The Data Digest: Interest In Money Management Tools

Reineke Reitsma

For the past decade, the number of customers using the Web to manage their bank accounts and policies and to research and buy financial products has grown steadily. For many customers, the Web has already replaced bank branches, financial advisors, and insurance agents as the heart of their relationship with their financial providers. For example, in the Netherlands and Sweden, less than one in 10 consumers go into a branch on a monthly basis — they do most of their banking activities online or, increasingly, on mobile phones..

But this doesn’t mean that these consumers don’t need support. Forrester’s European Technographics® Financial Services Online Survey, Q4 2011 shows that although uptake of money management tools is still low in Europe, already one-third of online Europeans are interested in tools that will give them more insight into their spending.

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SMS Usage Remains Strong In The US: 6 Billion SMS Messages Are Sent Each Day

Michael O'Grady

In two recently published forecasts — the Forrester Research Mobile Media Application Spending Forecast, 2012 To 2017 (EU-7) and the Forrester Research Mobile Media Application Spending Forecast, 2012 To 2017 (US) — we looked at mobile and tablet content usage for games, music, video, and messaging across the US and seven countries in Western Europe. As content availability becomes more synonymous with handset choice, the forecast helps us understand the proportion of mobile commerce that we can attribute to those who use and pay for digital content.

Even with the increased use of instant messaging, SMS remains the workhorse of mobile — with a 14% increase in the number of SMS messages sent in 2011 compared with 2010. More than 2 trillion SMS messages were sent in the US in 2011, which equates to more than 6 billion SMS messages sent per day. Text messaging users send or receive an average of 35 messages per day. Although by 2017 SMS will dominate mobile content spend less than it does today, it will still remain significant.

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The Data Digest: Digital Seniors

Gina Fleming

Does your brand include Seniors (those ages 65+) in its digital marketing strategy? It should. Here’s why. Forrester recently published a demographic overview of Digital Seniors, and the findings are suggestive: 60% of US Seniors are online — that’s more than 20 million online Seniors in the US.

How are US Seniors using the Internet and technology? While they trail behind younger generations when it comes to device ownership and online usage, they integrate technology into their lives in ways that are relevant for them. For example, they use it as a way to connect with family and friends — 46% of US online Seniors send and receive photos by email, and just under half have a Facebook account.

Seniors aren’t as active on the Web and are less likely to own a smartphone or tablet as younger generations, so many campaign managers don't see them as an obvious target for digital campaigns. But they do have a number of advantages compared with younger consumers, including 1) their size — there are about 21 million online Seniors in the US; 2) their income — they have far more money to spend than 18- to 24-year-olds; and 3) their brand attitudes — they are more brand-loyal, with 63% of online Seniors agreeing that when they find a brand they like, they stick to it, compared with 53% of all US online adults.

Market Research Lessons Learned From Behavioral Economics

Gina Fleming

Recently, I attended the MSI Workshop on behavioral economics at the Harvard Innovation Lab. The presenters included an innovative crew: a number of academics from Harvard Business School and Dan Ariely , author of Predictably Irrational. They gave many examples of how consumers aren’t always rational and don’t always know why they do what they do. This is troubling for market researchers, since it’s our job to understand what drives consumers so that companies can effectively optimize what works and what doesn’t. Let’s look at a couple of examples of how principles of behavioral economics can wreak havoc on market researchers:

  • The path of least resistance (AKA the default). Ever wonder why you are enrolled in your company’s 401(k)? Why you take generic over brand-name prescriptions? Why you’re an organ donor? Is it because of your financial sense or your values — or could it be because it was simply the default (and hence the simplest) option? In fact, multiple experiments in behavioral economics suggest just that: People tend to go with the default option but don’t realize they do.
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The Data Digest: The Power Of Video

Reineke Reitsma

Last Sunday my washing machine broke down. And for a family with young children, a washing machine is right up there with shelter and food in Maslow's hierarchy of needs.

As the shops are closed on Sundays in the Netherlands, I turned to the Internet to look for a new one. And because I wasn't very satisfied with my old brand, I was looking for another with similar features but (hopefully) better quality. Within minutes I was completely lost in washing cycles, special programs, and all the other fancy features washing machines have nowadays. I clicked picture after picture, trying to enlarge to see the controls, with little success. But I was saved by video. I came across a site that shows a video of each of the products they sell — how they work, what they do, the control panel, explaining what the fancy features mean, and so on. This information, together with the price, helped me decide which washing machine to buy (at that site, of course).

However, at this moment video support isn't the most obvious choice for customers. Our European Technographics® Retail, Customer Experience, And Travel Online Survey, Q3 2011, shows that only 10% of Europeans have watched a video from a retailer in the past three months in general. And only 8% have watched an online video for support purposes as the following graphics shows: 

 

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Innovative Methodology: Incorporating Location Analytics Into Your Research

Roxana Strohmenger

 

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.

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Mobile Gaming Revenues Are Set To Increase By 130% Over The Next Year

Michael O'Grady

In two recently published forecasts — the Forrester Research Mobile Media And Application Spending Forecast, 2012 To 2017 (EU7) and the Forrester Research Mobile Media And Application Spending Forecast, 2012 To 2017 (US) — we looked at mobile and tablet content usage for games, music, video, and messaging across the US and seven countries in Western Europe.* As content availability becomes more synonymous with handset choice, the forecast helps understand the proportion of mobile commerce that can be attributed to those who use and pay for digital content.

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.

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Understanding China: The Opportunities And Challenges

Reineke Reitsma

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.
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The Data Digest: Media Cannibalization

Reineke Reitsma

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:

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Technology In Market Research: Highlights From The Market Research Technology Event

Gina Fleming

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.
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