the time.

Media Teams Spend Social Ad Budgets More Effectively

So what should you do with your social ad budget? Take a lesson from some of the most successful social advertisers and give almost all of your social ad dollars to the media team, rather than to the social team:

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Welcome to my customer analytics blog!

Brandon Purcell

Greetings!  My name is Brandon Purcell and I am the new Senior Analyst serving Customer Insights professionals at Forrester.  I will cover customer analytics which uses advanced analytics to analyze customer data to optimize customer-focused programs and initiatives to drive acquisition, retention, cross-sell/upsell, loyalty, personalization, and contextual marketing. I am a recovering customer analytics practitioner and come to Forrester from a boutique consulting firm where I led a team of data scientists that helped our clients solve their urgent business challenges by harnessing the latent value in their customer data.  A few highlights from my former life:

  • I helped develop a best in class Voice of the Customer program at one of the country’s largest banks
  • I created and led many trainings in business applications of predictive analytics
  • I built a patented algorithm that uses geospatial data to predict a person’s future location
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Data Digest: Business Technology-Focused Companies Win In The Age Of The Customer

Christopher Kelley

Forrester has written extensively about the Business Technology imperative in the Age of the Customer. While the transformation from IT to BT is challenging, Forrester’s Business Technographics data highlights how business leaders have increased – and plan to continue increasing – their technology spending. This means that the train has left the station and CIOs can either embrace this shift or fight against the BT transformation tide.

In addition to highlighting the importance of the BT agenda, these data also show the difference between BT-Leaders -- companies that embrace a BT agenda -- compared to BT-Laggards – companies that are entrenched in the traditional IT mentality vis-a-vis Business Technology needs.

Specifically, we found that businesses with IT departments that help accelerate business success are more likely to:

  • Have had double-digit growth in 2014. The bottom line is important. We found that 30% of companies that BT-Leaders grew at 10% or more in 2014 compared to 2013, compared to 26% of BT-Laggards.
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Digital Marketers Are Increasingly Taking Responsibility For eCommerce Initiatives In China

Xiaofeng Wang

In my previous report, Overcome Top Digital Challenges In 2015, we found that digital marketers’ top challenge is meeting increased pressure to deliver business outcomes. In fact, they’re gradually taking on more responsibilities directly related to business outcomes, such as eCommerce. My latest brief, Digital Marketers Are Embracing eCommerce, And China Is Leading The Way, helps B2C marketers understand this emerging trend and embrace the opportunity to deliver consistent digital experiences to customers.

One-third of the digital marketers in China who responded to our survey indicated that eCommerce is one of their job responsibilities (see the figure). Forrester sees this trend developing in China as well as in Western markets. For example, in the US, Gap redesigned its global CMO role by merging eCommerce and digital marketing in a single executive position earlier this year.

However, the fusion of digital marketing and eCommerce teams is happening more extensively in China because:

  • Social and commerce are more closely intertwined in China than anywhere else. The bond between social media and eCommerce is extremely close in China, exemplified by the strategic partnerships between WeChat and and between Alibaba and Weibo.
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Australian And New Zealand Firms Say CX Is A Top Priority — But Do They Really Mean It?

Tom McCann

Lots of things are critical to delivering a great customer experience (CX). For instance, do you really understand your customers or simply do a great job of segmenting them? Do you actively encourage employees to provide feedback and recommendations on CX issues? And do you consistently get back to them on actions taken as a result of their feedback?

The truth is, you need to excel at all these practices to deliver exceptional customer experience. But even if you do, it may still not be enough. Ultimately, you’ll only excel at CX if you’ve properly aligned your CX strategy with your overall company strategy.

Forrester recently surveyed 52 Australian and New Zealand businesses, and of those surveyed, 98% believe that their companies are committed to improving CX. But only one-third have a CX strategy that’s actually aligned with the overall company strategy. Forrester's clients can access the full report here. That gap, the one between the priorities of the company strategy and the priorities of the CX strategy, is the business equivalent of the Bermuda Triangle; not all ships that enter will find their way out.

Whether you call them consumers, businesses, patients, citizens, or something else entirely, winning, serving, and retaining those customers must be a primary goal. And how can you achieve that goal? Ensure your CX strategy is actually aligned with the organization’s strategy. If you are one of the almost 70% of companies that have not aligned their corporate and CX strategies, you are like that ship trying to navigate the Bermuda Triangle on a very dark night, without a compass or charts.

Don’t be that company.