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.
Mobile banking adoption among US online adults more than doubled in the past two years. However,Forrester’s Technographics® data shows that 85% of online adults in the US have never used mobile banking. When we look more in depth at the reasons why, we get answers such as “don’t see the value,” “don’t believe it’s safe,” and “don’t want to pay for fees.”
US consumers have plenty of alternatives they can use, like ATM machines, online banking, and retail branches. For them, the benefits have to outweigh the hurdles. Yet it’s a different story in other parts of the world. Due to a lack of existing banking infrastructure, we see mobile finance penetration picking up quickly in developing markets like China, India, and even Africa, fueled by the growing cellular penetration and mobile Internet penetration in these regions. In fact, in the most recent World Economic Forum’s Digital Asia panel that Forrester CEO George Colony moderated, Michelle Guthrie, JAPAC director of strategic business development at Google Asia Pacific, stated that for the next hundred million users coming onto the Internet in Asia, primary access to the Internet will be on mobile, and maybe only on mobile due to the infrastructural challenges (and costs) of fiber and broadband.
What do autumn’s cool breeze and changing leaves signal for market researchers (especially those who live up north)? The beginning of the fall market research conference season. This is where we move past our virtual conversations via blogs and Twitter and meet face to face to talk about what really matters to us. For me, it is all about the benefits of emerging and innovative methodologies and what place they will have in our immediate future. Looking over my conference schedule, my conference season “theme” has primarily shaped up to be all about mobile, which doesn’t surprise me. As I wrote back in July, we need to wake up and start thinking about mobile. Mobile offers us the unique opportunity to close the distance between the consumer’s experience and our assessment of that experience. As such, I firmly believe that mobile research will be one of the most critical methods we have at our disposal to help us understand the empowered consumer in this new Age of the Customer.
Where will my “mobile-themed” road show take me this conference season? Here is where I will be in the next month or two.
First, I will be speaking at CASRO’s Annual Conference in Palm Beach, October 19-21. Here, I’ll be joined by some great colleagues on a panel discussing how firms can identify which emerging methodologies to invest in and what the process entails. Mobile will definitely be highlighted here as an example of a methodology that delivers a significant ROI.
Companies like Coca-Cola, Nike, Unilever, Procter & Gamble (P&G), McDonald’s, and Johnson & Johnson have done a great job converting their brands into household names in Metro China, mainly by investing big in advertising and promotions. Having pockets deep enough to put these messages in front of the Chinese people is great, but if your firm is interested in entering this market of 1.37 billion people but doesn’t have access to the advertising financial resources of a Coca-Cola or P&G, what do you do?
Start thinking about word-of-mouth (WOM) campaigns. Due to historic events and their family teachings, Chinese people tend not to trust content coming from strange sources. However, Chinese people are known to be loyal to their friends and family. Forrester Technographics® data shows that “recommendations from friends and family” (44%) is the primary source of content people trust in Metro China. Interestingly, among the top five sources, we also see “email from people you know” (40%) and “social networking site profiles from people you know” (25%). These are both forms of word of mouth that have transitioned from the offline world to the online world.
Over the past year, my colleague Andrew McInnes and I have immersed ourselves in the world of enterprise feedback management (EFM), which we define as follows:
A system of software and processes that enables organizations to centrally collect, analyze, and report on feedback from key customer groups and tailor insights for various internal users.
During this time, it has been a great experience talking with vendors and clients about how this technology tool enables companies to bring all of the customer data and information collected across channels together into one platform. This ability is more important than ever given that we have entered the “age of the customer” — a period marked by the rise of the empowered customer, who is armed with more information than ever before and who is now using a rapidly evolving set of devices as a means of engaging not only with friends and family but also with companies anytime and anywhere. To be successful in this new world, companies must understand how consumers interact across these multiple touchpoints; failure to do so can lead to a fragmented view of the customer.
While it is clear that companies must embrace EFM, what is not as clear is how they should navigate the EFM vendor landscape. This is due to the dozens of small vendors, evolving market segments, and increasing M&A activity. To help professionals within the marketing and strategy organization, Andrew and I decided to conduct a Forrester Wave™ evaluation of the EFM vendors.
Earlier this week, I attended the Esomar Congress in Amsterdam. It was a home game for me, but even I was impressed by the location and its very Dutch look and feel; I felt proud of my country (of course it helps that I’m a big fan of stroopwafels, poffertjes, mature cheese, and bitterballen).
Not only were the surroundings impressive, but so were the presentations. Only a couple of the 20 or so that I saw were average. Most presentations gave a good overview of a new methodology, the client side of the story, and the challenges faced. My personal highlights included the Heineken/TNS presentation, in which they used neuroscience (or more precisely electroencephalography [EEG], biometrics, and eye-tracking) to measure how relevant viewers felt the ad was to them, how excited they were by it, and what areas of the screen they looked at while it played. You can find the summary by Robert Bain of Research Magazine here.
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.
As the newest addition to the market insights team, I would like to introduce myself. My name is Gina Sverdlov, and I recently joined Forrester as a consumer insights analyst.
I am very excited to be here! My background is in economics, consulting, advertising, and using quantitative methods to provide actionable insights for my clients. In my role here at Forrester, I am going to focus on bringing our multiple data sources to life and turning numbers to actionable insights. I am enthusiastic about engaging with our clients to devise strategies that will be successful in today’s changing market dynamics.
For my first Forrester document, ”Connection: The Spark That Lights Up The European Digital Home,” I’ve been looking at device ownership in Europe and how recent trends compare with the IHS Global Insight Economic Outlook. What I found, for example, is that laptop penetration in Europe has increased from 20% in 2006 to 51% in 2010 amid hefty declines in European retail sales in 2008 and 2009 and personal disposable income in 2009 and 2010. As a follow-up, I’ve identified how the uptake of different emerging technologies like LCD, plasma, and 3D TV correlate with ownership of other devices and where there are opportunities for consumer electronics (CE) companies.
Videos are definitely one of the strongest forms of media in our society nowadays, and there are 48 hours of video uploaded on YouTube per minute: from consumers sharing their creative expressions to companies uploading how-to videos about their products and brands.
These videos help many people in their purchasing process. My colleague recently had to shop for a car, and it’s been interesting to hear about her car shopping journey and how online videos helped her make the ultimate decision. She was interested in one specific car — the 2012 Ford Focus with the Sync with MyFord Touch comes as standard package. The challenge she, and Ford for that matter, encountered was that the majority of car salespeople aren’t that tech-savvy. While they are familiar with the horsepower and the smart-key entry feature, they really struggle to explain how to turn the car into a Wi-Fi hub or how the Sync system can read incoming text messages.
Trying to learn about every available optional feature, my colleague had to turn to the Internet for help. She was able to find demo videos on the Ford Focus website, on YouTube, as well as on her cable TV widgets. These online videos, produced by Ford, auto review sites, as well as tech-savvy online peers, really helped her understand how the optional features of this new product will enhance her ultimate driving experience. Forrester’s Technographics® data shows that videos created by other people are the most watched online type of video: