Why Marketers And Product Teams Should Create Customer-Driven Experiences
Ryan Skinner, Senior Analyst
8 April 2015
© 2015 Forrester Research, Inc. Reproduction Prohibited 4
What We’ll Discuss
›Perpetually connected customers lean in to helpful brands
›Interactive video gives rich and valuable experiences
›Insights from interactive video can enrich customer relationships
›Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
What We’ll Discuss
›Perpetually connected customers lean in to helpful brands
›Interactive video gives rich and valuable experiences
›Insights from interactive video can enrich customer relationships
›Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
Millennials & GenZ Do More On MobileACTIVITIES DONE WEEKLY ON A MOBILE
Upload videos or photos to the Internet
Download music Watch video or TV shows
Stream video or TV shows
< 34
34 & UP 7%
12%
5%
13%
6% 9%
< 25
20%
22% 14% 14%
24%
26%
Source: European Technographics Online Benchmark Survey, 2014 (Base age <25: 2266, age < 34: 5018, age 34 and up: 11,192)
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Baby boomers’ gold medalists
GenZ’s gold medalists
Millennials were also two times more likely to: visit a brand’s website, read ratings and reviews, read a company’s
blog and read a forum on a brand’s site.
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Television’s Becoming A Pull Medium
Only 34% of all US
online adults primarily
watch linear TV
73% OF CMOS: BUDGETS FRAGMENT ACROSS MEDIA/MARKETING CHANNELS
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Customers Control The Purchase PathUSE INFORMATION THEY FIND THEMSELVES, FROM MORE SOURCES, FASTER
Source: Google ZMOT study with Shopper Science
10.4Sources inan averagepurchase path
Note the simultaneous rise of smartphones (now at 50% penetration among US online adults) and the steady drop in linear TV viewing (now only 34% of US online adults primarily view TV that way, and a preponderance of those are in the greying, boomer generations).
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Prior to making your recent consumer electronics purchase, how did you originally find out about the product or service that you bought?
0 5 10 15 20 25 30
Ads in newspapers (not online)
Ads on Facebook
Blogs
Online videos
Online ads (e.g. banner ads)
Ads on TV
Online recommendations (e.g.,…
Asking friends, family, colleagues
Online searches (e.g. Google, Bing)
EU-7
US
Source: North American Consumer Technographics Customer Life Cycle Survey 1, 2014, sample size = 277
European Consumer Technographics Retail Survey 1, 2014, sample size = 890
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Which of the following sources did you use to research the consumer electronics before it was bought?
0 10 20 30 40
Online videos
Comparison shopping site
Professional reviews (e.g.,…
Employee or customer service rep…
In-store information
Manufacturer website
Retailer website
Asking friend, family, or colleague
Online search (e.g., Google, Bing) EU-7
US
Source: North American Consumer Technographics Customer Life Cycle Survey 1, 2014, sample size = 277
European Consumer Technographics Retail Survey 1, 2014, sample size = 890
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After making your purchase of consumer electronics (e.g., TV, computer, e-reader, etc.), in what other ways did you interact with the brand, store or company (manufacturer)?
0 5 10 15 20 25 30 35
Online chat with company rep
Letter to the company
Company social media page (e.g.Facebook, Twitter)
Email to company
Phone call to company
Online self-service on company site
Video on the company site
Online community forum on company site
Physical location
Source: North American Consumer Technographics Customer Life Cycle Survey 1, 2013, sample size = 245
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Helpful Brands Earn Their VisibilityThese three cases: Nike, Charmin and Gatorade are all gaining visibility with their key audiences
by creating valuable experiences.
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
What We’ll Discuss
›Perpetually connected customers lean in to helpful brands
›Interactive video gives rich and valuable experiences
›Insights from interactive video can enrich customer relationships
›Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Trend: Cutting Budgets In AdvertisingBoosting Budgets In Owned
VideoWill decrease spend on
traditional advertising to
fund more online promotion.63%
Source: “B2C Marketers Must Turn Fragmented Marketing Budgets Into Business Budgets” December 2013
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Video Stands Out As The Fastest-Growing Online Ad Format
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Millennials Are A Digital Video Native Generation
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Mobile is increasingly a crucial part of
the video interaction and experience.
Millennials are using smart phone
advanced behaviors including
streaming and interactive video. Big
players like Facebook are making big
plays in terms of mobile and video.
Here we see Facebook’s only
advertising on mobile being sponsored
content with a focus on video.
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When Video & Mobile Collide
Mobile Video
Inter-
activeVideo
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Benefits Of Interactive Video
Maximizes discovery
Provides depth at the point of discovery
Supports multiple calls to action
Mobile app-like functionality without an app download
Data exhaust for personalization and segmentation
Higher completion rates
Repurposes existing assets
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Increases CTR Up To 1000% On Video Ads
TraditionalVideo
InteractiveVideo
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Maybelline’s Big Eyes Beauty Adventure Includes Multiple Calls
To Action Per Product
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What We’ll Discuss
›Perpetually connected customers lean in to helpful brands
›Interactive video gives rich and valuable experiences
›Insights from interactive video can enrich customer relationships
›Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 27
Tune Content Against BehaviorDELIVER CONTENT AGAINST CLEARLY EXPRESSED SIGNALS
Content/Audience Tuning
A B C
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Apply Data To The Path To PurchaseTUNE CONTENT AGAINST PROFILE, TOPIC, HISTORY, PREFERENCE & PRIORITY
B2B companies who tune content rose to 91% and B2C companies who tune content rose to 86% in the previous year.
© 2015 Forrester Research, Inc. Reproduction Prohibited 29
CRM R/O M
McCormick gets personal with flavors
© 2015 Forrester Research, Inc. Reproduction Prohibited 30
What We’ll Discuss
›Perpetually connected customers lean in to helpful brands
›Interactive video gives rich and valuable experiences
›Insights from interactive video can enrich customer relationships
›Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 31
Recommendations
1. Drive the script from the customer’s context
and needs.
2. Unleash your creativity.
3. Collaborate across teams to deliver interactive
video as a microsite or app.
4. Tailor the interactivity to the various video
publisher capabilities.
This is an interactive video
that Philips has launched
throughout Europe. Their goal
was to reach young millennial
men. These guys consume
content mostly on their mobile
devices.
So Philips and their agency
came up with this idea. 1 guy,
6 beard choices, over 1000
possibilities.
From the invention of the printing press right though moving pictures and now the mobile
web, the internet introduced us to a new way to sort and navigate information - search,
menus, links.
What Philips has done here is take all of those
web-like functionalities and apply them to video
storytelling.
And interactive video, which enables an authentic, personalized conversation, is
perfectly suited and is driving meaningful results.
So while traditional, linear video was great for mass-media communication, where
delivery of a one-size-fits-all message is what you need to do – it fails in this new
environment.
This all comes down to the
value that is created when
marketers can combine
personalized content with
insightful data and
measurable ROI.
This is akin to the mind shift that happened when we first started experimenting with
website layout. How is a website different than a brochure? It’s a very similar thought
process.
You want business,
creative and tech working
together.
What business drivers do
we want to see? How can
the creative idea push
those forward? And how
can the technical abilities of
interactive video help us
distribute that content,
track user interactions and
understand their behavior?
The most successful users of interactive video have considered what they want to measure, and
then are making sure they can track and pump that data into an analytics solution or a marketing
automation solution like Eloqua or Marketo.
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