It’s no secret that mobile digital wallet technology is faring better in the US than in the UK; here in Boston, I use my LevelUp app at more than half of the retailers I visit (the app tells me I’ve visited one vendor 122 times!). However, only a few providers — including PayPal InStore, V.me by Visa, and Paydiant — are serving UK consumers. (Will Amazon be next?)
To understand the popularity gap for mobile digital wallet technology between the US and the UK, Forrester leveraged its Technographics® 360 research approach to get a holistic view of consumers. By analyzing data from our European Technographics Retail Survey, 2013, UK ConsumerVoices Market Research Online Community, and UK Consumer Technographics Behavioral Study, November 2013 to March 2014, we evaluated desired features, strongest barriers, and current behavior associated with mobile digital wallet usage across UK consumers.
Our data shows that security is still a major concern among UK consumers, but the features they want in a mobile digital wallet are associated with an improved customer experience: These features make the purchase process more organized and convenient for customers, while also helping them save money along the way:
With 44% of all retail sales in Europe set to be offline sales that are influenced by the Web in 2018, it's not surprising that online display advertising spend in Europe will grow more than three times faster than total advertising spend over the next five years. Forrester's Online Display Advertising Forecast shows that online display advertising will continue to cannibalize advertising spend via other channels.
Firms are increasingly using video and rich media to engage, entertain, and attract the attention of online users and to enrich their brand storytelling. The growth of mobile device adoption and usage is also changing the way that users consume content:
1.Video: Google recently stated that video had entered a fourth dimension, incorporating sight, sound, motion, and interactivity to win the hearts and minds of video viewers. With more than 100 hours of video uploaded to YouTube every minute, Google has created YouTubeNation to curate video content and grow video audiences, especially among those ages 18 to 30.
Last week, two news items captured the front-page headlines of the Indian financial newspapers. The first was an announcement by Flipkart on July 29 that it has raised fresh capital of $1 billion in one of the largest funding rounds. The second was an announcement by Amazon on July 30 that it will invest another $2 billion in India. These numbers appeared large to us when seen in the context of overall online retail sales in India. As per the Forrester Asia Pacific online retail forecast published in early October 2013, India’s online retail spending was expected to reach $2 billion by the end of 2013. We believe that the pace of eCommerce in India picked up faster than our expectations during the past 12 months and these companies would have witnessed very strong growth. According to Amazon, at current scale and growth rates, India is on track to become the fastest country ever to reach $1 billion in gross sales. It is important to note that Amazon launched India operations in June 2013 only.
These events raised many interesting research questions for us. We will try to address them as we work toward updating our APAC online retail forecast for the years 2014 to 2019. The two most important questions relate to the number of online buyers in India and the mobile commerce opportunity in India.
The tide is turning on privacy. Since the earliest days of the World Wide Web, there has been an increasing sense that the Internet would effectively kill privacy – and in the wake of the NSA PRISM program revelations, that sentiment was stronger than ever. However, by using our Forrester’s Technographics 360 methodology, which blends multiple qualitative and quantitative data sources, we found that attitudes on privacy are evolving: Consumers are beginning to shift from a state of apathy and resignation to caution and empowerment.
In our recently published report, we integrate Forrester's Consumer Technographics® survey data, ConsumerVoices Market Research Online Community qualitative insight, and social listening data to provide a holistic view of the changes in consumer perceptions and expectations of data privacy. In the past year, individuals have 1) become much more aware about the ways in which organizations collect, use, and share personal data and 2) have started to change their online behavior in response:
At the root of human behavior is the impulse for connection. History is our witness: As times change, certain trends emerge that anchor shared experiences, around which people collectively rally. Today, with social media acting as a platform for ubiquitous connections, diverse consumers build solidarity around digital experiences. Beyond simply looking for deals and discounts, individuals who “friend,” “follow,” and “like” brands seek closer brand relationships.
However, while consumers around the world want to be part of a brand community, some cultures are more enthusiastic than others. Forrester's Consumer Technographics® data shows that Latin American online adults are more passionate about engaging with brands for affective reasons than their European and Japanese counterparts:
This variation roughly parallels Hofstede’s dimensions of culture, which suggests that the differences are partially a reflection of cultural nuances: Those populations that are most motivated to share in the brand community are all-around collectivist rather than individualist.
I recently “overheard” a member of our market research online community (MROC) say, “I treat my smartphone like my child and carry it everywhere I go.” It’s official: Smartphones have replaced children. Not really, but the statement speaks to the way that consumers have changed their thinking and behavior because of mobile devices. The rapid adoption and dominant presence of mobile devices speaks to their importance in consumers' daily lives.
As part of our effort to develop forward-thinking research using innovative approaches, Forrester is collecting behavioral data by tracking consumers' activities on smartphones and tablets. By using a passive tracking technology, we now have a detailed, inside look into what consumers are doing on their smartphones and tablets and when they're doing it. Preliminary results have shown some surprising (and not so surprising) data insights.
The age of the customer coupled with the onset of the Patient Protection and Affordable Care Act (a.k.a. "Obamacare") means that many new customers will enter the US health insurance market. One outcome of the legislation is an opportunity for health insurance marketers to acquire new customers and engage existing customers — and Forrester wants to help them seize this moment. As such, we have created a consumer healthcare segmentation to identify unique groups of US consumers as well as their healthcare needs and attitudes to help health insurance marketers target new customers, engage existing customers, and innovate exciting healthcare tools and programs.
Our report, “Introducing Forrester’s Consumer Healthcare Segmentation,” explains each segment and how to attract or engage them. The segmentation includes both insured and uninsured consumers, representing the entire US online adult population. The graphic below shows each of the segments and their relative size.
Some highlights from the report, which is based on a survey of more than 4,500 US online consumers:
Fitness Trackers are young and love to use wearable devices; in fact, everyone in this segment uses one. The majority agree that that their health and wellness are priorities for them and they try to eat a healthy diet, but close to half believe that they are so healthy that they don’t need health insurance.
Recently, I’ve been on the go: I’ve just returned from a two-week sprint that took me to five different cities by plane, train, and car. Any frequent traveler is familiar with the logistical challenges that make multimode transport inconvenient – whether it's dashing between connecting flights or strategizing a taxi pickup to catch the train, switching between methods of transportation can make for a trying, disjointed journey overall.
As I settled into one flight by turning off my mobile phone and opening my laptop, it dawned on me that our path through the fragmented digital world is similar to my multiphase journey. As our physical location changes and as we realize the limitations of certain device experiences, we reach for various devices to carry out the task at hand – often, we complete one activity sequentially across screens and expect a seamless experience.
In fact, Forrester's Consumer Technographics® data shows that more than half of US online adults who begin tasks on their mobile phone continue them on their laptop. These consumers are most frequently purchasing products, checking emails, and researching items:
From Time Warner and Comcast to AT&T and DirecTV, corporate mergers appear to be the latest tactic in winning the battle for market share and driving innovation. From a business perspective, the strategic advantages of such mergers may be clear — but what do these changes look like from the consumer’s viewpoint? To understand consumer reaction to the latest series of merger announcements, Forrester leveraged its Technographics360 approach of linking multiple data sources to give a holistic view of consumers. Specifically, we tuned into online chatter with our social listening platform and engaged our ConsumerVoices market research online community for this analysis.
According to the data, consumers associate mergers with increased costs, fewer opportunities for choice, and decreased product and service quality. While a few individuals appreciate the potential for innovation that mergers might afford, the prevailing sentiment is uncertainty:
The fact that individuals are wary of these corporate mergers partially stems from the timeless truism that “people are afraid of change.” To mainstream consumers, a large merger suggests a loss of customer control and greater uncertainty; according to the Harvard Business Review, these are the top two qualities that underpin a fear of change.
In her recent report, my colleague Reineke Reitsma revealed that European consumers interact with a diverse suite of social networking sites, with Facebook and YouTube leading in terms of consumer engagement. Pinterest, however, is an outlier: European consumers demonstrate minimal interaction with Pinterest compared with both other social media sites and their US peers. According to Forrester’s Consumer Technographics® data, 18% of US online adults regularly visit the website but only 2% of European online adults across the UK, France, Germany, Italy, and Spain visit Pinterest once a month or more: