Forrester's Social Technographics® looks at how consumers approach social technologies — not just the adoption of individual technologies. We group consumers into seven different categories of participation — and participation at one level may or may not overlap with participation at other levels. We use the metaphor of a ladder to show this, with the rungs at the higher end of the ladder indicating a higher level of participation. You can find more background on Social Technographics and the concept behind it at our Groundswell blog.
Overall, engagement with social activities has increased significantly in the past few years. By the end of 2009, almost three-quarters of US online adults were participating in one way or another with social media. But how do users of Facebook and MySpace compare to each other when looking at how active they are? The following graphic shows that MySpace users are far more likely to be “Creators” — the group that actually creates its own fresh content.
We've also asked consumers in which categories they like to express themselves online. The behaviors of Facebook and MySpace consumers are quite comparable for most categories, but MySpace users score much higher on expressing themselves on music, video, or gaming online - true to their 'Creator' profile.
The recent recession has changed consumers' mindsets. They are more careful and prudent about how they spend their money on everything, including travel. But can price drive loyalty? What makes consumers feel valued? Forrester's Technographics® research shows that price and transparency of costs are indeed very important elements for travel companies to make their clients feel special, but these are followed by support statements like “Make me confident that any arising issues will be fixed.”
To increase loyalty and make consumers feel valued, travel companies should see beyond deals and extend their focus to include support. In a recent report on this topic 'Why Travel eBusiness Misses The Mark By Only Emphasizing Price' my colleague Henry Harteveldt gives an example of how a travel seller can use the recent Icelandic volcanic eruption to show affected customers they care, by offering them a special deal when they log into their account.
As Henry says, travel sellers must remember that they don't own the traveler; they earn the opportunity to serve the traveler from one purchase to the next. Fail and the traveler will consider your competitor — and price will likely provide the motivation to switch.
I am excited to announce that my first report that draws from our Latin American Technographics® data — entitled Understanding Latin American Online Consumers— is now available. (For Forrester clients who do not subscribe to our Latin American Technographics data, there is a shorter version of the report that you can access here.) I hope that our readers find a lot of valuable takeaways in this report. One aspect I want to highlight here is that understanding the Latin American market requires a long-term commitment.
Although the Internet has been around for almost two decades, Latin American’s active presence in the online world is relatively new. Our data shows that 58% of metropolitan Brazilians and 53% of metropolitan Mexicans are online at least monthly or more. While these may sound like exciting numbers for developing markets, two caveats stand out to me: 1) non-metropolitan populations will have much lower penetration, and 2) consumers in these metropolitan markets are just starting to familiarize themselves with the Internet — as evidenced by their generally lower Internet activity compared with other regions we cover. However, certain trends, such as the use of social media, suggest ways in which companies can connect with certain Latin American consumers online.
Consumers in Asia Pacific are the most active mobile phone users globally, but does this usage translate into spending money on mobile services? Our Technographics® data shows that South Korean mobile phone owners lead in buying content or services for mobile phones. Each country in the Asia Pacific region has its specific mobile content preferences. Ring tones and ringback tones are the most popular service, followed by games and music.
Mobile content buyers are mostly young technology optimists with higher incomes. There are, however, a few interesting exceptions in different countries. One-third of South Korean buyers fall into the 30-to-39 age bracket; more than half of Indian mobile consumers are highly entertainment-oriented; and about 40% of Chinese spenders are highly career-driven.
I am back from beautiful Cartagena, Colombia where the ESOMAR Latin American 2010 conference was held. In addition, last week, I met with media and advertising professionals focusing on the Latin American market in Miami at the annual Portada Panregional Advertising and Media Summit. At both conferences, a consistent theme resonated throughout all the talks — the Internet is a powerful vehicle for Latin American consumers to connect with peers and even companies; however, the digital divide still persists in Latin America.
We find that, on average, 56% of metropolitan consumers in Brazil and Mexico are not online. Therefore, companies are still unable to reach a significant number of consumers through social media tools. Does that mean that if you have identified that the majority of your target audience is not connected that you are on the sidelines and unable to harness the “power” of social media? I think the answer is no.
What matters to financial buyers depends on who they are and what they are buying. Our Technographics data shows that European customers with different profiles — for example, different sociodemographic or attitudinal profiles — care about different things when selecting financial services firms.
The report 'Why Europeans Choose Financial Firms' also shows that the influence of word of mouth on a customer's decision to select a financial services firm declines sharply with age. A striking 37% of customers ages 16 to 24 and 18% of customers ages 25 to 34 were influenced by their friends' or family's recommendations. On the other hand, nearly half of European financial buyers ages 65 or older chose a company for their most recent financial purchase partly because they already had a product or account there.
In the past few months, I've regularly posted Data Digests on people's online shopping behavior. However, not every Internet user actually buys products online. Our Technographics® data shows that about 57% of European Internet users and about two-thirds of US online adults have purchased something online in the past three months. Concerns about privacy, delivery, and returns keep the others from making a purchase; women feel more strongly about delivery costs and the need to see (and feel) the product before they buy than men do.
When asked what would motivate them to start purchasing products or services online, lower shipping costs (43%), lower online prices (42%), and the ability to return products easily (27%) top the list. Retailers have to make the cross-channel shopping experience as easy as possible to cater to the needs of those online consumers who do research products but don't purchase them online — yet.
In the past few weeks, there have been many conversations about Facebook's privacy changes (and breaches); for example, see this post by my colleague Augie Ray earlier this week. However, what I'm missing in these discussions is how Facebook compares with other social media players worldwide. Although Facebook is the largest social media platform in the Western world, different players lead in other regions. For example, Facebook is struggling to gain ground in Asia Pacific:
With 58% of online adults accessing it, Orkut is the leading social platform in metropolitan India, while 27% of Japanese online adults use mixi; and in South Korea, Cyworld is most popular, attracting 63% of South Korean Internet users. What I'd like to know: how do these networks handle their users’ privacy?
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.