Constellation ShortList™ for Digital Performance Management

Digital Performance Management provides companies with the analytics to determine if their customer experience is optimized. The Constellation ShortList presents vendors in different categories of the market relevant to early adopters. In addition, products included in this document meet the threshold criteria for this category as determined by Constellation Research. This Constellation ShortList of vendors for a market category is compiled through conversations with early adopter clients, independent analysis, and briefings with vendors and partners.

Mastering digital performance management (DPM) is one of the leading challenges of the digital economy. Often referred to as application performance management (APM), it requires a joint effort between many functional departments, such as marketing, sales, customer service, e-commerce and IT. It is no longer just about IT looking at the performance of the technology stack or the management of the infrastructure or cloud that delivers customer experience.

Today, it’s about the collaboration between the lines of business and IT to measure and manage the end-to-end transaction delivery and translate it into actionable information that a brand can use to optimize customer experience, as well as the performance of the technologies used to deliver it. When DPM is optimized, companies can deliver an engaging digital experience, maximize revenue and improve brand loyalty. DPM vendors help both the business and engineering teams to not only define conversion and revenue goals but also make sure they are reached.

They make sure the application’s performance doesn’t become a roadblock to optimal customer experiences and reaching business metrics, including conversion rates, high availability and high user experience indexes. The goal is to monitor and measure to eliminate all revenue barriers with a strong focus on digital performance to ensure that the road to conversion is quick and easy; the customer experience is smooth; and customers remain loyal as a result.

Constellation considers the following criteria for these solutions:

  • Monitoring of each customer’s journey and business transactions, using intelligent analytics
  • Proactive application monitoring for quick problem resolution and maximum availability
  • Full insights into each customer’s journey to make better business decisions
  • Connect the dots between customer experience, application performance and business outcomes
  • Full technology stack monitoring with deep operational insights into the user’s application environment
  • Big data monitoring and data visualization
  • Mobile application monitoring
  • Cloud, server and mainframe monitoring
  • Load testing, virtualization and network monitoring
  • Customer behavior analytics.

Constellation evaluates over 25 solutions categorized in this market. This Constellation ShortList is determined by client inquiries, partner conversations, customer references, vendor selection projects, market share and internal research. These are the best-of-breed vendors that provide applications and services without bundling into another platform:

  • APM+
  • AppDynamics
  • Dynatrace
  • NeoSense
  • Oracle
  • SAP

For more information, please see the Constellation Research website.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research, Covering Customer Facing Applications


The Business Phone System Reinvented: The Next-Generation Cloud Communications and Collaboration Tool

The only way to build a truly innovative and collaborative culture is to give everyone a voice. In working with Dialed, I just completed some ROI research to understand how quickly, easy and affordable it is today to plug every employee into your business with a very innovative phone system. They way it works is that Dialpad turns all of your devices into your business phone, letting you make high-definition calls over Wi-Fi or your carrier network from anywhere. And businesses can let their  remote workers and global offices feel like a part of HQ with peer-to-peer HD video. This is especially great for field service, where video often can solve the problem like no other solution because you can SEE the issue. In these new systems, modern business communications integrate seamlessly with the productivity apps that employees use every day, making it easier than ever for them to collaborate with docs, emails, and calendar invites.

With this system, a brand can move a phone call from their WiFi to their carrier or from a desktop to a mobile device very easily, so in essence it is very easy to switch calls from device to device (phone, tablet, desktop…) It is also easy to transfer calls between colleagues or departments simply by looking up a name in the directory.

In the ROI research we interviewed two companies, Vivant Solar and a large communication services provider to see how they transformed their on-premises telephony systems to a purely cloud-based communications solution using Dialpad. The change, depending on the situation, resulted in six- to seven- figure cost savings. Both companies previously had legacy, on-premises PBX (Private Branch Exchange) technology, which is a private telephone network used within a company.

Dialpad provides a secure, enterprise communications cloud solution that incorporates traditional PBX features into a modern cloud-based, business communications VoIP system. The solution integrates with Google Apps for Work and with Office 365, with a user interface built to satisfy the needs of a modern workplace but without the typical costs of traditional enterprise, on-premise telephony systems.

The platform offers messaging, voice, video, conference calling in the cloud, attributed call transfer, auto-attendant, IVR, business SMS, MMS, and group messaging, call recording, live-call device switching, international outbound calling, local telephone numbers, multi-device functionality, toll-free numbers, visual voicemail, contact profiles, a company directory and fax support as well as core social profile applications, such as LinkedIn and Twitter for context about the caller. In case you are wondering, has anyone else discovered this service, Dialpad’s customers include 60 percent of the Fortune 500, high-growth enterprises, and forward thinking organizations and start-ups. The service is built on the WebRTC framework and runs on a redundant global network of nine data centers on four continents.


In the evaluation of various technology infrastructure systems, Mike Hincks, Director, IT Infrastructure at Vivint Solar, found that traditional IT voice systems come with hundreds of thousands of dollars of yearly infrastructure and hosting costs, all designed around employees using desk phones. The catalyst for change was to use a system not tied to a desk phone. One of the many interesting features was that Dialpad had no upfront capital expenditures or maintenance costs, which made it easier to get the technology approved by senior leaders at Vivint Solar.

In addition, Hincks looked at the money the sister company was spending on long-distance contracts. With Dialpad, there were no long-distance carrier costs. Hincks also looked at the cost of the team he would need to hire in order to maintain an on premise, hosted solution. The sister company had had a five-person team to manage voice applications. In addition, Hincks would have needed to schedule the IT team’s time to provision a new phone for each employee, with at least one hour of training per employee and some additional time from the IT team for troubleshooting. Dialpad required less than one full-time equivalent employee.

Another one of the biggest conveniences was that Dialpad integrated with Google for Work without any authentication process. “I found the Millennial workforce wants technology to work right away. They don’t want to set up an application, have to go through training or troubleshoot it. They want to click on an app and see it work immediately,” said Hincks.

The positive feedback about Dialed from Vivint Solar’s more than 4,000 mobile workers includes:

  • Improving the ease of signing up and using the communications technology
  • Increasing agility to work anytime and anywhere on any device with technology that doesn’t get in the way of productivity
  • Increasing productivity by being able to use a simple user interface
  • Boosting the ability to make bigger sales at a faster rate.

The ROI: Costs were reduced by several hundred thousand dollars, year over year. Savings came from:

  • No upfront capital expenditure and maintenance costs
  • No long-distance carrier costs
  • No need to hire a team to manage the cloud based communications
  • No need to train employees or engage the training department
  • High user adoption rate because of the simple user interface
  • Improved ability to attract talent by reducing recruiting costs and increasing retention of top talent


In the second company, the Director of Digital Workplace Technologies set up a proof of concept (POC) with Dialpad. He found that the best way to meet the needs of workers in the modern enterprise was using cloud technology. He wanted to re-conceptualize how communications services could be presented to users and to eliminate deterrents to productivity, especially for the geographically distributed workforce that used telephony systems. The Director of Digital Workplace Technologies said, “It was important to look at an IT project as an organizational change management project. We learned this lesson when we moved our users to Google Apps for Work. Technology changes that affect how productive workers are should be seen as organizational change projects. If you can’t find something you are looking for, it makes you less productive and frustrated. So we always overlay organization change management with our IT rollouts.”


The company needed to have a new communications system that could be completely up and running in minutes, compared to months or even years required for deploying global on-premises systems. Applications built in the cloud reduce costs because they are more flexible, extensible, and easier to work with while making collaboration intuitive. And this company found organizational change management was a key element for a successful implementation of this new communications system.


Using Dialpad, the company was able to retire several of its old telephony systems and realize millions of dollars in cost savings by reducing:

  • Maintenance agreements
  • Infrastructure
  • Service and support for the infrastructure
  • Phone lines from service providers.

Today, the company has deployed about 6,000 VoIP lines on Dialpad, which cover about 40 percent of its global employee base. It is looking to expand coverage every quarter. The company’s savings were several million dollars, year over year. Savings came from:

  • No upfront capital expenditure
  • No maintenance costs
  • Reduced reliance on IT helpdesk
  • No long-distance carrier costs.


After implementing Dialpad at just one large site, the global company reduced the site’s cost per minute of call time by double digits. In addition, the new system offered features that the old telephony systems could not. For instance, the PBX system had been tied to a particular device – the desk office phone. However, most people are now mobile, working from various devices and remote locations. Clearly, workers could not take their desk phones outside of their offices. When workers were away from their desks, they had to use cell phones or other alternatives – from multiple phone numbers – that created additional costs for the company.

Dialpad, however, allows employees use to Voice over Internet Protocol (VoIP) telephony. When the company moved to Dialpad, employees could use their computers to place calls, essentially replacing desk phones. They could also use the Dialpad application on their Android or iOS mobile devices. To the person receiving the call, it all comes from the same phone number, whether the VoIP call is made from a computer or from a mobile device.

Employees could also become more productive. With the ability to communicate from any place, using any device, while still being accessible from a single phone number, people could connect with each other more easily. As collaboration was made easier, the ability for teams to work more effectively with remote employees was also improved. In essence, the company had a new potential to increase the agility and adaptability of its workforce. Employees could be more productive, collaborative and feel more connected to each other using Dialpad.


The new technology enabled the company to modernize its workplace. The company realized that it needed to give employees – as well as new hires and interns – technology tools that are modern, intuitive and easy to use, unlike traditional enterprise tools. The company found employees could easily pick up how to use Dialpad because they were familiar with Google Apps for Work. While moving to Dialpad, the company was also able to shift a portion of its traditional help desk activity to a self-service and community-supported model. In the community, users can ask influencers an guides questions.


Hardware costs and desk phones traditionally have driven the voice communications industry. While struggling for decades to bring down hardware costs, providers attempted to shift to a software model that yielded some feature and cost improvements. However, these changes have not significantly reduced costs, improved scalability, boosted agility or simplified use. In contrast, a revolutionary, exponential change occurs in the telephony industry from using a 100 percent cloud based system designed with the user in mind that is extremely easy to deploy and use while slashing operating costs, eliminating call charges, and offering rapid, unlimited and affordable scalability.


At the end of the day, it’s really the employees that create the customer experience. And employees can’t do that unless they are given the right technology. It’s up to companies to evaluate the technology they are using and to provide them the latest technology that allows them to be their best. For information about this research study, you can find it here.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Creating Great Customer Experiences By Empowering Employees


The Need for Customer Experience is Based on Science Not Myth

The need for customer experience to improve is not a myth. In fact, here’s why. Noted psychology researcher and writer Mihaly Csíkszentmihályi observed in 1998 that people who perform seamless, sequence-based activities on a regular basis are happier than people who don’t[i]. He coined the term “flow” to describe this behavior. With the advent of CoIT, we’ve actually imposed a new set of demands on our customer’s brains. But instead of offering a series of smoothly sequential flows, websites and mobile applications are characterized by lag, downtime, and restarts. And at the same time customer’s flow-oriented brains simply aren’t wired to deal with poor digital experience interactions. Science has shown the business need for great customer experiences is a fact, not a myth.

And it can be tempting to label customers picky and impatient. But there’s a wealth of research on what happens to customers at a neurological level when they are forced to deal with slow or interrupted processes.[i] Their impatience is an indelible part of their human circuitry. Brands must recognize that customers’ hardwiring of the brain’s and their neurological desire for flow and easy of use as part of the cost of doing business. Companies must come to terms with the economic imperative of the customer experience or drive customers to their competitors because of their poor focus on customer experiences.

Fast websites and mobile experience create happier users. Those happier users are more likely to follow “calls to action” to register, download, subscribe, request information, or purchase. Unhappy users, which could include those who experience a mere two-second slowdown in how a web page loads, make almost two percent fewer queries, three point seven-five percent click less often, and report being significantly less satisfied with their overall experience[i]. Worse, they tell their friends about their negative experience. With the word-of-mouth social networks provide, brands need to heed the seriousness of differentiating their brand’s customer experience or be left in the dust.

Response Times have been consistent for 45 years. Based on neuroscience, the facts about human perception and response times have been consistent for more than forty-five years[i]. In fact, these numbers are hard-wired in human brains. And they are consistent regardless of the type of device, application, or connection a customer is using. In fact, that’s key to where customer expectations come from thus important to capitalize on. And what’s critical is determining where a brand’ web / mobile sites compare to customer expectations as well as benchmarking against CoIT applications or competitors or even non-competitors who have a great customer experience.

Response Time Has Not changed Much. In Robert B. Miller’s 1968 paper, “Response Time in Man-Computer Conversational Transactions[ii]“, found people have always been most comfortable, most efficient and most productive with response times of less than two seconds. Since 2006, what has changed slightly is the average online shopper expects pages to load in four seconds or less. Today, forty-nine percent expect page load times of two seconds or less, and eighteen percent expect pages to load instantly[iii]. And while optimizing every aspect of a brand’s digital assets to meet an “instant” expectation is a laudable goal, organizations simply may not have initially budgeted the resources to achieve these goals. Digital experience maturity, however, provides teams the ability to identify the interaction points in the digital customer journey most sensitive to improvement so they can maximize return on performance investment and include this in the budget and resource planning activities. Here’s the results of the Walmart study on page load times and conversion rates:

Screen Shot 2016-05-26 at 10.11.29 AM

Businesses can keep arguing that customer experience doesn’t matter, it’s a touchy-feely construct or get it directly affects the bottom-line and start by designing and measuring customer experience performance management. For more on this see my report, here.

@drnatalie petouhoff, VP and Principal Analyst

Covering Customer-Facing Applications


[ii]Robert B. Miller’s 1968 paper, “Response Time in Man-Computer Conversational Transactions,



[i]Dual-task interference in simple tasks: Data and theory. Pashler, Harold Psychological Bulletin, Vol. 116(2), Sep 1994, 220-244.

[i] The Concept of Flow: Handbook of Positive Psychology, Nakamura, J. and Csikszentmihayi, M. 2002.


Implementing Customer Experience, Cloud, IOT or Any Technology Project? Why Will it Fail?

Obviously no one plans on implementing a project that will fail. However, statistics show that over the past 20 years a very large percentage of technology projects do fail to result in the business outcomes that they were expected to meet. The real issue is that leading change (implementing new technology, whether it be CX, transitioning to the cloud, IoT, etc…) is different than the role of leading in general. But this point is often overlooked or some leaders don’t realize how big a difference there is in leading change compared to their every day leadership job.

The reasons projects often fail and the need for orchestrating customer experience projects using organizational change management range from:

  1. Projects ran over budget, were late, or never completed.
  2. Projects were attempted more than once because initial efforts failed.
  3. Only a small part of the organization adopted the new processes or systems.
  4. When the project went live, critical business systems halted, causing loss of revenue, increased costs, dissatisfied customers and frustrated employees.
  5. Parts of the business (or possibly the entire organization) eventually reverted to the old way of doing things.
  6. The return on investment (ROI) and/or stated benefits were never realized.
  7. The project cost the business more money than it saved or generated.


Our research shows that there are seven steps for leaders of change leaders can use to be more successful.

Practice #1 – Understand the Business Case for Change

Practice #2 – Start with the Executive Team: Move It from Involved to Engaged

Practice #3 – Engage All Leaders and Prepare Them for the Journey

Practice #4 – Build a Broad Understanding of the Change Process

Practice #5 – Evaluate and Tailor the Change Effort

Practice #6 – Develop Adaptive Leadership Skills in Change Leaders

Practice #7 – Create Change Leadership Plans

Don’t become one of the statistics of failed projects. There are best practices that work.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer-Facing Applications to Create Awesome Customer Experiences


New Report: Neuroscience Proves Customer Experience (CX) Isn’t Just Fluff

What’s the Importance of CX? There’s a lot of talk about creating a great customer experience. Seems the world has gone from being concerned with CRM to customer experience. And every vendor is talking about it- whether its a marketing vendor, customer service vendor, mobile vendor…. What I wondered was what scientific data is there to help prove that customer experience wasn’t just a fluffy initiative that was the next fad. From being a customer myself (we all are) I found that intuitively I know that the type of customer experience I have and others have does make a difference in our opinion about a brand. It changes whether we want to interact with them again, whether we purchase from them, whether we become a loyal customer bringing repeat business and whether we make positive remarks to our friends and family as well as what we post in social media. Social media carries more weight that most realize because while most people won’t post a response, they will read it. That’s the 1-9-90 rule, where ~1% of the people post, ~9% respond to the person who posted and ~90% just read the post, but don’t respond. 90% of my 58,000 followers on Twitter is 52,200 people.  Even if not all of them see a post, it’s still a lot of people.

The Science of Flow That Makes Up Customer Experience. Noted psychology researcher and writer Mihaly Csíkszentmihályi observed in 1998 that people who perform seamless, sequence-based activities regularly are happier than people who do not. He coined the term “flow” to describe this behavior. However, instead of offering smoothly sequential flows, websites and mobile applications often experience lag, downtime, and restarts. At the same time, customers’ flow-oriented brains simply are not wired to deal with poor digital interactions. As a result, when the customer experience is poor, they leave the site and go to a competitor’s that has optimized both their IT and CX metrics so the experience does flow well. Science has shown the business need for great customer experiences is a fact, not a myth.

The Neuroscience of Customer Experience. It can be tempting to label customers picky and impatient, but there’s a wealth of research on what happens to customers on a neurological level when they are forced to deal with slow or interrupted processes. Impatience is an indelible part of human circuitry. Brands must recognize that the hardwiring of customers’ brains and their neurological desire for flow and ease of use are part of their expectations. Companies must come to terms with the economic imperative of the customer experience or risk losing customers to the competition.

Based on neuroscience, the facts about human perception and response times have been consistent for more than 45 years. They are hard-wired into the brain and are consistent regardless of the type of device, application, or connection a customer is using. That’s key to understanding where customer expectations come from. It is critical to determine how a brand’s web and mobile sites compare to customer expectations as well as to benchmark against CoIT applications, competitors or even non-competitors who have a great customer experience.

Customer Expectations Mean Business. In Robert B. Miller’s 1968 paper, “Response Time in Man-Computer Conversational Transactions,” he found that people have always been most comfortable, efficient and productive with response times of less than two seconds. Since 2006, what has changed slightly is that the average online shopper expects pages to load in four seconds or less. Today, 49 percent expect page load times of two seconds or less and 18 percent expect pages to load instantly. While optimizing every aspect of a brand’s digital assets to meet an “instant” expectation is a laudable goal, organizations simply may not have budgeted the resources to achieve this goal. Digital experience maturity, however, provides teams the ability to identify the interaction points in the digital customer journey most sensitive to improvement. As a result, they can maximize return on performance investment and include this in the budget and resource planning.

Fast websites create satisfied users who are more likely to follow “calls to action” to register, download, subscribe, request information, or purchase. On the other end, unsatisfied users, which could include those who experience a mere two-second slowdown in web page load time, make almost two percent fewer queries, nearly four percent fewer clicks, and report being significantly less satisfied with their overall experience. Worse, they tell friends about their negative experience. With the word-of- mouth that social media networks provide, brands need to heed the seriousness of positively differentiating the brand’s customer experience.

Want more information on this new report? You can find it here.

The neuroscience of customer experience @drnatalie petouhoff

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer-facing applications that make great customer experiences


Local Motor’s Self-Driving Vehicle Taps the Power of IBM Watson

There’s been a lot of talk around self-driving cars and Local Motors, a leading vehicle technology integrator and creator of the world’s first 3D-printed cars, introduced the first self-driving vehicle to integrate the advanced cognitive computing capabilities of IBM Watson. Local Motors is a technology company that designs, builds and sells vehicles. The Local Motors platform is a combination of a global co-creation with local micro-manufacturing to bring hardware innovations quickly to market. Local Motors in National Harbor, Maryland is a public place where co-creation is the focus for advancement of vehicle technologies.

What can you see if you visit the Maryland facility? On display are 3D-printed cars and a large-scale 3D printer. There visitors can have an interactive co-creative experience that showcases what the future of 3D printing, sustainability, autonomous technology will be. Visitors can get involved with Local Motors engineers and the company’s co-creation community.

The automobile has a name and it’s called “Olli.” At its debut it was carrying the CEO of Local Motors and co-founder John B. Rogers, Jr. and vehicle designer Edgar Sarmiento. The vehicle took them from the Local Motors co-creation community into the new facility. While there are already self-driving action in Washington, DC, soon there will be vehicles on the road in Miami-Dade County and Las Vegas. The cars can carry up to 12 people. More details can be seen in this video:

Source: IBM Watson

What’s the Big Innovation? The electric vehicle is equipped with some of the world’s most advanced vehicle technology, including IBM Watson Internet of Things (IoT) for Automotive. Passengers can interact conversationally with Olli and ask about:

  • Destinations, for example, “Olli, can you take me downtown?”
  • Specific vehicle functions  like: “How does this feature work?”
  • Time related questions like, “Are we there yet?”

In addition, Olli can make recommendations on local restaurants or historical sites. Olli is essentially designed to deliver interesting, entertaining, intuitive and interactive experiences for riders. How is IBM Watson is being used to improve the passenger experience? It is enabling the natural interaction with the vehicle via the cloud-based cognitive computing capability of IBM Watson IoT to analyze and learn from high volumes of transportation data produced by more than 30 sensors embedded throughout the vehicle. As the vehicle gets used, Local Motors plans to install more sensors and adjust them continuously as passenger needs and local preferences are identified.

The platform leverages four Watson developer APIs:

  • Speech to Text
  • Natural Language Classifier
  • Entity Extraction and
  • Text to Speech.

Harriet Green, General Manager, IBM Watson Internet of Things, Commerce & Education commented that, “Cognitive computing provides incredible opportunities to create unparalleled, customized experiences for customers, taking advantage of the massive amounts of streaming data from all devices connected to the Internet of Things, including an automobile’s myriad sensors and systems. IBM is excited to work with Local Motors to infuse IBM Watson IoT cognitive computing capabilities into Olli, exploring the art of what’s possible in a world of self-driving vehicles and providing a unique, personalized experience for every passenger while helping to revolutionize the future of transportation for years to come.”

Having worked in the automotive industry in Detroit, it’s exciting to see new develops like this. It’s also exciting to see the application of cognitive computing in a real world situation. Using it for something like empowering self-driving vehicle is probably the best way to advance not only the self-driving cars but also the ability to deploy cognitive computing in a real world application. This looks to be the start of something very interesting that other brands in this space should be taking note of. Competition in the automotive is rapidly changing, from the provision of Cars-As-A-Service, with GM investing $500M in Lyft to cars that drive themselves. The Future is here.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering customer-facing applications that create amazing customer experiences.


From the Field: Lithium Technologies and Microsoft Dynamics Partner To Create A Total Community Digital Strategy

Is social CRM dead? Depends on what you consider social CRM to be. With the partnering of Lithium Technologies and Microsoft Dynamics, we will see yet a new and more extensive version of intelligent customer engagements. The partnership includes Microsoft Dynamics and Lithium’s community data, social customer intelligence and analytics.

The expectation of the value of an online community is often associated with cost savings – just as call deflections can reduce the costs of customer service. While many cost savings are possible, there also are six major areas that my research has found through which an online community can contribute to a company’s revenue, profits and margins. The six areas are: increased revenue through new products and services; enhanced communications, marketing and public relations; improved employee engagement; better business cost efficiencies; expanded business value in customer service; and heightened senior leadership and board member business guidance. With this paper, leaders can create a basic blueprint to embark on a discussion about whether to create an online community, the value the community can provide, and how best to lead this key strategic initiative in their organization.

Back to the conference, @jasonlsilva gave a wonderful talk on perception, change and our ability to redefine the meaning of a billionaire to one that helps a billion people. That I think is quite different than most of the start-up wanna-be billionaire’s who are in tech to become the next billionaire. You can see more of the videos from Jason’s show BrainGames on youtube called Shots of Awe. He talked about how the smart phone is the most powerful tool to get people out of poverty. And that it’s important to step back and understand where we are in time with respect to technology. 100 years ago we were electrifying the world – today we are cognifying the world via technology. In cognitive psychology, after a signal reaches the brain, the instant when we are aware of a change in our environment, but it is before the brain is able to identify and codify what the change is. The key is to not only not be afraid of change, but to embrace it with a positive mindset. The book Mindset was recommended by Lithium’s CEO Rob Tarkoff @rtarkoff by Carol Dweck. And lucky me – got a selfie with @jasonlsilva – @jasonlsilva and @drnatalie

Speaking of great customer service, I got this note from Claudia Kardzair & Nena Gadingan who are Guest Care Managers at the San Francisco Marriott Marquis:

Screen Shot 2016-06-09 at 11.11.04 AM

The days of loyalty driven by customer care are here. Some analysts think companies will be competing on customer experience in the future. I believe they always have been. It may not have been as measured as it is now, it may not have been as obvious as now — but customers have been making mental note of their experiences. If it is bad, they will take themselves out of your marketing funnel, regardless of the number of emails, tweets or other communications a brand sends. It is the era of customer experience being the number one metric all CEOs and CFOs need to pay attention to.

And at the conference we got to hear about the wonderful total community results from customers like @USAA and Renee Horne and Mark Nichols from Skype.

Skype Community Results Renee Horne USAA Results






The keynote on the future of CRM and intelligent customer engagement by Jujhar Singh, General Manager of Microsoft Dynamics CRM, provided a deeper understanding of what the partnership means to customers.  He shared key insights into how businesses can maximize customer data to create more personalized brand experiences. The combination of online communities and the power of CRM is an amazing capability. Rob Tarkoff, president and CEO of Lithium Technologies, explained that with the partnership Lithium will be able to expand what they now offer, the power of Total Community across Microsoft’s intelligence and data infrastructures.

Microsoft Dynamics Integration with Lithium Technologies

By working closely with Microsoft, they together bring a much broader solution to their our customers. The strategic alliance will allow the integration of Lithium social interactions and community data into Microsoft Dynamics CRM. Microsoft Dynamics customers now have a community platform that offers businesses greater insights from the wealth of customer signals embedded in communities.

What does the future of CRM hold? Perhaps it will finally go from it’s former capabilities – a customer contact management system to actually become the more aspirational customer RELATIONSHIP engagement system that enrolls a brand’s customers and never looses sight of what is important to THEM and is always there when their customers need them with the things that are important to them. When companies do this they become truly customer-centric.

@drnatalie petouhoff, VP and Principal Analyst, Constellation Research

Covering customer-facing applications



Dr. Natalie’s Research Agenda and Published Research

If you are wondering what I have been up to lately, I thought I would put all the research I have published  into one place. Here’s a list of Dr. Natalie’s completed and published research and soon to be published content! It ranges from IOT, Analytics, Big Data, Customer Experience, Leadership, Organizational Change Management, Storytelling, Collaboration, Digital Transformation, Social Selling, Social Media, the Cloud, Marketing, Sales, SaaS, IaaS, PaaS, DaaS, AI, Machine Learning, Innovation, Social Networks, Social Media Monitoring, Mobile, Customer Service and Customer Success Management….and a few things in-between…

IOT (The Internet of Things), Innovation, AI, Machine Learning, Analytics and the Cloud

• The Algorithm of You: How IoT Transforms and Differentiates Customer Experience: Using the Internet of Things to Boost Revenue and Deliver a Brand’s Personalized Promise

• Digital Disruption: The Blind Spot That Could Sink Your IoT and CX Initiatives

• The Internet of Things Improves Customer Experience in Retail Supply Chain

• The As-a-Service Economy: CX and IOT Mean You Have to Deliver Great Experiences- Upcoming

• Customer Experience IOT in the Automotive Industry-Upcoming


Digital Transformation: Customer Engagement, CRM, Innovation, Customer Experience, Customer Service, The Cloud and Analytics

• ROI Of Customer Service & Customer Experience

• How to Measure Customer Experience: Performance Management Maturity-Upcoming

• Case Study: Elaine Turner® Brand and Oracle Commerce, Marketing and Customer Service-Upcoming

• The Need for Inspiring Leaders to Orchestrate Customer Experience Initiatives-Upcoming

• Experience Management: How to Deliver Integrated Customer Experiences

• How Rackspace Creates the Next-Generation Customer Experience

• The ROI Of Agile Customer Care: Reduce Training and Easy To Add Channels

• Digital Imperatives for Omni-Channel Retail Customer Experiences

• Nine Pillar Of Successful Self-Service for Digital Customer Engagement

• 6 Pillars of e-commerce Customer Engagement

• 9 C’s of Customer Engagement – Delivery and Communication Styles: Channels, Content and Cadence

• 9 C’s of Customer Engagement – People Centric Values: External & Internal Culture, Community, Credibility

• 9 C’s of Customer Engagement – Right Time Drivers: Context, Catalysts, Currency

• How Delta Uses Microsoft Dynamics and Avanade to Create Next-Generation Customer Experiences

• How Microsoft Dynamics CRM Improves Productivity at Trek Bicycle

• Delta Uses Microsoft to Transform Flight Operations and the Customer Experience

• New Belgium Brewing Creates Great Customer Experiences Using Microsoft Dynamics

• Beyond Journey Maps, Delivering Mass Personalization at Scale

• The State of Customer Service and Support Evolves 


Social Media, Customer Service, CRM, Analytics, Innovation and the Cloud

• How General Motors Using Social Media To Listen To Customers and Sell Cars and Deliver Service

• The ROI of Online Communities: Online Communities Provide Value Beyond Call Deflection

• Why Top Marketers Create Branded Social Networks for Customer Engagement

• The State of Customer Service and Support Evolves 

• ROI of Social Customer Service- Upcoming

• The Customer Service Playbook for Integration of Traditional, Digital, Social and Mobile Customer Service Strategies and Technologies-Upcoming

• Mobile Customer Service-Upcoming


Digital Marketing, Analytics, Innovation and the Cloud

• Should the Chief Marketing Officer Oversee the Whole Customer Experience?

• Data-Driven Marketing Campaign Optimization

• VentureBeat: Should the CMO Run the Whole Customer Experience?

• Executive Brief: Can Brands Keep Their Promise?

• Oracle Moves Its Focus from the CIO to the CMO

• How to Staff the Team for Effective Content Marketing

• The State of Marketing 

• Marketing Funnels Are Dead, What’s Next?


Digital and Social Sales; Commerce, Innovation, Analytics and the Cloud

• How Sales Leaders and Sales Reps Can Create a Social Selling Organization: Convert Average Sales Teams into Top Performers Using Social Networks

• Five Approaches to Drive Customer Loyalty in a Digital World

• The Modern Sales Experience

• Continuity of Customer Experiences Drives the Future of Commerce


Customer Success Management, Analytics, Innovation and the Cloud

• The State of Customer Success Management

• Gainsight: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

• ServiceSource: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

• Bluenose: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

• Totango: Customer Success Management for a Post-Sale, On-Demand, Attention Economy


If you are interested in learning about any of these reports or research, a speech or webinar on any of these or related topics, please reach out to me here!

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Innovative, Customer-Facing Applications that Create Great Customer Experiences








I’m Judging the SuperNova Awards: Make Sure to Submit Your Case Study

I’m judging the 2016 Constellation SuperNova Awards! Every year the Constellation SuperNova Awards recognize individuals for their leadership in digital business. Nominate yourself or someone you know before August 8, 2016.

About the SuperNova Awards
The SuperNova Awards honor leaders that demonstrate excellence in the application and adoption of new and emerging technologies. In its sixth year, the Constellation SuperNova Awards will recognize individuals who demonstrate leadership in nine categories:
•  Internet of Things – A network of smart objects enables smart services. (sensors, smart ‘things’, device to purchase, artificial intelligence)
•  Data to Decisions – Using data to make informed business decisions. (big data, predictive analytics)
•  Digital Marketing Transformation – Personalized, data-driven digital marketing.
•  Future of Work: Social Business – The technologies enabling teams to work together efficiently. (enterprise social networks, collaboration, digital assistants)
•  Future of Work: Human Capital Management – Enabling your organization to utilize your workforce as an asset.  (talent management, benefits, HR core)
•  Matrix Commerce – Commerce responds to changing realities from the supply chain to the storefront. (digital retail, supply chain, payments, ‘ubiquitous-channel’ retail)
•  Next Generation Customer Experience – Customers in the digital age demand seamless service throughout all lifecycle stages and across all channels.  (crm, customer experience)
•  Safety and Privacy – Strategies to secure sensitive data (blockchain, digital identity, authentication)
•  Technology Optimization & Innovation – Innovative methods to balance innovation and IT budgets. (innovation in the cloud, ENSW cost savings, cloud ERP, efficient app production)
The SuperNova Awards are seeking leaders and teams who have innovatively applied disruptive technolgies to their business models as a means of adapting to the rapidly-changing digital business environment. If you have what it takes to compete in the SuperNova Awards submit your application today:
If you are doing something really interesting, make sure to send in your case study! It’s your time to be recognized for your hard work!
@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research
Covering Customer Facing Applications that Drive Awesome Customer Experience

From the Field: Capgemini Analyst Conference #capgemniAD16

Old Dogs Can Learn New Tricks: It’s never too late to transform yourself. Having been a system’s integrator many years ago, I found the transformations happening at Capgemni very inspiring. There was a period where many system’s integrators avoided the conversation about going to cloud and for good reason. Their business and revenue model was not shaped for the cloud. They were based for on-premise installations. Enter the cloud and everything changed. With the integration of IGATE and Capgemini, outstanding changes are definitely clear. Replacing McKinsey and Accenture in many digital transformation projects, they are looking to lead the digital transformation. Net new customers are over 200 and a 35% increase in the client base in North America. Though under NDA, the brands were very impressive.

What did Capgemini learn from IGATE? And I have to say I really appreciated all of the executives transparency and honesty in their process of becoming a digital transformation system’s integrator – including but not limited to Fernando Alvarez, Paul Hermelin, Srikanth Iyengar, Bill Ruh, Lanny Cohen, Tim Bridges, John Mullen, Dee Burger, Todd Rovak, Jean Pierre Petit, Frank Greverie, Doug Mills, Mathieu Colas and Andre Cichowlas. IGATE was known for the great client relationship capabilities. A client’s CIO had said, “I’ve never had a company pay more attention to my culture and my people and company that what we have experienced with IGATE.” IGATE is a new breed of company infusing it’s culture into Capgemini, with the key themes of speed, agility and imagination. And Capgemini vowed to learn from IGATE.

Capgemni’s Digital Business Model: It includes not only the “what” but the “how” of customer experience, including digital customer experience, digital organizational and people and digital operations. In terms of the “how”–  what digital seems to mean are areas like social & mobile, data, IoT, cyber security and cloud. There was a large focus on cyber security, as more and more customers are putting their data in the cloud. There is a focus on digital innovation as well as a digital ecosystem of partners and start-ups in the mix. There key digital capabilities include: innovation, digital customer experience, digital manufacturing and insights and data.

Fahrenheit212 Innovation Strategy and Design Company: They believe that innovation can be inherently reliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients’ businesses. They believe most great innovations don’t come from consultants—they come from entrepreneurs and entrepreneurial organizations. Entrepreneurs are driven by a powerful force that counter-balances their challenger mentality. Namely, they have skin in the game. They don’t obsess over the process of innovation; they care only about the outcomes. And it’s why they make a good addition to Capgemini.

Since their inception, Fahrenheit 212 has harnessed this entrepreneurial approach through a performance-based compensation model that aligns our risk and reward with that of our clients. They offer their clients the option of putting a significant portion of our potential compensation at risk, contingent on their solutions hitting pre-determined success milestones. This means their ideas can’t just be interesting; they actually have to deliver actual business results.

Digital Manufacturing Is Hot: The digital manufacturing value proposition includes a comprehensive enterprise offer of smart product and plants, Capgemni IP and an extended ecosystem of subject matter experts and highly skilled resources. With a 180,000 Capgemini employees, they are looking not only to re-skill some folks as well as hiring new people.

Cloud Is the New Normal: Their cloud value proposition is that cloud first is the new normal. Of their North American clients, 80% want their applications in the cloud in some way- some pure cloud, others a hybrid model.

Competitive Roadmap For Capgemini: Capgemini’s competitive roadmap is one of quality of service  where they want to work with some of the most demanding clients on the most challenging projects with the most talented people in the world. Capgemini’s entry into the world of IoT, though under NDA, was very impressive and spot on. I look forward to see what comes of their partnerships and their vision.

@drnatalie petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer Facing Applications, including the customer experience of IOT