The concept of traditional TV watching needs to be redefined. The TV has evolved from a passive device with a single content source to a simple, large-display screen on which numerous activities come together. In the past, consumers had a TV device (typically the set-top box), a movie device (typically the DVD player), and possibly a gaming device connected to the TV. But now, the game console streams movies, the set-top box records TV, and the PC does everything. The next step is connected TVs — HDTVs that incorporate a direct connection to the Internet, whether wired or wireless.
Connected TVs are a big deal to manufacturers, but Forrester Technographics® data found that consumers are struggling to understand the benefits. One of the challenges that manufacturers of these TVs face is that when viewers are in "TV mode," they seem unable to imagine doing anything with these TVs other than watching more TV. When questioned, people appear to want one thing: more video. The top responses focus on getting access to well-known sources of TV shows and movies like Netflix, Blockbuster, or regular broadcast and cable networks, both for men and women.
Despite the early success of the Apple App Store, the market for mobile applications is still in its infancy. Many players haven't really launched or marketed their offerings yet, but the market is already crowded, with around 80 would-be application stores available worldwide as of June 2010. On the other side there's the consumer interest. Last week Nielsen published its State of the Mobile Apps 2010 report that showed that as of June 2010, 59% of smartphone owners report having downloaded a mobile app in the last 30 days. But a recent study of the Pew Internet and American Life Project shows that “Having apps and using apps are not synonymous.”
However, companies that want to develop a mobile strategy should begin with a data-based understanding of how mobile-advanced their brand's consumers are and will be. Mobile Technographics® places consumers into groups based on their mobile phone usage. The groups are defined by the extent to which the mobile phone user has adopted mobile data services, the frequency of use of these services, and the level of sophistication in the mobile applications he or she uses.
To understand how consumers migrate across channels, we analyzed Forrester's European Technographics® Benchmark Survey to determine where they start their purchasing journey and where they end up buying the product. In general, shoppers tend to ultimately purchase in the channel in which they started their research. This inclination is stronger among shoppers who began their research offline: 91% of European shoppers who began their research offline also purchased offline. Meanwhile, 58% of those who started to look for information on the Internet eventually made the purchase online.
However, this purchasing journey differs by product. For example, when we look at leisure travel, about two-thirds of European consumers start researching online. And only one-fifth don’t involve the Internet at all in the researching phase. However, about one-third of consumers who start their research online purchase their travel offline.
Summarizing, European online adults use a mix of channels to research and buy products, and the Internet is a key channel in the purchasing path. Yet deals are still mostly closed in the store. A seamless customer experience in which consumers can achieve goals like returning products across channels is key to driving multichannel success.
The iPad has been a huge hit with consumers: Only a couple of months after the launch, Forrester’s Technographics data shows that 1.3%, or 2.5 million, US online consumers report that they already own an Apple iPad, and an additional 3.8% (7.4 million) say they intend to buy one. The success of the Apple iPad has created a halo around tablets in general: About 14%, or 27 million, US online consumers say they intend to buy some kind of tablet in the next 12 months — more than any other type of device we’ve asked about.
A recent Forrester report “US Tablet Buyers Are Multi-PC Consumers” shows that it’s not all good news for PC manufacturers. Because, although consumers are getting excited about tablets in general, they're confused about what they actually are. This confusion probably means that not everybody that shows an interest will actually buy a tablet, but we do think it shows that there's interest in the category that goes beyond the iPad. PC manufacturers like Dell, HP, Samsung, Sony, and Toshiba need to offer consumers a bit of guidance on what a tablet is, what it can do, and how it complements the extensive range of devices they already own.
Social media has given consumers a voice, and brands are extremely concerned about how detrimental a bad review can be once it is posted online. But while this has taken the spotlight and has become an important, top-of-mind issue on marketing teams, it’s vital not to ignore the simple word-of-mouth review. Our Technographics® research shows that almost half of all consumers have complained directly to a family member or friend versus the mere 3% who have posted on a web site like Yelp/Trip advisor, or the 1% who have tweeted their complaints.
Listening software has made it easy for organizations to understand the latitude of negative feelings about their companies and brands and has given them some tools to directly address a complaint online by responding to an individual. It is nearly impossible to harness the conversations going on offline among groups of friends, although the numbers show that the effects of these talks are more widespread than the ones online — especially when you take into account that research shows that consumers trust friends and family most when making decisions.
Throughout the past 12 years of our Technographics® surveys, we’ve observed digital technology’s role in consumers’ lives increasing steadily.
Today, technologies like PCs and mobile phones, which were once reserved for the most well-heeled tech freaks, are in three-quarters of US households. For media consumption, however, new formats don't necessarily replace old ones. Our Technographics data shows that while new media sources occupy more of young consumers’ time, it’s the traditional media sources that continue to maintain popularity across both younger and older consumer groups.
This continued reliance on traditional media explains why cross-channel media adoption is still seeing slow growth. The Weather Channel leads this race, as it did in previous years, with one-quarter of respondents indicating they both watch The Weather Channel and log in online.
But interest isn’t equally high across different consumer industries. Below, you’ll find a graphic showing the top five industries that consumers are interested in participating with for co-creation efforts.
Household technology products like PCs and TVs top the list, but CPG, home entertainment (i.e., movies and music), household appliances (i.e., washing machines and refrigerators), and small kitchen appliances follow closely. As usual, men and women have different interests: While women account for 51% of all willing co-creators, they account for a much greater share of the audience interested in co-creating with CPG companies and clothing, footwear, and small kitchen appliance manufacturers.
Q3 is always a very exciting quarter for the market research team at Forrester. Not only do we analyze, write and publish our annual State Of Consumers And Technology Benchmark report (which my colleague Jackie Anderson is very busy with at the moment), but we also start analyzing our annual reports looking specifically at consumers' online behavior. In Q3 we will first publish the US version of the document, followed by European, Asia Pacific, and LATAM versions later in the year. These reports are internally referenced as “the Deep Dive” reports, not only for the level of detail these reports contain but also because of the depth of analysis included. What really makes these reports unique is that they're similar in setup, making it possible to compare online consumer behavior across regions and within regions.
For example, our 2009 APAC Deep Dive report shows that Asia Pacific consumers are active Internet users compared with North American and European consumers but that their interests and activities varied greatly. And within Asia Pacific it's definitely not one-size-fits-all: The following graphic shows for example how the different countries vary in their uptake of media and entertainment activities:
The sheer number and types of devices on which people can listen to music have expanded enormously in the past few years. How has that affected people's music consumption? Our Technographics survey data shows that the car stereo is the most popular device on which to listen to music, followed by the home stereo and the PC. About one-third of US adults regularly listen to music on a MP3 player, and 8% listen on their cell phones.
Even though music functionality on phones has been around for about six years, only iPhone owners have adopted it in a significant way. What keeps consumers from adopting new music offerings? A recent Forrester report called "Which Device Offers The Best Music Experience?" uses Forrester's Convenience Quotient (CQ) methodology to assess a sample of devices to evaluate consumer experiences. This analysis shows that every device currently available leaves consumers with a wish list of features and improvements: challenges with installation and setup, an inability to share music, a broken link between music and video, or a lack of logic in the navigation. The tradeoff for consumers is simple: They only adopt something new when the benefits are bigger than the barriers.
Most companies are now building a social media strategy, with a presence on Facebook, Twitter and/or YouTube. At the same time there's much debate over the value of a "Facebook fan." In this whole discussion I was wondering which consumers are most likely to become fans of a brand. Our Technographics survey data shows that about 13% of European online adults have become “fans” of a brand, company, or product they liked recently. About 10% were interested in interacting with companies through social media but haven’t done so yet. The first group we called “brand fans,” the other “aspiring brand fans.” How do the two compare?
Aspiring brand fans have a more mainstream online profile: Half of them are male, and they are older in general. Brand fans, on the other hand, are more likely to be female, and two-thirds are younger than 35 years old. And 20% of these Europeans who are fans of a brand say they are more likely to recommend the brand that they are “friends” with to their network of friends over any other brand. And this is exactly where the value of the Facebook fan lies. As my colleague Augie Ray said in his blog post: "Facebook fans have little actual value until they are activated by the brand."