The Data Digest: When Do Consumers Use Reviews and Ratings?

In July 2010, we posted a Data Digest that shows that almost half of US online males and 42% of online females read consumer ratings and reviews at least monthly. Well, what types of decisions are reviews helping these consumers to make?

Our Technographics® data shows that, as most would expect, more than half of the consumers who check ratings and reviews use them to help make more complex decisions such as a car, TV, or refrigerator. However, these are not the only types of decisions consumers are looking to reviews for — in fact, most check reviews to help with a variety of decisions — from entertainment decisions to making purchases for their jobs.

When we look at this data by generation, it is no surprise that Gen Yers are more likely to use online reviews across most of the decision types that we ask about compared to the overall US population. What is interesting is how dependent they are on online reviews when it comes to entertainment choices (44%) and purchasing ongoing services (41%). And although young consumers lead with using ratings and reviews, it is interesting to see that Seniors that are using ratings and reviews show similar behaviors compated to the total US population for most categories -- apart from the job related one.

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Global Shopper Insights — Thoughts About My Speech At ESOMAR Next Week

Next week, on February 28, I will speak at the  ESOMAR Insights Conference in Brussels on 'The Evolving Online Consumer' and I'm currently organizing my thoughts around this topic. Looking at the uptake of the Internet globally, the numbers are impressive: In the past five years, the global Internet population has grown from about 1 billion to 1.6 billion, and this growth isn't about to stop any time soon. The Internet population will increase in every country in the world over the next five years, but emerging markets will grow at a faster pace. In 2014, one-third of Internet users will come from Brazil, Russia, India, or China (the so-called BRIC countries).

Companies that want to capture this growing number of online users — and their growing funds spent online — will need to look beyond the markets of North America and Europe and approach their online strategies much more globally. But emerging markets don’t just offer a lot of opportunities; there are also many challenges to consider. On top of the needs and wants of the consumers in the different countries, their online behaviors, and the way they are being influenced (and are influencing others) in their purchase decisions, companies need to understand the social and economic business environments.

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The Data Digest: How Democratization Of Technology Empowers Employees

The democratization of technology has arrived. New IT servicing models like cloud combined with improved user experiences make it easier for non-technical employees to download and install technology services. This phenomenon will only accelerate as these workers bring high expectations into the workplace from their experience with cloud-based services like Facebook and universal providers that allow access from any device.

Forrester's Forrsights Workforce Employee Survey, Q3 2010 shows that the consumerization of the enterprise is not always driven by a lack of collaboration of the IT department, only 8% of business technology users feel that their IT department is either clueless or a hinder. But the majority take things into their own control because they feel that IT is either too busy or they are restricted by corporate policies:

Cloud-based personal and professional services will liberate the individual from device and place, and set the bar higher for workplace IT. Today already 47% of business technology users at North American and European companies report using one or more website(s) to do parts of their jobs that are not sanctioned by their IT department. We expect this number to grow to close to 60% in 2011 as frustrated workers work around IT to self-provision technology.

The Data Digest: How Do Consumers Respond To Bad Customer Service?

To assess the state of customer experience in 2011, Forrester asked more than 7,700 US consumers in our Technographics© survey about their interactions with a variety of companies. Based on their responses, we calculated Customer Experience Index (CxPi) scores for 154 brands in 13 industries (for a detailed explanation on how the index works, read this post).

The most important finding was that for almost two-thirds of the brands in our study, their customer experience ranges from just “OK” to “very poor”. In fact, 35% of scores fell into the undifferentiated “OK” range — our most heavily populated bracket and not a good place to be if you want your brand to stand out from competitors. Only 6% of firms ended up in the “excellent” category, down from 10% of the brands in last year’s report.

What this tells us is that mediocre-to-bad customer experience is the norm, and great customer experience is really hard to find. But why does this matter? Because the old adage “A customer who gets good service will tell one person, yet a customer who gets bad service will tell 10 people” is very true. Another Forrester study shows that about one in three financial customers with a bad experience tells her friends, about one in five recommends that her friends avoid that given company, and one in 10 reduces their value of her accounts.

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Introducing Forrester's Market Insights Professionals Community

It’s a great pleasure to announce that Forrester has launched an online community for Market Insights Professionals today. This community will focus on the key business challenges that Market Insights Professionals face every day. The community is a place for Market Insights Professionals to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will be part of the community, helping facilitate the discussions and sharing their views, but it will be mainly your peers who post discussion topics and share their success stories, lessons learned, and best practices.

The community is open to all Market Insights Professionals, whether you’re a Forrester client or not. Join Market Insights professionals from companies like for example Verizon, Research in Motion, The Hearst Corp., Premera Blue Cross, and Tivo and see what your peers have to say on current discussion topics like:

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