Recently, my colleague Jackie Anderson published a report, Understanding Online Shopper Behaviors, US 2011, and she indicated that 2010 online retail spending in the US had reached $175.2 billion and will grow at double-digit rates at least for another few years.
But among all the items that can be purchased online, some are more popular than others. We have extracted the top three and bottom three items that consumers research online and purchase online based on data from our North American Technographics® Retail Online Survey, Q3 2010 (US). The data shows that while online consumers are generally comfortable with both researching and purchasing books, hotel reservations, and airline tickets online, they still prefer to purchase footwear, consumer electronics, and household products from traditional channels.
About one-third of US Internet users aren't shopping online yet. The majority of them do use the Internet to research products but don't feel comfortable making the purchases online. The biggest barrier people mention for not buying online is their need to see things in person.
Recently, I've posted a question on our Market Insight Community about data visualization. Why? Because infographics are hot. Follow the infographic (#infographic) topic on Twitter and you’ll see a constant stream of new graphics. A recent example of a market-research-related one is this one from The New York Times that shows you how many households in the US have a similar set-up. And this week I tweeted a link to an interview with a company called Tableau Software that helps organizations visualize big data and works with organizations like The Wall Street Journal and CNN Money to create interactive graphics like this one on foreclosure filings.
But what is the role of data visualization in market research? There are numerous posts and contributions about the importance of storytelling for market insights professionals. Will data visualization tools help in engaging our audience with data? Can it be our way of telling a story? David McCandless talked about the beauty of visualization last year at a TED event. Good design, he suggests, is the best way to navigate information glut — and it may just change the way we see the world.
With more and more devices having the possibility to connect to the Internet wireless, including handheld games, smartphones, game consoles, and tablets, we were interested in the uptake of wireless home networks in Europe. We asked Europeans the following question: "A home network allows you to share an Internet connection among multiple PCs or go online from multiple rooms of the house. Home networks also allow PCs to share a printer or connect with other devices. Do you have a home network?"
Three-quarters of online Europeans with a wireless home network share an Internet connection among multiple PCs, and 17% have already connected their PC to their TV set. Wireless networks are popular among families and multiple-PC households: 86% of wireless home network owners have more than one PC at home, and 40% have children living at home.
While it is no news that China leads the world’s online population, hitting 477 million users as of March 2011, it is interesting to look at the uptake of mobile Internet in urban China and see how that compares with other regions. Forrester’s Technographics® data shows that urban China is chasing Japan closely, with 43% of mobile phone users reporting they access the mobile Internet at least monthly. This number doubles that of the US (although the US number represents all Americans, rural and urban), which ranked as the third market in this study. While my gut feeling tells me that urban China’s mobile Internet adoption is comparable to that of the developed markets, this result is still striking because the smartphone market in China did not kick off officially until the end of 2009.
Just last month, China Mobile, the dominant mobile service provider with 60% national market share, announced its plan to lower rates for both calls and data plans by an average of at least 15%. And on Monday, China Daily reported that the number of China’s microbloggers was forecast to reach 100 million this year and will increase to 253 million by 2013.*
The booming popularity of microblogging in China, coupled with the fact that mobile Internet is becoming more affordable, means that urban Chinese will not forgo the convenience that mobile Internet provides. We know another wave of growth is approaching. It is just the matter of how high the wave can reach.
It’s been almost a year since I wrote Latin American Social Technographics® Revealed, which demonstrated this group of consumers’ voracious love of social media. In that report I highlighted how this high level of social engagement is not exclusive to just entertaining themselves or connecting with family and friends. In fact, it also extends to interacting with companies, with activities such as reading their blogs, following them on Twitter, or even watching a video they produced.
Given the ease with which companies can connect with online Latin Americans via social media, I’ve now published a new report entitled Take Advantage: Latin American Consumers Are Willing Co-Creators that examines whether companies can extend this interactive and social connection with consumers into the realm of co-creation in the social online world. My colleague Doug Williams, who focuses on co-creation processes for the consumer product strategy professional, defines “social co-creation” as the process of using social technologies as a vehicle to execute co-creation engagements.
To examine the viability of social co-creation in Latin America, we assessed the factors that we feel are crucial for a successful social co-creation engagement to occur. They are:
A high level of engagement with social media — especially at the Conversationalist and Critic levels.
A high degree of interaction with companies using social media tools.
An inherent willingness to co-create with companies.
Whereas in the age of manufacturing, the age of distribution, and most recently the age of information, companies that had the best skills were winning, in this age of the customer, only companies that fully understand their customers’ needs will win over their hearts (and with that, wallet share). And it’s not enough to be customer-centric — in fact, companies should be customer-obsessed. This is not just jargon, it has a real meaning:
A customer obsessed company focuses its strategy, its energy, and its budget on processes that enhance knowledge of an engagement with customers, and prioritizes these over maintaining traditional competitive barriers.
This report is very relevant for market insights professionals because they are the ones that will need to support their organization to understand the (hidden) drivers behind the needs of the customers — and how to delight them. Josh Bernoff shares more of his insights in this blog post, and clients can access the report here.
About six weeks ago, I attended the Mobile Research conference 2011 in London, where a variety of vendors and clients talked about their experiences with mobile as a research methodology. They shared a range of mobile research methodologies, like using text messages in emerging markets, mobile ethnographic studies, geolocation tracking, and mobile behavioral tracking data. You can find most of the presentations here, and if you want to see me in action as roving reporter, you can click here.
During the whole conference, there was a clear line between the benefits and challenges of online research versus mobile research, and how the two can strengthen each other. Then at the end of the second day, someone asked the following question to the audience: “Do you consider tablets a PC or mobile device?” The answer was almost unanimous: a mobile device.
This got me thinking about the whole concept of mobile research in more detail. In fact, I was wondering if something like a mobile research conference would still exist in a couple of years, because the rapid technological developments of smartphones and tablets will blur the line between mobile and online research. Can we, as researchers, continue to define the research methodology in the future, or are the respondents going to do that? This line of thinking led me to ask this question to our community members: Should research be device-agnostic?
Since the dawn of mobile commerce, retailers have dreamed of leveraging mobile phones to deliver an immersive multichannel experience for in-store shoppers. And finally the time seems right. With the uptake of smartphones, it has become much easier for both consumers and retailers to add mobile phones to the purchase process. Retailers have been busy developing mobile web versions of their online stores as well as dedicated mobile shopping applications for iPhone and Android phones.
But how many consumers are using their mobile phones for shopping-related activities? Our Technographics® research shows that about 6% of cell phone owners have used a shopping application. Dedicated shopping applications that allow consumers to research and purchase products directly from their phones, like the ones from Amazon.com or Domino's Pizza, drive uptake and usage.
It is tempting for retailers to use this technology solely for marketing purposes; however, organizations should focus on services that enhance the customer's multichannel experience. Balancing informative notifications with marketing offers will build trust with customers and lead to better acceptance, as well as higher uptake.
During the past 24 months, the industry has seen an explosion of activity and development on the new generation of Android and Apple mobile phones and most recently tablets. In the report 'Mobile App Internet Recasts The Software And Services Landscape' Forrester estimates that the revenue from paid applications on smartphones and tablets was $2.2 billion worldwide for 2010.
With all this activity and excitement, enterprises are jumping on the app bandwagon to reach customers and bolster the brand. Forrester’s Forrsights Software Survey, Q4 2010 shows that IT is stepping up its mobile app plans. Forty-one percent of the 2,124 North American and European software decision-makers surveyed in October 2010 said that increasing the number of mobile applications for employees, customers, and business partners was a high or critical software priority:
However, this will not come easy to IT departments. One of the issues Forrester sees is support: Given the rate of innovation at both the application and device/operating system levels, IT likely has to support three to four releases per year. This rate of change will tax a whole range of IT processes from project management to release management and testing. IT organizations should look for external help to build a platform to support their companies’ mobile plans.
Late last night the market research vendor landscape became a little more consolidated with the announcement that e-Rewards reached an agreement to acquireConversition Strategies. This is not the first, nor probably the last, move that e-Rewards will take in growing a versatile offering in the market research industry. In 2009, e-Rewards, acquired UK-based online panel provider Research Now, which allowed it to become an online panel provider with global reach. And in 2010 e-Rewards acquired Peanut Labs, which enhanced its panel by offering a social media specialty sample that is recruited and surveyed through social and gaming networks. The acquisition of the Conversition platform EvoListen will allow e-Rewards’ clients to listen and analyze, in a market researcher’s terms, what consumers are saying on social media.
This announcement is significant for the market research industry because it: