Reflections on Qual360

Anjali Lai

Two weeks ago, I spoke at the Qual360 conference in Atlanta, hosted by the Merlien Institute. If you follow this blog, you’ll know that I typically fold qualitative insight into a diverse research mix, so I went to the conference with a broad view of market research methodologies. But after connecting with qualitative researchers, marketers, academics, and thought leaders from around the globe, I left Qual360 with a renewed appreciation for the fundamental importance of qualitative insight, its deep impact on key business decisions, and its differentiated value in today’s data-driven culture. Here are a few of my takeaways from Qual360:

  • In a world where everything is getting faster, qualitative research must go slower. As Anita Watkins from TNS and Emily Williams of Newell Rubbermaid put it, qualitative research is not about testing, it is about illuminating context and understanding evolving beliefs. That means qualitative insight can’t be commoditized and sold with the promise of fast, bite-size deliveries. The true value of qualitative insight lies not in the verbatim data but in the accurate analysis of those words in the context of social, environmental, psychological, and emotional depth.
Read more

How Much Are Bad Customer Experiences Hurting Your Business? Forrester’s CX Index™ Knows

Roxana Strohmenger

We have all experienced it — a bad customer experience. Websites like Consumerist.com describe in empathy-inducing detail the “turmoil” that consumers experience, whether it be a customer having tape-recorded proof of a promise of service but the company stating they made no such promise or a company cancelling thousands of reward accounts due to insufficient proof of age, despite the inability of the customer to insert the required information.

When reading these stories, I always wonder, “Why is Company X not getting it?” Bad customer experiences are financially damaging to a company. However, what I have learned over the years, especially when talking to my colleagues on Forrester’s CX team, is that fixing customer experience is hard work. Customer experience requires sustainable discipline, investment, and a repeatable system of measurement — and most companies do not know where to start or how to get better.

Read more

Five Ways To Invest In The Future Of Online Retail

Michael O'Grady

Forrester’s retail forecasts chart how the changing nature of consumer behavior will have an impact on online and offline retail sales over the next five years. During a recent webinar, Forrester detailed five key trends that the forecasts have revealed:

  • Worldwide online retail sales are growing and varied. Asia Pacific is the world’s largest online market; it’s more than twice the size of North America. But online retail in India and China is very different. When considering your online investments, you must take into account not just retail market size but also supply (like organized retail), consumer demand, and infrastructure maturity.
  • Online buyers are spending more and in more categories. In mature markets like the US, online growth is coming from existing buyers spending more online. The typical online buyer has doubled the number of categories from which they buy online over the past five years.
  • Web-influenced sales are greater than online sales. In Western Europe, the Web will influence 45% of offline sales by 2020. Although 93% of retail sales in Western Europe were offline in 2014, an online presence is critical to retailer success — as web-influenced sales were more than three times larger than online sales.
Read more

Introducing The Forrester Readiness Index For Digital Marketing

Jitender Miglani
The dictionary defines “readiness” as the state of being fully prepared for something. It is easy to compare how well prepared companies are for digital marketing by looking at their digital marketing staff strength as a percentage of their total marketing staff and at their digital marketing spend as a percentage of their total marketing spend. More-prepared marketers prioritize digital in their marketing planning. More-prepared marketers run best-in-class digital marketing programs and communicate with the customers across multiple devices. More-prepared marketers measure how well their digital programs accomplish their business goals and how channels work together to accomplish a desired outcome. 
 
In the past, Forrester has developed tools and frameworks that help firms assess their digital marketing maturity. Forrester has now launched a new research framework: the Forrester Readiness Index (FRI) for digital marketing. This framework is a quantitative assessment that provides insights into the digital marketing environment and available opportunity for 55 countries across the globe through 23 quantitative variables.
 
Read more

45% Of Offline Retail Sales Will Be Web-Influenced By 2020

Michael O'Grady

Although 91% of retail sales in EU7 were offline in 2014, online presence is critical to retailer success, as nongrocery web-influenced sales were three times larger than online sales. EU7 includes the UK, Germany, France, Italy, Spain, the Netherlands, and Sweden. A soon-to-be-published report, Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (EU-7), shows why the majority of nongrocery offline retail sales will be influenced by the Internet as early as 2017; why this influence is dependent on country, category, and consumer age and gender; and why a consistent consumer experience across all multichannel touchpoints is critical for retailer success.

How consumers are influenced by the Web depends on many factors:

  • Online behaviors. Price and consumer ratings are the most important online factors influencing retail sales. Online behaviors are more embedded than ever into the consumer purchase journey, as online buyers and online spend per buyer continue to grow in Western Europe. Offline populations continue to decrease, although at different rates across Europe: almost a third of Italians and a fifth of Spaniards are still not online.
Read more

The Data Digest: Enchanting Consumers With Video Across Devices

Anjali Lai

Hollywood director Francis Ford Coppola once said: “The very earliest people who made films were magicians.” In some ways, things haven’t changed -- although the media producers of today seem to pull the classic reappearing act as their key trick: When content finishes on one screen, it reappears on another . . . and then another.

Video is available across myriad personal devices, and consumers’ viewing habits are fragmented across technologies. Just as channels for video consumption are becoming more profuse, the types of content that viewers seek are also increasingly diverse. In the past month alone, American audiences said hello to streaming-exclusive dramas and goodbye to long-running TV shows. This week, consumers viewed an array of films like those premiering at SXSW, and tuned into the March Madness sports frenzy.

Consumers have choices about what to watch, on which device, and when. According to Forrester’s Consumer Technographics® data, US online adults still prefer to watch longer-length video on TVs but frequently turn to smaller devices for shorter content:

Read more

Western European Consumers Spent €26 Billion In Online Cross-Border Trade In 2014

Michael O'Grady

Western Europe is one of the largest online markets for cross-border trade: In 2014, Western consumers spent €26 billion on cross-border trade, representing 17% of eCommerce sales in Western Europe. Our recently published Forrester Research Online Cross-Border Retail Forecast, 2013 To 2018 (Western Europe) shows that cross-border trade depends on sales flowing into a country from domestic cross-border purchases and sales flowing out of a country from nondomestic shoppers. Cross-border trade gives retailers an opportunity to expand outside of their domestic markets with minimum upfront investment. To succeed, retailers must understand the cross-border shopper and how to compete internationally.

Online cross-border shoppers:

  • Are looking for the best price. Price-sensitive online shoppers drive cross-border sales. The price of domestic goods in countries like Luxembourg, Switzerland, and Ireland make the consumer more likely to shop cross-border to find a bargain.
  • Are looking for the best choice. The consumer choice offered by large online retail markets in countries like the UK, France, and Germany make the consumer less likely to shop outside of their domestic market.
  • Spend more online, have higher incomes, and are younger than domestic shoppers. Retailers need to know the types of categories bought online to better target the cross-border shopper.
Read more

High Score! Candy Crush Saga Cracks The Top 10 On Our App Engagement Index

Nicole Dvorak

Gaming apps entertain users for an impressive amount of time — on average users spend 1.5x longer using gaming apps than the average app. In addition to time engagement, popular gaming apps have a fiercely loyal user base. Take Candy Crush Saga, the most popular gaming app on smartphones. It attracts almost twice the share of weekly users, and they spend close to 3X longer using the app than what we’re seeing for the average app (evaluated by the App Engagement Index). That’s why it places ninth across all the apps that the App Engagement Index ranks, and earns the first spot among gaming apps evaluated during Q4 2014.

While Candy Crush Saga is the clear winner when it comes to engaging a large audience, other gaming apps earn their high scores for different reasons. Take Words With Friends for example. Although this gaming app has even more of a loyal user base than Candy Crush Saga, it attracts just 2/3rds of Candy Crush Saga’s audience size, and earns a 307 in Q4 2014.

 

 

 

Read more

The Data Digest: The Multifaceted Journey To Purchasing Health Insurance

Anjali Lai

If you’ve been following our blog, you’ll know that the Data Insights team here at Forrester has been tracking the evolution of US healthcare reform over the past three years and its implications in terms of consumer behavior, attitudes, and expectations. Our study began in July 2012, when we advised health insurance companies how to prepare for the flood of new customers entering the market. Two years later, my colleague Gina Fleming extended this analysis into Forrester’s Healthcare Segmentation, which provides a refined understanding of key customer profiles. Now, with our 2015 Consumer Technographics® Healthcare Survey just back from field, we can complement our understanding of the US consumer health insurance market with another layer of insight: the member’s journey to purchasing health insurance:

Read more

The Data Digest: Celebrating China's New Year And Consumer Tech Boom

Anjali Lai

Today marks the beginning of the Chinese New Year. Kicking off the 2015 lunar calendar and the year of the goat (or sheep or ram), today celebrates the emergence of spring, the coming together of families, and the arrival of good fortune. Given China’s prosperous technology evolution, the superpower has a lot to look forward to. According to Forrester’s Consumer Technographics® data, the country is already home to the most mobile-savvy population on the planet, with nine out of every 10 metropolitan Chinese online adults using a smartphone; within the next two years, the nation will see an additional 200 million unique smartphone subscribers: 

What will happen when the world’s largest mobile phone market becomes even bigger?

Read more