This shouldn’t come as a surprise, but I love talking about cool, emerging, and innovative research methodologies. Over the past two years, I have been focusing a lot of my time on researching these techniques and have written several blog posts on this topic. For example, how prediction markets can help determine which concepts will succeed or fail in the marketplace. And how 2012 is the year of mobile, and market insights (MI) professionals need to leverage this channel.
In continuing with this theme, I am launching a blog series focused exclusively on highlighting emerging methodologies that MI professionals should take notice of and examine whether to incorporate into their research tool kit. I will highlight any cool research techniques I come across, as well as any vendors that are building interesting technology tools for market research purposes.
For this inaugural post, I will highlight location analytics. Essentially, market insights professionals can use a consumer’s location information that is transmitted by their mobile phone to understand what they are doing in their daily lives. For example, you can understand where your target customer is shopping, how she got there, and which competitor stores she drove past. The consumers being tracked do not have to “check in” every place they go to gather this information. Instead, all of the location data is passively collected after a consumer opts in.
More than 80% of worldwide app downloads in 2011 were for Apple and Android devices; these accounted for more than 16 billion downloads. Gaming apps dominate mobile app spending; this is driven by both an increase in the number of users playing games on their phones and the amount of in-game spend, which accounted for more than 60% of mobile gaming revenues. In the US, about 76 million mobile and tablet owners regularly play games on their devices; with only a third of these regularly downloading games, there’s a great opportunity for growth in both mobile advertising and mobile gaming revenues.
China represents a huge opportunity for most organizations — the nation has a population of 1.35 billion people, consumer spend has gone up progressively in the past few years, and Forrester expects 268 million Chinese consumers to buy online by 2014. And, we are committed to providing our clients with the data and analysis required to be successful in the country. In fact, as part of our Technographics product, we have been investigating the impact of technology on consumer behavior in the Asia Pacific region since 2006.1
Recently, I collaborated with my colleague Sam Yanling Jaddou on a report called “Understanding China: The Opportunities And Challenges” that will help marketing and strategy professionals understand the uniqueness of the Chinese market, as well as key consumer trends.
Some highlights from the report, which is based on a survey of more than 3,600 metropolitan Chinese consumers2:
Chinese consumers are very receptive to new trends. They not only show high interest in new technologies like cloud services, Internet-connected TV, and tablets, but the uptake of these devices is already higher in China than in the US and Europe. However, because of their relative high price, new technologies are mainly bought by high-income Chinese.
At the end of 2010, we published a blog post about the results of our annual US “Understanding The Need Of The Changing Consumer” report, in which we reported that for the first time ever the average time US consumer reports spending online is the same as what they report spending watching offline TV. As the data is self-reported it's different from the metrics collected by Nielsen or comScore, but it tells a very important story that is coming directly from the mouths of consumers: In their minds, time spent with offline and online media is split equally.
However, this discussion came at a time when the iPad had only been launched for about six months and worldwide there were less than 15 million iPads sold. At the end of 2011, we conducted a quantitative Technographics® study and ran a qualitative project in our Community Speaks community to better understand: the relationship among tablets, laptops, and TV; how consumers are currently using the Internet and TV; and how they’d like to do so in the future. Forrester's Technographics data shows that many consumers who own a laptop or tablet use that to go online while watching television:
I just returned from the IIR Market Research Technology Event (TMRTE). These were three action-packed days of industry leaders delivering great insights on what’s important for the market research industry, as well as the challenges and opportunities that technology presents. It was a pleasure to meet and connect with so many thought leaders in market research. Here are three main themes I gathered from the event and what I think market researchers need to pay attention to:
Big data is here. Many of the presenters highlighted how intimidating the flood of digital data can be for market researchers. Christopher Frank from American Express and Paul Magnone from Openet say it’s like “Drinking from the Fire Hose.” But Stan Sthanunathan from Coca-Cola reminded us that big data is a reality — so we’d better embrace it or get left behind. As a result, market researchers will need to move from viewing technology as an enabler to viewing technology as a driver.
I’m sure you’ve noticed from the latest data digests that I'm really in a mobile mood, but there's just so much going on with mobile globally! Last week, I was at a research conference on “Mobile Research in a Mobile World”; it presented many interesting case studies on how to use mobile for research purposes in both developed and developing markets.
One of the most intriguing presentations was by Mikhail Zarin from Mobiety and Artem Tinchurin from Tiburon Research. They shared the challenges they encounter with doing research in Russia and how adding mobile adds a layer of complexity with regards to questionnaire design, engagement, and sample management.
This reminded me about a report I recently worked on with a colleague called “The Introduction To The Russian Consumer.” My colleague is from Russia, and she taught me that many consumers pay their bills or top up their phones at machines that take cash. And these machines also act as eCommerce platforms: You can use them to purchase airline tickets, for example. During their speech at the mobile research conference, Mikhail and Artem shared how they use these machines to ask people to participate in research. Although response rates are low, overall participation is quite good because there are so many ATMs.
Recently, I've been editing some reports on how consumers are using their mobile phones and how that has changed in the past couple of years. We only have to think back to the Nokia 6510 or Motorola flip phones that we were using a few years ago to see how the introduction of smartphones has changed our world. In many countries, people spend more time texting and doing other data-related activities on their phone than using it for actual voice calls.
And in many countries, the impact of mobile uptake and its evolution has been even bigger and more different than in the US and Europe. In the West, mobiles are often an addition to a PC or game console; in many developing countries, a mobile phone is the only device that most consumers own. This is reflected in the activities for which they use their mobile. For example, Forrester's Technographics® studies — involving 333,000 respondents in 18 countries — shows that Indian, Chinese, and Mexican mobile phone owners use their phones more to listen to music and play games than their European and US counterparts. [Note: this graphic shows selected activities from a list of possible activities]
We listened to marketers of the world’s biggest brands when they asked, “What’s the impact of Facebook on my brand?” and we decided to take a look for ourselves. We proudly present our latest research, “The Facebook Factor.” In the report, we answer the pressing question, “How much more likely are Facebook fans to purchase, consider, and recommend brands, compared with non-fans?” We used logistic regression modeling to find out. The impact? We call it the “Facebook factor,” and I urge you to read the report to find out how you can leverage our methodology to assess the Facebook factor for your brand.
In the report, we use four major brands as case studies to assess the Facebook factor for Coca-Cola, Walmart, Best Buy, and BlackBerry(Research In Motion [RIM]). Guess what? Facebook fans are much more likely to purchase, consider, and recommend the brands that they engage with on Facebook than non-fans. As the graphic below shows, Facebook fans of Best Buy are about twice as likely to purchase from and recommend Best Buy as non-fans.
On April 2nd I'm attending the TEDx event in Maastricht, the Netherlands, which is dedicated to healthcare. Given my market insights background, this may sound a bit out of my league. But you're mistaken. Of course, the healthcare element is sometimes a bit alien to me, but healthcare is not just about curing disease — it's also about culture, technology, and consumer behavior. And those elements are very familiar to me as market researcher.
Last year the event got me very energized. It's great to see how technology can help people in very difficult situations. I listened to e-patient Dave, a cancer patient who talked about how he used patient support communities like epatients.net to better understand his illness; he has since become a noted activist for healthcare transformation through participatory medicine and personal health data rights. And Lucien Engelen advocated crowdsourcing to create a map of defibrillators (AED devices) globally. (Note: you can download the app here.)
We know that consumers are ready for healthcare-related activities on their mobile phones. Forrester’s Technographics® data shows that a third of smartphone owners use their phone for healthcare-related activities, ranging from tracking what they eat to medication text alerts.
Last week, I ran into an infographic on Ad Age about The People of Walmart. It compares the demographics of Walmart, Kmart, Kohl’s, and Target shoppers: for example, age, sex, income, and region of the customers. It shows that more women than men shop at Walmart, and that their audience is quite equally spread across age as well as income. Recently, Forrester conducted a survey where we gained insights on customers of retailers like Walmart. We found that while it’s great to examine the demographics of shoppers, it’s much more powerful (and actionable) to look at other insights about these retailers’ customer base, like marketing preferences, spend levels, and brand consideration.
Below you'll find some of the results from this Forrester study. You'll see that the average US online adult who shops at Walmart spent about $848 on average in the past year, but that only about half are likely to recommend the retail giant to a friend or family member. When these results are compared to other retailers, and by demographic, you create real insights.
I’d love to hear from you: How do you target your customers? Are there any behavioral and attitudinal variables that have been very helpful in defining your target segments?