Hola! Or as they say in Brazil — Olá! I am a new face on this blog, so let me introduce myself. My name is Roxana Strohmenger and I am on the Technographics Operations and Analytics Team, where I work with our clients, analysts, and vendors to make sure that our surveys — both syndicated and custom — utilize sound research methodologies and analytic tools. One of my newer responsibilities, though, is driving the content for our Latin American Technographics® research to help companies understand how technology and the Internet are changing the way Latin Americans go about their daily lives.
I am currently preparing for an exciting opportunity to give a presentation at ESOMAR’s Latin American 2010 conference next week, and I wanted to share with you some interesting findings regarding how Latin Americans want to connect with “others” on the Internet. I emphasize “others” because it is not friends and family that I am referring to but, in fact, companies. Yes, Latin Americans are extremely community-oriented and want to feel connected to their friends and families. And the Internet has become an exciting vehicle for them to stay connected. But, does this desire to be connected also extend to companies?
Surprisingly, the answer is yes. In fact our research shows that more than 75% of metropolitan online Brazilians and Mexicans expect companies to have a presence using social media tools like blogs, discussion forums, and social networking sites. To put this in perspective, we see that only 47% of US online adults have the same attitude. We’ve also found that among online Latin Americans who have this expectation:
Early in 2010, my colleague Bill Doyle published a report called 'Customer Advocacy 2010: How Customers Rate US Banks, Investment Firms, And Insurers'. This report includes trended Technographics® data that shows that US consumer trust in financial institutions is returning. One year after the financial crisis that brought the US economy to its knees, customers are more likely to say that their financial institutions do what's best for them, but not all of the financial sectors benefit equally.
Insurers score better than ever compared with other retail financial services firms. Smaller banks also do well, while some of the biggest banks again land at the very bottom of our rankings. And after years of rating higher than banks, investment firms as a group now score worst.
Forrester clients can access the report with the scores for 46 US financial companies here.
A recent report from my colleague Alexander Hesse on 'The State Of Mobile Banking In Europe: 2010' shows that about one in eight European Net users with a mobile phone use mobile banking today — with SMS account alerts being the most common type. Many European banks like Rabobank and Lloyds TSB let customers set up time- and event-triggered text alerts, but currently, only 10% of European online mobile phone users actually use them.
We expect that 39% of European mobile phone users will use the mobile Internet by 2014. Why? Smartphones becoming the norm, more widely available, all-you-can-eat data plans, and more compelling content will drive uptake. Today's iPhone and BlackBerry users are, for example, already nearly three times as likely to use mobile banking as other mobile phone users.
In general, online African Americans are less well-off and spend less while shopping online compared with other online consumers. However, several factors point to the opportunity of further engaging with this group. Our Technographics® research shows that African American online users are much less annoyed by the amount of advertising today compared with online users overall: 60% of the US online population agree that they are annoyed by advertising, versus only 39% of online African Americans. Furthermore, ads inform the purchase decisions that online African Americans make: Nearly twice as many African American online users (27%) as overall online users (15%) agree that ads help them decide what to buy.
Furthermore, 24% of online African Americans recognize that owning the best brand is important to them, compared with only 16% of all US online consumers. Therefore, brand reputation is a much bigger influencer in their purchase decision process.
There’s a lot of debate around which media channels consumers access and how much time they spend on each. Our Technographics® data reveals that young Europeans spend a total of about 40 hours per week on any type of media, and this number then declines with age. The biggest drivers of young consumers’ high levels of media engagement are Internet use and time spent playing games, both of which drop dramatically among older age groups:
However, these numbers are for the total European population and include countries like Spain and Italy, where Internet uptake is lower both in general and especially among older consumers. When we look at these numbers for the UK Internet population, for example, all age groups spend around 41 hours per week on different media activities. The total time spent doesn’t change much by age group, but the type of media activity does: Older consumers spend more time watching TV and reading newspapers than younger consumers, while the time they spend on the Internet decreases.
A recent published report called 'Mobile Coupons: Gold Rush Or Fool's Gold?' shows that both consumers and advertisers are curious about mobile coupons but that few consumers have trialed mobile coupons. Our Technographics data uncovers that only 3% have requested a coupon via cell phone, and only another 3% have actually used a mobile coupon. But mobile coupons help marketers reach new audiences, particularly those consumers ages 18 to 24 — 79% of whom typically spend less than 1 hour per week reading a newspaper. Younger consumers are most interested in mobile offers, especially for restaurants, drinks, and music/DVDs.
Advertisers will need to realize that some consumers — especially younger, new customers — may be mobile-only and that this mobile-only audience requires different promotions to encourage the behavior that merchants seek. Start with campaigns that are close to their heart (or mouth to be more precise) to win them over.
Online banking has shown a fair amount of growth over the years in Europe. Forrester's Technographics® data shows that more than 50% of European Net users bank online today, up from about 35% in 2002. Northern Europe leads in the adoption of online banking, with 90% of Dutch and 87% of Swedish online consumers having used it in the past three months.
Interestingly, the countries that close the list with regards to online banking are actually leading the uptake of mobile banking in Europe. In Spain and Italy, about one in five mobile phone owners uses some kind of mobile banking — for example, to check their account balance, transfer money, or pay bills using text messaging (SMS) or the mobile Internet.
About 40% of US online adults now have a home theater audio system connected to their TVs, providing a better sound experience than the typical speakers connected to a PC or those built into a boom box. Forrester’s Consumer Technographics® data shows that US consumers who have home theater systems take home entertainment seriously; they have a variety of entertainment devices, including set-top boxes, connected to their TVs.
I've been analyzing consumer technology uptake for years — helping retailers, for example, understand the barriers to and drivers of online buying behavior. Forrester's Technographics® research shows that preferred online payment methods differ greatly between countries, and companies need to understand this complexity of payment options and how that affects consumer behavior.
Unlike in North America, where the top payment methods tend to be similar in the countries surveyed (the US and Canada), the payment preferences of online buyers in Europe differ both between countries and from their North American counterparts. For example, the popularity of prepaid cards is unique to Italy: Roughly a third of Italian online users have taken advantage of prepaid cards. Global organizations need this detailed understanding of consumer payment preferences across markets in order to be successful internationally.
This week my colleague James McQuivey published a report called 'Casual Video Piracy Kept At Bay For Now'. Forrester's Technographics research shows that online video piracy is a minority behavior. Just 7% of US online adults regularly engage in peer-to-peer (P2P) file sharing, and less than half of them use it for video files. In fact, more people have given up on P2P file sharing than currently still do it.
Another data point in this report revealed that everyone prefers a legal alternative. Our respondents were eager to reassure us that they prefer to use legal sites for watching videos, if these would give them a convenient way to serve their video needs.