Charles Dickens once wrote that: “Change begets change. Nothing propagates so fast.” In today’s evolving marketplace, where innovators are setting new customer expectations and companies are racing to meet rising demands, Dickens’ words ring true. The first step on a company’s path to thriving in this environment is understanding customers accurately – specifically, identifying how consumer expectations are changing and how fast.
Our Empowered Customer Segmentation measures critical shifts in customer behaviors and attitudes to gauge how consumers are both responding to innovation and demanding it. While the segments are globally consistent, we see insightful differences when applying the framework to unique markets. For example, Forrester’s Consumer Technographics® data shows how the segments differ between Spain and France:
These country differences reveal unique opportunities and challenges for companies aiming to win or retain customers in Europe. For example, forward-looking brands such as Banco Sabadell and BBVA can engage Progressive Pioneers in Spain to test innovative concepts before planning a broader rollout. On the other hand, brands with large proportions of French Settled Survivors or Reserved Resisters can retain customers by convincing them of the effectiveness of an experience.
What did we find this year? In 2016, the average US online adult receives an overall score of 40 and fits into our Social Savvies category. Social Savvies consider social tools a part of their everyday lives. On average, US online adults score highly for explore and discover— they use social tools to discover new products and also to explore them when they’re considering their purchases. Compared to last year, US consumers are slightly more social media savvy in 2016: The Social Technographics Score for the average US online adult has increased from 37 in 2015 to 40 in 2016.
Within 24 hours of its launch, Pokémon Go broke app download records and user numbers began multiplying by the minute. It wasn’t long before mysterious names like “Jigglypuff” and “Squirtle” peppered daily conversation, stampedes of mobile-obsessed gamers became commonplace, and augmented reality approached a tipping point.
From the mischief caused by Napster to the arrival of the iPhone and the (once improbable) reality of wearables and self-driving cars, our world has evolved – and so have your customers. Since the launch of Forrester’s Consumer Technographics® study in 1997, we have had a front-row seat for the dramatic changes in consumer behaviors and attitudes that have upended traditional business models and resulted in a chaotic marketplace where behemoths become bygones.
These changes are not as random as you might think: Forrester’s data analysis reveals five key shifts in consumer behaviors, attitudes, and expectations that fuel customer empowerment: willingness to experiment, device usage, digital/physical integration, information savviness, and self-efficacy. As consumers continue to evolve along these dimensions, business leaders must think differently about how to build and sustain customer relationships – more than simply analyzing historical behavior, demographics, and lifestyles, models of customer understanding must now account for the empowered customer’s expectations, emotional motivations, and contextual decisions.
Therefore, we are excited to launch Forrester’s Empowered Customer Segmentation, a model that measures how customers evolve along the five dimensions of change – and at what rate.
Emotions are at the basis of how customers perceive experiences – and why they choose to stay loyal to certain brands. But, not all emotions are equal: Different emotions lead to unique behavioral outcomes depending on context, emotional intensity, and even industry.
For example, in our latest study, my colleague Tom McCann and I measured the emotional impact of CX among banks and retailers in Australia. We discovered that feeling valued is one of the most powerful emotions driving loyalty toward a bank: Australian customers who feel that their bank puts them first are willing to pay a premium for the bank’s experience and are more forgiving when something goes wrong. However, among retail customers, valued is good – but happy is better. Australian retailers that leave customers in a cheery mood are more likely to retain their shoppers and turn their customers into advocates.
And what makes Australian shoppers happy? Forrester’s Consumer Technographics® survey data shows that details in the experience go a long way. For instance, customers are pleased with perceptibly low prices or special deals, stocked inventory, and pleasant customer service reps.
Today in the US, we are gearing up to celebrate Cinco de Mayo with lively music, ice-cold margaritas, colorful clothing — the works. But while many Americans use the day to revel in the trappings of Mexican culture, they often don’t realize that the holiday is actually met with little pomp and circumstance in Mexico itself.
Cinco de Mayo is one of many traditions that have been adopted — and appropriated — across country borders. But the holiday represents a larger concept that applies to people, too: As individuals relocate around the world, they spark cultural variations and build unique identities in their own right.
For example, Forrester’s Consumer Technographics® survey data shows that Mexican-born individuals who now live in the US develop distinct behaviors and attitudes: Not only do these longer-tenured US residents become more comfortable sharing sensitive data (like financial information) online, they also increasingly execute digital transactions:
It’s interesting to note that even though metropolitan Mexico and the US have similar mobile penetration rates, the device profile, technology attitudes, and digital behaviors that characterize Mexican consumers shift after they settle in the US.
The tug of war between reason and emotion has fueled contentious debate since the days of Socrates. But, Socrates and subsequent thinkers didn’t anticipate the influx of data in our contemporary world. Today, our modern media saturation, infinite social connection, and sensor-laden bodies and buildings mean that we create, consult, and critique data more than ever before. How does the vast amount of information – that is now literally at our fingertips – actually influence our daily decisions, and why?
Forrester’s Consumer Technographics® survey data proves that individuals are steeped in information and are keenly aware of it. In fact, the insight shows that US online adults increasingly lean on data to make daily choices across spheres of life:
You might be on the fence about your wearable device, but how do you feel about that new toy your child is now playing with?
American youth love gadgets – and now, that includes wearables. While some technologies have a bigger impact on parents (like those intended to keep track of youngsters’ whereabouts), other wearables are helping kids accomplish the same results that adults seek from their own wearable devices: a healthier lifestyle, instant education, and pure entertainment.
Among early technophiles, the products are catching on: Forrester’s Consumer Technographics® survey data shows that 14% of US online youth (ages 12 to 17) currently use a wearable device – the most popular being a Fitbit, followed by the Apple Watch (in the US, nearly half of young mobile users own an Apple iPhone). And, as with many toys or fashions among adolescents, wearable preferences differ significantly by gender:
There’s little doubt that we are living in a “selfie” culture. The once-mundane activities of exercising at the gym, driving to work, or simply making coffee are now social spectacles that win attention and, in some cases, profit. This impulse to share daily tasks begs us to rethink the meaning of “personal” – and now consumers have even begun to expose sensitive information like their financial behaviors.
Today's channels that bridge social connections are increasingly playing into consumers’ personal financial management tactics. Forrester’s Consumer Technographics® survey data shows that the number of US online adults logging into their financial accounts through social media has more than tripled in the past two years. In fact, more consumers are turning to both social channels and their cameras to forge closer interactions with financial services providers overall:
Valentine’s Day is just around the corner, but for marketing and insights professionals, the love between a customer and a brand should be present all year round. Today, building loyal customer relationships is increasingly challenging; it requires effort, patience, and empathy. “Love at first sight” may be a fairytale and few consumers commit to a brand until death do them part, but those companies that forge deeply emotional bonds and align with consumer values gain a competitive edge.
Therefore, professionals striving to foster customer love must understand consumers holistically by answering questions like “What are consumers naturally most passionate about?” “Where are consumers engaging when not with my brand?” and “How do current lifestyles create opportunities to connect with new customers?”
My latest report, which blends Forrester’s Consumer Technographics® survey, behavioral, qualitative, and social listening data, reveals that US consumers who prioritize their health have a distinct attitude that sparks broader lifestyle choices. “Health-conscious” is not just a descriptor; it is also a driver, as consumer commitment to health stems from a deep need for self-improvement.