The Data Digest: Technology And New Year's Resolutions

Reineke Reitsma

At this time of the year, many people make resolutions — and many of these are health-related: quit smoking, exercise more, or eat healthier. As anyone who has ever made one of these resolutions knows, it's really hard to make a change. But there’s plenty of technology out there that can help track your progress and give you a bit of support.

Forrester’s Technographics® data shows that about one-third of US online smartphone owners use their phone for healthcare-related activities, ranging from tracking what they eat to text alerts about medication:

However, using technology to track your health hasn’t reached the mainstream yet. In fact, many consumers don’t consider this to be very appealing. Recently, my colleague Lindsey Colella hosted a project in Forrester’s market research online community to better understand the relationship between technology and health. In her report 'Digital Health Management Needs A Makeover To Broaden Its Consumer Appeal', she shows that the average consumer is skeptical about health-tracking technologies. Our respondents believe that using technology to track your health is either for people with a chronic disease or people who are obsessed with their health. Most of them prefer to rely on their doctor for guidance instead.

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“The State Of Consumers And Technology: Benchmark 2012, US” Shows How Consumers Connect

Gina Fleming

I am delighted to announce that our annual report on The State Of Consumers And Technology: Benchmark 2012, US is now available. This report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for understanding how consumers have changed over the years. For those of you who aren't familiar with our benchmark report, it's based on Forrester's annual Technographics® online benchmark survey that we've been fielding since 1998 and for which we interview close to 60,000 US online adults. The report covers a wide range of topics, such as online activities, device ownership — including penetration data and forecasts for smartphones and tablets — media consumption, retail, social media, and a deep dive on mobile.

We analyze our findings through a generational lens, including Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation. Age is a key factor behind consumers’ usage of and attitudes toward technology. However, one finding spans the generations: Consumers of all ages embrace the opportunity to find information and connect with people and brands wherever they are. And while online penetration in the US remains the same as a year ago — at 79% of all adults — the depth of Internet usage has grown; more consumers go online on a daily basis and they connect on more devices. The graphic below illustrates our point: US smartphone owners use their device almost everywhere. They aren’t just connecting at home but wherever they go; in fact, they’re more likely to access the Internet on their phone in a store than in their own kitchen.

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The Data Digest: Uptake Of Mobile Messaging In Europe

Reineke Reitsma

This week, there was a lot of blogging and commenting around Facebook possibly acquiring mobile messaging company WhatsApp. And although WhatsApp quickly denied that Facebook acquisition talks were happening, I still really enjoyed all the analysis shared by the different technology blogs on why this would be an interesting deal. Many of these mentioned the differences between adoption of Facebook Messenger and WhatsApp in Europe versus in the US.

In fact, the news got me wondering to what extent consumers use mobile messaging at the moment. Forrester’s European Technographics® Consumer Technology Online Survey, Q4 2012 shows that just over one in 10 online European adults (16+) use mobile messaging (e.g., WhatsApp, Skype, or Viber), and this rises to 21% for European smartphone owners. Further analysis shows that usage is very much driven by age:

 

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The Data Digest: The Information Sources That US Online Holiday Shoppers Use

Reineke Reitsma

In the recently published report “US Online Holiday Retail Forecast, 2012” Forrester estimates that US holiday season online retail sales will grow 15% from 2011 to 2012. While the number of US online holiday shoppers is expected to grow very little compared with last year, the average US online shopper will spend about 12% more than last year. But, as my colleague Sucharita Mulpuru shares in her blog on this topic, consumers are harder to impress this year. Satisfying the expectations of online shoppers during the holiday season is crucial to the Q4 success of retailers.

What kind of information sources are US online shoppers using most when considering products for purchase? Forrester's North American Technographics® Retail Online Benchmark Recontact Survey, Q3 2012 (US) shows that easy access to shipping costs is extremely important, followed by product ratings and reviews from other customers, and product information from retailers.

This holiday season, consumers are more likely than ever to visit a website before buying gifts; in fact, it will be the channel of choice for many. Retailers already go big on promotions, but if they don't have their basics in order — such as search, navigation, and checkout — customers will quickly move on to a competitor to find that great deal.

Our World Is Already A Mobile World, But Is Your Research Mobile?

Roxana Strohmenger

At Forrester, we believe that 2012 is an inflection point for mobile market research. Specifically, 2012 will be considered the “big bang” for a new era in market research — one in which mobile devices will become a critical vehicle to connect, engage, and subsequently understand the consumer. As such, we have recently published two reports that address this very important emerging methodology for Market Insights (MI) Professionals.

The first report, entitled “The Mobile Market Research Landscape 2012,” explains why mobile research will become the heart of market research. Although only a fraction of MI Professionals are currently leveraging mobile, the report reviews the reasons why mobile is here to stay and the advantages of leveraging this approach — such as the ability to capture real-time insights, gain access to hard-to-reach sample, or get more personal with respondents. In addition, given the opportunities to collect different types of data via mobile phones, we provide an overview of the quantitative, qualitative, and behavioral approaches currently available. And, no overview report is complete without a discussion of the current challenges that still face mobile research, such as security and privacy, and our recommendations for what MI professionals need to do to prepare for this shift to this new world.

The second report, entitled “How To Plan For Mobile Online Survey Takers,” addresses a growing issue not often discussed among MI Professionals — the increase of what we call mobile online survey takers. We define this group as:

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Learning The ABCs Of Storytelling — Focus On The Conflict

Roxana Strohmenger

I am now back from attending this year’s The Market Research Event (TMRE) in beautiful Boca Raton, Florida. As always, TMRE produced a content-packed program that addressed a multitude of different topics, ranging from mobile and technology to shopper insights to ROI and measurement and even data analytics and big data. While I attended my fair share of talks focused on emerging and innovative methodologies, I was really interested in the consultative skill development track. This was a track that focused on discussing what client-side Market Insights (MI) Professionals have learned are the best practices for storytelling and data visualization.

One of the talks that I really enjoyed was by Brett Townsend of PepsiCo, whose talk title was aptly named “Treat Your Clients Like Your Kids — Tell Them A Story.” While this isn’t a new idea for MI Professionals — and he discussed well-known takeaways such as “If we can’t tell a story in 20 minutes, then you don’t have a story to tell” — one comment really struck me: Conflict is the engine that drives the story. Our primary goal as MI Professionals is to understand the conflict that consumers are experiencing in their daily lives and to understand what that means to the company or brand.

To focus on the conflict, Brett broke down the story-building process as if we were in the movie business and we were writers writing a script. For each project you work on, you need to understand the following factors:

·         Who is the hero? For our purposes, it will always be the consumer.

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The Data Digest: Profiling Chinese Luxury Shoppers

Reineke Reitsma

One of my responsibilities at Forrester is editing our Technographics® research deliverables globally. In recent years, we have regularly published reports on consumer behaviors in emerging markets, including the BRIC countries. One aspect of this global data really intrigues me: the success of luxury brands and the profile of luxury goods buyers in these markets.

China has emerged as one of the world's largest luxury goods markets: According to the World Luxury Association, shoppers from Japan represent 29% of the world market share of luxury goods sales; China, 27%; Europe, 18%; and the US, just 14%.

How are Chinese luxury goods buyers different from their non-luxury goods buyer counterparts? Forrester's Technographics® data shows that Chinese luxury goods buyers are similar in terms of age and gender to non-luxury buyers, but they tend to have higher incomes. However, they differ significantly with regards to lifestyle and social attitudes.

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Ninety Percent Of The Online Population Will Regularly Watch Online Video By 2017

Michael O'Grady

The music industry in Europe has had a traumatic time, losing more than 31% of its revenue in the past five years to piracy. Given the increasing digitalization of content in the music, video, gaming, and newspaper industries, our recently published Forrester Research Online Paid Content Forecast, 2012 To 2017 (EU-7) maps content’s evolution from an audience, payer, and revenue perspective for each of these categories and for each of seven European countries. Here are some high-level results for the four categories:

Music.With more than 35% of music revenues in Europe coming from digital, spending on physical music will soon be overtaken by its digital counterpart. Although digital music use in Europe still lags behind the US (where digital revenues exceeded physical revenues for the first time in 2012), Forrester found that more than 50% of online Europeans already listen to online music regularly.

Video.Video is the fastest-growing digital content category; we forecast that more than 90% of the online population will regularly watch online video by 2017. Online video audience penetrations will rise significantly as video on demand, pay per view, and catchup TV become mainstream. And with pay-TV penetrations in the EU-7 nations considerably lower than in the US, there’s more scope for paid online video to grow.

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The Data Digest: Magazine Readership On Digital Devices

Reineke Reitsma

This week the news broke that Newsweek, one of the most recognized magazine brands in the world, will cease publishing its print edition after nearly 80 years and go all digital in 2013. The news got quite a bit of attention globally — it even made it into the printed edition of a Dutch newspaper. Of course, this didn’t come as a complete surprise, and Forrester has published enough about digital disruption and the media meltdown to know that newspapers and magazines have to change their strategy.

But the news got me wondering to what extent consumers use their digital devices for media consumption at this moment. Forrester’s North American Technographics® Media And Advertising Online Benchmark Survey, Q3 2012 (US) shows that about one-fifth of US online adults consume magazine content digitally, meaning they visit magazine websites or read digital publications.

This is lower than for newspapers, where about one-third of the US online population reads newspapers digitally — and 14% digital only (compared with 5% for magazines). Those who read digital magazines only are far more likely to be male, the average age skews younger than 35 years old, and only one-quarter of them regularly spend money on magazines.

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Navigating How To Win With US Banking Customers

Gina Fleming

Recently, Forrester released a report entitled “What Drives Retention and Sales In US Banking?” that tackles this question from the consumer point of view. Using regression analysis, we uncover how these drivers vary for acquisition, retention, and cross-selling in US retail banking.

What did we find? For one thing, consumers value trustworthiness from a bank above all else for both sales and retention. This comes as no surprise to us; with so many financial institutions to choose from, consumers want to do business with a bank that they trust. This finding also supports the key theme that Harley Manning and Kerry Bodine focus on in their recent book, Outside In: Treating your customers well and providing them with a positive customer experience pays off.

The graphic below shows the drivers of retention for the US retail banking customers: The perception of trustworthiness is off the charts as a driver of retention, and offering good customer service is the second-most influential driver. What our analysis shows to not impact retention — and even shows a negative relationship with retention — is having low APR and many locations.

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