What matters to financial buyers depends on who they are and what they are buying. Our Technographics data shows that European customers with different profiles — for example, different sociodemographic or attitudinal profiles — care about different things when selecting financial services firms.
The report 'Why Europeans Choose Financial Firms' also shows that the influence of word of mouth on a customer's decision to select a financial services firm declines sharply with age. A striking 37% of customers ages 16 to 24 and 18% of customers ages 25 to 34 were influenced by their friends' or family's recommendations. On the other hand, nearly half of European financial buyers ages 65 or older chose a company for their most recent financial purchase partly because they already had a product or account there.
It's the most common question I get in my travels: Will people ever pay for content again? See what I had to say about that in a recent interview below (as posted on Paidcontent.org)
Implied in the question is a belief in some yesteryear in which people did pay for content. But the good news is, they never have and never will. That's the good news? Yes, because once we stop imagining that people will someday pay for content again, we can focus on giving them what they will pay for -- access to content.
It's what people have always paid for and it's clearly what they pay for now. Look deeper into the past and you find that people did not underwrite all the pages of content in their daily newspapers. Yes, they paid for the newspaper, but that's just because the newspaper was the only way to get efficient access to that much news and information. Today, instead of paying for newspapers, they pay for high-speed data plans to their homes and on their mobile devices as well as subscriptions to content from Netflix and their cable companies, accounting for 77% of their monthly spend on content. And they will pay even more for that in the future as 4G becomes a reality.
I get this question a lot from clients, and I saw a good example today so . . . I thought I'd share. How should we promote our services? Should we use TV? Online? Banner ads on cell phones? What is most effective? The high-level answer is "yes." Most of our clients are pursuing using their existing media -- whether it is ATMs in the case of Bank of America, the Web site for Walgreens, or TV ads by ESPN. Many are also using banner ads on the devices with which their devices are compatible. For example, they buy iPhone ads because the audience is right, and they can connect into the App Store on the application page.
Was watching ESPN this morning and saw a commercial advertising mobile TV in preparation for the World Cup.
What they did right and what I liked:
1) Used their existing media (TV) to promote mobile services. They also used an "event" (= World Cup) as a catalyst to promote their mobile TV service. With the World Cup being played in South Africa, there will be games at night, during the work day, and at many other times when people are unable to sit in front of their TVs.
2) The ad on TV gave the viewer context. "When would I use this application?" "Where would I use this application?" The TV ad shows the person switching on mobile video when he gets out of bed, is in the bathroom brushing his teeth, parking his car, and at work. They also demonstrate the quality of the application with zoomed-in views of the video service.
As you might have read, the Interactive Marketing analyst team has been growing. What you might not know yet is that I’m one of the new recruits.
I’m one of those practitioners who’s been working with social media since before we called it that — early on at Bolt.com and most recently at Time Inc. Check out my profile for more details about me.
I imagine it’ll come as no surprise that social media is one of my coverage areas. I’ll be looking at the operational, tactical side of social media — especially topics related to community management. Speaking of which, my first piece of writing as an analyst was published in this month’s issue of CRM Magazine. If you have a chance to read it, I hope you’ll come back here and share your feedback.
In addition to social media, I’ll be tackling some emerging topics for interactive marketers, like e-readers and other mobile devices. My early research agenda is sketched out and my first document, a checklist to prepare for community management, will be published in the next few weeks. Following that, I’ll be working on the Community Platforms Forrester Wave, but if there are particular questions you have about any of my coverage areas, or specific pieces of research that would be of interest or help to you, please add a comment and let me know.
Why are sales and marketing professionals seemingly in a constant firefighting mode, moving from one fire drill to the next, one meeting to another? We are in the middle of a major transformation in the B2B sales model. Your company is caught between a rock and a hard place because your investors want to see accelerated growth and improved margins. However, your customers have the same pressures, and all have some form of enterprise-wide strategic procurement initiatives under way. Your goal: sell at a higher price. Their goal: buy only what they need at the lowest possible price. Something has to give.
In response to these tectonic forces, we find many companies have a variety of internal projects designed to combat the commoditization trend. Some common efforts include:
The line from Shakespeare, "What's past is prologue" has always resonated with me. History does have a funny way of repeating itself and people who can learn from what’s happened before have an advantage over those that don’t. As we celebrate Memorial Day here in the States, I thought I’d use the time to share some useful insights about one of America’s most successful generals and how they relate to sales enablement professionals today.
General George Patton’s unparalleled ability to execute in WWII sometimes gets overshadowed by his colorful (and stupid) public relations. Because of his quick strike abilities, the Axis leaders feared him more than any other Allied general. What made him truly unique, and someone still studied in military academies throughout the world today, was his formula for success. Patton had a voracious appetite for history and believed that humanity already had a master inventory of all of the strategies and tactics for winning a battle. All one had to do was apply that knowledge to a given situation. His success can be summed up by his ability to model, map, and match.
He was able to model the various elements of a particular battle (from tactics, troop movements, level of aggression of his opponent, terrain, initiative, strengths, weather patterns, etc.) to recognize patterns from an engagement of antiquity. Having identified patterns, he was able to associate (or map) the actions of the victorious general to his situation, giving him a powerful competitive advantage -- the trial-and-error wisdom of thousands of successful and failed tactics and strategies of the other generals of the ages. Armed with the best advisor (the collective wisdom of centuries of peers), Patton was able to rapidly and effectively match winning tactics from the past to his specific circumstances.
In the past few months, I've regularly posted Data Digests on people's online shopping behavior. However, not every Internet user actually buys products online. Our Technographics® data shows that about 57% of European Internet users and about two-thirds of US online adults have purchased something online in the past three months. Concerns about privacy, delivery, and returns keep the others from making a purchase; women feel more strongly about delivery costs and the need to see (and feel) the product before they buy than men do.
When asked what would motivate them to start purchasing products or services online, lower shipping costs (43%), lower online prices (42%), and the ability to return products easily (27%) top the list. Retailers have to make the cross-channel shopping experience as easy as possible to cater to the needs of those online consumers who do research products but don't purchase them online — yet.
Today Google announced that it had generated $54 billion worth of economic activity in the US in 2009. The report, which shows state by state economic contribution, bases Google's total value on three factors: 1) Sales driven through AdSense and AdWords; 2) Ad revenue generated for publishers through AdSense; and 3) Google grants. As a research analyst, I'll admit that you can make numbers tell any story you want to, and my gut here is that this report is principally a PR effort to: 1) Communicate some altruism about the Google brand that has been getting some bad press of late; 2) Simplify the complex transformation Google has brought to advertising into a simple, single number; 3) Shift the focus away from questionable strategic decisions that Google has recently made. I wholeheartedly believe that Google has transformed advertising and is almost singularly responsible for the phenomenon of biddable media buying which I think will ultimately replace relationship-facilitated media buys across channels. But I don't believe that Google stimulated $54 billion worth of business. I think what Google did do is provide a new revenue stream to small businesses and site owners, catalyze some new sales, and take a share of commerce and media expenditures that would have happened anyway.
In preparation for our upcoming Customer Experience Forum in New York at the end of June, I’ve been having phone discussions with our speakers and their people. Yesterday Robinette Dixon from Sprint pointed out something I hadn’t quite realized. Two of the companies that are speaking have a lot in common despite the fact that they could hardly be in more different industries.
First there’s Sprint. Dan Hesse took over as CEO of Sprint, which is headquartered in Kansas, in December of 2007. He immediately made customer experience a priority and set out to ingrain customer experience into the company’s culture and processes. You can see evidence of the results in the 15 percentage point rise Sprint made this year in our Customer Experience Index.
Then there’s H&R Block. Our Day Two speaker, Sabrina Wiewel, is Chief Tax Network Officer at that company, which is also based in Kansas. But the bigger coincidence (no, this isn’t a post about Kansas) is that H&R Block also got a new CEO recently: Russ Smyth, who took over in August of 2008. Like Hesse, Smyth made customer experience a priority. Among other changes he literally flipped the corporate org chart upside down to put customers at the top, and re-engineered how the field offices interact with customers.
When I came back from holiday last week and looked at my mail, I was delighted to see that the most recent issue of Research World (the ESOMAR magazine) had a number of articles on mobile research. As I mentioned in one of my previous posts, mobile research has really won me over (see also my report, The Challenges And Opportunities Of Mobile Research for full details). The “anytime, anywhere” aspect of the mobile phone, combined with people's emotional attachment to it, makes it an ideal device for people to share their thoughts and opinions in a research context.
When reading the articles in Research World, however, I feel that the industry is missing out on a great opportunity. The emphasis of the conversation here is on mobile research's methodological challenges, such as sampling, guidelines, and research bias. I agree that there are still some hurdles to overcome with regards to representation, costs, technology, and privacy, but I believe market researchers shouldn't get too caught up in these but should instead embrace mobile phones as a new research channel and look for innovative research approaches.