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Trends in Customer IntelligenceWhere the rubber meets the road in 2010

and beyond

January 14, 2010

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Today’s Speaker

Moderator

Hallie Mummert

Editor in Chief

Target Marketing

Dave Frankland

Senior Analyst

Forrester Research

Trends In Customer Intelligence

Dave Frankland

Principal Analyst

Forrester Research

Target Marketing webinar

January 14, 2010

5 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Customer Intelligence:

A command center to drive

corporate strategy and create

competitive advantage

6 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Agenda

• Marketers struggle to understand their customers

• Advanced firms use Customer Intelligence for

competitive advantage

• The building blocks of a Customer Intelligence

command center

7 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Agenda

• Marketers struggle to understand their customers

• Advanced firms use Customer Intelligence for

competitive advantage

• The building blocks of a Customer Intelligence

command center

8 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

The world has changed

• Limited consumer tolerance for marketing

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Consumers view marketing as irrelevant

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Consumers are overwhelmed

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Consumers want control

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The world has changed

• Limited consumer tolerance for marketing

• Technologically and socially empowered consumers

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Consumers are just saying “No” to marketing

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Consumers’ trust in marketing is waning

Consumers trust

ratings and reviews

by one another more

than they trust

marketing campaigns.

December 2008 “Time To Rethink Your Corporate Blogging Ideas”

15 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Creators

Critics

Collectors

Joiners

Spectators

Inactives

Publish a blog

Publish your own Web pages

Upload video you created

Upload audio/music you created

Write articles or stories and post them

Post ratings/reviews of products/services

Comment on someone else’s blog

Contribute to online forums

Contribute to/edit articles in a wiki

Use RSS feeds

Add “tags” to Web pages or photos

“Vote” for Web sites online

Maintain profile on a social networking site

Visit social networking sites

Read blogs

Watch video from other users

Listen to podcasts

Read online forums

Read customer ratings/reviews

None of the above

And most consumers engage in social media

Groups include people participating in

at least one of the indicated activities at

least monthly.

24%

37%

21%

51%

73%

18%

Source: North American Technographics Interactive Marketing Online Survey, Q2 2009 (US)

16 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

The world has changed

• Limited consumer tolerance for marketing

• Technologically and socially empowered consumers

• Increased demand for marketing accountability

17 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Most firms can’t get out of their own way

• They are

– Organizationally constrained

18 Entire contents © 2009 Forrester Research, Inc. All rights reserved. Web TVStore

Marketer

Direct

Organizational structures prevent marketers from recognizing their customer

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Consumer

Web

TV

Phone

Store

Word of Mouth

Web TVStore

Marketer

Direct

Organizational structures prevent marketers from recognizing their customer

20 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

But most firms can’t get out of their own way

• They are

– Organizationally constrained

– Technologically constrained

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Consumers expect an experience across channels

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Consumers expect an experience across channels

Planning

(Marketing calendar)

Centralized decision

engine

Campaign

management

Interaction

Management

Offer

management

Analytical Data

Store

Operational

Data

Store

Customer

Outbound channels

Inbound channels

Budgeting

Measurement &

Analysis

— a complex challenge for marketers

23 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

But most firms can’t get out of their own way

• They are

– Organizationally constrained

– Technologically constrained

– Socially constrained

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Few firms fully integrate the listening process

Source: Listening Platforms landscape report

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In 2009, more data will be

generated by individuals

than in the entire history

of mankind through 2008

-Andreas Weigend

Former Chief Scientist at Amazon.com

26 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Agenda

• Marketers struggle to understand their customers

• Advanced firms use Customer Intelligence for

competitive advantage

• The building blocks of a Customer Intelligence

command center

27 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Customer Intelligence

The management and analysis of customer data

from all sources, used to drive marketing

performance and business strategy.

28 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

October 2009 “The Intelligent Approach To Customer Intelligence”

CI comprises multiple functions

29 Entire contents © 2009 Forrester Research, Inc. All rights reserved. October 2009 “The Intelligent Approach To Customer Intelligence”

With varying degrees of integration

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CI drives a broad range of activity

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But firms’ CI quotient varies widely

Functional Intelligence

• Less likely to have the technology, staff, or

budgetary support needed for CI

• Unlikely to measure the value of CI

• Somewhat likely to use CI to drive marketing

planning and customer strategy

• Unlikely to use CI to drive corporate strategy,

marketing optimization, or for competitive

intelligence

32 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

But firms’ CI quotient varies widely

Marketing Intelligence

• CI drives multiple functions including customer strategy and marketing

planning

• CI is often a factor in customer interactions

• Somewhat likely to leverage CI across the company

• A minority measures the value of CI

Functional Intelligence

• Less likely to have the technology, staff, or

budgetary support needed for CI

• Unlikely to measure the value of CI

• Somewhat likely to use CI to drive marketing

planning and customer strategy

• Unlikely to use CI to drive corporate strategy,

marketing optimization, or for competitive

intelligence

33 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

But firms’ CI quotient varies widely

• CI is a valued asset at these firms

• More likely to have a C-level evangelist or champion for CI

• CI drives multiple functions including corporate strategy

• More likely to measure the value of CI

Strategic Intelligence

Marketing Intelligence

• CI drives multiple functions including customer strategy and marketing

planning

• CI is often a factor in customer interactions

• Somewhat likely to leverage CI across the company

• A minority measures the value of CI

Functional Intelligence

• Less likely to have the technology, staff, or

budgetary support needed for CI

• Unlikely to measure the value of CI

• Somewhat likely to use CI to drive marketing

planning and customer strategy

• Unlikely to use CI to drive corporate strategy,

marketing optimization, or for competitive

intelligence

34 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

But firms’ CI quotient varies widely

• CI is a valued asset at these firms

• More likely to have a C-level evangelist or champion for CI

• CI drives multiple functions including corporate strategy

• More likely to measure the value of CI

Strategic Intelligence

Marketing Intelligence

• CI drives multiple functions including customer strategy and marketing

planning

• CI is often a factor in customer interactions

• Somewhat likely to leverage CI across the company

• A minority measures the value of CI

Functional Intelligence

• Less likely to have the technology, staff, or

budgetary support needed for CI

• Unlikely to measure the value of CI

• Somewhat likely to use CI to drive marketing

planning and customer strategy

• Unlikely to use CI to drive corporate strategy,

marketing optimization, or for competitive

intelligence54% 34% 12%

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Strategic intelligence firms apply CI more broadly

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CI is supported at the top more often within strategic intelligence firms

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And they place a higher value on CI

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October 2009 “The Intelligent Approach To Customer Intelligence”

Those that measure CI see many benefits

39 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Agenda

• Marketers struggle to understand their customers

• Advanced firms use Customer Intelligence for

competitive advantage

• The building blocks of a Customer Intelligence

command center

40 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Building blocks of a CI command center

People

Culture Technology

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Building blocks of a CI command center

People

Technology

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Building blocks of a CI command center

People

Culture

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Building blocks of a CI command center

Culture Technology

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Strategic intelligence firms have a more senior CI head

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October 2009 “The Intelligent Approach To Customer Intelligence”

Customer Intelligence profiles

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October 2009 “The Intelligent Approach To Customer Intelligence”

Customer Intelligence profiles

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October 2009 “The Intelligent Approach To Customer Intelligence”

Customer Intelligence profiles

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October 2009 “The Intelligent Approach To Customer Intelligence”

Customer Intelligence profiles

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Recommendations

• Define a baseline by auditing your current CI quotient

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Forrester has a “self-test”

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Recommendations

• Define a baseline by auditing your current CI quotient

• Collaborate with internal stakeholders to determine

desired state

52 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Recommendations

• Define a baseline by auditing your current CI quotient

• Collaborate with internal stakeholders to determine

desired state

• Socialize Customer Intelligence

– Build the team

– Demonstrate the value

– Align success with business results

53 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Recommendations

• Define a baseline by auditing your current CI quotient

• Collaborate with internal stakeholders to determine

desired state

• Socialize Customer Intelligence

– Build the team

– Demonstrate the value

– Align success with business results

• Rethink metrics and measurement frameworks

54 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Recommendations

• Define a baseline by auditing your current CI quotient

• Collaborate with internal stakeholders to determine

desired state

• Socialize Customer Intelligence

– Build the team

– Demonstrate the value

– Align success with business results

• Rethink metrics and measurement frameworks

• Rethink alignment and incentives

55 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Forrester’s Research Panel

• Each quarter, Forrester surveys 1,500 marketing and strategy

professionals about:

» Interactive marketing

» Customer experience

» Customer Intelligence

» eBusiness and channel

strategy

» Marketing leadership

» Consumer product strategy

» Consumer market research

• Gain insight, get data, and learn best practices from marketing

professionals. Join our panel today: www.forrester.com/Panel

56 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Thank you

Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Dave Frankland

+1 617.613.6118

dfrankland@forrester.com

Linkedin: davefrankland

@dfrankland

Blog: http://blogs.forrester.com/customer_intelligence/

CI site: www.forrester.com/rb/ci

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