Harness Insights To Power Multi-

Touchpoint Customer Engagement

Ted Schadler

Coauthor of The Mobile Mind Shift

@TedSchadler

© 2015 Forrester Research, Inc. Reproduction Prohibited 2 © 2016 Forrester Research, Inc. Reproduction Prohibited

What’s changed more in the

last 10 years?

Devices?

Channels?

Expectations?

© 2015 Forrester Research, Inc. Reproduction Prohibited 3 © 2016 Forrester Research, Inc. Reproduction Prohibited

Simple

Immediate

Contextual

© 2016 Forrester Research, Inc. Reproduction Prohibited 4

Empowered customers create urgency

© 2016 Forrester Research, Inc. Reproduction Prohibited 5

Customers are at the center of the strategy

DISCOVER

BUY USE

ASK

ENGAGE

EXPLORE

© 2016 Forrester Research, Inc. Reproduction Prohibited 6

In the age of the customer, we gather massive amounts of customer data

• Behavioral data

• Social data

• Mobile data

• Environmental data

• Sensor data

• Transaction data

• Customer data

• Third-party data

• Financial data

• Sales data

• Product data

© 2016 Forrester Research, Inc. Reproduction Prohibited 7

All possible data All possible actions

Most firms don’t consistently turn data into action

Base: 170 enterprise architecture professionals; Source: Forrester’s Q3 2015 Global State Of Strategic Planning,

Enterprise Architecture, And PMO Online Survey

73% 29% of firms

aspire to be

data-driven.

of firms are

good at turning

data into

action.

© 2016 Forrester Research, Inc. Reproduction Prohibited 8

Continuous learning

Digital insights

Link data and action through digital insights and continuous learning

All possible

data

All possible

actions

Right

data Effective

actions

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

© 2016 Forrester Research, Inc. Reproduction Prohibited 9

The business discipline and technology

to harness insights and consistently

turn data into effective action.

We call this systems of insight

© 2016 Forrester Research, Inc. Reproduction Prohibited 10

A system of insight is an operating model: people, process, & technology working together

All Data Possible

Actions Insights-to-execution

process

Insights team

Insights platform

Right

data

Effective

actions

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report

© 2016 Forrester Research, Inc. Reproduction Prohibited 11

You are used to “football-style” operations

Pregame strategy Tactical execution

Call play

Execute

Regroup

Evaluate

© 2016 Forrester Research, Inc. Reproduction Prohibited 12

It’s time to change the game – it’s continuous playcalling and execution

13 © 2016 Forrester Research, Inc. Reproduction Prohibited

An insights-driven business

harnesses and applies data and

analytics at every opportunity to

differentiate its products and

customer experiences.

14 © 2016 Forrester Research, Inc. Reproduction Prohibited

Source: “The Insights-Driven Business [135823]” upcoming Forrester report.

$1.2 trillion will flow into the

coffers of insights-driven

businesses in 2020.

© 2015 Forrester Research, Inc. Reproduction Prohibited 15 © 2016 Forrester Research, Inc. Reproduction Prohibited

Insights-driven businesses are faster and fleeter than you

$0

$250

$500

$750

$1,000

$1,250

2015 2016 2017 2018 2019 2020

Revenue (billions)

Public

Startup

Global GDP will grow

only 3.5% annually.

27% CAGR

40% CAGR

Sources: Forrester, Morningstar, PitchBook, The Economist Intelligence Unit

16 © 2016 Forrester Research, Inc. Reproduction Prohibited

Insights-driven businesses are

Built differently and

Operate differently to

Steal your customers and

take your revenue.

17 © 2016 Forrester Research, Inc. Reproduction Prohibited

89% of execs think disruption is

coming to them. You know a lot of these firms.

© 2016 Forrester Research, Inc. Reproduction Prohibited 18

Insights-driven businesses embed insights in every action, process, and decision

›Build closed-loop insights processes . . .

into every facet of their business

›Marry algorithms and expertise . . .

to continuously improve outcomes

›Make insights available . . .

so every employee can act with confidence

›Tap more – and more relevant – data

19 © 2016 Forrester Research, Inc. Reproduction Prohibited

Stitch Fix has embedded insights into the fabric of its business.

20 © 2016 Forrester Research, Inc. Reproduction Prohibited

Algorithms learn from experts (and vice versa)

21 © 2016 Forrester Research, Inc. Reproduction Prohibited

Stitch Fix is in a constant state of controlled experimentation.

22 © 2016 Forrester Research, Inc. Reproduction Prohibited

Source: “Transform Customer Experiences With Systems Of Insight” Forrester report

Stitch Fix operates in a closed loop

Applications

Algorithms Dashboard

reports

Genie

YARN &

Spark

Logging

data/data bus

Batch

ELT

23 © 2016 Forrester Research, Inc. Reproduction Prohibited

The result?

Better customer experiences . . .

. . . and much better inventory-carrying costs

than other online fashion retailers.

© 2016 Forrester Research, Inc. Reproduction Prohibited 24

Insights-driven businesses are built differently to optimize through insights

›Drive insights from the top of the organization

›Organize with business, analytics, and software

skills on the same team

›Define and measure fine-grained outcome

metrics

© 2016 Forrester Research, Inc. Reproduction Prohibited 25

© 2016 Forrester Research, Inc. Reproduction Prohibited 26

© 2016 Forrester Research, Inc. Reproduction Prohibited 27

28 © 2016 Forrester Research, Inc. Reproduction Prohibited

The business technology of a great customer experience

Systems of

engagement

touch customers

Systems

of automation

connect the

physical world

Systems of

record run

processes

Systems of

insight power

customer

experiences

© 2016 Forrester Research, Inc. Reproduction Prohibited 29

An insights-driven engagement architecture

Customer data:

profile, behavior,

environmental,

preference,

transactional

Content: owned,

purchased,

customer-

generated,

borrowed

Personalization engine: rules-driven,

predictive, streaming,

algorithmic, cognitive

Devices, channels, touchpoints,

applications, syndication

Practitioner

workbench:

tools for

people

operating

your

personalized

experiences

Delivery APIs and Capture APIs

Analytics:

metrics,

insights,

dashboard

© 2016 Forrester Research, Inc. Reproduction Prohibited 30

How does this apply to you?

› If you own a channel – or

two or three – you must be

insights-driven.

› Systems of insight and

engagement are

converging to help you.

› Start where you can, but

plan to expand as you

compile results.

forrester.com

Thank you

Ted Schadler

tschadler@forrester.com

blogs.forrester.com/ted_schadler

@tedschadler

© 2016 Forrester Research, Inc. Reproduction Prohibited 32

Becoming insights-driven

Identify

outcomes and

interim metrics

Test and

implement insights

in software.

Gather

(more) data.

Develop

insights.

Measure

results and

refine insights.

5. Run insights

experiments in software,

processes, and decisions.

2. Find metrics for every outcome.

Instrument and measure processes,

decisions, and outcomes.

4. Apply analytic and AI

methods to identify

potential insights.

3. Start with data you have,

but add new sources and

kinds of data as you learn.

6. Courageously assess—

and share—the results. Did

what you expect happen?

1. Question every process and

decision. Run experiments to

prove your hypotheses.

Experiment

and learn

continuously.

© 2016 Forrester Research, Inc. Reproduction Prohibited 33

Voice of the customer

Data & analytics

Customer insights

Artificial intelligence

Web, mobile, wearables

Content & personalization

Software platforms & tools

Internet of things

Employee tools

Security & privacy

Cloud & SaaS

Systems of insight help you understand customers

Systems of engagement help you reach and serve customers

Differentiate customer experiences with systems of insight and engagement

Supporting technologies power insights and engagement

DISCOVER

BUY USE

ASK

ENGAGE

EXPLORE