Our benchmark research into big data analytics shows that marketing in the form of cross-selling and upselling (38%) and customer understanding (32%) are the top use cases for big data analytics. Related to these uses, organizations today spend billions of dollars on programs seeking customer loyalty and satisfaction. A powerful metric that impacts this spending is net promoter score (NPS), which attempts to connect brand promotion with revenue. NPS has proven to be a popular metric among major brands and Fortune 500 companies. Today, however, the advent of big data systems brings the value and the accuracy of NPS into question. It and similar loyalty metrics face displacement by big data analytics capabilities that can replace stated behavior and survey-based attitudinal data with actual behavioral data (sometimes called revealed behavior) combined with unstructured data sources such as social media. Revealed behavior shows what people have actually done and thus is a better predictor of what they will do in the future than what they say they have done or intend to do in the future. With interaction through various customer touch points (the omnichannel approach) it is possible to measure both attitudes and revealed behavior in a digital format and to analyze such data in an integrated fashion. Using innovative technology such as big data analytics can overcome three inherent drawbacks of NPS and similar customer loyalty and satisfaction metrics.
Unit4 is a global business software vendor focused on business and professional services, the public sector and higher education. Recently company executives met with industry analysts to provide an update of its strategic roadmap and to recap its accomplishments since being acquired by a private equity firm in 2014. Unit4 is the result of successive mergers of ERP and business software companies, notably CODA and Agresso. The company is also a part-owner (with salesforce.com and others) of independently run FinancialForce, which sells a cloud-based ERP system built on the Force.com platform.
Envision is a vendor of workforce optimization software that I have been following for many years. It is rated a Hot vendor in our 2015 Workforce Optimization Value Index. It offers a full suite of products, including interaction capture, quality monitoring, workforce management, coaching and training, agent compensation management and workforce analytics. In an analysis last year I wrote about how, in an effort to make workforce optimization more accessible and affordable, it created an architecture optimized to run in the cloud. During a recent update, CEO and founder Rodney Kuhn said that the company continues to focus on the cloud while adding new capabilities, especially in interaction capture, agent evaluation and coaching, and analytics.
OnviSource is a 10-year-old vendor of workforce optimization software whose core product, OnviCenter 7, includes interaction capture, quality monitoring, workforce management, coaching and training, and workforce analytics. The company is rated a Hot vendor in our 2015 Workforce Optimization Value Index. It scored highly in the Manageability, Usability and Reliability categories but was held back by lack of compensation management (for which it provides input to third-party products) and some analytics capabilities. The 2015 Workforce Optimization Value Index shows how competitive the workforce optimization market is: The top seven vendors are separated by fewer than three percentage points, OnviSource ranking fourth.
IBM’s Vision user conference brings together customers who use its software for financial and sales performance management (FPM and SPM, respectively) as well as governance, risk management and compliance (GRC). Analytics is a technology that can enhance each of these activities. The recent conference and many of its sessions highlighted IBM’s growing emphasis on making more sophisticated analytics easier to use by – and therefore more useful to – general business users and their organizations. The shift is important because the IT industry has spent a quarter of a century trying to make enterprise reporting (that is, descriptive analytics) suitable for an average individual to use with limited training. Today the market for reporting, dashboards and performance management software is saturated and largely a commodity, so the software industry – and IBM in particular – is turning its attention to the next frontier: predictive and prescriptive analytics. Prescriptive analytics holds particular promise for IBM’s analytics portfolio.
Topics: Big Data, Planning, Predictive Analytics, forecasting, Governance, Human Capital, Budgeting, Customer Performance, Operational Performance, Analytics, Business Analytics, Business Performance, Cloud Computing, Financial Performance, Visualization, prescriptive analytics
Contact centers in the cloud are increasingly popular alternatives to managing them on a company’s own premises. Running many business applications on hardware owned and managed by a third party is relatively straightforward and requires less support internally. Also the payment model changes from a license to a recurring fee, and typically the vendor provides updates as part of the fee. The challenge with placing a contact center in the cloud is that it is not a single system or even a collection of similar systems. The center includes infrastructure systems to manage communication channels, a network to support telephone extensions and access points to business applications, specialist systems such as routing and IVR, business applications (such as ERP, CRM and workforce management) and performance management and analytics systems; increasingly the contact center has to support mobile and social media as well. Moving all these to the cloud in an integrated manner is a complex task.
In recent years I have tracked Salesforce, its product development and its announcements. Despite having grown into a giant corporation, it continues to introduce innovations. At a recent analyst day in the U.K., I followed up on the company’s overall direction, some key product developments and a new service to help drive adoption of innovative customer-related processes. Salesforce’s primary aim is to help organizations market and sell to, service, engage with and know their customers through innovative processes and cloud-based systems. To support these efforts, it has made significant updates to its marketing, service community and analytics clouds. For example, it has added Marketing Cloud Predictive Decisions to its Marketing Cloud. The new module enables marketers to apply analytics to a range of customer-related data to gain a more complete picture of their customers and from it build more personalized marketing messages and campaigns. Business users can set up their own analytics, determine next best actions and deliver marketing messages and dialogues through multiple communication channels. Predictive Decisions helps transform marketing’s approach from general one-off marketing campaigns to one-to-one, personalized dialogues through channels that individuals prefer. On another front, the company has enhanced its Service Cloud with Service Cloud Intelligence Engine. This product also runs across multiple channels. It dynamically pushes work to the right employee, based on the skill set required to handle the task and the history of the request, and at the same time it distributes and manages the workload across employees who handle customer interactions. Analytics here provides an enhanced view of customers so that dialogues concerning a case can be viewed and preserved across all channels. In other developments Community Cloud has been enhanced to expand the range of expert groups to engage, deliver customer self-service as part of a community, and do this on smart mobile devices. Analytics Cloud now can ingest larger volumes and types of customer-related data, including interaction data. It enables both business users and analysts to use a wider range of data sources to find answers to specific questions, also on mobile devices. It also includes capabilities for developers to build specific analytic apps for targeted business uses. My colleague has assessed the product in Salesforce Analytics Cloud Delivers Wave of Elegant Dashboards. All of these developments and existing capabilities have been brought together on what Salesforce calls the Customer Success Platform. It is built on the company’s cloud infrastructure, and as well as its own cloud-based apps, it includes all the partner apps available on the Salesforce app store. A “scalable metadata platform” glues everything together. It includes data and objects, a mobile user interface, collaboration tools, analytics, workflow and identity management. Enhancements enable developers to build mobile apps for both customers and employees more easily. In the pipeline are capabilities to use wearable technology to collect and display data. Salesforce’s efforts to help companies “do business in a new way” reflect challenges that many companies encounter in trying to serve customers more effectively. Our research into next-generation customer engagement shows that the three most common challenges are integrating systems (49%), managing communication challenges in a unified way and not as silos (47%) and inconsistent responses and information in customer interactions (33%). My research and customer case studies lead me to conclude that changing processes is the biggest challenge. To meet this challenge Salesforce has introduced a consulting program called Ignite. This collaborative consulting service aims to help organizations design their customer management vision and execution roadmap. It is comprised of four steps: discovery, inspiration and design, prototyping and iteration and doing it. Discovery uses joint workshops and interviews with key stakeholders to introduce the program and its objectives, gain buy-in and discover the current state. Inspiration and design is another series of joint workshops to develop ideas and envision the desired state. Prototyping and iteration uses the new ideas to develop prototypes of how the new vision can be delivered. The “do” step presents and demonstrates the prototypes to stakeholders and develops a value statement and an implementation plan so the business can decide the way forward. Overall this seems to be a fairly typical consulting service that focuses on customer engagement and associated processes, systems and metrics, but it is deliberately collaborative and tailored around Salesforce applications and tools. The main innovation I see is that it is designed to uncover new ways of working that organizations may not have considered. Business, especially around customer engagement, is changing more rapidly than ever, and it is hard for organizations to keep up with technology developments and learn how to gain maximum benefit from them. Ignite should help Salesforce customers identify how they can improve customer management and introduce new approaches to keep ahead of the competition. The Salesforce Customer Success Platform is a comprehensive package of systems that focus on customer management processes, underpinned by improved integration, analytics and collaborative capabilities. Our research consistently finds that most companies are still relatively immature in the use of people, processes, information and systems for customer management. I therefore recommend companies seeking to survive and prosper in today’s highly competitive markets assess how the Salesforce products and service can help. Regards, Richard J. Snow VP & Research Director
Companies trust their tax departments with a highly sensitive and essential task. Direct (income) taxes usually are the second largest corporate expense, after salaries and wages. Failure to understand and manage this liability is expensive, whether because taxes are overpaid or because of fines and interest levied for underpayment. Moreover, taxes are a political issue, and corporations – especially larger ones – must be mindful of the reputational implications of their tax liabilities.