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.
This weekend, I’ll be heading off to Las Vegas for the 2015 Consumer Electronics Show (CES). Infrastructure & Operations leaders should – and do – keep tabs on the news coming out of CES. In this era of consumerization, bring-your-own (BYO) technology, and Shadow IT, CES announcements affect the I&O role more than ever before. I have three tips for how to think about CES 2015:
Look at consumer technologies through a workforce lens. So many smart, connected products quickly migrate to the workforce. Sometimes these technologies enter via BYO and segue into company-owned, as tablets have done over the past few years. In other cases, vendors that target consumers immediately see the value their products can bring to workforce scenarios. For example, I recently spoke with Jonathan Palley, CEO of Spire, a wearable device that tracks not just activity but also state of mind (tension versus calm, focus versus distraction, and related states). While the product was launched to the consumer market just about a week ago, Jonathan made clear that “workforce is a huge part of our strategy as well.” Imagine helping workers remain in a more productive, less stressed state of mind via wearables.
We're living in a time when smart, connected devices -- tablets, smartphones, wearable devices, Internet of Things (IoT) devices, and the like -- are being woven into the Business Technology (BT) Agenda of most companies. Nowhere is this trend more intimately applied to the customer experience than in healthcare, where devices near our bodies, on our bodies, or even inside our bodies are changing the way doctors, insurers, and other healthcare players think about patient care.
In a a major new report, Four Ways Connected Devices Improve Patient Care, we've researched how mobile, cloud, and connected devices come together to reshape the patient care experience. Technology innovations on the device and services side are creating new treatment options. And systemic changes to the healthcare system are creating both challenges and opportunities, which these emerging technologies can help address. For instance:
Busy doctors spend too much time on electronic health record (EHR) data entry. And when they use a traditional PC in the room with a patient, it's not always a great experience; one doctor told us he felt his "back was to the patient" too often. The solution? Moving to a Surface Pro 3 tablet, armed with better software, which allows the clinician to face the patient directly while still saving time -- and gaining accuracy -- on EHR data entry.
Since the original release of Windows 8 on October 26, 2012, the operating system has benefitted from two major updates — Windows 8.1 (in October, 2013) and the Update to Windows 8.1 (in April, 2014). With these updates, Microsoft sought to address a variety of user concerns and feedback, including some major revisions to the user interface. In the latest update, Microsoft has introduced some useful new features like the ability to right-click from the Start Screen:
We've just released a new report assessing the status of the Update to Windows 8.1 and what it means for enterprises. Whoa — hold on, you might say: Isn't Windows 7 the enterprise standard now? Does Windows 8.1 matter to the enterprise at all?
Indeed, Windows 7 remains the enterprise standard; most enterprises have only recently weaned themselves fully off of XP. But Windows 8.1 does matter in the enterprise, for several reasons:
Infrastructure buyers are interested in Windows 8.1 devices. In more than 50 recent inquiries with Forrester, clients asked about laptop replacement scenarios for Windows 8 devices. I&O pros tell Forrester that they like the idea of deploying replacement devices that are two-in-one laptop replacements — that is, devices used both for mobile tablet scenarios and then back at the desk with a mouse and a keyboard. 2-in-1 can conceivably save them money; rather than buying a laptop and a tablet, they like the idea of providing one device that can fill both purposes. They also cite manageability, the ability to domain-join the devices, legacy application compatibility, and other reasons for their interest.
I recently spoke with members of the application development team at Torry Harris Business Solutions (THBS) in India. THBS develops mobile apps for clients worldwide. The team revealed that THBS clients now focus much more on user experience (UX) design — so much so that some of them are even willing to spend an additional 5% on top of the total app development cost to get a better design. UX design represents about 30% to 40% of the total mobile app development cost. But a great UX is only half of a mobile engagement; context is the other half. To develop a complete and effective mobile engagement, eBusiness and channel strategy professionals must:
Yesterday, Microsoft released the Surface Pro 3, a 12" touchscreen device billed as "the tablet that can replace your laptop." Sporting some hard-core computing bona fides (including Intel processors and Windows 8.1) and new innovations (like an active stylus that activates note-taking outside of the lock screen), the device in its third generation offers a new level of mobility despite having a larger screen than its predecessors in the Surface line. It's worth taking a look at:
Microsoft designed the Surface Pro 3 with a variety of seemingly incremental improvements that, once assembled in the same device, make it surprisingly innovative. In fact, you should think about it as quite a departure from the earlier Surface models. With this product, Microsoft makes its best yet argument for device consolidation for the workforce, potentially allowing some workers to stop carrying separate laptop and tablet devices in favor of Pro 3. For consumers, the Surface Pro 3 doesn't act as a substitute for popular 8" form factor tablets, but it might make for a good laptop replacement.
That's not to say it's (to quote the cliche) any sort of "iPad killer"; the starting price of a Surface Pro 3 is higher than the iPad's starting price. It's more like a successor to the laptop -- but one that takes mobility quite seriously. Altogether, it's likely to be popular among prosumers, BYOD consumers, and perhaps some other segments.
Apple's reported earnings revealed a strong product mix contrast: iPhone sales increased 17% in units and 14% in revenues, while iPad sales decreased 16% in units and 13% in revenues. What accounts for this contrast? Is the iPad's growth trajectory broken?
Simply put, the iPhone's addressable market has only continued to increase with Apple's continued international expansion. Only recently, for example, has Apple broken out in Japan (still the world's third-largest economy); only a few months after releasing the 5S and 5C across all three of Japan's largest carriers, iPhone models made up 9 of the top 10 phones sold. And for iPhone, unlike iPad, the route to sales comes through carrier relationships -- of which Apple has landed more recently.
By contrast, the iPad's year-over-year results lagged because:
Price competition in tablets has been fierce. With Android tablets under $200 now commonplace -- including Samsung's Galaxy Tab 3 and Amazon Kindle Fire HDX -- Apple's premium pricing is catching up to it.
Replacement rates are lower than expected. Why are prices catching up to iPad now? Because replacement rates haven't been as quick as with iPhone. The pace at which people purchase smartphones is quicker than that of iPads, even among the Apple faithful. This means that Apple is seeking an ever expanding market -- people without tablets. For later adopters, who didn't see the big deal early on, price matters more than for earlier adopters.
Last year, when attending my tenth Congress in a row, I wrote that MWC 2013 would be more global and more disruptive than ever before. I believe the same will be true this year, with 2014 bringing a very important milestone in the shift to mobile: an install base of more than 2 billion smartphones globally. Mobile is transforming every industry by offering global reach and the ability to offer contextual services. That’s why we'll see many more marketers, agencies, business executives, and strategists attend the traditional telecom show.
Gone are the days when MWC was about operators' supremacy. As my colleague Dan Bieler summed it up in this blog post, telcos are increasingly being backed into a corner. I still remember this quote from Arun Sarin, the former CEO of Vodafone, in the Financial Times in November 2007: “Just the simple fact we have the customer and billing relationship is a hugely powerful thing that nobody can take away from us.” Really? Well, in the meantime, Apple and Google have created two powerful mobile platforms that have disrupted entire industries and enabled new entrants to connect directly to customers.
From a marketing and strategy perspective, I'd categorize the likely announcements in three main areas:
1) The Asian Device Spec Fashion Week: Getting Lost In Device Translation
We just published our annual report on The State Of Consumers And Technology: Benchmark 2013, US. This data-rich report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for consumers’ level of technology adoption, usage and attitudes. Our annual benchmark report is based on Forrester's Technographics® online benchmark survey that we've been fielding since 1998. The report covers a wide range of topics, such as online activities, social media activities, retail behaviors and preferences, and device usage—for ‘traditional’ technologies like TVs and laptops—as well as more emerging technologies like smartphones, tablets and wearables.
We analyze our findings through a generational lens, including Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation. While most Americans are already online, we are seeing major strides in mobile Internet access. In 2013, all generations are connected—81% of the US adult population goes online. But there are still generational differences in smartphone usage: Seven of ten Gen Zers and Gen Yers use a smartphone, but only 18% of the Golden Generation do.
Consumer mobility in India and China is flowing into enterprises. Recent Forrester survey data shows that nearly three in five IT execs and technology decision-makers in these countries — 58% in India and 57% in China — plan to increase their spending on mobile software (including applications and middleware) in 2014.
India has leapfrogged Australia/New Zealand and now leads the Asia Pacific region in terms of expected mobile software spending growth. China has made the biggest move over the past year, jumping from eighth place to second.
We believe that the high growth in mobile software spending in India and China is primarily due to: