New Rules For Branding In Emerging Markets: Make Aspiration Accessible

Dipanjan Chatterjee

I spent a few days in India this month, and couldn’t help but be struck by an advertisement for a soft drink that played endlessly on television. Two convertibles pull up alongside each other on what looks like a pristine expressway. Perky members of the opposite sex exchange amorous glances and flirtations ensue. Bottles of the soft drink are cracked open, and predictable mirth ensues. Life is good with sweet lemony soda water.

For the uninitiated who think this is just another soda ad, it may be difficult to gauge how entirely ludicrous this scene is. Roads in urban metros in India are pummeled by a crush of traffic and the cacophony of horns almost at all times. The New York times reported this month that India has surpassed China in air pollution and that about 1.1 million people die prematurely in the country every year from the pollution. Anyone foolish enough to ride in a convertible would be served well by a gas mask. Public mating rituals common to Western cultures are found only in a sliver of society much narrower than the mass market for a soft drink. “Eve Teasing,” a euphemism for public sexual aggression targeted against women, is a major concern.  

So where did reality and depiction of reality part ways? Are these, dare we whisper, Alternative Facts?

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What to expect from Mobile World Congress 2017?

Thomas Husson

This is this time of the year again! From next Monday (February 27) and March 2, 2017, Mobile World Congress (MWC) will take place in Barcelona. I attended this event (then 3GSM) for the first time in 2005 and it is fascinating to see how the event has morphed from a B2B telecoms technology trade show to the one of the largest business conference around the globe. This year’s MWC theme is “The Next Element” may look broad but I quite like this idea that mobile is elemental and has become part of our daily lives. By analogy with the previous industrial revolution, mobile is like electricity: once you have access to it, it is a disruptive enabler of adjacent technologies powering more powerful innovation. Mobile is barely entering its teen age years.

Consumers now use mobile as a sixth sense. If the human senses serve as effortless faculties through which we access information on the world around us, then mobile has become the sixth sense. It brings digital to consumers in their daily lives. It has truly become the face of digital.  That’s the main challenge for marketers: since mobile becomes the primary interface between your brand and your customers, you must leverage mobile to accelerate digital transformation and transform the customer experience you deliver. A lot has to happen behind the scenes for marketers to be able to deliver real-time contextual experiences on mobile. That’s why it makes a lot of sense for marketers to spend time in Hall 8.1 where most marketing, advertising and app vendors will be gathered.

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Do You Dread, Tolerate, or Embrace Change?

James McQuivey

Last November I sat down with Chevrolet CMO Tim Mahoney on stage at Forrester's Age of the Customer summit. We had a wide-ranging talk about disruption, change, and what Chevy executives are doing to anticipate and deal with that change. I just published a summary that conversation, what I might call Mahoney's top recommendations for CMOs in 2017. In that short summary, I quoted Mahoney and then added what follows:

"Our CEO talks a lot about how in the next five years, it's going to change more than it has in the last 100 years when you think about what's going on with car sharing, ridesharing, autonomous. It's a really interesting time to be in an industry that's over 100 years old. Think about your car: Where is it now? It's parked. Next to your home, it's the second-most important investment people make. It's parked 94% of the time. Many younger people are starting to ask, why do I even need a car?" - Tim Mahoney

General Motors is not alone in this ominous premonition. A full 42% of companies we surveyed recently in the US, Germany, and the UK agree that "in the next five years, my organization will have significantly altered its product and/or services.

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Pricing Strategies For SaaS Providers

Duncan Jones

Most leaders of SaaS providers understand the importance of minimizing Churn and maximizing account enrichment, but few fully appreciate how vital to those goals is a good pricing and licensing strategy. My newly published report Pricing Strategies For Software-As-A-Service  is a must read for any business software company that sells or is thinking of selling via a subscription model. Here is a quick overview for anyone who isn't yet a Forrester client. 

Some industry experts talk about the "magic ratio" of lifetime customer value to acquisition cost. Aligning the price you charge each customer more closely with the value they are likely to receive from your product is vital to increasing the former and reducing the latter. Simplistic pricing undermines lifetime value by undercharging those customers who get the most benefit from your product. Don't think you can fix this error later if you get it wrong at the start - I've seen many start-up vendors limit their growth potential in this way. Flat rate pricing helped them get traction early on, but then when they wanted to accelerate revenue growth they found it impossible to persuade those early adopters to switch to a variable pricing structure. 

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The Data Digest: Super Bowl Ads With Political Messages Spark Strong Emotional Reactions

Kristopher Arcand

The dust is settling after last week’s exciting Super Bowl. Emotions certainly ran high for those watching the game. Here at Forrester, we were also interested in the longer-term sentiment about the ads that aired during the show. So we reached out to consumers again after a week to capture consumers’ reactions to the Super Bowl ads, to ask them which they liked most, and to ask which made a lasting impression.

As my colleague Jim Nail pointed out in a blog post , this year’s ads did not always resonate positively (if at all) with audiences. That said, our ConsumerVoices market research online community members were most likely to mention 84 Lumber, Audi, and Anheuser-Busch/Budweiser as memorable ads that influenced their opinions of the respective companies.

In the case of 84 Lumber’s and Anheuser-Busch’s focus on immigration, sentiment was sharply split. Quite a few consumers were further turned off when 84 Lumber’s CEO declared that the ad was not intended to be pro-immigration, adding more confusion to consumers’ perception of the brand and its values. On the other hand, Audi’s ad addressing gender equality in pay sparked a different controversy. Although Audi is an aspirational luxury brand, the message was seen as bold and received in good faith, producing a more positive sentiment overall.

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I Want To Know What Love Is

Margaret Rodriguez

Happy Valentine’s Day! You know the feeling of being in love: You want to stay with your significant other forever, love them more each day, and tell everyone how great they are. Your customers know it, too! Many companies have begun tracking how their customers feel as part of their CX measurement program. In the CX Index™, we too track how customers felt during their most recent interaction with a brand. 

What’s Love Got To Do With It?

We find that customers who give high scores on Emotion are more likely stay with the brand, spend more on products or services, and tell others how much they love the brand. And just like in relationships, there’s a big difference once your customers fall in “love” – customers in the CX Index who rate the brand a perfect seven out of seven on Emotion, or “love” the brand, say they are 18% to 40% more likely to enrich their relationship with the brand. For brands in all industries, this means that there is business benefit to helping your customers fall in love with you (whether via greater revenue, lower churn, or both).

Let’s Talk About Love

Brands benefit from higher customer advocacy loyalty when customers love them -- but how can brands benefit if they don’t know what love is? Forrester analyzed the specific emotions felt by customers during their most recent interactions with brands in the CX Index.

●     Baby, don’t hurt me. Brands whose customers score them high on Emotion almost never make customers feel negative emotions like frustrated, angry, or anxious.

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Forrester's Digital Transformation Forum 2017: The Future Won’t Wait, So Neither Should You

Martin Gill

We’ve spent the last few weeks hothousing ideas for the forthcoming Digital Transformation forum in Chicago on May 9th and 10th. We’ve been identifying the key themes that will ripple through our Digital Transformation events in 2017. Themes that resonate with where the market is at right now, and ones that point to the rapidly emerging future.

 

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There’s More To Service Design Than You Think You Know

Ryan Hart

TSA, America’s infamous airport security organization, made headlines last year when it placed the blame on passengers for long lines at airport security, claiming that individuals were at fault for showing up to checkpoints unprepared.

Any time an organization puts the onus back onto the user for not being able to properly navigate a service should raise a huge red flag.

Now if the TSA scenario doesn’t scream service design misalignment to an informed CX pro, then it’s important to clarify what we mean when we talk in terms in “service design.” By Forrester’s definition:

“Service design is a creative, collaborative process that draws from the tools of human-centered design to holistically improve and innovate new value for users as they move through sequential service interactions.”

As CX pros continue to build out their CX design tool kits, they will have an advantage if they can discern that service design allows them to:

  • Scale a human-centered mindset through processes and tools. Design-led organizations such as Apple, Tesla, Airbnb, and Slack won’t go to market with a new service until they carefully analyze and understand the impact it will have on customers as they move along the service journey.
  • Take the pulse of the broader CX ecosystem. The holistic, end-to-end nature of service design gives CX pros multiple opportunities to appraise the health of a broader user journey. Logically, process reengineering around the needs of the customer thus forms a critical component of service design. 
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How To Launch Customer Obsession

Shar VanBoskirk

Since 2010, you've heard Forrester beating our customer obsessed drum.  It is our idea that in The Age of the Customer, your relationship with your customers are your primary competitive differentiator.  We've written a lot about how to put the customer at the center of your total operating model.  But a total customer-obsessed transformation can be daunting because of the completeness it requires.  So many companies we talk to get overwhelmed at the idea of having to change every single part of their business, so they do nothing instead.  How could we offer a wedge into the customer obsessed transformation?  Could companies start toward customer obsession more easily if they understood where they are starting from?

We believed yes.  So we created The Customer Obsession Assessment, a large quantitiative survey, which included myriad statements related to customer service, customer experience, customer relationships, supporting technologies and sent it out to just over 1000 global executives.  Then we applied factor analysis and regression analysis to determine which statements most closely correlated with customer obsession.  From this effort we created: 1) An assessment that companies could take to determine their customer obsession maturity; 2) A segmentation of the execs who took our study so that we could identify best practices and pitfalls common at each stage in maturity. 

A few findings from the research:

*Most companies are still immature.  Overall, our sample distributed into a bell curve, with 62% landing in the bottom least mature segments. 

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Looking Forward To The B2B Marketing Forum In October 2017

Peter O'Neill

As I did in 2016, I thought that I would provide you with a timely reminder that we have reconfigured our events calendar this year, and the B2B Marketing 2017 forum is now scheduled for October 5th and 6th in Austin, Texas. If you have not done so, it is still not too late to catch up on our recent forum — here is a blog debrief and this is a podcast where I was interviewed after the event.

Planning is well underway. B2B Marketing 2017 will deepen and expand the discussion of post-digital marketing that we began in Miami in October 2016. Post-digital marketing describes practices that replace segmentation and aggregation strategies with marketing techniques that addresses customers at an individual level and engages them at specific moments of need or opportunity. Post-digital marketing is personalized and opportunistic, and our Austin program will examine in detail the application of post-digital marketing to specific marketing tasks and challenges as well as the technologies and platforms to deliver on that vision. So please mark your calendars if you have not already done so.

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