Jason chan forrester_11_13_08

Making Leaders Successful Every Day

November 13, 2008

Engage Gen Y Online With Immediacyby Bruce D. Temkinfor Customer Experience Professionals

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For Customer Experience Professionals

ExECuTIvE SummarYGen Y is a unique breed. Firms can’t interact with these young consumers in the same way they do with older consumers. That’s why Forrester identified four design approaches for reaching Gen Y online: immediacy, Gen Y literacy, individualism, and social interactivity. To examine best practices in one of these approaches, immediacy, we examined the online experiences of 20 large companies. Some good immediacy design practices we found: Old Navy features sneak peeks at new styles, T-Mobile presents an interactive plan selector on its home page, and Zappos adds a sense of urgency with inventory alerts. Customer experience professionals can start infusing immediacy by identifying the specific paths that Gen Yers take through their sites.

TaBlE OF CONTENTSHow To Infuse Immediacy Into Online Experiences

Tactic No. 1: refresh and update Content Constantly

Tactic No. 2: Expose value Immediately

Tactic No. 3: Provide Frequent Feedback

rECOmmENDaTIONS

Add Some Immediacy To Your Gen Y Experiences

Supplemental Material

NOTES & rESOurCESForrester evaluated the sites of 20 large uS firms across four industries: apparel retailers, auto insurance providers, auto manufacturers, and wireless carriers. Forrester also interviewed 10 vendor companies for the report: arc Worldwide, Blast radius, Critical mass, imc2, molecular, Organic, razorfish, resource Interactive, Tribal DDB, and WHITTmaNHarT.

Related Research Documents“Young Gen Yers: Fun-loving, Social, and Wired” January 3, 2008

“The Gen Y Design Guide” December 3, 2007

“Gen Y Is Truly Different; Design accordingly” November 6, 2007

November 13, 2008

Engage Gen Y Online With ImmediacyThis is the fourth document in the “Designing For Gen Y” series.

by Bruce D. Temkinwith andrew mcInnes and rachel Zinser

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www.forrester.com

http://www.forrester.com/go?docid=44518&src=47295pdf



© 2008, Forrester research, Inc. reproduction ProhibitedNovember 13, 2008

Engage Gen Y Online With Immediacy For Customer Experience Professionals

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HOw TO InfuSE IMMEDIAcY InTO OnlInE ExpERIEncES

Gen Yers — young adults between the ages of 18 and 28 — are a unique group of consumers. They tend to be socially fluid and highly connected, emotionally searching for their identities, and mentally fickle and creative.1 How can you engage these youngsters online? By applying four design approaches: immediacy, Gen Y literacy, individualism, and social interactivity (see Figure 1).2 In this report, we take a closer look at the first of these approaches, immediacy. We examined the sites of 20 large firms looking for best practice examples of the following immediacy design tactics (see Figure 2):3

1. Refresh and update content constantly. Changing content frequently and updating feature page elements on a regular basis give users a reason to return over time.

2. Expose value immediately. Delivering clear calls to action and interactive cues help draw young visitors into experiences right away.

3. Provide frequent feedback. Presenting notifications, rewards, and other feedback to users throughout an experience keeps them alert and engaged.

figure 1 Forrester Defined Four approaches For Engaging Gen Y

Source: Forrester Research, Inc.47295

Gen Y design approach Design tactic

Immediacy

To overcome Generation Y’s fickle attentionand broad use of media, firms need to hookGen Yers in by quickly exposing value andthen keeping them interested over time.

• Refresh and update content constantly.• Expose immediate value.• Provide frequent feedback.

Gen Y literacy

Because Gen Yers are so influenced by peersand their own communication style, firmsneed to speak to them authentically and ontheir level.

• Keep user instructions simple.• Use sentence fragments and images,

not text.• Speak directly to Gen Y.

Individualism

Diverse and expressive, Gen Yers respond to experiences that allow them to personalize and customize their interactions.

• Allow multiple levels of personalization.• Allow for self-aggregation.• Offer products and services that have a

customized touch.

Interactivity

Since Gen Y consumers are very social, firmsshould consider enabling them to communicateand express themselves.

• Provide the ability to communicate with others.

• Offer tools for self-expression.

© 2008, Forrester research, Inc. reproduction Prohibited November 13, 2008


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figure 2 Forrester Examined Gen Y Experiences at 20 Sites

Source: Forrester Research, Inc. 47295

Auto manufacturers Goal: find a cool-looking coupe or sedan under $20,000 and then configure it to select the base trim and get a total price

Chevrolet, Ford, Honda, Nissan, Toyota

Wireless carriers Goal: find a cool, new phone for under $100 with a 2 mexapixel camera or better and AIM capability as well as add a basic phone plan with unlimited text messaging

Alltel, AT&T, Sprint, T-Mobile, Verizon Wireless

User goals evaluated

Apparel retailers Goal: find an outfit for his girlfriend to give as a birthday gift and then purchase it online

Companies

Gap, Lands’ End, Old Navy, Victoria’s Secret, Zappos.com

Auto insurance providers Goal: find out what type of coverage he needs for a sedan, like a Honda Accord, and get a quote for insurance in his area

Allstate, GEICO, InsWeb, NetQuote, Progressive

Tactic no. 1: Refresh And update content constantly

To target Gen Y, sites need to keep content fresh and relevant, giving users a reason to come back over time. Our research uncovered some good examples of this tactic:

· AT&T varies new and top-selling phones. On AT&T’s home page, the firm displays up-to-the-minute lists of its newest and most popular phones (see Figure 3). Like the “most read” and “most emailed” articles on popular media sites such as NYTimes.com, AT&T’s lists give users something new to view each time they visit the site. Several of the experts we talked to applauded this passive approach to updating content because it achieves a sense of immediacy without putting the burden of constant updates on site owners.

· Old Navy features sneak peeks at new styles. As an industry, the retailers do a good job of updating their home pages frequently with new items, images, and even layouts. But Old Navy goes a step further in providing fresh content. The site features online-only previews of items that aren’t yet available for purchase, encouraging users to keep coming back to the site to find out what’s new (see Figure 4).

· Toyota offers extensive original content in its lifestyle section. Unlike most of the sites we examined, Toyota features a broad range of its own homegrown lifestyle content. In a series of frequently updated articles, photos, and videos, the site highlights various Toyota-related happenings in music, car racing, and other areas of personal interest. For example, the site offers video from a recent “Afro Punk Bloc Party” event held in New York, where celebrities and fans gathered to express ideas about urban culture and, of course, new vehicles from Toyota (see Figure 5).



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As we looked across the sites, we also spotted a few good opportunities to apply this tactic that companies didn’t capitalize on:

· Missed opportunity: Aggregate content from other sources. Not all sites can or should create the breadth of content offered by Toyota. But they can still create a sense of immediacy by highlighting relevant content from other sources. For example, auto manufacturers could offer links to top automotive articles from popular news and industry sites. Or Lands’ End could aggregate videos about popular outdoor activities or destinations in the outerwear section of its site, providing new, relevant content each time the user browses the site’s inventory.

· Missed opportunity: Let customers and employees contribute. Another way to create a steady stream of fresh content — and appeal to Gen Yers’ fame-seeking tendencies — is to let customers become contributors.4 For example, the auto manufacturers we examined could take a lesson from Scion’s “Tweaks Of The Week,” which feature real-life vehicle modifications submitted by actual Scion owners (see Figure 6). Similarly, the site for Electronic Arts’ “Skate” video game lets gamers upload videos of their coolest moves and then vote for their favorite user submissions (see Figure 7). The Skate site also keeps content fresh with its Producer Blog, where game designers share their thoughts and ideas with game players.

figure 3 aT&T refreshes lists Of New and Popular Phones


AT&T’s lists of new and top-selling phones change constantly, so users always have something new to view.

Source: http://www.wireless.att.com/cell-phone-service/welcome/



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figure 4 Old Navy’s Sneak Peeks Give users a reason To Keep Coming Back


Old Navy’s sneak peeks let visitors find out about new styles before they’re available in stores.

Source: http://www.oldnavy.com/next



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figure 5 Toyota Frequently Publishes New Original Content


In its “Toyota Life” section, the site presents a lot of original content, like videos about Toyota-related events in music, entertainment, and sports.

Source: http://www.toyota.com/toyotalife/music.html



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figure 6 Scion uses Its Customers as a Source Of Fresh Content


Scion lets customers share their own do-it-yourself car enhancements.

Source: http://www.scion.com/#tweaksOfTheWeek_cotw



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figure 7 Skate lets Gamers Share and vote On Their Favorite moves


Gamers can upload cool moves they’ve accomplished during game play. Other users can then watch the videos and vote for their favorites.

Source: http://skate.share.ea.com/

Tactic no. 2: Expose Value Immediately

Gen Yers quickly judge whether a site is worth their time, so sites need to present clear calls to action and interactive cues that bring visitors into experiences right away. Sites can then apply similar techniques to keep users engaged as they move deeper into an experience. Here are some of the highlights from the sites we examined:

· Insurance providers let users initiate quotes on the home page. The insurance providers engage users quickly by including form fields to initiate online quotes directly on their home pages (see Figure 8). On most of these sites, though, the experience breaks down when the user must then complete a long form before actually getting a quote. Allstate offers quicker access to value with its “ballpark estimates” feature (see Figure 9). This abbreviated process asks only a few questions, requires no personal information, and gives the user a general idea of how much he’ll pay for insurance.



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· T-Mobile presents an interactive plan selector on its home page. On T-Mobile’s home page, the user can manipulate a slider and buttons to select a target price and number of minutes for a new service plan (see Figure 10). As the user modifies the price or number of minutes, the site instantly displays the plan that meets his needs. This feature lets the user experience the value of T-Mobile’s service options without navigating to a second-level page, filling out a form, or waiting for a page refresh.

· Victoria’s Secret and Old Navy enable quick browsing. In the “Dress Shop” section of Victoria’s Secret’s site, the user can roll over dress types to get a quick look at the contents of each category (see Figure 11). Old Navy’s site takes a similar approach. In its “Fall Forecast” section, the site lets the user select from a group of outfits displayed at the left of the page and then view his selections up close at the right (see Figure 12). This allows the user to browse outfits without navigating away from the page he’s on, creating a sense that the content is being brought to the user rather than the other way around.

· Ford and Chevrolet use interactive images to highlight vehicle features. Browsing around Chevrolet’s site, the user encounters an interactive image that encourages him to click on parts of the vehicle in order to see details about related car features (see Figure 13). On Ford’s site, the user enjoys a similar experience, but Ford incorporates videos and photos as well as text (see Figure 14). Like popular video games such as Tony Hawk and Grand Theft Auto, these sites let the user click on more than just standard links, creating a highly interactive, immediate experience.

· Missed opportunity: Fill load time gaps with additional value. Young consumers are easily bored, so firms need to keep their interest with constant stimulation and instant gratification.5 One way to do this: Masking necessary load times with additional content. On GEICO’s site, for example, users must wait a few seconds for the site to load personalized insurance quotes. To avoid losing Gen Yers to another browser window, application, or device, insurers could steal a page out of the game designers’ playbook by presenting a branded video during the wait.6 This could help keep users interested, further educate them on insurance, and reinforce brand.



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figure 8 users Can Start Getting a Quote right On GEICO’s Home Page


GEICO’s home page exposes form fields to initiate an insurance quote, so users can jump into the process quickly.

Source: http://www.geico.com/



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figure 9 allstate’s Insurance Provides Quick access To a Ballpark Quote


Allstate’s “ballpark estimates” give the user an idea of what he’ll pay, without forcing him to slog through a lengthy process.

Source: https://quote.allstate.com/ConfiguratorFrame.aspx



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figure 10 T-mobile’s Interactive Plan Selector Draws users In Quickly


On T-Mobile’s home page, users can instantly find plans by selecting a desired number of minutes and price.

Source: http://www.t-mobile.com/



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figure 11 victoria’s Secret Provides Immediate visuals Of Products


When the user rolls over a subcategory name in the Dress Shop, the site displays some of the items in that category. Here, the user’s mouse is placed over “Prints & Patterns.”

Source: http://www2.victoriassecret.com/landing/?cgnbr=OSCLODRSSHP&rfnbr=5167



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figure 12 Old Navy Offers Two layers Of Browsing On The Same Page


When the user clicks on one of the outfits shown at the left of the page, a larger image and itemized breakdown of that outfit appear at the right. Here, the user has clicked on the first outfit in the “Artist” category.

Source: http://www.oldnavy.com/



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figure 13 Chevrolet uses Interactive Images To Explain vehicle Features


Users can click on buttons around the car to learn about the features associated with each area of the car.

Source: http://www.chevrolet.com/aveo/



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figure 14 Ford Offers rich Content In Its Interactive Images


Clicking on each highlighted area above brings up a video or photo explaining the features located in that area of the car.

Source: http://www.fordvehicles.com/



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Tactic no. 3: provide frequent feedback

Sites can also create a sense of immediacy by presenting notifications, rewards, and other feedback to users throughout an experience. Our research uncovered the following good practices:

· Allstate’s virtual agent tailors information to the user’s situation. On Allstate’s site, users can choose from two ways of exploring insurance options. With the virtual agent option, the user gets a personalized tutorial based on his particular needs. The virtual agent begins by explaining general concepts, asks the user for some basic information, and then continually adjusts its message based on the user’s responses (see Figure 15). This personal, tailored approach acknowledges that the user wants to accomplish something on the site, and it gives him frequent feedback to keep him on track to get what he needs.

· Retailers provide contextual product recommendations. As an industry, the retailers provide frequent motivational feedback in the form of contextual recommendations. On Lands’ End’s site, for example, the user encounters items “you might also like” on product pages and in the shopping cart (see Figure 16). Similarly, Old Navy encourages users with its recommendations to “complete the outfit” (see Figure 17). While it’s an obvious attempt to increase order size, this frequent feedback also brings new, relevant information to the user’s attention throughout the shopping process.

· Zappos adds a sense of urgency with inventory alerts. When the user enters the checkout process on Zappos.com, the site shows that some items are almost out of stock (see Figure 18). This simple feature adds a sense of timeliness and urgency to the experience, telling the user that he must act quickly in order to get what he wants.

· Missed opportunity: Reward users for reaching milestones. The sites we examined could have done a better job of providing motivational feedback during key processes such as checkout. For example, wireless carriers could encourage users to purchase new phones by offering free ring tones or music downloads at the end of the checkout process. Firms should also motivate and reward users for reaching milestones on a site. A retailer site, for example, could encourage users to reach a certain purchase amount by offering free shipping at that level and then constantly highlighting users’ progress as they approach that amount.



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figure 15 allstate’s virtual agents Converse With users about Insurance


The virtual agent asks users simple questions, acknowledges their responses, and then customizes content accordingly.

Source: http://www.allstate.com/auto-insurance/bumper-to-bumper.aspx



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figure 16 lands’ End Provides relevant Product recommendations In Context


Items “You Might Also Like” are presented in response to the user’s previous selections.

Source: http://landsend.com/



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figure 17 Old Navy’s recommendations Help users Complete Their Outfits


Old Navy recommends accessories to complement the item the user has selected.

Source: http://www.oldnavy.com/



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figure 18 Zappos’ Inventory alerts add urgency To The Shopping Experience


Zappos alerts users when items are almost out of stock, so users know they need to act fast or risk losing the stuff they want.

Source: http://www.zappos.com/



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r E C O m m E N D a T I O N S

ADD SOME IMMEDIAcY TO YOuR GEn Y ExpERIEncES

To engage Gen Y, most firms need to do more than tweak their existing design approaches. To start making the shift toward a specific Gen Y design strategy, customer experience professionals should:

· Identify Gen Y paths through your site. For most firms, it doesn’t make sense to try to redesign an entire site to provide better Gen Y experiences. Instead, identify the most likely activities that Gen Y will be doing on your site. How can you do this? Execute a simple survey asking people what they’re trying to do on your site, and then look at the responses from Gen Yers. With more sophisticated analytics, you can also identify the most frequent paths they take.

· look for opportunities to infuse immediacy. Firms looking to engage younger users should ask three simple questions about the Gen Y experiences on their sites: 1) Does it update content frequently? 2) Does it expose value immediately? 3) Does it provide frequent positive and motivational feedback? By asking these three questions in the context of relevant user goals, firms can identify places to increase immediacy. Customer experience professionals can then draw on the best practices of other firms and other industries to take advantage of the opportunities.

· Include Gen Yers in the design process. What’s the best way to understand the wants and needs of younger users? ask them; they’re ready to answer. Gen Yers are extremely self-confident, believe that their opinions matter, and will freely offer suggestions if they think they’ll make a difference.7 Innovation experts at Brainreactions have led hundreds of

“innovation brainstorms” — group sessions where handpicked college students ideate new product concepts or requirements for clients. Firms can solicit input from Gen Yers at any stage of the design process, and they can do it electronically, reaching young consumers in the virtual spaces they call home.8



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SupplEMEnTAl MATERIAl

companies Interviewed for This Document

Arc Worldwide

Blast Radius

Critical Mass

imc2

Molecular

Organic

Razorfish

Resource Interactive

Tribal DDB

WHITTMANHART

EnDnOTES1 Gen Y consumers were born during a period of prosperity and lived through world-changing events, from

the birth of the Internet to 9/11. But what exactly makes Generation Y different from its elders? And how can firms grab their often fickle attention? To answer these questions, we delved into Forrester’s Consumer Technographics® data and spoke with leading experts in the areas of design, branding, and youth culture. Our research unearthed nine attributes of Gen Yers that shape their perceptions of interactions. We grouped these into three categories: social, emotional, and mental. See the December 3, 2007, “The Gen Y Design Guide” report.

2 Gen Y consumers are a unique breed. But what exactly makes them different from their elders? Our research unearthed nine attributes of Gen Yers’ social, emotional, and mental makeup that shape their perception of interactions. To reach these young consumers, we’ve identified four design approaches: immediacy, Gen Y literacy, individualism, and social interactivity. To truly engage Gen Y, firms should create a Gen Y advisory board and apply Gen Y design approaches across touchpoints. See the December 3, 2007, “The Gen Y Design Guide” report.

3 We examined the Web experiences delivered by 20 large US firms across four industries: apparel retailers, auto insurance providers, auto manufacturers, and wireless carriers. We picked the top five sites in each industry by monthly unique audience as of June 2008, according to The Nielsen Company. USAA was excluded from the group of insurance carriers because USAA requires users to prove their eligibility before completing goals on its site. To uncover the best practices, we attempted to complete goals that Gen Y consumers might want to achieve on each site.

Following the principles of Forrester’s Scenario Design methodology, we attempted to accomplish user goals that were relevant to the business purposes of each type of site. The concept of Scenario Design is built on a simple assumption: No experience is inherently good or bad; it can only be judged by looking at how well it helps customers achieve their goals. This approach requires companies to continually ask — and answer — three questions: Who are your users? What are their goals? And how can you help them achieve those goals? See the July 19, 2004, “Scenario Design: A Disciplined Approach To Customer Experience” report.

4 Gen Yers seek recognition and fame. Many were raised and schooled in an educational system focused on promoting self-esteem and a “you can be anything” mentality. As a result, they’re more narcissistic than







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other generations. College students even scored significantly higher in the Narcissistic Personality Inventory (NPI) test in 2006 than they did in 1987, as Jean M. Twenge points out in her book, Generation Me. See the December 3, 2007, “The Gen Y Design Guide” report.

User-generated content (UGC) is a hot topic in the press. And with more than one-quarter of online consumers submitting a rating or review of a product or service or contributing to a discussion board, it’s not just a fad anymore. To determine the appropriate UGC strategy, companies must observe where UGC about their brands lives today, continually track conversations in UGC, and participate in existing communities before deciding if this is an activity that they should enable on their own sites. See the January 25, 2007, “Leveraging User-Generated Content” report.

5 Gen Yers are easily bored. In an extensive research study of 14- to 24-year-olds, interactive marketing vendor Resource Interactive found a strong need for “instant gratification and immediacy.” The research firm also found that these young consumers will wait just three seconds for a Web page to load before clicking away. Generation Y needs constant stimulation — from multiple windows open on their PCs to non-stop music on their iPods. See the December 3, 2007, “The Gen Y Design Guide” report.

6 Online gaming is a popular activity. Firms can leverage elements of game design in order to take their Web sites beyond usefulness and usability. To create more desirable, engaging online experiences, customer experience professionals should think about embracing three tactics: encouraging playfulness, creating a system of challenge and reward, and building upon narrative structures like characters and story. Firms can use these and other elements of game design to support a variety of objectives, such as promoting new products or services, building brand presence, and enhancing loyalty programs. See the August 8, 2007,

“Desirable Online Experiences: Taking Web Sites Beyond Useful And Usable” report, and see the April 30, 2008, “Three Different Gaming Approaches That Can Enhance Online Experiences” report.

7 In her book Generation Me, Jean M. Twenge discusses the ways in which young Americans are now more confident and assertive than ever before. According to Twenge, “The average kid in the mid-1990s — right in the heart of GenMe — had higher self-esteem than 73% of kids in 1979, one of the last pre-GenMe years.” Additionally, she writes, “In the 1950s, only 12% of teens aged 14 to 16 agreed with the statement ‘I am an important person.’ By the late 1980s, an incredible 80% — almost seven times as many — claimed they were important. . . . GenMe students were more likely to agree that . . . ‘I have often met people who were supposed to be experts who were no better than I’ . . . and ‘If I ruled the world, it would be a better place.’” Source: Jean M. Twenge, Generation Me, Free Press, 2006.

8 Internet technologies and Social Computing are changing the ways in which companies involve consumers in the creation of new products, services, and experiences, and Forrester calls this shift Consumer-Driven Innovation (updated from Consumer-Focused Innovation to reflect the central role that consumers play in the process). To thrive in the era of Consumer-Driven Innovation, companies need to master the tactics and tools across three disciplines: discovery, design, and deployment. See the May 26, 2006, “The Essentials Of Consumer-Driven Innovation” report.








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