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.
Videos are definitely one of the strongest forms of media in our society nowadays, and there are 48 hours of video uploaded on YouTube per minute: from consumers sharing their creative expressions to companies uploading how-to videos about their products and brands.
These videos help many people in their purchasing process. My colleague recently had to shop for a car, and it’s been interesting to hear about her car shopping journey and how online videos helped her make the ultimate decision. She was interested in one specific car — the 2012 Ford Focus with the Sync with MyFord Touch comes as standard package. The challenge she, and Ford for that matter, encountered was that the majority of car salespeople aren’t that tech-savvy. While they are familiar with the horsepower and the smart-key entry feature, they really struggle to explain how to turn the car into a Wi-Fi hub or how the Sync system can read incoming text messages.
Trying to learn about every available optional feature, my colleague had to turn to the Internet for help. She was able to find demo videos on the Ford Focus website, on YouTube, as well as on her cable TV widgets. These online videos, produced by Ford, auto review sites, as well as tech-savvy online peers, really helped her understand how the optional features of this new product will enhance her ultimate driving experience. Forrester’s Technographics® data shows that videos created by other people are the most watched online type of video:
Do you remember the last trip that you took? In this season, chances are that it was only last week or last month. As much as we love to travel, ideally for leisure, we are often overwhelmed by all the planning and coordination that are involved in the process — flights, car rentals, lodging, just to begin with. And if you are truly a planner, you want to add the places to dine, events to attend, and attractions to stop by to the itinerary.
Luckily, we are in the technology-centric era. We have websites, software, and devices that help us make life easier. Two companies that I recently came across, TripIt and Traxo, are designed to take care of travelers’ concerns. Much like TripIt, Traxo aims to simplifying travelers' lives by aggregating all of their travel information in one place, but it does so in a more elegant auto-pull manner versus an email push one. Traxo users just need to link their travel accounts to Traxo via a one-time, upfront process, and then Traxo automatically detects all of their trips, miles, and points and intelligently combines them into a single travel dashboard. It also allows members to share experiences with friends and possibly discover where they might have an overlapping trip with another.
PayPal recently shared its new peer-to-peer payment functionality that allows Android users to pay each other by tapping two Near Field Communication (NFC) enabled devices together. A user enters the transaction information and then taps her phone up against another phone also equipped with the same PayPal widget. After the phones buzz together, the recipient can decide to send or receive money by entering a PIN number.
Sounds very interesting, but are consumers interested in this functionality?
My colleague Charlie Golvin recently blogged about the Google Wallet initiative and its hurdles, one of them being lack of consumer interest. In fact, our Technographics® surveys show that interest in mobile payments is low and has not translated into activity in the US: Less than 6% of US online adults have ever used any type of mobile payment. Over the past three years, Forrester has seen interest in mobile payments continue to grow slowly.
Recently, my colleague Jackie Anderson published a report, Understanding Online Shopper Behaviors, US 2011, and she indicated that 2010 online retail spending in the US had reached $175.2 billion and will grow at double-digit rates at least for another few years.
But among all the items that can be purchased online, some are more popular than others. We have extracted the top three and bottom three items that consumers research online and purchase online based on data from our North American Technographics® Retail Online Survey, Q3 2010 (US). The data shows that while online consumers are generally comfortable with both researching and purchasing books, hotel reservations, and airline tickets online, they still prefer to purchase footwear, consumer electronics, and household products from traditional channels.
About one-third of US Internet users aren't shopping online yet. The majority of them do use the Internet to research products but don't feel comfortable making the purchases online. The biggest barrier people mention for not buying online is their need to see things in person.
With more and more devices having the possibility to connect to the Internet wireless, including handheld games, smartphones, game consoles, and tablets, we were interested in the uptake of wireless home networks in Europe. We asked Europeans the following question: "A home network allows you to share an Internet connection among multiple PCs or go online from multiple rooms of the house. Home networks also allow PCs to share a printer or connect with other devices. Do you have a home network?"
Three-quarters of online Europeans with a wireless home network share an Internet connection among multiple PCs, and 17% have already connected their PC to their TV set. Wireless networks are popular among families and multiple-PC households: 86% of wireless home network owners have more than one PC at home, and 40% have children living at home.
While it is no news that China leads the world’s online population, hitting 477 million users as of March 2011, it is interesting to look at the uptake of mobile Internet in urban China and see how that compares with other regions. Forrester’s Technographics® data shows that urban China is chasing Japan closely, with 43% of mobile phone users reporting they access the mobile Internet at least monthly. This number doubles that of the US (although the US number represents all Americans, rural and urban), which ranked as the third market in this study. While my gut feeling tells me that urban China’s mobile Internet adoption is comparable to that of the developed markets, this result is still striking because the smartphone market in China did not kick off officially until the end of 2009.
Just last month, China Mobile, the dominant mobile service provider with 60% national market share, announced its plan to lower rates for both calls and data plans by an average of at least 15%. And on Monday, China Daily reported that the number of China’s microbloggers was forecast to reach 100 million this year and will increase to 253 million by 2013.*
The booming popularity of microblogging in China, coupled with the fact that mobile Internet is becoming more affordable, means that urban Chinese will not forgo the convenience that mobile Internet provides. We know another wave of growth is approaching. It is just the matter of how high the wave can reach.
It’s been almost a year since I wrote Latin American Social Technographics® Revealed, which demonstrated this group of consumers’ voracious love of social media. In that report I highlighted how this high level of social engagement is not exclusive to just entertaining themselves or connecting with family and friends. In fact, it also extends to interacting with companies, with activities such as reading their blogs, following them on Twitter, or even watching a video they produced.
Given the ease with which companies can connect with online Latin Americans via social media, I’ve now published a new report entitled Take Advantage: Latin American Consumers Are Willing Co-Creators that examines whether companies can extend this interactive and social connection with consumers into the realm of co-creation in the social online world. My colleague Doug Williams, who focuses on co-creation processes for the consumer product strategy professional, defines “social co-creation” as the process of using social technologies as a vehicle to execute co-creation engagements.
To examine the viability of social co-creation in Latin America, we assessed the factors that we feel are crucial for a successful social co-creation engagement to occur. They are:
A high level of engagement with social media — especially at the Conversationalist and Critic levels.
A high degree of interaction with companies using social media tools.
An inherent willingness to co-create with companies.
Since the dawn of mobile commerce, retailers have dreamed of leveraging mobile phones to deliver an immersive multichannel experience for in-store shoppers. And finally the time seems right. With the uptake of smartphones, it has become much easier for both consumers and retailers to add mobile phones to the purchase process. Retailers have been busy developing mobile web versions of their online stores as well as dedicated mobile shopping applications for iPhone and Android phones.
But how many consumers are using their mobile phones for shopping-related activities? Our Technographics® research shows that about 6% of cell phone owners have used a shopping application. Dedicated shopping applications that allow consumers to research and purchase products directly from their phones, like the ones from Amazon.com or Domino's Pizza, drive uptake and usage.
It is tempting for retailers to use this technology solely for marketing purposes; however, organizations should focus on services that enhance the customer's multichannel experience. Balancing informative notifications with marketing offers will build trust with customers and lead to better acceptance, as well as higher uptake.
Gen Xers live in device-filled households. Whether it’s gaming systems for the kids, HDTVs and surround-sound systems for themselves, or digital cameras and frames to showcase their families, Gen X households are most likely to have these devices. Gen Xers have mastered the art of functionally integrating technology into their lifestyle and maximizing its benefits. The first generation to grow up with technology, they are comfortable with it and recognize its benefits, as do the tweens and teenagers clamoring for devices in the household.
Boomers remain middle of the road on technology adoption. Both Younger Boomers (ages 45 to 54) and Older Boomers (ages 55 to 65) fall behind the younger generations in terms of almost anything technology-related: from the number of devices they own (on average, seven for Boomers and nine for Gen Yers and Gen Xers) to the amount of time they spend on the Internet. The one area where Boomers are ahead of the technology curve is on the amount of money they spend, on everything from telecom monthly fees to online purchases.