With the increasing uptake of technology and online shopping, consumers are getting more comfortable using technology in the store, as well. Data from our North American Technographics® Retail Online Survey shows that consumers like to be informed while they are shopping — they want to be able to access product information instantaneously, and they want to be more independent shoppers (without the help of sales personnel).
The items at the top of the list are those that allow consumers to find product information quickly — with majority of respondents reporting that they found in-store price scanning and computer kiosks valuable (84% and 66%, respectively). The fact that self-checkouts were the second most valuable in-store technology exemplifies how consumers want to be more independent while shopping: It shows that they are willing to take on that responsibility themselves in order to get in and out of the stores quickly.
As my colleagues in our team can attest, I get giddy when I talk about all the cool, emerging, and innovative methods that market research professionals can use — whether it be how biometric techniques helped the Campbell Soup Company understand how consumers respond to marketing and advertising in order to redesign its soup-can logo, or when Nokia used mobile research methods as a way to understand what emotional constructs influence a consumer’s “love and admiration” for a brand. All in all, it is great to see technology starting to make a significant impact on how we collect richer insights about consumers.
To help market research professionals understand what innovative research techniques are out there, I am launching a report series this year that will cover some of these innovative methods. To kick off the series, I have focused on prediction markets. Why? Because I see this extremely underutilized method as a valuable tool in the long, expensive, and arduous process of product and concept testing.
Companies are faced with the following daunting facts:
Over 25,000 new consumer products skus are introduced annually in North America with only half of these new product launches considered successful at launch.
For every seven product ideas that are created, typically only one succeeds in the market.
An estimated 46% of all resources allocated to product development and commercialization is spent on products that are cancelled or that fail to yield an adequate financial return.
A recent Forrester report, Consumers Toe-Dip In Health-Related Social Media, by my colleague Liz Boehm got me scrolling through Forrester's latest Healthcare and Communications Technographics® Online Survey. There was a lot of interesting information in there, but the data point that caught my eye was the following: only 30% of US online adults have not been diagnosed with any disease or medical condition. The top 10 show a wide range of illnesses, from conditions like allergies to very severe diseases like depressions or diabetes.
Age is the main driver for this: About half of 18- to 24-year-olds have some kind of condition, while this is 94% for online Seniors (65 and older).
Why is this interesting for market researchers and marketing professionals? Because many of these people are using technology to manage and control their disease: they are using the Internet to research their condition, about half engage with their health insurer online, one in ten use text messages and email to get reminded to take their medication, and about 5% use health-related apps on their mobile to control their prescription, as well as monitor their behaviors. Understanding who these consumers are, and linking this with information collected via sites like America's Health Rankings, helps companies prioritize their service offerings.
And with the new year, we're implementing a change. In the past months the Data Digest was always based on Forrester's global Consumer Technographics® data. From now on, once a month we'll highlight data from Forrester Forrsights for Business Technology (formerly named Business Data Services).*
In the past year we've looked a number of times at consumers' mobile Internet behaviors and attitudes. But how do enterprises feel about mobile Internet? And which operating systems do they support. My colleague Michele Pelino recently published a report called 'Managing Mobile Complexity' covering these — and many other — questions.
From an enterprise perspective, BlackBerry (RIM) tops the list big time — seven out of 10 enterprises in the US and Europe support this operating system — followed by Microsoft Windows and the Apple iPhone.
But it is important to recognize how quickly enterprise support of new types of mobile device operating systems, particularly those used in Apple iPhones and Android smartphones, has risen in the past year. For example, in 2010, approximately 30% of surveyed enterprises officially support and manage Apple iPhone devices, up from 21% in 2009. We have seen an even larger year-over-year jump in the percentage of enterprises supporting Android devices from Google, Motorola's Droid, Sprint's HTC EVO 4G, and others.
As some of you might know, I'm quite an active twitterer. Earlier this month, there was a lot of discussion on Twitter about how unique we all were. Why? Because only a very small percentage of people actually tweet regularly. Forrester's Technographics® data shows that only 11% of US online consumers tweet monthly, while more than 84% say that they never tweet.
So who are these “tweeps,” and why are they so attractive to marketers? As one would assume, people who tweet monthly or more display many characteristics of early adopters: They are more educated, more likely to own a smartphone, more likely to be male, and more likely to have a higher income.
What really makes them unique, and at the same time very interesting for marketers, are their attitudes:
Recently, deal-of-the-day Web site Groupon got a lot of attention because of Google’s interest in its business. We understand that there are a few attractive pieces to the Groupon story — it’s theoretically a very lucrative business model. My colleague Sucharita Mulpuru commented on this at the end of November with a post highlighting the business opportunities of deal-of-the-day sites. What I was interested in was the customer side: Who is actually using these sites?
Our Technographics® data shows that the majority of US online consumers aren’t familiar with deal-of-the-day sites like Groupon or Living Social, and another 25% haven't used them yet.
Looking at these numbers, you could say that there's quite some opportunity for growth. However, the current users have quite a unique profile: The 3% of US consumers who frequently use deal-of-the-day sites have a lot of money to spend (about half of them report having an average household income of $100K or more), and they expect to spend more money online this year than last year. They are twice as likely to be influenced by what's hot and what's not, two-thirds are willing to try new things, and 62% agree that they often change their mind about which brand to buy after doing some research — making them the ideal target audience for deal-of-the-day sites.
It’s the time of year again, in which we tend to look back at what has been, and look forward to what will happen. Looking at this from a professional angle, 2010 was a very interesting year for the industry: research vendors bounced back from the recession, there was an increased focus on added value, and we saw a lot of innovation happening. In our report Predictions 2011: What Will Happen In Market Research, my team and I have identified a number of trends that we expect to shape market research in 2011.
Organization, technology, and social are defining the research agenda in 2011. In fact, in 2011 market researchers need to embrace social media as an information source, recognize technology as a driver of change while understanding how to implement it effectively, and continue to identify and integrate innovative methodologies to prepare for the future ahead. This will drive, for example, the following trends:
Forrester’s Technographics® shows that online European consumers have lost their trust in traditional media as an information source. A low 30% of online Europeans state that they trust the TV as an information source. The traditional media that Europeans see as most trustworthy are radio and newspapers. About one-third agree that they trust newspapers as an information source. Funnily enough, this number varies significantly across European countries: 45% of French Internet users trust newspapers as an information source — a number that is almost three times as high as the 16% quoted by their UK counterparts!
In fact, consumers trust consumer reviews and price comparison Web sites more than manufacturers' Web sites. But what does this trust mean? How influential are consumer reviews in the purchasing process? About one in 10 online consumers takes consumer reviews specifically into consideration when making a major purchase. Information sources that influence them most in the purchasing process are going to the shop (34%), talking with family and friends (24%), and the retailer’s Web site (13%). And although we see some differences in the percentages reported by country, these top three are the same everywhere.
Location-based social networks (LBSNs), apps that are downloaded on a mobile phone, offer organizations a possibility of right-time, right-place marketing by connecting people and nearby points of sale with geotargeted media. Forrester's Technographics® data shows that only 4% of US online adults have ever used location-based social networks, such as FourSquare and Brightkite, on their mobile phones, with only 1% using them more than once a week. Although the uptake is limited to a small group, this doesn't mean that LBSNs are not useful.
Looking at the profile of location-based app users, we see that they are:
Influential.Geolocation users are 38% more likely than the average US online adult to say that friends and family ask their opinions before making a purchase decision.
An interesting target group.They are typically young adult males with college degrees.
Heavy mobile researchers.They are also far more likely to search for information about businesses and products, as well as read customer ratings/reviews of products and services
Many people consume content from multiple media channels simultaneously (see for example this recent post on European youth), but does the content they’re looking at actually overlap? We looked into our Technographics® data to see what consumers are doing on their computers while watching a TV show and we found that the top four activities have nothing to do with what they are watching.
Because consumers are using their PC for activities that require more attention than watching TV – which is mostly a passive activity — it’s questionable how much of the TV content they are even registering. Almost one-third of consumers are playing games on their computers while watching television, and one-quarter are doing schoolwork. Has the TV just become background noise?
We also see that 44% of consumers are communicating with friends via social networks, chat, and email on topics that are not related to the show. So consumers are interested in content online, but not necessarily in parallel with the broadcasting of a show. Market researchers need to develop a research plan that helps companies understand how and when consumers watch TV, and when they are checking out online content related to the company's products or brand, in order to build a marketing strategy that reinforces the message across channels.