Reinvent to Win, Serve, and Retain

Empowered Customers

George F. Colony CEO, Forrester Research, Inc.

December 11, 2013

LeWeb

© 2013 Forrester Research, Inc. Reproduction Prohibited 2

Agenda

› The new age

› Opportunities

© 2013 Forrester Research, Inc. Reproduction Prohibited 3

The Age of the Customer

A 20-year business cycle… in which the most

successful enterprises will reinvent themselves…

to systematically understand and serve

increasingly powerful customers.

© 2013 Forrester Research, Inc. Reproduction Prohibited 4

Customer power…

› Pricing

› Shared critiques

› The ability to buy anything, anytime, anywhere, from anyone

Pricing

© 2013 Forrester Research, Inc. Reproduction Prohibited 6

Critiques

› 17% were influenced by consumer ratings and reviews

› 13% by recommendations from friends and family

› 5% by online forums or blogs

© 2013 Forrester Research, Inc. Reproduction Prohibited 7

Buy anywhere

22% of European online adults have ordered products from a Website outside of their home country in the last 3 months.

© 2013 Forrester Research, Inc. Reproduction Prohibited 8

Gen Y Gen X

9.4 11.4

11.2 9.0

4.8 6.1

2.3 0.7

1.5 2.4

The changing customer

Watching TV

Base: European Online adults (18+); Source: European Technographics Online Benchmark Survey, Q3 2012

(hours per week)

Using the Internet Listening to the radio Playing video games Reading newspapers

18% less

25% more

21% less

219% more

37% less

© 2013 Forrester Research, Inc. Reproduction Prohibited 9

The mobile mind shift

The expectation that any

desired information or service is

available, on any appropriate

device, in context, at your

moment of need

© 2013 Forrester Research, Inc. Reproduction Prohibited 10

Computing the Mobile Mind Shift Index

40

+

Access

Base: 30,549 US online adults (18+)

Source: North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

US adults 18+

20

Devices

40

+

Locations

MMSI

100 =

100

50

0

MMSI

9.6

20

13.2

40

5.1

40

27.9

100 27.9 US avg.

© 2013 Forrester Research, Inc. Reproduction Prohibited 11

The Mobile Mind Shift Index by gender

Devices Access Locations

20

30

40

MMSI

27.9 US avg.

30.0 Men

10.3

Men

14.0 5.7 + + = 30.0

8.9

Women

12.4 4.5 25.9 Women

+ + = 25.9

MMSI

Base: 30,549 US online adults (18+)

Source: North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

© 2013 Forrester Research, Inc. Reproduction Prohibited 12

20

30

40

Not all smartphone owners are equal MMSI

27.9 US average 22%

US average

Proportion of smartphone owners in shifted segments

43.5 iPhone

58%

iPhone

37.7 BlackBerry 40%

BlackBerry

30.5 Windows Phone

24%

Windows Phone

38.8 Android 44%

Android

Base: 30,549 US online adults (18+)

Source: North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

© 2013 Forrester Research, Inc. Reproduction Prohibited 13

Image source: The New Yorker (cartoonbank.com)

© 2013 Forrester Research, Inc. Reproduction Prohibited 14

Opportunity…

› Building mobile engagement

© 2013 Forrester Research, Inc. Reproduction Prohibited 16

Boston Paris

© 2013 Forrester Research, Inc. Reproduction Prohibited 17

The Result:

Context-Rich Mobile Engagement

Better Customer Experiences

The Trillion € slide…

Big Customer

Data

Public-as-a-service

Capabilities

Smart Products

Insight from

Devices and Sensors Systems of Record

Engagement

Social

© 2013 Forrester Research, Inc. Reproduction Prohibited 18

To conclude…

› The Age of the Customer approaches

› The early opportunity: building mobile engagement

© 2013 Forrester Research, Inc. Reproduction Prohibited 19

In the future, all companies will be software companies.

© 2013 Forrester Research, Inc. Reproduction Prohibited 20

› Learn more about succeeding with empowered customers http://solutions.forrester.com/empowered-customers

Thank you . . .

. . . and I hope this was helpful.