Hedgehogs, Foxes, And Third-Party Data: What Sellers Need From Marketers

Steven Wright

In Isaiah Berlin's most popular essay, “The Hedgehog and the Fox,” the famous Latvian-British social and political theorist quoted a fragment of ancient Greek: “The fox knows many things, but the hedgehog knows one big thing.” Since its publication in 1953, this concept has become an intellectual parlor game (something Berlin said himself) that those with a binary view of the universe have used to divide writers, politicians (Kennedy: fox; Nixon: hedgehog), and executives into two neat categories.

What’s forgotten is that Berlin used this ancient aphorism as a way to evaluate Leo Tolstoy. His conclusion? Tolstoy was actually a fox, despite many declarations that would indicate Tolstoy wanted to be a hedgehog. In short, Tolstoy was both — a fox by inclination, but a hedgehog by choice.

B2B marketers want sellers to know lots of things, and they use third-party data providers as part of that desire. At a recent Forrester event, I asked a marketer from a large financial services firm how may data providers they used; she casually replied: “77.” Seventy-seven separate data providers! If only a fraction of this data is provided to sellers, they must feel overwhelmed.

The consultative seller needs both the characteristics of the fox – knowing many things about the buyers, their companies, competition, and industry – and the hedgehog – knowing the one big thing (or maybe a few) that will lead to a sale.

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Hit Restart With Your Media Agency

Sarah Sikowitz

In collaboration with Susan Bidel, Richard Joyce and Jim Nail

Yesterday, the ANA released the findings from an eight month research study into the issue of transparency within the media agency industry.  The findings are damning, but not surprising for those who have been following this issue. The phrase in the report that caught my eye was this: “evidence of a fundamental disconnect in the advertising industry regarding the basic nature of the advertiser-agency relationship.” 

In other words, it’s the advertising-agency relationship that stinks.

Look past the rebates, the free cash disguised as “research and consulting” and the media mark ups and what you’ll see is the advertiser-agency relationship that has been under strain for years has finally completely collapsed.  Three factors have driven the industry to this point:

  • Agency success metrics tied to an outdated approach. Clients expect high impression levels, high click volume – all at a low cost. This doesn’t allow a lot of room for media agencies to show additional value beyond scale and efficiency. The result is that agencies continue to look for opportunities to drive more impressions and lower CPMs without any accountability for real business and revenue impact.
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Marketo Goes Private: A New Epoch in Marketing Software May Have Just Begun

Peter O'Neill

Lead-to-revenue management automation player Marketo has certainly been in the news recently. First, in May, it held its annual Marketing Nation Summit in Las Vegas and announced plans to provide a marketing automation system, powered by a new architecture, which will enable marketers to engineer a great customer experience across the entire customer life cycle. 

Clearly, this was a financially ambitious plan, reviving age-old speculation about a potential acquisition of the vendor. Candidate Marketo suitors included SAP, which has a glaring marketing automation hole in its portfolio as enterprises increasingly compete on customer experience, not operational excellence; Microsoft, which has a large base of CRM customers ready for the "prequel" of marketing automation; and even Google, which could boost its reach with midmarket business customers and enhance its overall cloud software and infrastructure business.

But Principal Analyst Lori Wizdo provided another point of view, saying: “Executing on that ambitious vision would take some investment. A private equity investment could provide the equity and the sight screen to enable that steep investment.”

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The Customer Insights Center of Excellence: Know Your Options!

Cinny Little

“Excellence always sells.”  --Earl Nightingale

The questions below may sound familiar to you.  I hear them from leaders of business insights teams of all kinds, from quant to qual, digital analytics to database marketing, customer analytics to voice of customer, market research to competitive intelligence, campaigns to customer service, behaviorial to predictive, B2C to B2B, CPG to pharma – you name it:

  • "I lead our [name the insights area[s] here] team.  We’re struggling to get our business and operational areas to take action on insights – heck, sometimes we don’t even know what happens to the insights we provide.  How do we change this?"
  • "Our insights teams work in silos that have built up over the years.  The teams are good at what they do.  But how do we pull together and combine our different flavors of insights to get more customer understanding?  How should we organize?"
  • "I've been asked to re-organize [or, I'm new and I've taken over] our insights areas.  I need to give a presentation to the C-team about what I'll propose.  Any ideas on a framework I should use?"
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The Importance of Creating a Marketing and Technology Lingua Franca

Melissa Parrish

As the IT agenda gives way to the Business Technology agenda, marketers and technologists are working together more closely and more often than ever before, but many of them don’t feel like those collaborations are going smoothly yet. In fact, lack of communication is the No. 1 reason cited for a very poor relationship between developers and other parts of the company, according to our data.  

One of the reasons for this miscommunication is that marketers and technologists often use very common words differently. We experienced this ourselves a few months ago at a large gathering of analysts at Forrester HQ, with both marketing and business technology analysts represented. First, there was plenty of acronym and abbreviation confusion: Did DR mean direct response or disaster recovery?  Was CRM customer relationship management or change request management?

But there was also confusion around very common terms that both marketers and technologists use, but which mean slightly different things for each. This is the kind of misunderstanding that you might not even know in happening because you have no reason to think you mean different things until some brave soul raises her hand and admits she doesn’t understand something. (Think the meaning of “database” is obvious? Think again!)

A few weeks ago, we published a report that looks into this further and our research revealed that these conversational mishaps are having huge repercussions on projects and business results. For example, one brand we spoke with had a half-million dollar project go nearly totally off the rails over a misunderstanding of the word “strategy.”

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The Data Digest: Upping The Emotional Ante Down Under

Anjali Lai

Emotions are at the basis of how customers perceive experiences – and why they choose to stay loyal to certain brands. But, not all emotions are equal: Different emotions lead to unique behavioral outcomes depending on context, emotional intensity, and even industry.

For example, in our latest study, my colleague Tom McCann and I measured the emotional impact of CX among banks and retailers in Australia. We discovered that feeling valued is one of the most powerful emotions driving loyalty toward a bank: Australian customers who feel that their bank puts them first are willing to pay a premium for the bank’s experience and are more forgiving when something goes wrong. However, among retail customers, valued is good – but happy is better. Australian retailers that leave customers in a cheery mood are more likely to retain their shoppers and turn their customers into advocates.

And what makes Australian shoppers happy? Forrester’s Consumer Technographics® survey data shows that details in the experience go a long way. For instance, customers are pleased with perceptibly low prices or special deals, stocked inventory, and pleasant customer service reps.

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Catch The Enterprise Marketing Technology Wave

Rusty Warner

I am pleased to announce TWO new Forrester Wave™ reports for B2C marketers. Today we published the Forrester Wave™: Cross-Channel Campaign Management, Q2 2016 and the Forrester Wave™: Enterprise Marketing Software Suites, Q2 2016. The former will help you compare the 15 leading campaign management vendors, while the latter will help you evaluate 9 vendors that have assembled broader enterprise marketing technology portfolios.

Cross-Channel Campaign Management (CCCM)

Three of the four leading vendors – Adobe, Salesforce, and Oracle – base their CCCM solutions on email service provider acquisitions. All have expanded their cross-channel coverage, and their customer data management and analytics functionality continues to evolve. Conversely, SAS is the only leader among traditional CCCM vendors, because of its customer data management and analytics prowess, as well as evolving digital marketing capabilities.

IBM is a strong performer because of its enterprise CCCM and digital marketing capabilities, but it has yet to fully integrate its acquired assets. Similarly, Selligent is currently integrating its CCCM and digital marketing capabilities for the mid-market. Pitney Bowes and Pegasystems offer solid analytics and RTIM capabilities, though they lag the leaders when it comes to outbound digital marketing. SmartFocus, Emarsys, and Experian are challenging established CCCM and digital marketing vendors with their interaction-focused solutions. RedPoint Global offers customer data management and marketing automation to support CCCM execution.

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Splitwise Is A Fintech Disruptor That Shows The Potential Of Shared Finances

Peter Wannemacher

Note: If you’re a Forrester client, you can jump straight to the full report here.

Two weeks ago, I was lucky enough to spend 10 days in Italy on a vacation with my wife and some friends. As we walked the Path of the Gods, made our own Neapolitan pizze, and enjoyed the gorgeous views of the Amalfi coast, different people in our group would pay for a limoncello here or a glass of aglianico there. As such, our financial activity was a mix of different individuals spending various amounts for a range of stuff. But our group was often too busy having fun to carefully track who paid how much for what and when.

Enter Splitwise* a non-bank mobile app that lets groups of people easily track their spending and settle their short-term debts to each other (see screenshots below). We used it throughout our trip, and it was a breeze.

But why didn’t a bank build this kind of convenient digital offering first? Or why don't more financial providers integrate with Splitwise and other disruptors to build ecosystems of values for their customers? Many bank executives and digital banking teams say their goal is to help customers better manage their finances (and increase retention and engagement by doing so). But too few financial institutions have focused on what Forrester calls the shared finances opportunity. Forrester defines shared finances as:

Any situation in which a person acts as an observer of, partner in, or proxy for another person's finances.

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Marketing With Virtual Reality

JP Gownder

Moonlighting as a contributor to our CMO role's research, I've just published a major new report about how virtual reality will affect marketers, collaborating with Forrester's lead on digital disruption, James McQuivey, PhD.

CMOs and other marketers have four choices when it comes to virtual reality (VR). Most of you should wait and see, because there's no business imperative to invest scarce time and resources in VR this year. But there are three other choices available to digital predators – that is, CMOs at companies that want to shape trends, not follow them:

  1. Crawl – The Coachella music festival went a step beyond providing an event app: they handed out thousands of cardboard VR headsets to attendees. Since festival-goers can't be everywhere at once, they can catch shows that happened on other stages, extending and rounding out the benefits of attendance. They recognized that consumers don't yet own their own VR devices, so they gave them out as part of the experience to deepen engagement.
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Doubting Thomas Or Devil's Advocate? CX Does Matter To Government

Jennifer Belissent, Ph.D.

During a recent discussion of the Age of the Customer and how it applies to government, one of the participants from a government agency essentially asked why they should care.  The argument was “If I’m providing passport services why does customer experience matter to me? My “customers” can’t walk out that door and find another passport services provider.”  

Needless to say I was taken aback – not shocked really, this is the government after all and not traditionally known for accessible or user friendly services. But personally my experiences have never been as bad as the stereotype of government.  In fact, I just received a new passport in 2 weeks, having been told that it might take 3 – 6 weeks.  And, at least the rhetoric of late has certainly embraced, in principle, more customer centricity in government.  But here it was, the government monopoly argument rearing its ugly head.  At least to play devil’s advocate, suggesting that the sentiment did exist somewhere in the organization.

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