Recently, my colleague Olesia Klevchuk published a report about the behaviors of consumers in India, China, Japan, South Korea, and Australia, called 'Understanding The Changing Needs Of Online Consumers In Asia Pacific'. Forrester has been tracking consumer online behavior in Asia Pacific for six years now. In 2011, we polled Asia Pacific consumers in two separate surveys to find out about their use of the Internet for media, entertainment, shopping, communications, and social computing.
This year's Asia Pacific data shows continuous growth in the amount of time consumers spend with online media, including widespread adoption of social activities, as well as growing importance of the mobile phone. For consumers in Asia Pacific, PCs at home and high-speed Internet connections are becoming the norm.
In metropolitan China and Japan, at least nine in 10 adults have access to a computer at home, and almost eight in 10 are already online. In metropolitan India, the numbers are much lower, with only 27% regularly going online. But India is a populous country, and there are currently around 100 million online users, which puts it in third place after China and the US.
In the current time of digital disruption, market insights professionals need to know the market their organization plays in well enough to identify the “adjacent possible” but also to understand how receptive their customers are to new offerings. With that in mind, I’ve taken a fresh look at Forrester’s Technographics® segmentation. This segmentation is built on three main components: motivation, income, and technology optimism/pessimism using a proprietary algorithm and is created in 1997 when we first began collecting our Technographics® data to help companies understand and predict changes in the consumer technology landscape. In 1999, Forrester published a book, called 'Now or Never', that covered how companies should use the model.
Recently I was wondering: does the segmentation still hold for current technologies like tablets and can it still help companies understand and predict technology behaviors? For this, I analyzed tablet uptake as well as buying intention of tablet from one of our European surveys by segment:
Although data nowadays shows that young consumers in particular are moving away from traditional media in their daily media consumption, our Forrester data also shows that traditional media are still powerful means for advertising/promotion. In Roxana Strohmenger’s recent report, “Young Hispanics Lead In Mobile Activity But Don't Trust Mobile Ads Very Much,” she discovers that the two top channels are TV and magazines; American youth trust them twice as much as other online or mobile channels, and ads on mobile phone are being trusted the least. No wonder TV spending continues to top other forms of media in America and continues to grow, according to Nielsen; even search engine giant Google is getting into the TV advertising business by offering unique targeting and measurement capabilities.
I’d like to share with you some of the highlights from our annual The State Of Consumers And Technology: Benchmark 2011, US report. This data-rich report is an institution in the US, covering a range of topics on consumers and technology. For those of you who aren't familiar with our benchmark report, it's based on Forrester's annual survey that we've been fielding since 1998 and for which we interview close to 60,000 US adults. In fact, almost anything related to consumers and their use of and interest in technology can be found in this study.
In this year’s report, like last year, we segmented consumers by generation, examining Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation. This view continues to provide some very interesting and actionable consumer insights into how technology behaviors vary across generations. For example, younger generations are more active on social networks; however, of those Boomers who are using social media, a similar percentage has a Facebook account or a LinkedIn account as their younger counterparts. The younger generations are far more likely to have a Twitter or MySpace account, though.
The theme of this year’s report is connectivity: How are the different generations using technology inside and outside the home and which devices do they use? Here are a few interesting general insights that we uncovered:
My colleagues Charles Golvin and Thomas Husson recently published a report that reveals The Global Mainstreaming Of Smartphones, and they found that while the majority of smartphone owners are high-income adopters, the low-income optimists (who Forrester defines as Techno-Strivers, Digital Hopefuls, and Gadget Grabbers) and high-income pessimists (who Forrester defines as Handshakers, Traditionalists, and Media Junkies) are the ones who together make up the majority of the US population. They are the potential consumers who will lead to smarthphone sales growth.
One of the responsibilities of my role includes analyzing data in complex ways to help our clients understand how their target groups behave and if there are more relevant ways to segment them based on the results. However, sometimes it just makes sense to take a step back and look at some basic demographic profiles as a starting point for further analysis. We developed a new deliverable that we call Demographic Overview, and we kicked off the series with digital dads, followed by digital moms, and these will soon be complemented with digital natives and digital Seniors.
So why is it important for companies to look at dads? Forrester’s Technographics® data shows that s lightly more than one-third of US online men ages 18 to 50 are parents of a child younger than 18 living with them. Companies need to understand how the digital profile of dads differs from non-dads, as their behaviors influence the tech behaviors of their kids.
Some of our findings include that in general, dads are more likely to use the Internet as a resource, while non-dads are more active in entertainment-focused activities such as social networking. But dads know how to use social media to get their point across: 72% of dads who regularly engage in social activities have posted a review of a product or service on Twitter in the past 12 months, as compared with only 57% of non-dads.
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?"
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.
It’s been almost a year since I wrote Latin American Social Technographics® Revealed, which demonstrated this group of consumers’ voracious love of social media. In that report I highlighted how this high level of social engagement is not exclusive to just entertaining themselves or connecting with family and friends. In fact, it also extends to interacting with companies, with activities such as reading their blogs, following them on Twitter, or even watching a video they produced.
Given the ease with which companies can connect with online Latin Americans via social media, I’ve now published a new report entitled Take Advantage: Latin American Consumers Are Willing Co-Creators that examines whether companies can extend this interactive and social connection with consumers into the realm of co-creation in the social online world. My colleague Doug Williams, who focuses on co-creation processes for the consumer product strategy professional, defines “social co-creation” as the process of using social technologies as a vehicle to execute co-creation engagements.
To examine the viability of social co-creation in Latin America, we assessed the factors that we feel are crucial for a successful social co-creation engagement to occur. They are:
A high level of engagement with social media — especially at the Conversationalist and Critic levels.
A high degree of interaction with companies using social media tools.
An inherent willingness to co-create with companies.
Customer advocacy is the perception among customers that the bank does what’s right for them, not just what’s right for its own bottom line. In every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.
One of the things that continues to surprise me about many banks’ multi-channel strategies is how little most banks have integrated their ATMs into those strategies. Cash machines are by far the most commonly used banking channel. According to Forrester’s Consumer Technographics data, 74% of adults in Western Europe use a cash machine at least once a month, far more than use either branches or online banking that often.
Despite the introduction of Windows-based operating systems and colour screens, most banks aren’t doing much to engage customers on this most-frequent touchpoint. Most do little more than promote the product of the month to all comers. Only a few leaders, like Singapore’s OCBC Bank and Spain’s La Caixa, have integrated ATMs into their CRM systems, which lets them do clever things like remembering customer’s normal withdrawal amount, wishing customers a happy birthday and making products offer that are relevant to that particular customer.