Why IT Must Proactively Get Involved in Long-Term Strategy Planning

shutterstock_111469742To face the 21st-century challenge of managing a digital customer experience, which means consciously interacting with all business partners and customers in real time, organizations need to take the step to integrate IT infrastructure with new and existing cloud applications.  Starting with the premise that “we are in the age of the [digital] customer,” there is no question (at least as heard in a Forrester Research webinar) that any forward-looking business must go forward with integrating their cloud data to back-end enterprise systems.

“The first thing is for IT to get in the game! A lot of IT practitioners are not contributing to their firm’s customer experience strategy. They are locked in the back office, providing point-to-point integration for project support.”
– Forrester Research, VP and Principal Analyst John Rymer

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Your Customers are More Powerful than Your Company

“The lack of good integration is a barrier to succeed in this world. Integration is now interconnection.” Those were the words of Forrester Vice President and Principal Analyst John Rymer in a recent webinar on strategy for integration of cloud initiatives.

“We’re in the age of the customer. Which means that in order to be successful, whether you’re a for-profit business or a public agency trying to serve your citizens better, whoever it is, those are your customers. They’re very empowered and often have better technology than we do. In order for us to succeed we have to serve them, empower them and understand them, and that need takes integration to the next level.”

Hiding complexity while creating great experiences

Rymer cites several examples of how different companies are linking what were traditional back-office functions to services that directly face their customers through their mobile devices. This goes further than transactions or information and involves creating whole environments to interact with customers in real time in a way that is a great experience.

His use of the word “interconnection” means linking together systems that reach down to the core of application design, extend across business networks, yield awareness and ‘smarts’ while being able to secure and manage the lot. Traditional point-to-point integration won’t manage this level of interconnectedness.

Technologists and business owners need to accept what’s coming as these systems are linked:

  • Your message volumes will explode
  • Your architecture will be different
  • You will need a second lifecycle
  • You will design business services
  • You will learn new application-design patterns

“You still have Web.” When Rymer makes this statement, it becomes clear how far we’ve come and how much is changing. Who thought we’d ‘still have Web’ just a few years ago? What’s coming next?

For more, watch these webinars featuring analysts from Forrester Research and TIBCO on integration.

The 12th Man is Important Not Only in Sports Stadiums, but also in Business

Can you remember when you bought something so good you had a dopamine-fueled ecstatic moment and had to immediately tell friends, family, and co-workers? Then they took your advice, bought the same product, and you all began to gush about just how good it was?

Inevitably, someone objected to the love fest and pointed out it wasn’t actually that good to which you all countered and debated each point they made. Did you realize you had become an unofficial spokesperson and advocate of that brand at that precise moment?

The Collective Power of Groups

This happens all the time and yet, for brands and customers alike, it’s an invisible and often untapped force to be reckoned with. A single customer’s voice can sometimes be lost amid the noise. It’s like throwing a stone in a large body of water. When the voices are joined as a collective, like a crowd in the stands at a sporting event, it suddenly becomes a rippling tidal wave of support that can almost drown out competition and negative feedback.

Loyal Customers Are Like Loyal Sports Fans

Have you seen, or participated in, the now-famous stadium wave that began at the 1986 World Cup in Mexico? That’s exactly the effect a loyal customer has for your product and brand when they cheer and support your business as it gathers momentum. [Read more...]

Traditional Marketing is Bad Marketing

In a survey report on customer experiences from a leading consulting firm, they discussed how to “convert opportunities from seemingly lost opportunities” by preventing early defection and identifying what causes churn. Last year the theme of “revenue growth through customer experience” was adopted as a primary initiative across many industries and companies, covering real-time offers and contextually driven real-time campaigns. Many organizations are already on a path to reap the benefits of technology platforms put in place to address customer retention and growth.

Same Old Strategies Lead to the Same Old Results

What are a customer’s immediate purchase needs? Are offers targeted to match customers’ requirements, especially when they want it? What is the conversion rate on an offer? Three out of 100? That’s a 3% offer up-take ratio. Marketing campaigns like this are obviously shooting offers from the hip!

That means 97% of employee resources and money get wasted. Spraying and spamming customers with a traditional marketing offer are hardly relevant to their needs. With enough failures to follow-up at opportune times, the frustrated customer opts-out. That’s just one aspect of customer defection; what about others? Why do customers defect even if the product or the service offered is relevant? [Read more...]

Why We Love to Love Something

In this day and age, there’s no shortage of ways to share our feelings. We share tips, tricks, rants, and raves with our friends, online and off,  about everything. Sharing our personal accomplishments, funny YouTube clips (cat videos, anyone?), and viral pictures all make natural sense to spread the word. By sharing things we enjoy, we feel a sense of entertainment, amusement and personal connection. But, what can brands do to motivate us to express such feelings about them, their products and services, and become part of a larger community of brand loyalists? 

The psychology of becoming part of a larger movement has become a popular topic. Companies have seen the power of super fans whose story sharing influences and inspires others. Fans are many levels beyond simply a customer; they don’t just buy a brand, they identify with it. They are with their favorite brands or teams through ups and downs, and most importantly they are advocates who actively try to turn others onto their brand of choice. 

So to find what makes us go from customers into loyalists (or what makes us go from like to love) we have to look at not what the first memories a fan has, but what drove the second interaction to understand what makes a lasting relationship. [Read more...]

Waiting is the Hardest Part: A Customer Perspective on Enterprise Software

angry airport

A well-integrated company is a thoughtful one in a consumer’s daily life. It gives its customers valuable information when it’s actionable and lets us better plan our schedules. A thoughtful brand provides clarity in uncertain times by letting you know what to expect with enough foresight to make changes. Whether by phone call or text message, receiving real-time updates are always appreciated because they give us the gift of time and the luxury of options. It’s stressful and annoying to arrive at the airport hours too early for a delayed plane when a text or call from your airline would have been so simple. When brands reach out to us, we’re clued into what’s going on and given enough time to do something about it.

I moved recently. When I tell people this, I get a look of sympathy because we’ve all suffered through it. It’s not just the hard labor of packing and unpacking that we can commiserate about – it’s the frustrating world of waiting. If you think about it, we’re not all that used to waiting for anything anymore, so when we have to, it’s miserable.

We are creatures of habit and moving replaces our world of instant gratification with giant delivery windows, hold music and telling three people in three different departments how the sheets you just got in the mail are the wrong color. How can businesses address and mitigate these moments of frustration? The answer is integration. [Read more...]

You Have Ten Seconds To Turn Your Customers Into Fans

It’s a well-worn rule of thumb that you have little more than 10 seconds to impress someone with your website. Its design and, more importantly, your content will either draw in and convert someone into a loyal customer or allow them to remain a digital transient. You only have seconds to convince them.

Brick and mortar faces a dilemma of its own, even if it isn’t an extremely short timeframe. They have a limited number of chances to understand the customer’s psychology in visiting a store and what it takes to turn customers into fans.

This sounds harsh but consumers and retailers have become a blur to each other. The demands of real-time online and in-person activity are a significant challenge that many organizations have yet to rise and meet. Nobody wants to invest in a product or service only to feel the relationship ended as soon as the money was exchanged — customers do not want to feel neglected after the point of purchase. Your chance to turn customers into loyal fans is very, very fleeting. [Read more...]

Caesars Makes Them Happy Even When They Don’t Win

Every business has customers, even if they seem to pretend they don’t. There is always an end-user who has to deal with the products you build or services you provide. And you likely have information, perhaps an unmanageable amount, on their preferences. From billing history, to usage habits, to loyalty data – you are already keeping track of your customers’ experiences. Yet, how are you actively managing customer experiences and expectations?

“In the context of the 21st century, we believe in engaging, interacting and predicting customer behavior.”

- Rizwan Patel, Director of IT, Caesars Entertainment

Companies like Caesars Entertainment can’t afford not to invest in the customer experience.  In terms of customers, the stakes can’t be any higher than in the casino gaming industry.  Unhappy customers seem to be an inherent part of the mechanics of gambling.  How do you keep customers happy when they are statistically proven to be handing your money more often than not?  Caesars had to create an entertaining experience around losing money and have succeeded so much that customers are happy to lose again and again and keep coming back. The thrill of the possibility to win, while surrounded by an entertaining atmosphere makes the risks worth taking and maybe even enjoyable to lose. [Read more...]

TIBCO NOW event for Smart Utilities, London, 6th April 2011

nowenergyutilitiesEnergy is the global challenge of the 21st century. TIBCO is helping more than 300 energy and utility companies around the world meet the challenge to save energy, tap alternative resources, cut costs, and boost grid reliability.

TIBCO is running an event in London UK on “Smart Utilities” next month – and have persuaded Lyndon Wilkin of EnergyAustralia (exploiting CEP down-under) to present.

EnergyAustralia will share first-hand how they are:

* Managing the data deluge: Collecting, analyzing, and acting on massive amounts of data to anticipate and react to problems, outages, or spikes in energy demand.
* Maximizing IT and grid investments: Optimizing existing assets to ensure efficient generation, transmission, distribution, and consumption of energy.
* Alleviating risk: Satisfying regulatory requirements and protecting the integrity of the power grid from operational and physical damage.
* Improving the Customer Experience through proactive and real-time use of data to manage service reliability and SLA’s.

Registation form here.

CEP use case: Energy Australia smart metering

Just noticed another CEP-related press release: this one announcing details of Energy Australia’s “Meter Data Management” – not to be confused with MDM. Relevant quotes are:

The use of TIBCO products as the foundation platform has allowed Energy Australia to realize significant efficiencies in data entry and integrity, which has led to significant improvements in customer service and improved turnaround times. This also has provided Energy Australia with a real-time view of the customer and facilitated the scalability and robustness for a 4000 times increase in data volumes from the new Smart Meters …

Central to its integration architecture to manage interactions with energy markets, Energy Australia … Intelligently analyzed large volumes of data in real time for enhanced decision-making capabilities using TIBCO BusinessEventsTM.

CEP driving the Smarter Planet, indeed…