Building a Technology Architecture for Experience Optimization

Building a Technology
Architecture for
Experience Optimization
WEBINAR
Featuring:
James McCormick
Forrester
Ashish Chopra
Optimizely

Housekeeping
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! You will receive a copy of the
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! We’ll answer questions throughout
the presentation

Featuring:
James McCormick
Principal Analyst, Forrester

Building a Technology Architecture
for Experience Optimization
James McCormick, Principal Analyst
September, 2018

?
Five imperatives answer customer obsession
Reference: "Insights-Driven Businesses Set The Pace For Global Growth [130848“ Forrester report]
The age of the
customer
Customer
obsessed

Image source: http://sciencelablegends.wikispaces.com/Cool+Pics
A new predator has emerged
Continually
optimizes
experiences
Veraciously
competes on
experiences
Links
insights and
experiences

?
Source: Forrester report “Insights-Driven Businesses Set The Pace For Global Growth[130848]”
Insights-driven
businesses:
• Creates differentiating
experiences, products,
and services
• Harnesses and
implements digital
insights strategically
and at scale

“Insights-driven
businesses” are
an economic
tidal wave
Source: The Forrester “Insights-Driven Businesses Set The Pace For Global Growth[130848]” report
By 2021 “insights-
driven businesses”
will be generating
$1.8 Trillion annually

Insights-driven businesses are
137%
more likely to differentiate with data and analytics
Source: Forrester’s Business Technographics® Global Data And Analytics Survey, 2018

Disrupters compete on experiences using insights
Source: Forrester report “Insights-Driven Businesses Set The Pace For Global Growth[130848]”

Questions?

The vast majority of firms are
still on their journey to becoming insights-driven
Fewer than 1 in 10 businesses
are advanced with insights

CID
Cross-channel
attribution
The organically grown experience optimization stack
Tag management
CID layer
CID
Online testing
CID
Application
analytics
CID
Interaction
analytics
CID
Voice of
customer
CID
Social
analytics
CID
APM
CID
Behavioral
targeting
CRMDMP
CID
Web analytics
Organic growth create silo’s
and limits scale

Only a third
of insights beginners think about integrating data,
analytics and action for decision-making

There is massive
opportunity to
scale experience
optimization
Source: The “Transform Customer Experience With Continuous Optimization [116870]” Forrester report.
Customer
lifecycle
coverage
Proportion of
interactions
optimized
Channels
optimized
Optimization
techniques
Even for the most
advanced firms only 5%
to 15% of all digital
interactions are
optimized

Scaling experience optimization demands a strategy
Reference: Forrester report “Sharpen Your Competitive Edge With A Digital Intelligence Strategic Plan [61385]”
Ownership Structure:
Organize & hire analytics staff to
support the digital business
model across the enterprise
Technical Approach:
Synchronize components for
digital data management,
analysis, and optimization
Metrics & KPIs:
Standardize on metrics that
measure customer digital
engagements
Optimization:
Develop a continuous
optimization process for all parts
of the engagement lifecycle
Strategic Approach:
Align the experience optimization
components to support customer
obsession

86% continually act
on intelligence to optimize outcomes
100% more likely to make
improving customer experience a high priority
Insights-driven businesses scale insights to
experience closed loop processes

Continually evolve & optimize experiences at scale
Measure
interactions
Evolve
insights
Evolve
experiences
Customer
interaction
Customer
understanding
Customer
experience
Insights businesses continually optimize at scale
Source: The "Continually Optimize Experiences To Differentiate And Compete For Customers [121605]" Forrester report

Insights driven businesses are:
140% more likely to create
sustainable competitive advantage with system of insights
78% more likely
to grow revenue with system of insights
Scaling optimization needs an insights architecture

Insights-driven firms integrate systems of insights
Source: The “Digital Insights Are The New Currency Of Business [119109]” Forrester report.

Data
CDP
Data
warehousing
Optimization
Recommendations
Online
testing
Behavioral
targeting
Analytics
Web
analytics
Voice of
the customer
Spatial analytics
Social
analytics
Predictive
analytics
IoT
analytics
Interaction
analytics
Cross-channel
attribution
Application
analytics
Digital touchpoints
Customer context and behavior
Intelligent architecture for experience optimization
Source: The “TechRadar™: Digital Intelligence, Q2 2016 [76021]” Forrester report
Digital
performance
management
Digital
systems of
engagement
Digital
systems of
insights
CRM
Tag
management DMP
CIP
Content graph
Content
analytics
Content
targeting

24© 2018 Forrester Research, Inc. Reproduction Prohibited
Experience
Expectation
Perceived Value
Voice-of the
customer metrics
Digital performance
metrics
Contextual metrics
Channel metrics
Life-cycle metrics
Conversion metrics
Social metrics
Attribution metrics
Competitive metrics
Optimization metrics
Standardize on a holistic set of engagement metrics

Organize for enterprise wide optimization
Source: The “Sharpen Your Competitive Edge With A Digital Intelligence Strategic Plan [61385]” Forrester report.
Dedicated optimization for
each LOB
Centralized channel optimization
teams serve all LOBs
Centre of excellencePracticematurity
Decentralized Centralized

Make experience optimization customer obsessed
ENGAGE
ASK
USE BUY
EXPLORE
DISCOVER
High value
Current focus
Huge value
Future focus
Future focus

Assessment
Plan:
Build vision,
road map
and plans.
Develop:
Unite existing
skills, tech
and data.
Competency:
Deploy new
skills, tech, and
data.
Mastery:
Integrate into
enterprise
systems.
Continually assess and benchmark progress
Identify experience
optimization
strengths and gaps
Technology
Ownership
Metrics & KPIs
Optimization
Score digital intelligence maturity
RoadMap
Prioritize digital intelligence projects
Technology stack
Strategic Components
Ownership and support structure
Metrics and KPIs to understand and drive engagement
Approach to optimizing customer engagement
Strategy
Assess current state
of strategic
components
Modify strategy based
on current state
assessment
Source: Forrester report “Boost Digital Intelligence
With Tag Management [119873]”
Accelerate
experience
optimization
mastery with a 4
stage road map

Accelerate Your Experience Optimization Maturity
Board level support Partner support
Start small…
be agile & iterative

FORRESTER.COM
Thank you
James McCormick
@JFMcCormick

Building a Technology Architecture for Experience Optimization

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