The Data Digest: For Men And Women's Clothing Purchases, Timing Is Everything

Anjali Lai

Here in Boston, we are at a precious moment in the year: The early onset of cool, dark evenings sets the stage for the imminent holiday season — but doesn’t eclipse the warmth of the autumn sun quite yet. As the seasons change, we have a few rare days of mild weather that I can’t pass up, so, like my fellow city-dwellers, I make a little extra time to walk and window-shop.

Except — I hardly ever return with empty hands. Especially when I spot a sale at my favorite clothing retailer, it doesn’t take long before my intended walk turns into a shopping spree. Fortunately, our data shows that I’m not the only one who falls for the spontaneous clothing purchase. Forrester’s Consumer Technographics® data reveals that women in particular buy apparel on impulse:

In fact, our data shows that 43% of women don’t research clothing at all prior to making a purchase, compared with only 36% of men. And those women who do research apparel predominantly count the in-store browsing experience as their product research, while men often use both online and offline tools.

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The Data Digest: What Millennials Need From Your Loyalty Program

Anjali Lai

If you follow my blog regularly, you already know that I love to travel. And while I’ve had my fair share of travel hiccups (missed flight connections, last-minute assignments to the dreaded middle seat, lost luggage – you name it), I’ve always glossed over these snafus and accepted the fact that traveling inevitably comes with a few small challenges.

Until this year, when I hit executive traveler status on a major airline thanks to the loyalty points I amassed during my trips. Suddenly, my tolerable travel experiences became overwhelmingly enjoyable ones, and I quickly came to love (a word I don’t use loosely!) flying with this airline because of the VIP treatment. My reaction isn’t unique. In fact, it’s characteristic of my generation: Forrester’s Consumer Technographics® data shows that Millennials highly value loyalty programs that reward customers with enhanced customer service and special status, as Millennials cherish this sense of validation and exclusivity.

Specifically, our data shows that the loyalty program reward tactics that work for middle-aged and older consumers are not enough to satisfy Millennials. While customers of every generation want discounts, Millennials also expect loyalty programs to offer a premium customer experience. And what’s more, younger consumers want the flexibility of applying loyalty points to a variety of benefits – from travel upgrades to digital media content to charitable donations – while their older counterparts are happy using their points to get cash back.

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The Data Digest: Metropolitan Chinese And Metropolitan Indian Customers Lead The Demand For Business Transformation

Anjali Lai

Consumers in Asia Pacific are in the midst of a digital transformation. Within the past decade, online penetration in China grew from 8% to 54%, while mobile internet access grew more than sevenfold. Today, the rate of customer evolution is gaining speed, as consumers are increasingly willing to experiment with new products, rely on devices, demand seamless digital experiences, consume large volumes of information, and are committed to seeking out the best experiences for themselves.

Forrester’s Empowered Customer Segmentation measures these key shifts in customer behaviors and attitudes and anticipates how consumers both respond to digital innovation and demand it. An analysis of our Consumer Technographics® data for Asia Pacific shows that the most rapidly evolving customers dominate in metropolitan China and metropolitan India:

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Showrooming drives online sales in Europe

Michael O'Grady

Retailers are increasingly reconfiguring their physical stores to support the multichannel shopper. Our Forrester Data: Showrooming Forecast, 2016 to 2021(EU-7) shows that three-quarters of EU-7 online sales, worth 126 billion euros in 2015 are impacted by offline research. Reverse-showrooming, where shoppers buy at a physical store following online research, is even more commonplace. Price is the overriding factor that drives showrooming behaviour. Our report analyses the factors that contribute to offline influence and its implications for multi-channel retailers:

  • Offline influence dominates the retail landscape. In 2015, more than 95% of retail sales in EU-7 either occurred offline or occurred online and were influenced by offline research. This figure is more than double the share of sales that occurred online or that occurred offline and were influenced by online research.
  • Declining foot traffic and high-street spending threatens in-store influence. In-store visits and sales advice from an in-store sales associate are key drivers of offline influence. In 2015, foot traffic in physical stores fell across UK, Germany and France and visits to UK high-street stores declined.
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Making Sense Of Round One In The eCommerce War During The Festive Sales Season In India

Satish Meena

The first week of October witnessed the start of the holiday sales season in India as the big three online retailers — Flipkart, Amazon, and Snapdeal — launched high-profile sales. Originally started by Flipkart in 2014 as Big Billions day, this week witnessed a discount-driven war among the top three players.

Online retail in India has witnessed significant growth during the past five years, powered by highly funded online retail companies that bought growth through discounts. This gross market value (GMV)-led growth led to very high valuations and burn rates for retailers, leading some investors to question their long-term profitability. This has led to a slowdown in funding as well as cost cutting by online retailers in the past six months. Before the start of the festive season, Flipkart was looking to maintain its market share; Amazon was looking to take market share from Flipkart, Snapdeal, and smaller players; and Snapdeal was looking to find a place in the changing dynamics of India’s online retail market. 

Here are some of the key lessons from this festive sales season for the key players in the online retail market in India.

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The Data Digest: Do You Know Your New Technology Buyer?

Tyler McDaniel

For years, technology purchasing has been moving away from a central IT approach and into the business. Forrester Data shows that in North American enterprises, 73% of technology spending is either business-led or the business provides significant input into IT’s purchase — up from 71% last year. 

Clearly times have changed when it comes to technology purchasing, and business decision-makers (BDMs) are more critical to the process than ever. For example, North American enterprise BDMs reserve 41% of their respective budgets for technology purchases and expect to increase their total spend by 5% over the next year. 

When asked why they are spending more of their business budget on technology, North American enterprise BDMs cited three critical reasons. First and foremost, technology is too important for the business not to be involved:

Second, the rising expectations of customers require the business to push IT to keep technology current. And finally, business executives’ understanding of technology is increasing; so, they can interact more effectively with IT.

Thirty-nine percent of North American enterprise BDMs believe that “software is the key enabler for their business,” and helps them to engage with customers. This trend is even more prevalent in Europe and Asia Pacific, where 51% and 58% of BDMs, respectively, believe the same thing. This significant attitudinal shift will continue to shape how software is acquired, deployed, and used to drive business success.

So how can you capitalize on the widespread and significant changes to the B2B technology landscape?

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The Data Digest: Forrester’s Empowered Customer Segmentation Reveals Country-Level Differences In Europe

Anjali Lai

Charles Dickens once wrote that: “Change begets change. Nothing propagates so fast.” In today’s evolving marketplace, where innovators are setting new customer expectations and companies are racing to meet rising demands, Dickens’ words ring true. The first step on a company’s path to thriving in this environment is understanding customers accurately – specifically, identifying how consumer expectations are changing and how fast.

Our Empowered Customer Segmentation measures critical shifts in customer behaviors and attitudes to gauge how consumers are both responding to innovation and demanding it. While the segments are globally consistent, we see insightful differences when applying the framework to unique markets. For example, Forrester’s Consumer Technographics® data shows how the segments differ between Spain and France: 

These country differences reveal unique opportunities and challenges for companies aiming to win or retain customers in Europe. For example, forward-looking brands such as Banco Sabadell and BBVA can engage Progressive Pioneers in Spain to test innovative concepts before planning a broader rollout. On the other hand, brands with large proportions of French Settled Survivors or Reserved Resisters can retain customers by convincing them of the effectiveness of an experience.

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Announcing Our Annual Benchmark On The State Of US Consumers And Technology In 2016

Gina Fleming

In 2016, consumers of all ages are extremely connected — the average US online adult uses more than four connected devices, three-quarters use a smartphone and more than half use a tablet. Forrester’s annual report on the State of Consumers and Technology: Benchmark 2016, US reveals the most important consumer technology trends that marketers need to know. This data-rich report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for US 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. We analyze our findings through a generational lens, including Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation.

What did we find this year? All generations use more devices this year than a year ago, but which devices they use depends heavily on age. For example, 84% of Gen Zers (ages 18-27) use a smartphone and laptop, but only 44% use a desktop computer and 49% use a tablet. Their older Millennial counterparts, Gen Yers (ages 28 -36), have higher incomes and in addition to using smartphones and tablets, two-thirds use a tablet. In contrast, three-quarters of the Golden Generation (ages 72+) uses a desktop computer, and only a third use a smartphone. 

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The Data Digest: Forrester's Social Technographics 2016

Gina Fleming

To build a successful social media program you need to understand your audience’s social media behaviors and preferences. We just released our 2016 results for Forrester's Social Technographics model, and it does just that. It shows how important social should be in your marketing plans based on how important social tools are in your customers’ life cycle. We group consumers into four groups: Social Skippers, Snackers, Savvies and Stars—the Skippers spurn commercial social interactions and the Stars demand it.

What did we find this year? In 2016, the average US online adult receives an overall score of 40 and fits into our Social Savvies category. Social Savvies consider social tools a part of their everyday lives. On average, US online adults score highly for explore and discover— they use social tools to discover new products and also to explore them when they’re considering their purchases. Compared to last year, US consumers are slightly more social media savvy in 2016: The Social Technographics Score for the average US online adult has increased from 37 in 2015 to 40 in 2016. 

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The Data Digest: What Pokémon Go Reveals About Evolving Consumers

Anjali Lai

Within 24 hours of its launch, Pokémon Go broke app download records and user numbers began multiplying by the minute. It wasn’t long before mysterious names like “Jigglypuff” and “Squirtle” peppered daily conversation, stampedes of mobile-obsessed gamers became commonplace, and augmented reality approached a tipping point.

The future arrives faster than we think.

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