Forrester Research: Forrester Retail Insights Devices, Media, & Marketing First Look: Research & Event Highlights From Forrester

 05 Aug. 2004
The 2004-2009 Technology Forecasts Are Now Live!
Looking for the projected growth for broadband, mobile phones, DVRs, home networks, MP3 players, or any other consumer technology? See our annual 2004 Benchmark Data Overview. If you are not a client, you can purchase the report online.


Hot Off The Presses
Real Networks' Step Toward Compatible Music, by Josh Bernoff
AirPort Express: Networking From The Bottom Up, by Ted Schadler
Profiles: The Real Value Of Social Networks, by Charlene Li
How To Make Video On-Demand A Success, by Josh Bernoff
Benchmark 2004 Consumer Data Overview, by Ted Schadler
The Digital Sports Fan, by Chris Charron
Consumers Need Education About Privacy And Security, by Elana Anderson
What Marketing Wants From Technology, by Tom Pohlmann
Online Women And Their Media Habits, by Charlene Li
Who Uses Email And Chat For Customer Service?, by Bruce D. Temkin
Scenario Design: A Disciplined Approach To Customer Experience, by Bruce D. Temkin


Social Networks Lift Off
Social networks like Friendster will evolve into one of three types: communication, interest, or affinity networks. Owners of these networks will reap the value via three business models: enterprise licensing, consumer fees, and advertising.


What's Wrong With Cable VOD?
Cable operators have to attract some decent content by offering networks their own content zones and disabling ad-skipping in VOD programs.


Privacy Worries Cross Channels
Identity theft, spyware, credit card fraud, and overzealous advertising are taking a toll on consumers, and not just online. Three out of four consumers say they don't like giving their credit card number over the phone, and one-third say security concerns limit their use of mobile data services.


Bottom-Up Home Networking
A key to making home networking a mainstream phenomenon will be focused, device-app combinations that take advantage of existing components in the home and build the network incrementally -- like Apple's AirPort Express.


Gaming On The Go In Europe
One-third of mobile users in Europe play games on their phones. To make money, operators need to broaden the appeal of games beyond teenage males and make downloading easier.


Google Users Buy More
Google Users Buy More

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All Roads Lead To Customer Experience

Every where I go, people ask me questions about the future of consumer technology. Where is home networking headed? When will DVD burners achieve mainstream status? Will video on-demand (VOD) ever get enough content to appeal to a mass market? What kind of marketing works? What's the next killer app?

Each of these questions has its own specific context -- details about hardware, software, consumer behavior, or competitive dynamics that shed important light on the answer. But, inevitably, over and over again, I end up talking about one thing: customer experience.

Why is that? Well, new technologies -- and specifically digital networks -- change competitive strategy in dramatic ways. Traditional sources of competitive advantage like prime locations or exclusive products are less effective in a world where consumers have instant access to unlimited information and products. Fragmenting media and new ad-avoidance technologies like ad-skipping DVRs, pop-up blockers, and spam blockers, make it more difficult to reach consumers. And shorter product design cycles, powered by instant competitive information and low cost inputs, erode the value of first-mover advantage.

Forecast: US Household Broadband Adoption, 2004 To 2009 Technology doesn't just change rules of competition. We are also entering an era where technology plays a central role in customer experience in two basic ways. First, technology changes the way individuals receive an experience. Customers use PCs, phones, search engines, blogs, brand Web sites, VOD, and virtual applications of all sorts to consume information, shop, and entertain themselves. Broadband growth will only accelerate this trend (see Figure 1). Second, and equally important, technology is critical to support the delivery of the customer experience. In-store kiosks that provide sales support, voice-enabled self-service, marketing automation, email- and chat-based customer service, self-checkout, RFID, targeted advertising are all examples of technologies that consumers don't see but are critical inputs to the delivery of a great experience.

On September 19-21 in New York, our Consumer Forum will focus on this critical topic of customer experience. We'll be joined by industry luminaries who are leading the customer experience revolution:

  • JetBlue Chairman and CEO David Neeleman
  • Comcast Executive Vice President Steve Burke
  • Victoria's Secret Direct President & CEO Sharon Jester Turney
  • NewsCorp President and COO Peter Chernin
  • Aetna Chairman and CEO Dr. John Rowe
  • Starwood Hotels & Resorts President and COO Robert Cotter
  • Leo Burnett Chairman and CEO Linda Wolf
  • Best Buy Executive Vice President and CMO Mike Linton
  • Clear Channel Entertainment Chairman and CEO Brian Becker
  • Joe Trippi, Former Campaign Manager for Howard Dean


    • The two-day Event will feature five in-depth industry tracks (Retail and Consumer Goods, Healthcare, Auto, Media & Entertainment, and Travel) and four functional tracks (Design, Marketing, Market Research, and Technology) featuring executives from customer experience all-stars like Apple, ESPN, BMW, IDEO, Humana, Hilton, Priceline, TiVo, and Starbucks. You'll also have the chance to sign up for one-on-one sessions with more than 30 Forrester analysts. Register here or download the Forum PDF Brochure for more information. I hope you can make it. Customer experience is the next competitive battleground for your company.

    By next month, we'll have completed research on mobile messaging, how to forecast technology adoption, the advertising backlash, Linux and the digital home, and an update on the cable and satellite industry. Have a great August!




    Chris Charron
    Vice President
    Devices, Media, & Marketing Research

    P.S. If you'd like to suggest research for us to write or if there are data points you are looking to track down, feel free to drop me a line anytime at chrischarron@forrester.com.


    Research Referenced In This Issue

    A Manifesto For The Digital Home (16854)   
    Benchmark 2004 Data Overview (34278)   
    Consumers Need Education About Privacy And Security (34441)
    How To Make Video On-Demand A Success (33831)
    Online Women And Their Media Habits (34433)
    Profiles: The Real Value Of Social Networks (34432)   
    RealNetworks' Step Toward Compatible Music (35059)
    What Marketing Wants From Technology (34380)

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