His big takeaway is that consumers are still much more likely to provide feedback directly to companies through more traditional channels (like surveys, phone calls, email, and postal mail) than provide feedback through social channels. More specifically, 71% of US consumers who had unsatisfactory service interactions in the past 12 months provided feedback through at least one traditional channel (including email), while only 16% provided feedback through any of the social channels we asked about.
Despite the buzz around social media, this data shows that the majority of customer feedback comes directly to companies via surveys, phone, and email. Organizations should implement sophisticated voice-of-the-customer programs that use text analytics and other technologies to mine this information to better understand customers' needs and the issues they're dealing with, identify best practices, and come up with improvements whenever possible.
In recent years, there has been an increase in the number of US-based companies entering or planning to enter into the Mexican market. For example, Best Buy has rolled out an aggressive plan to invest $400 million to open 20 stores in Mexico over a three-year period. Lowe’s announced earlier this year that it spent roughly $40 million to open two stores in Monterrey, Mexico. And Target is setting its sights on expanding into Mexico, with goals to enter into the market no later than 2013.
Without question, there are many challenges with entering into a new market, such as understanding the country and cultural norms that influence shopping habits, determining how to transfer and modify successful strategies of a winning brand in one country to another, and understanding what the current size of the new market is as well as its growth potential. However, despite these hurdles, my colleague Tamara Barber and I contend that US-based retailers can use the factors that influenced the growth of the US Hispanic eCommerce market as a guide for developing effective growth strategies in Mexico.
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. However, the future growth isn't equally spread across regions. Forrester's ForecastView model shows that 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).
The sheer number of online buyers and the increased online spending per capita will position several emerging markets to challenge North America and Europe from an eCommerce perspective. 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.
Having analyzed consumers' technology behavior for more than 11 years now here at Forrester, I've seen a certain pattern surface in the uptake of technology: When new technologies become available, it's Generation X (ages 31 to 44) that adopts it first, but it's Generation Y (ages 18-30) that runs with it. Gen Xers have money to spend on technologies when they're still premium-priced, but Gen Yers have the time on their hands to really explore all possibilities. For example, when we look at online activities, young consumers spend more time online and are involved in more activities (especially when we look at social networking). However, for mobile Internet, we see a different pattern emerge.
Forrester's Technographics® data shows that Gen Xers are equally active on their mobile phones, and in some instances, like playing games, they rival the usage of their younger counterparts. In other instances, like checking news, sports, or weather or checking travel status, Gen Xers actually outpace Gen Yers.
Companies that want to target these groups should ensure that their mobile Internet experience is consistent with the regular Internet presence, ensuring a seamless experience for their consumers. The Mandarin Oriental Hotel Group is a perfect example of a company that identified the mobile needs of its clientele and then created a unique experience that allowed users to effortlessly connect both through their mobile device and online.
Last week I was at Forrester's Consumer Forum in Chicago, where I gave a presentation with the title “If The Company Only Knew What The Company Knows: Introduction Of A Knowledge Center Can Empower Market Research Professionals.” For this presentation I did quite a lot of research and talked to many market researchers who have implemented some kind of knowledge management system. Knowledge management systems come in all kinds of flavors and with varying degrees of success, but the market researchers who managed to build a successful, engaging, and widely used system all agreed that it had changed their role.
In fact, the companies we spoke to all saw their knowledge management as a competitive advantage. Although we found a number of market researchers willing to participate in our research, none of them wanted to share all the ins and outs. In keeping with the theme, they said, "We don’t want others to know what we know."
But how can market researchers introduce knowledge management to their organizations? Based on our research, we see three different levels:
Build a research center of excellence within the department.
Implement a system for sharing and distributing (research) information with the organization.
Develop a companywide knowledge management system.
Ever wondered how consumers in emerging markets feel about online security? Forrester Technographics® tracks this kind of information in 17 countries worldwide, including China, India, Brazil, and Mexico. We found, for example, that in Latin America there are huge differences between Mexico and Brazil: 65% of Mexican PC owners are concerned that their PCs will become infected with malware, compared with 48% of Brazilians. However, Brazilian PC owners are much more hesitant to share any information online. Ninety-three percent of Mexican PC owners and 95% of Brazilian PC owners use some form of security measure on their home PCs.
Although Mexican PC owners are more concerned about malware and are more likely to share personal details online, they do less to protect themselves than Brazilian PC owners: They’re significantly less likely to install a pop-up blocker, spam filter, or antispyware. My colleague Roxie Strohmenger has published other posts on how Latin American consumers feel about technology, and how Brazilian and Mexican consumers show different interests and behaviors. You can check them out here.
Social media has forever changed the way travelers interact with each other and companies — and its use is still growing. Forrester Technographics® data shows that 26 million more US online leisure travelers use social media in 2010 than in 2008. In fact, leisure travelers are really connected to travel companies beyond booking: A high 41% of US online leisure travelers have become travel social fans (TSFs) by friending, following, or becoming fans of a travel company or destination on a social networking site like Facebook, YouTube, Flickr, or Twitter. But why do they do this?
As the data shows, discounts are a powerful motivator. One in three friends, follows, or fans travel companies and destinations to learn about the seller's offers and discounts. As a result, smart travel organizations will start using social networking sites as extensions of their Web sites for travel deals. Travelocity, for example, has a 'roaming gnome' on its Facebook page that offers and promotes the company’s "Deals Toolkit." JetBlue Airways has a dedicated Twitter account, @JetBlueCheeps, to push special deals. Who will follow with the holiday season coming up?
With the adoption of more and more devices that can connect to Wi-Fi, it’s interesting to understand the uptake of home networks. Forrester's Technographics® data shows that 30% of online Europeans have already set up a wireless home network, and a further 11% are planning to get one in the next six months. The adoption of wireless home networks has grown in Europe since 2006, while the adoption of wired networks is declining (dropping from 12% in 2006 to 6% in 2009).
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 especially 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.
You might be wondering why this post has nothing to do with Latin American consumers. Well, in addition to my Latin American research, enterprise feedback management (EFM) is a new and exciting coverage area that I will be addressing to help market research (MR) professionals. My goal is to assist you in finding the right tools and processes that will aid you in making sense of all the copious amounts of information that is collected from all parts of your company regarding consumers and synthesize them into coherent, actionable solutions.
What is EFM? Right now it means several things. From the viewpoint of a customer experience (CXP) professional, it is a tool that can be used to assist in developing a systematic approach for incorporating the needs of one’s customers into the design of better customer experiences, or what we call at Forrester voice of the customer (VoC) programs. My colleague Andrew McInnes will be covering EFM, as well, but from the perspective of how CXP professionals can utilize these tools.
For a market research professional, it is also used as a tool, but is not specific to solely collecting customer experience feedback. I see it as an advantage in two main ways.
The concept of traditional TV watching needs to be redefined. The TV has evolved from a passive device with a single content source to a simple, large-display screen on which numerous activities come together. In the past, consumers had a TV device (typically the set-top box), a movie device (typically the DVD player), and possibly a gaming device connected to the TV. But now, the game console streams movies, the set-top box records TV, and the PC does everything. The next step is connected TVs — HDTVs that incorporate a direct connection to the Internet, whether wired or wireless.
Connected TVs are a big deal to manufacturers, but Forrester Technographics® data found that consumers are struggling to understand the benefits. One of the challenges that manufacturers of these TVs face is that when viewers are in "TV mode," they seem unable to imagine doing anything with these TVs other than watching more TV. When questioned, people appear to want one thing: more video. The top responses focus on getting access to well-known sources of TV shows and movies like Netflix, Blockbuster, or regular broadcast and cable networks, both for men and women.