Contextualization. by Ron Rogowski, stephen powers, and Anjali Yakkundi, november 19, key TakeaWays

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1 FOR: Customer Experience professionals Contextualization by Ron Rogowski, stephen powers, and Anjali Yakkundi, november 19, 2012 key TakeaWays knowing user Context is Critical For delivering Relevant experiences Three ingredients make relevant customer experiences: profile data about who the customers are, historical data about what customers have done, and situational data about what s happening in their lives now. personas, personal history, and Real-Time Customer information give Context Combining the user-archetype information that personas contain with an individual s history, preferences, and current environment can help companies design experiences that feel like they were designed for a specific user, even if they were not. Contextualization optimizes The digital experience seamlessly Contextual experiences feel natural and unforced and should go unrecognized by the customer. Getting contextualization right means bringing to bear all of the relevant information a user provides actively or passively to provide a predictive -- but not invasive -- customer experience. Forrester Research, Inc., 60 Acorn park Drive, Cambridge, ma UsA Tel: Fax:

2 November 19, 2012 Contextualization Delivering Relevant Experiences In The Multichannel World by Ron Rogowski, Stephen Powers, and Anjali Yakkundi with Harley Manning and Allison Stone Why Read This Report Firms want to deliver the right experience to the right user at the right time and on the right device a tricky proposition in this age of device proliferation. The splinternet and the devices that comprise it presents challenges for engaging customers, but it also provides new opportunities to better understand customers context. User profiles combined with historical data and real-time feedback can help firms deliver increasingly relevant, tailored experiences that meet specific user needs. We call this contextualization. This report helps customer experience professionals understand what contextualization is, what its benefits are, and what tools can help deliver the benefits associated with contextualization. Table Of Contents Today s Customers Demand Relevant Experiences Firms Struggle To Deliver Relevance At Scale To Maximize Relevance, Think Contextualization Three Types Of Data Inputs Power Contextualization Contextualized Relevance Is Powerful recommendations Contextualize The Right Interactions For Your Customers Supplemental Material Notes & Resources Forrester interviewed 16 vendor and user companies, including: 3M; Adobe; Autonomy, a division of HP; Baynote; Bluefly; Coveo Solutions; Dell; Ektron; isite; Monetate; Oracle; Razorfish; RichRelevance; SDL; Siteworx; and UncommonGoods. Related Research Documents It Ain t Personal: Get Up Close And Contextual November 19, 2012 The Unified Customer Experience Imperative April 30, 2012 Use Customer Analytics To Get Personal February 17, 2012 The Future Of Mobile Experiences Is Context October 26, , Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please clientsupport@forrester.com. For additional information, go to

3 Contextualization 2 Today s Customers Demand Relevant Experiences More than ever, firms need to deliver relevant experiences to their customers across a range of devices. 1 These experiences must: Meet customer needs. A highly relevant experience meets the content and functionality needs of a customer while satisfying the underlying emotional needs that trigger an interaction. 2 Feel personal. Consumers expect and appreciate personalized experiences. 3 Truly personal experiences deliver relevant content and function based on explicit and implicit feedback about customer needs and preferences. Deliver in the moment. Relevant experiences take into account a person s current state such as time of day and location and deliver on situational needs, such as finding additional product information using a barcode scanner at the point of consideration. 4 Firms Struggle To Deliver Relevance At Scale What stops firms from delivering highly relevant experiences? Companies fall short of meeting customer expectations when they: Guess at what their customers want and need. Despite the proliferation of tools such as personas and journey maps, in a recent survey, only 41% of the 86 CX professionals from our ongoing Marketing & Strategy Research Panel said that they consistently use customer research as an input into customer experience design projects. 5 Don t share customer data across silos. Nothing says I don t care about you more than forgetting a customer from one moment to the next. But that s exactly what companies do when they fail to share customer information across organizational or channel silos. 6 As a result, when customers cross from one touchpoint to another for example, moving from a mobile app to a desktop website firms fail to recognize them, so customers have to start pursuing their goals from scratch. Don t take advantage of real-time cues. Users current circumstances, such as location, time of day, and even weather, can determine their immediate needs. But even though today s connected devices can provide a wealth of information about users context, few firms take advantage of this data to predict what users want and need from them in the moment. 7

4 Contextualization 3 To Maximize relevance, Think Contextualization To succeed in today s digital environment, firms must deliver smarter, more customer-centric interactions that feel like they were tailored for each user and his or her specific set of circumstances. That s why firms need to evolve their thinking to focus on contextualization, which Forrester defines as: A tailored, adaptive, and sometimes predictive digital customer experience. Contextualization combines and extends existing segmentation and personalization techniques with in-the-moment details. This enables more-dynamic, more-predictive experiences by processing explicit and implicit user information. Three Types Of Data Inputs Power Contextualization Three key types of data inputs, which occur at both the aggregate and the individual level, power contextualization (see Figure 1): Profile: who the customer is. Aggregate information about the audience segment members and their behaviors for example, how they interact with digital channels, key concerns, and subject-matter knowledge helps companies design the right overall experience. Personal information about the individuals, such as where they live and their specific interests, allows additional tailoring. History: what the customer did in the past. People leave many markers when they interact with a company, including a record of the web pages they visited and the purchases they made. A firm can combine aggregate data from all of its users with individual histories to anticipate customer questions and/or predict future actions. Situation: what s happening with the customer now. Factors such as time of day, geographic location, device, and browser indicate a user s current situation. Organizations can map this data to aggregate information about similar users to help predict what an individual may be trying to achieve at a given point in time.

5 Contextualization 4 Figure 1 Contextualization Leverages Multiple Aspects Of Customer Understanding 1-1 Contextualization blends profile, history, and situation Profile Persona History Buy this Situation Sale 1-2 Inputs that power contextualization Inputs Description Aggregate Individual Profile Who the customer is Personas Country, language, age History What the customer did in the Journey maps Product history, service history past Situation What s happening with the customer now Point in customer journey Location, device, time of day, entry point, clickstream, point in customer journey Source: Forrester Research, Inc.

6 Contextualization 5 Contextualized Relevance Is Powerful Contextual interactions manifest themselves in a number of ways, including: Location-targeted content. Location-targeted content can take a number of forms. For example, GateGuru, a mobile app that helps travelers find restaurants and services at airports, suggests a list of local airports to view based on user location. Home Depot adjusts some of its featured content based on seasonal changes, featuring patio furniture to people in the South in early spring while pitching kitchen remodeling products to people in the still-cold Northeast. 8 And to help bolster its mortgage loan business, Commonwealth Bank of Australia created an app that uses augmented reality to provide listings with prices, photos, and data on comparable homes. 9 Adjacent content. Users path through a site or application gives telltale signs of what they re interested in. Firms can combine this information with aggregate data to deliver related content specific to the browsing patterns of their users. For example, photo equipment retailer Jessops tracks movements and provides dynamic recommendations based on business rules that limit the price differential between the product initially viewed and the recommended product. Right-sized content and functionality. Users don t want every piece of content everywhere they want the right pieces of content and functionality sized for their needs. For example, Amazon. com s mobile site does not provide the same level of detail as its website, nor does it provide editorial reviews or author information for books. Instead, the mobile site focuses on price and limits product details to the essentials needed to make a decision. Adaptive designs. When a firm needs to support users across devices with highly varied display characteristics, it can use a liquid layout that will render cleanly but differently from one device to another. Sites such as Purina s catchow.com and The Boston Globe provide a single set of imagery, navigation, and content that adjusts to the size of the user s browser, regardless of device.

7 Contextualization 6 Recommendations Contextualize The Right Interactions For Your Customers Contextualization can be powerful if companies know how to apply it. To focus their attention on the moments where knowing a user s context can make or break an interaction, customer experience professionals should: Map and evaluate key customer journeys. Customer journey maps give a visual representation of the series of interactions a customer goes through in pursuit of a goal. These artifacts help customer experience teams uncover the critical moments of truth that can make or break an experience and give them context for what came before and what will come after each moment. It s at these critical points where companies can benefit from their understanding of general and specific user behaviors to provide the most relevant experience possible. Discover which interactions need a personal touch. Many interactions could benefit from bringing more personal information and context to bear. But firms must choose the right interactions that have the most impact. Since mobile devices offer more implicit details such as device, browser, and current location mobile interactions are great candidates for harnessing the full power of context. 10 For example, a customer who scans a QR code in a store is revealing a great deal of data about location, product consideration, and the fact that she needs additional information at the point of potential selection. Not get carried away. Companies need to deliver contextualized content based on understanding someone s context while avoiding the trap of making misguided assumptions about a customer s preferences. Consider what happened when Urban Outfitters tried to tailor its online experience for female shoppers by funneling them into the women s part of the site only, effectively shutting off access to the men s area. It didn t take into account the fact that many of its female customers regularly shop for men s items as well. 11

8 Contextualization 7 Supplemental MATERIAL Companies Interviewed For This Report 3M Adobe Autonomy (a division of HP) Baynote Bluefly Coveo Solutions Dell Ektron isite Monetate Oracle Razorfish RichRelevance SDL Siteworx UncommonGoods Endnotes 1 Today s empowered customers own multiple connected devices and have high expectations for getting information and services when and where they need them. As of Q3 2011, the average US consumer owned two connected devices. Given forecasts for continued smartphone and tablet adoption, that number will likely increase in the coming years. Source: North American Technographics Online Benchmark Survey, Q (US, Canada). 2 Customers can t always articulate exactly what they want. But rather than merely designing for stated needs, firms need to stay one step ahead of their customers by walking the line between researcher and customer and not only for a single project but also as a regular practice. See the January 18, 2011, Mastering Emotional Experience Design: Address Customers Real Goals report. 3 Sixty-two percent of consumers find personalized retail websites useful when shopping online (i.e., when an online store recommends products based on other items that the consumer may be browsing or buying [e.g., You might like... ]). Source: North American Technographics Retail Online Benchmark Recontact Survey, Q (US). 4 Successful mobile services must be immediate, simple, and contextual, which requires using more of the available contextual information to deliver more meaningful content and functionality to users. See the October 26, 2011, The Future Of Mobile Experiences Is Context report. 5 Source: Q Global Customer Experience Peer Research Panel Online Survey. 6 Fifty-four percent of 86 surveyed customer experience professionals said that lack of cooperation across organizations is a significant barrier to improving their organization s customer experience. Source: Q Global Customer Experience Peer Research Panel Online Survey.

9 Contextualization 8 7 Personalization technology has grown well beyond greeting people by first names into complex, real-time decision engines that make offers. But marketers still rely on stated demographic attributes to execute personalization because of the easy availability of this data in a customer profile. One retail bank executive told us that the customer s post-login experience on the bank website consists of addressing the customer by name and including a message or offer based on the customer s account profile a fairly basic execution of postlogin personalization. See the February 17, 2012, Use Customer Analytics To Get Personal report. 8 Source: Natalie Zmuda, Home Depot Localizes With Spring-Loaded Pitch, Advertising Age, April 4, 2011 ( 9 Commonwealth Bank of Australia uses augmented reality to allow users to simply hold up a mobile device with the application open and point it at a home to get values that appear on top of the image. To see the prices relative to other homes in a neighborhood, a consumer simply moves his or her mobile phone so that the home is visible on the phone s display. This action has fewer steps than typing in addresses or listing numbers and searching. See the December 22, 2011, Case Study: Home Buying With Mobile Augmented Reality report. 10 Consumers will adopt and use convenient services and products. On mobile phones, this means services that offer immediacy and simplicity through a highly contextual experience. Context the sum total of what is known about an individual at the moment of engagement is a moving target that will pull consumer perceptions of convenience with it. Successful mobile initiatives will focus not only on what is delivered but also on how it s delivered to each customer. See the October 26, 2011, The Future Of Mobile Experiences Is Context report. 11 Source: Natasha Singer, E-Tailer Customization: Convenient or Creepy? The New York Times, June 23, 2012 (

10 About Forrester Global marketing and strategy leaders turn to Forrester to help them make the tough decisions necessary to capitalize on shifts in marketing, technology, and consumer behavior. We ensure your success by providing: Data-driven insight to understand the impact of changing consumer behavior. Forward-looking research and analysis to guide your decisions. Objective advice on tools and technologies to connect you with customers. Best practices for marketing and cross-channel strategy. for more information To find out how Forrester Research can help you be successful every day, please contact the office nearest you, or visit us at For a complete list of worldwide locations, visit Client support For information on hard-copy or electronic reprints, please contact Client Support at , , or clientsupport@forrester.com. We offer quantity discounts and special pricing for academic and nonprofit institutions. Forrester Focuses On Customer Experience Professionals To improve the perceived quality of customer interactions with your company, you must leverage emerging digital technologies and lead enterprise-wide customer experience transformations. Forrester helps you create forward-thinking strategies to justify decisions and optimize your individual, team, and corporate performance. «Carl Erickson, client persona representing Customer Experience Professionals Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 17 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 29 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit

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