For consumers today, online and mobile channels have become an integral part of the shopping experience — for both researching and purchasing products and services.
In their transition to agile commerce, companies must understand how consumers are interacting and using multiple touchpoints to research, transact, and get service. Our recent report Segmenting Buyers: Introducing Super Buyers, Connected Traditionalists, And Traditionalists examines how three distinct retail segments of US online consumers — Super Buyers, Connected Traditionalists, and Traditionalists — leverage various channels for their shopping needs and explains how companies can best engage with each segment.
Some highlights from the report, which is based on a survey of more than 4,500 US online consumers:
· Super Buyers are the most connected shoppers and buy from many channels: online, offline, and mobile. Super Buyers like to mix and match their shopping by either researching online and buying offline or vice versa.
· Connected Traditionalists do most of their shopping online on a computer or in an offline store.
· Traditionalists are the largest segment; they do most of their shopping in-store — although they are also shopping online on a computer. This group has the lowest uptake of tablets and smartphones.
Recently, my colleagues Brian Walker and Sucharita Mulpuru released a great overview of Amazon and its role in retail. What’s clear from this report is that Amazon is affecting everyone, both retailers and consumers. In fact, it shows that for many shoppers, Amazon is increasingly their first stop on the retail path: Thirty percent of US online buyers said that they began researching their most recent online purchase on Amazon.
In Europe, we asked online Europeans about the websites that they used to research products/services in the past three months. In the UK, France, and Germany, Amazon was mentioned most often. While some local retailers hold their own, such as Argos in the UK and fnac in France, eBay is the runner-up in most of these markets.
Earlier this year, Forrester’s published its tablet forecast for the US. With 55 million iPads sold through December 2011, and an estimated 5.5 million Amazon Kindle Fires sold in their first quarter on the market, tablets have gained unstoppable momentum. Forrester forecasted that tablets would reach 112.5 million US consumers — one-third of the US adult population — by 2016. Since then, a slew of new tablets have been unveiled, including the recently announced Windows Surface and Google Nexus 7.
For now, the US is definitely the leading market for tablet adoption. Forrester’s European and North American Technographics® Surveys show that both uptake as well as interest are highest in the US.
Email marketing is at an important crossroads because email is losing its appeal for consumers. Research shows that younger people in particular feel email is too formal. Forrester’s European Technographics® surveys show that consumers’ attitudes toward email marketing have only grown more critical over time. In 2007, 24% of European Internet users agreed that email was a good way to learn about new products, but only 12% agreed in 2010. And 54% of European online consumers state that they delete most promotional emails without reading them.
Are consumers deleting your promotional emails as well? Are you wondering what content and updates your customers value? You should just ask them! Surveys, social media, and offline anecdotes will give you insight into what email content, offers, and even style your users like. For instance, the BBC's GoodFood magazine asked its Facebook fans, "What theme would you like to see in today's newsletter?" and used the results to craft its email content.
Does your brand include Seniors (those ages 65+) in its digital marketing strategy? It should. Here’s why. Forrester recently published a demographic overview of Digital Seniors, and the findings are suggestive: 60% of US Seniors are online — that’s more than 20 million online Seniors in the US.
How are US Seniors using the Internet and technology? While they trail behind younger generations when it comes to device ownership and online usage, they integrate technology into their lives in ways that are relevant for them. For example, they use it as a way to connect with family and friends — 46% of US online Seniors send and receive photos by email, and just under half have a Facebook account.
Seniors aren’t as active on the Web and are less likely to own a smartphone or tablet as younger generations, so many campaign managers don't see them as an obvious target for digital campaigns. But they do have a number of advantages compared with younger consumers, including 1) their size — there are about 21 million online Seniors in the US; 2) their income — they have far more money to spend than 18- to 24-year-olds; and 3) their brand attitudes — they are more brand-loyal, with 63% of online Seniors agreeing that when they find a brand they like, they stick to it, compared with 53% of all US online adults.
It’s the latest craze sweeping the nation… No, I’m not talking about Fruit Ninja, I’m talking about gamification.
There's a reason "gamification" is the buzzword on the tip of so many tongues these days. It takes ideas and structures from games - the video kind and other types - to guide companies in their quest to affect consumer behavior. So should digital strategists at banks and financial institutions use gamification to meet their business objectives?
We’ll get to that, but for now let's start by clarifying what we're talking about. Forrester defines gamification as:
The insertion of game dynamics and mechanics into non-game activities to drive a desired behavior.
These mechanics come in many shapes & sizes – SCVNGR, a mobile game developer, has a list of more than 40 – but here’s a quick list of four major ones:
· Points. The most basic element of gamification, points is any type of virtual currency – or, in a few cases, IRL currency. Digital strategists at banks & credit card companies have used this tool for years in the form of rewards points.
China represents a huge opportunity for most organizations — the nation has a population of 1.35 billion people, consumer spend has gone up progressively in the past few years, and Forrester expects 268 million Chinese consumers to buy online by 2014. And, we are committed to providing our clients with the data and analysis required to be successful in the country. In fact, as part of our Technographics product, we have been investigating the impact of technology on consumer behavior in the Asia Pacific region since 2006.1
Recently, I collaborated with my colleague Sam Yanling Jaddou on a report called “Understanding China: The Opportunities And Challenges” that will help marketing and strategy professionals understand the uniqueness of the Chinese market, as well as key consumer trends.
Some highlights from the report, which is based on a survey of more than 3,600 metropolitan Chinese consumers2:
Chinese consumers are very receptive to new trends. They not only show high interest in new technologies like cloud services, Internet-connected TV, and tablets, but the uptake of these devices is already higher in China than in the US and Europe. However, because of their relative high price, new technologies are mainly bought by high-income Chinese.
At the end of 2010, we published a blog post about the results of our annual US “Understanding The Need Of The Changing Consumer” report, in which we reported that for the first time ever the average time US consumer reports spending online is the same as what they report spending watching offline TV. As the data is self-reported it's different from the metrics collected by Nielsen or comScore, but it tells a very important story that is coming directly from the mouths of consumers: In their minds, time spent with offline and online media is split equally.
However, this discussion came at a time when the iPad had only been launched for about six months and worldwide there were less than 15 million iPads sold. At the end of 2011, we conducted a quantitative Technographics® study and ran a qualitative project in our Community Speaks community to better understand: the relationship among tablets, laptops, and TV; how consumers are currently using the Internet and TV; and how they’d like to do so in the future. Forrester's Technographics data shows that many consumers who own a laptop or tablet use that to go online while watching television:
Recently, I've been editing some reports on how consumers are using their mobile phones and how that has changed in the past couple of years. We only have to think back to the Nokia 6510 or Motorola flip phones that we were using a few years ago to see how the introduction of smartphones has changed our world. In many countries, people spend more time texting and doing other data-related activities on their phone than using it for actual voice calls.
And in many countries, the impact of mobile uptake and its evolution has been even bigger and more different than in the US and Europe. In the West, mobiles are often an addition to a PC or game console; in many developing countries, a mobile phone is the only device that most consumers own. This is reflected in the activities for which they use their mobile. For example, Forrester's Technographics® studies — involving 333,000 respondents in 18 countries — shows that Indian, Chinese, and Mexican mobile phone owners use their phones more to listen to music and play games than their European and US counterparts. [Note: this graphic shows selected activities from a list of possible activities]
On April 2nd I'm attending the TEDx event in Maastricht, the Netherlands, which is dedicated to healthcare. Given my market insights background, this may sound a bit out of my league. But you're mistaken. Of course, the healthcare element is sometimes a bit alien to me, but healthcare is not just about curing disease — it's also about culture, technology, and consumer behavior. And those elements are very familiar to me as market researcher.
Last year the event got me very energized. It's great to see how technology can help people in very difficult situations. I listened to e-patient Dave, a cancer patient who talked about how he used patient support communities like epatients.net to better understand his illness; he has since become a noted activist for healthcare transformation through participatory medicine and personal health data rights. And Lucien Engelen advocated crowdsourcing to create a map of defibrillators (AED devices) globally. (Note: you can download the app here.)
We know that consumers are ready for healthcare-related activities on their mobile phones. Forrester’s Technographics® data shows that a third of smartphone owners use their phone for healthcare-related activities, ranging from tracking what they eat to medication text alerts.