The Data Digest: Smartphone Owners’ Smart Travel Management

Reineke Reitsma

Do you remember the last trip that you took? In this season, chances are that it was only last week or last month. As much as we love to travel, ideally for leisure, we are often overwhelmed by all the planning and coordination that are involved in the process — flights, car rentals, lodging, just to begin with. And if you are truly a planner, you want to add the places to dine, events to attend, and attractions to stop by to the itinerary.

Luckily, we are in the technology-centric era. We have websites, software, and devices that help us make life easier. Two companies that I recently came across, TripIt and Traxo, are designed to take care of travelers’ concerns. Much like TripIt, Traxo aims to simplifying travelers' lives by aggregating all of their travel information in one place, but it does so in a more elegant auto-pull manner versus an email push one. Traxo users just need to link their travel accounts to Traxo via a one-time, upfront process, and then Traxo automatically detects all of their trips, miles, and points and intelligently combines them into a single travel dashboard. It also allows members to share experiences with friends and possibly discover where they might have an overlapping trip with another.

But what makes this really interesting is that these services are available for smartphones. In his recent Forrester report “Why Smartphones Will Become One Of Travel’s Two Most Important Touchpoints”, my colleague Henry Harteveldt points out that “travelers are up to three times more likely than all US adults to have a smartphone.” 

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The Data Digest: Interest In Mobile Payments

Reineke Reitsma

PayPal recently shared its new peer-to-peer payment functionality that allows Android users to pay each other by tapping two Near Field Communication (NFC) enabled devices together. A user enters the transaction information and then taps her phone up against another phone also equipped with the same PayPal widget. After the phones buzz together, the recipient can decide to send or receive money by entering a PIN number.
Sounds very interesting, but are consumers interested in this functionality?

My colleague Charlie Golvin recently blogged about the Google Wallet initiative and its hurdles, one of them being lack of consumer interest. In fact, our Technographics® surveys show that interest in mobile payments is low and has not translated into activity in the US: Less than 6% of US online adults have ever used any type of mobile payment. Over the past three years, Forrester has seen interest in mobile payments continue to grow slowly.

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The Data Digest: Online Shopping — Researching Versus Purchasing

Reineke Reitsma

Recently, my colleague Jackie Anderson published a report, Understanding Online Shopper Behaviors, US 2011, and she indicated that 2010 online retail spending in the US had reached $175.2 billion and will grow at double-digit rates at least for another few years.

But among all the items that can be purchased online, some are more popular than others. We have extracted the top three and bottom three items that consumers research online and purchase online based on data from our North American Technographics® Retail Online Survey, Q3 2010 (US). The data shows that while online consumers are generally comfortable with both researching and purchasing books, hotel reservations, and airline tickets online, they still prefer to purchase footwear, consumer electronics, and household products from traditional channels.
 

About one-third of US Internet users aren't shopping online yet. The majority of them do use the Internet to research products but don't feel comfortable making the purchases online. The biggest barrier people mention for not buying online is their need to see things in person.

The Data Digest: The Uptake Of Home Networks In Europe

Reineke Reitsma

With more and more devices having the possibility to connect to the Internet wireless, including handheld games, smartphones, game consoles, and tablets, we were interested in the uptake of wireless home networks in Europe. We asked Europeans the following question: "A home network allows you to share an Internet connection among multiple PCs or go online from multiple rooms of the house. Home networks also allow PCs to share a printer or connect with other devices. Do you have a home network?"

Forrester's European Technographics© data shows that about half of Europeans already have a home network and more than half of these are wireless or a mix of wireless and wired. And although this isn't a huge increase from 2008, when 20% of online Europeans had a wireless home network and 8% had a combination of wired and wireless, we do expect home networks to see more uptake in Europe in the next couple of years.

Three-quarters of online Europeans with a wireless home network share an Internet connection among multiple PCs, and 17% have already connected their PC to their TV set. Wireless networks are popular among families and multiple-PC households: 86% of wireless home network owners have more than one PC at home, and 40% have children living at home.

The Data Digest: Urban China’s Mobile Internet Use Is Double That Of The US

Reineke Reitsma

While it is no news that China leads the world’s online population, hitting 477 million users as of March 2011, it is interesting to look at the uptake of mobile Internet in urban China and see how that compares with other regions. Forrester’s Technographics® data shows that urban China is chasing Japan closely, with 43% of mobile phone users reporting they access the mobile Internet at least monthly. This number doubles that of the US (although the US number represents all Americans, rural and urban), which ranked as the third market in this study. While my gut feeling tells me that urban China’s mobile Internet adoption is comparable to that of the developed markets, this result is still striking because the smartphone market in China did not kick off officially until the end of 2009.

Just last month, China Mobile, the dominant mobile service provider with 60% national market share, announced its plan to lower rates for both calls and data plans by an average of at least 15%. And on Monday, China Daily reported that the number of China’s microbloggers was forecast to reach 100 million this year and will increase to 253 million by 2013.*

The booming popularity of microblogging in China, coupled with the fact that mobile Internet is becoming more affordable, means that urban Chinese will not forgo the convenience that mobile Internet provides. We know another wave of growth is approaching. It is just the matter of how high the wave can reach.

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The Data Digest: Are Consumers Using Their Mobiles To Shop?

Reineke Reitsma

Since the dawn of mobile commerce, retailers have dreamed of leveraging mobile phones to deliver an immersive multichannel experience for in-store shoppers. And finally the time seems right. With the uptake of smartphones, it has become much easier for both consumers and retailers to add mobile phones to the purchase process. Retailers have been busy developing mobile web versions of their online stores as well as dedicated mobile shopping applications for iPhone and Android phones.

But how many consumers are using their mobile phones for shopping-related activities? Our Technographics® research shows that about 6% of cell phone owners have used a shopping application. Dedicated shopping applications that allow consumers to research and purchase products directly from their phones, like the ones from Amazon.com or Domino's Pizza, drive uptake and usage.

It is tempting for retailers to use this technology solely for marketing purposes; however, organizations should focus on services that enhance the customer's multichannel experience. Balancing informative notifications with marketing offers will build trust with customers and lead to better acceptance, as well as higher uptake.

The Data Digest: Enterprises Also Dip Their Toes In Mobile Apps

Reineke Reitsma

During the past 24 months, the industry has seen an explosion of activity and development on the new generation of Android and Apple mobile phones and most recently tablets. In the report 'Mobile App Internet Recasts The Software And Services Landscape' Forrester estimates that the revenue from paid applications on smartphones and tablets was $2.2 billion worldwide for 2010.

With all this activity and excitement, enterprises are jumping on the app bandwagon to reach customers and bolster the brand. Forrester’s Forrsights Software Survey, Q4 2010 shows that IT is stepping up its mobile app plans. Forty-one percent of the 2,124 North American and European software decision-makers surveyed in October 2010 said that increasing the number of mobile applications for employees, customers, and business partners was a high or critical software priority:

 

However, this will not come easy to IT departments. One of the issues Forrester sees is support: Given the rate of innovation at both the application and device/operating system levels, IT likely has to support three to four releases per year. This rate of change will tax a whole range of IT processes from project management to release management and testing. IT organizations should look for external help to build a platform to support their companies’ mobile plans.

The Data Digest: How Many US Households Have Multiple PCs?

Reineke Reitsma

Today’s Data Digest topic comes from a personal observation involving my family. Last weekend, my husband was working on our Mac, I was doing some online shopping on my work laptop, and one of our kids was playing games on my husband’s work laptop. And I suddenly wondered: “Is this how a typical household looks, with every household member having their own PC?” So I dived into our Technographics data and found that we are indeed not atypical for our generation: More than 80% of US households have some type of PC, and almost half have more than one. About 77% of Gen X has a desktop PC at home, and 61%, a laptop.

Whether people have one PC or two, and whether those PCs are desktops, laptops, or netbooks, PCs serve different functions for different generations in the household. While Gen Yers are more likely to use their computer for media activities like playing games or watching TV, Gen Xers and Boomers use theirs for more practical functions, such as word processing or managing personal or family finances.

The Data Digest: Which Type Of Apps Do Europeans Download Most?

Reineke Reitsma

My colleague Thomas Husson wrote a report last year in which he looked at ”The Future Of Application Stores.” Overall, uptake of apps is limited: Only 15% of European smartphone owners report downloading an app on a monthly basis. By contrast, 64% of European iPhone users download apps on a monthly basis. Looking at what consumers are interested in most, Forrester's Technographics® data shows that games, music, weather, news, and social networking top the list for both iPhone and other smartphone users.

Companies that want to develop a mobile strategy should begin with a solid 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.

The Data Digest: Device Ownership By Generation

Reineke Reitsma

Gen Xers live in device-filled households. Whether it’s gaming systems for the kids, HDTVs and surround-sound systems for themselves, or digital cameras and frames to showcase their families, Gen X households are most likely to have these devices. Gen Xers have mastered the art of functionally integrating technology into their lifestyle and maximizing its benefits. The first generation to grow up with technology, they are comfortable with it and recognize its benefits, as do the tweens and teenagers clamoring for devices in the household.

Boomers remain middle of the road on technology adoption. Both Younger Boomers (ages 45 to 54) and Older Boomers (ages 55 to 65) fall behind the younger generations in terms of almost anything  technology-related: from the number of devices they own (on average, seven for Boomers and nine for Gen Yers and Gen Xers) to the amount of time they spend on the Internet. The one area where Boomers are ahead of the technology curve is on the amount of money they spend, on everything from telecom monthly fees to online purchases.