Next week, on February 28, I will speak at the ESOMAR Insights Conference in Brussels on 'The Evolving Online Consumer' and I'm currently organizing my thoughts around this topic. Looking at the uptake of the Internet globally, the numbers are impressive: In the past five years, the global Internet population has grown from about 1 billion to 1.6 billion, and this growth isn't about to stop any time soon. The Internet population will increase in every country in the world over the next five years, but emerging markets will grow at a faster pace. In 2014, one-third of Internet users will come from Brazil, Russia, India, or China (the so-called BRIC countries).
Companies that want to capture this growing number of online users — and their growing funds spent online — will need to look beyond the markets of North America and Europe and approach their online strategies much more globally. But emerging markets don’t just offer a lot of opportunities; there are also many challenges to consider. On top of the needs and wants of the consumers in the different countries, their online behaviors, and the way they are being influenced (and are influencing others) in their purchase decisions, companies need to understand the social and economic business environments.
The democratization of technology has arrived. New IT servicing models like cloud combined with improved user experiences make it easier for non-technical employees to download and install technology services. This phenomenon will only accelerate as these workers bring high expectations into the workplace from their experience with cloud-based services like Facebook and universal providers that allow access from any device.
Forrester's Forrsights Workforce Employee Survey, Q3 2010 shows that the consumerization of the enterprise is not always driven by a lack of collaboration of the IT department, only 8% of business technology users feel that their IT department is either clueless or a hinder. But the majority take things into their own control because they feel that IT is either too busy or they are restricted by corporate policies:
Cloud-based personal and professional services will liberate the individual from device and place, and set the bar higher for workplace IT. Today already 47% of business technology users at North American and European companies report using one or more website(s) to do parts of their jobs that are not sanctioned by their IT department. We expect this number to grow to close to 60% in 2011 as frustrated workers work around IT to self-provision technology.
The most important finding was that for almost two-thirds of the brands in our study, their customer experience ranges from just “OK” to “very poor”. In fact, 35% of scores fell into the undifferentiated “OK” range — our most heavily populated bracket and not a good place to be if you want your brand to stand out from competitors. Only 6% of firms ended up in the “excellent” category, down from 10% of the brands in last year’s report.
What this tells us is that mediocre-to-bad customer experience is the norm, and great customer experience is really hard to find. But why does this matter? Because the old adage “A customer who gets good service will tell one person, yet a customer who gets bad service will tell 10 people” is very true. Another Forrester study shows that about one in three financial customers with a bad experience tells her friends, about one in five recommends that her friends avoid that given company, and one in 10 reduces their value of her accounts.
It’s a great pleasure to announce that Forrester has launched an online community for Market Insights Professionals today. This community will focus on the key business challenges that Market Insights Professionals face every day. The community is a place for Market Insights Professionals to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will be part of the community, helping facilitate the discussions and sharing their views, but it will be mainly your peers who post discussion topics and share their success stories, lessons learned, and best practices.
The community is open to all Market Insights Professionals, whether you’re a Forrester client or not. Join Market Insights professionals from companies like for example Verizon, Research in Motion, The Hearst Corp., Premera Blue Cross, and Tivo and see what your peers have to say on current discussion topics like:
With tablet sales projected to grow from 10.3 million in 2010 to 44 million in 2015, we wanted to understand what will be fueling this growth. Since 18- to 24-year-olds will be the ones growing up accustomed to this technology, we honed in on this demographic to see what it is about the tablets that excites them the most. Our Technographics® data shows that they want a tablet for a variety of reasons, but what they are most attracted to is its portability, and they are much more driven than US online consumers in general by its “fun factor.”
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: