Companies like Coca-Cola, Nike, Unilever, Procter & Gamble (P&G), McDonald’s, and Johnson & Johnson have done a great job converting their brands into household names in Metro China, mainly by investing big in advertising and promotions. Having pockets deep enough to put these messages in front of the Chinese people is great, but if your firm is interested in entering this market of 1.37 billion people but doesn’t have access to the advertising financial resources of a Coca-Cola or P&G, what do you do?
Start thinking about word-of-mouth (WOM) campaigns. Due to historic events and their family teachings, Chinese people tend not to trust content coming from strange sources. However, Chinese people are known to be loyal to their friends and family. Forrester Technographics® data shows that “recommendations from friends and family” (44%) is the primary source of content people trust in Metro China. Interestingly, among the top five sources, we also see “email from people you know” (40%) and “social networking site profiles from people you know” (25%). These are both forms of word of mouth that have transitioned from the offline world to the online world.
Over the past year, my colleague Andrew McInnes and I have immersed ourselves in the world of enterprise feedback management (EFM), which we define as follows:
A system of software and processes that enables organizations to centrally collect, analyze, and report on feedback from key customer groups and tailor insights for various internal users.
During this time, it has been a great experience talking with vendors and clients about how this technology tool enables companies to bring all of the customer data and information collected across channels together into one platform. This ability is more important than ever given that we have entered the “age of the customer” — a period marked by the rise of the empowered customer, who is armed with more information than ever before and who is now using a rapidly evolving set of devices as a means of engaging not only with friends and family but also with companies anytime and anywhere. To be successful in this new world, companies must understand how consumers interact across these multiple touchpoints; failure to do so can lead to a fragmented view of the customer.
While it is clear that companies must embrace EFM, what is not as clear is how they should navigate the EFM vendor landscape. This is due to the dozens of small vendors, evolving market segments, and increasing M&A activity. To help professionals within the marketing and strategy organization, Andrew and I decided to conduct a Forrester Wave™ evaluation of the EFM vendors.
Earlier this week, I attended the Esomar Congress in Amsterdam. It was a home game for me, but even I was impressed by the location and its very Dutch look and feel; I felt proud of my country (of course it helps that I’m a big fan of stroopwafels, poffertjes, mature cheese, and bitterballen).
Not only were the surroundings impressive, but so were the presentations. Only a couple of the 20 or so that I saw were average. Most presentations gave a good overview of a new methodology, the client side of the story, and the challenges faced. My personal highlights included the Heineken/TNS presentation, in which they used neuroscience (or more precisely electroencephalography [EEG], biometrics, and eye-tracking) to measure how relevant viewers felt the ad was to them, how excited they were by it, and what areas of the screen they looked at while it played. You can find the summary by Robert Bain of Research Magazine here.
One of the responsibilities of my role includes analyzing data in complex ways to help our clients understand how their target groups behave and if there are more relevant ways to segment them based on the results. However, sometimes it just makes sense to take a step back and look at some basic demographic profiles as a starting point for further analysis. We developed a new deliverable that we call Demographic Overview, and we kicked off the series with digital dads, followed by digital moms, and these will soon be complemented with digital natives and digital Seniors.
So why is it important for companies to look at dads? Forrester’s Technographics® data shows that s lightly more than one-third of US online men ages 18 to 50 are parents of a child younger than 18 living with them. Companies need to understand how the digital profile of dads differs from non-dads, as their behaviors influence the tech behaviors of their kids.
Some of our findings include that in general, dads are more likely to use the Internet as a resource, while non-dads are more active in entertainment-focused activities such as social networking. But dads know how to use social media to get their point across: 72% of dads who regularly engage in social activities have posted a review of a product or service on Twitter in the past 12 months, as compared with only 57% of non-dads.
As the newest addition to the market insights team, I would like to introduce myself. My name is Gina Sverdlov, and I recently joined Forrester as a consumer insights analyst.
I am very excited to be here! My background is in economics, consulting, advertising, and using quantitative methods to provide actionable insights for my clients. In my role here at Forrester, I am going to focus on bringing our multiple data sources to life and turning numbers to actionable insights. I am enthusiastic about engaging with our clients to devise strategies that will be successful in today’s changing market dynamics.
For my first Forrester document, ”Connection: The Spark That Lights Up The European Digital Home,” I’ve been looking at device ownership in Europe and how recent trends compare with the IHS Global Insight Economic Outlook. What I found, for example, is that laptop penetration in Europe has increased from 20% in 2006 to 51% in 2010 amid hefty declines in European retail sales in 2008 and 2009 and personal disposable income in 2009 and 2010. As a follow-up, I’ve identified how the uptake of different emerging technologies like LCD, plasma, and 3D TV correlate with ownership of other devices and where there are opportunities for consumer electronics (CE) companies.