Smartphones have changed consumer' shopping behavior significantly. Our Technographics data shows that almost one-third of consumers are using their phones to locate a store nearby to find a specific product, and once they’re in the store, they’re using their phones to look up product information (21%) and to compare prices (14%). The retail industry should cater to this need and develop a mobile presence that guides consumers in their decision-making process and makes the information consumers seek easily accessible to seamlessly move them to the cashier.
Retailers can only benefit at this point because the “hard” part is already done: The consumer already wants the product. But without delivering on this last step toward the purchase decision, retailers aren't capitalizing on their previous marketing efforts that got the consumer interested in their product or their store in the first place-- it’s like running a race and stopping 5 feet before the finish line.
Rather than relying on a third-party app that could easily get the consumer walking next door for the lower price he just found, retailers should develop a mobile Website (and if relevant for their target audience, a mobile app) that will support and enhance consumers’ in-store experience when they’re looking up information and also build up loyalty and improve the cross-channel shopping experience.
Bear with me one second. I am not denying the fact that iPhone owners are the heaviest users of mobile services. I am just saying that there are plenty of opportunities in the mobile space on other smartphone platforms and with selected audiences. Mobile is not just about applications or mobile Web sites. Even good old SMS can be powerful depending on the objectives you have set and the audiences you want to interact with.
What’s certain is that iPhone owners can only be a subset of your customer base. Only 2% of European mobile users report having an iPhone as their main mobile phone. Does that mean that there are no opportunities to target more mainstream audiences? Not at all.
A much larger near- and medium-term opportunity exists within other groups — particularly among young consumers, business users, and consumers with flat-rate data plans — as well as, increasingly, with new, competing smartphone platforms. In fact, if you’re not targeting them, you’re neglecting the majority of your customer base — including many consumers who are mobile-savvy but don’t have an iPhone.
Let’s make this even clearer. 96% of European 16- to 24-year-olds do not own an iPhone. Should you avoid engaging with youth via mobile because of that? I don’t think so.
Last week, in addition to presenting at my quarterly Forrester Teleconference, I spoke at a Webinar hosted by the IT Services Marketing Association (ITSMA). I was in illustrious company: David Edelman, partner for the marketing and sales practice at McKinsey; John Lenzen, VP and global head of marketing at TCS; plus our host, Richard Seymour, managing director at ITSMA EMEA. We talked about the emerging organization model and competencies for marketing organizations in the tech industry.
Richard opened with this really interesting data slide, which shows that service providers are actually reducing their marketing spend in a dramatic fashion (see below).
Our recent survey confirms the 2010 increase in marketing budgets and reveals much more about how service provider marketing differs from other industries (see this report). Richard then listed some of the challenges that marketing is facing and postulated that “marketing has to change.”
David talked about the impact of the digital marketing challenge and discussed four critical questions that marketers should be asking themselves:
Orange announced today its new industrial project, "conquests 2015." After NExT from Didier Lombard, the recently appointed CEO is now communicating Orange's five-year action plan.
One of the main objectives of the plan is the "conquest of employee pride" and the recruitment of 10,000 additional employees (including the 3,500 already announced for 2010) between 2010 and 2012. Following the unprecedented social crisis that took place in France, the company had no other choice than to offer a new management vision and to make sure employees can participate in the future of the company, involving them in such a way that they feel part of a long-term project.
Beyond this initial objective, a couple of other interesting conquests have been announced:
Last week, I held my quarterly Forrester Teleconference and discussed my April report on how European tech buyers use social media. Usually, we Europeans are asked to speak twice in the day - once at a convenient time for European audiences and once for our clients in North America. Unusually for an analyst, I hate repeating myself. So I elected to present the European slot in German and present specifically about Germany. This was, I think, a first for Forrester. Of course, we also leveraged the opportunity to get a few prospects listening in and even had several journalists collecting information. Now, not every Forrester analyst can present in German, so don’t expect all of us to do this, but the fact is: We actually have more German-speaking analysts than that other research company.
Our B2B Social Technographics data shows that German social media activity is really quite heavy: In some categories, the numbers we report show more aggressive behavior than in the US or other countries. After several client meetings where our data was questioned - especially by more experienced marketing executives who themselves are not using social media and expect the same backwardness from their peers - I am now well equipped with backup data that proves our points. So here is what I told the audience about German social media usage by tech buyers:
Americans of all ages — not just the young — spend a lot of time playing games. Our Technographics data shows that all generations spend about 7 hours a week playing PC games, but younger consumers also play games on consoles, handhelds, and mobile phones. Generation Y spends close to 20 hours a week playing games!
The reason why console gamers play on game consoles is that they can play against others (49%), while computer gamers choose their platform because it's convenient (55%). Forrester wrote a report about the role of PCs and portable devices in gaming called “The Re-Emergence Of The PC As A Proper Gaming Platform.” The accessibility of gaming today is one important reason that video gaming is very popular. Mobile devices, like the iPad, give consumers the ability to play games nearly anywhere at any time, and, in many cases, they can play for free.
One of the significant shifts in consumer mobile behavior identifed by Forrester in the past two years has been the increase in use of the Internet on mobile phones. The growth has been staggering -- consumers don't typically shift their behavior this quickly. One of the reasons has been growth in the number of smartphones we own and use. Great user experiences delivered by great user interfaces on phones and fast networks have been part of that smartphone upgrade as well. The AdMob data shows that smartphones generate 46% of its ad requests.
Download the report for a deep dive. Look for the growth in the number of countries where individuals are using their cell phones to access the Internet. We've also seen a new category emerge - "Mobile Internet Devices." See its breakdown of iPad ad requests. The US generates 58%, with Japan second at 5%.
Just a few short months ago, I was an implementer of community and social media products and programs. The success I had in those roles, and the knowledge I carry with me now, is thanks in part to the Forrester research reports that helped guide me along the way — so I’m especially excited to now be the author of one of those documents.
My first Forrester report is called the Community Management Checklist (Forrester clients can click the link to read it.) It’s an overview of the process marketers need to follow and the important-but-sometimes-overlooked concepts and ideas to keep in mind as they work towards launching or engaging with their community.
Through my research, I identified four phases of the process that can be handily summarized by the acronym PALM:
Planning: Laying the groundwork, setting objectives, exploring existing conversations, making necessary early decisions.
Alignment: Building internal consensus and processes.
Launch: Attracting and retaining members.
Maintenance: Cultivating relationships with your members and turning them into loyalists.
In the document, I’ve covered many issues that marketers have told me they’ve struggled with, so I hope you’ll find that it gives you actionable advice to help you during your own planning process. If it sparks other thoughts or questions, let me know in the comments here or on Twitter — a quick comment from you might turn into an important research topic for me.
Forrester is launching a new survey to find out how marketing leaders like you integrate the mobile channel into their marketing strategy.
Planning and organizing for the use of mobile technologies is a complex task. Some players are laggards. Some don’t think of the mobile channel as a priority. On the other hand, others are clearly ahead of the curve. Yet, the one question we consistently get is: “How does my organization compare with others in the integration of the mobile channel?”
We will try to answer that question with this ongoing Mobile Maturity Survey and more specifically how marketing leaders:
Coordinate the mobile channel with other existing channels.
It’s Day 2 of Forrester’s Customer Experience Forum 2010, and I'm incredibly excited to see this morning’s opening speech by our own James McQuivey. He's going to demo Microsoft’s new interface that uses gestures and natural language commands with help from the company that built it, PrimeSense. You may have heard of this as Project Natal or Kinect — but hearing about it does not do the trick. You have to see it and then hear James’ take on what it means for e-tailers, financial planners, media companies . . . wow. Forgive me if I seem a little blown away, but I’ve been watching the rehearsals, and all I can say is that I have to have one of these! Check back throughout the day for more about this speech and others.
Today's Live Stream
Day 2 Opening Remarks
Harley Manning, Vice President, Research Director, Forrester