The US health insurance industry is in the midst of a tectonic shift. Since federal legislation mandated health coverage for all US citizens, health insurers have been pivoting away from pure B2B models to reinvent themselves as B2C services – and they’ve been responding to the demands of a new target group: consumers who purchase their own health insurance.
Earlier this year, we published a blog post detailing the channels customers use when purchasing health insurance. But mapping customers’ physical interactions with a company is only part of the story – understanding their emotional evolution is just as important. According to Forrester’s Consumer Technographics® data, a mere 50% of consumers who purchase their own health insurance feel that the brand puts them first; others believe health insurers do what’s best for their own bottom line at the expense of customers. The former are not only emotionally satisfied, they are also loyal to their current health insurer and willing to spend on additional products and services:
According to our fellow consumers, we’re more productive. Ask any mother, and she’ll tell you we’re addicted. Listen to a doctor, and you’ll think we’re creating clinical problems. The consequences are up for debate, but the fact of the matter is clear: US online adults get things done by switching from one screen to another.
Today, the majority of the US population uses three or more connected devices; we don’t only live among screens – we live by them. We complete tasks by gliding from one screen to another without a second thought. In fact, over half of US online consumers often carry out a single activity across multiple devices, and one-fifth admits they always do this.
While consumers commonly start certain tasks on their smartphone and complete them on a desktop, they also move from desktops to portable devices. The devices consumers use and the frequency with which they move between screens vary by activity. A blend of Forrester’s Consumer Technographics® survey data and passive behavioral tracking shows that retail behaviors are most fragmented across devices, followed by media consumption activities:
For CIOs, finding a clear path forward in the Business Technology (BT) Agenda can seem daunting, as you work to balance critical operational requirements with new initiatives designed to help your organization win, serve, and retain customers. But there are trailblazers in your organization. Forrester continues to see spending on technology spread and move out of the CIO’s organization and into the business. In North America companies of more than 250 employees, 70% of technology spending is either business led or heavily influenced by business. That part is not new, but it is increasing.
Specifically 50% of business managers, directors, and vice presidents are increasing their departmental budgets on technology products and services over the next 12 months.1 In fact, 16% of these business leaders are increasing their spend by more than 10%.2 This isn’t shadow IT in action; it’s the new way of doing business. Within your own organization a minority, but important, population of business leaders are aggressively investing in technology products and services to achieve three essential business goals. Over the next 12 months, the 16% of North American business leaders dramatically increasing their spending are focused on:
Here in the US, we’re gearing up to celebrate July 4, the day that everyone knows signifies America’s independence. But most people don’t know that the 1776 congress didn’t actually declare American independence on July 4. This date didn’t mark the start or end of the American Revolution. America’s Declaration of Independence wasn't even written, signed, or delivered to Great Britain on July 4.
We celebrate July 4 in the name of tradition — and we defer to assumptions rather than unearthing the true story. But when we dive a level deeper and look beyond the surface, we gain new depths of insight. When it comes to understanding customers, it’s time to take a deeper look.
The role of emotion is one of these “unknowns” in consumer behavior: An incisive view into consumer behavior reveals that emotion is more powerful than commonly thought. More than a mood, emotion is a key driver of customer decisions, actions, and perceived experiences —and pervades each stage of the purchase life cycle. For example, Forrester’s Consumer Technographics® data shows that Etsy inspires extremely positive consumer sentiment before, during, and after making a purchase:
We are notoriously bad at knowing ourselves. Science shows that we are not quite as beautiful, or smart, or ethical as we would like to think. As a result, our self-proclaimed beliefs do not always translate into action; often, we say we’ll do “the right thing” but (consciously or not) we’ll proceed to do the opposite. Are we really nothing more than delusional creatures of habit bound to repeat our mistakes? No – actually, far from it. Certain individuals are hyperaware of their values and follow through on decisions and actions accordingly. Although a small group, these consumers spark awareness, change their behavior, demand transparency, and inspire trends.
My latest report examines what, when, and why consumers buy, when values are central to their decision-making process. In my research, I found that, despite limited knowledge and patterns of self-deceit, consumers want to purchase from companies that embrace ethical practices. More broadly, consumers are becoming increasingly aware of company values and are opening their wallets when company values resonate with theirs:
In the past week, I have booked a flight using a travel voucher, questioned a charge on my credit card bill, and bought an electric toothbrush. What do these experiences have in common? In each case, I had a relatively complex question and I received a helpful answer – without talking to anyone in person or by phone. Instead, with a little online research, I was able to identify which blackout dates applied to my travel voucher, clear the charge on my credit card bill, and learn the best settings for my toothbrush.
Essentially, I sought answers immediately by turning to digital channels first. In this regard, I’m not the only one. For the first time in the history of our research, more US online adults report using company websites than speaking with agents by phone when resolving customer service needs. Forrester’s Consumer Technographics® data shows that 76% of consumers turn to FAQ pages, and usage across other digital channels is growing notably:
The fact that technology is disrupting the way in which customers seek information is not merely a trend – it’s at a tipping point. In the age of the customer, consumers expect accurate answers with greater speed and less friction than before; as companies offer them detailed online content with increasingly effective navigation strategies, consumers will embrace self-service digital channels at the expense of offline communication.
The 2015 Super Bowl had 114 million viewers – making it the most watched television event in US history according to Nielson data. Forrester used its Technographics 360 approach, which combines multiple data sources, to understand how consumers used their smartphones on the big day.
Forrester tracked the smartphone behavior of 879 US online smartphone owners (18+) during the dates surrounding the Super Bowl as well as on the day itself. To better understand these mobile behaviors and add further context, Forrester engaged a group of 157 US participants (18+) in our ConsumerVoices online community. Finally, to capture the nature of public conversation overall, we leveraged social listening to explore topics and sentiment throughout the day across US consumers’ social media posts.
The relentless winter in Boston has finally come to an end! Encouraged by the lukewarm temperatures and sight of grass (which we haven’t seen here in months), I set my sights on a new pair of running shoes. Now, where to begin? I can get suggestions from my coworkers, peruse user reviews on my phone on the bus ride home, actually touch and feel the product in person at a sports shop nearby, watch video ads at home on my tablet . . . the list goes on.
The rise in the adoption of mobile devices has made the consumer purchase journey — which already involves multiple channels, devices, and interaction points — even more complex and fragmented. To help professionals understand how and why consumers use mobile devices along the multistep purchase path, we used Forrester’s Technographics® 360 methodology, which combines behavioral tracking data, online survey data, and market research online community responses. We found that:
Almost two-thirds of consumers still use traditional methods to first learn about products —offline sources commonly provide the first impression.
Smartphones enable customers to source pre-purchase product information right from the palm of their hand, but few actually make the purchase using a mobile device
Mobile devices give consumers flexibility if they choose to engage with a brand or retailer post-purchase —from email and text messages to online communities and social networks.
Hollywood director Francis Ford Coppola once said: “The very earliest people who made films were magicians.” In some ways, things haven’t changed -- although the media producers of today seem to pull the classic reappearing act as their key trick: When content finishes on one screen, it reappears on another . . . and then another.
Video is available across myriad personal devices, and consumers’ viewing habits are fragmented across technologies. Just as channels for video consumption are becoming more profuse, the types of content that viewers seek are also increasingly diverse. In the past month alone, American audiences said hello to streaming-exclusive dramas and goodbye to long-running TV shows. This week, consumers viewed an array of films like those premiering at SXSW, and tuned into the March Madness sports frenzy.
Consumers have choices about what to watch, on which device, and when. According to Forrester’s Consumer Technographics® data, US online adults still prefer to watch longer-length video on TVs but frequently turn to smaller devices for shorter content: