Whereas in the age of manufacturing, the age of distribution, and most recently the age of information, companies that had the best skills were winning, in this age of the customer, only companies that fully understand their customers’ needs will win over their hearts (and with that, wallet share). And it’s not enough to be customer-centric — in fact, companies should be customer-obsessed. This is not just jargon, it has a real meaning:
A customer obsessed company focuses its strategy, its energy, and its budget on processes that enhance knowledge of an engagement with customers, and prioritizes these over maintaining traditional competitive barriers.
This report is very relevant for market insights professionals because they are the ones that will need to support their organization to understand the (hidden) drivers behind the needs of the customers — and how to delight them. Josh Bernoff shares more of his insights in this blog post, and clients can access the report here.
About six weeks ago, I attended the Mobile Research conference 2011 in London, where a variety of vendors and clients talked about their experiences with mobile as a research methodology. They shared a range of mobile research methodologies, like using text messages in emerging markets, mobile ethnographic studies, geolocation tracking, and mobile behavioral tracking data. You can find most of the presentations here, and if you want to see me in action as roving reporter, you can click here.
During the whole conference, there was a clear line between the benefits and challenges of online research versus mobile research, and how the two can strengthen each other. Then at the end of the second day, someone asked the following question to the audience: “Do you consider tablets a PC or mobile device?” The answer was almost unanimous: a mobile device.
This got me thinking about the whole concept of mobile research in more detail. In fact, I was wondering if something like a mobile research conference would still exist in a couple of years, because the rapid technological developments of smartphones and tablets will blur the line between mobile and online research. Can we, as researchers, continue to define the research methodology in the future, or are the respondents going to do that? This line of thinking led me to ask this question to our community members: Should research be device-agnostic?
Since the dawn of mobile commerce, retailers have dreamed of leveraging mobile phones to deliver an immersive multichannel experience for in-store shoppers. And finally the time seems right. With the uptake of smartphones, it has become much easier for both consumers and retailers to add mobile phones to the purchase process. Retailers have been busy developing mobile web versions of their online stores as well as dedicated mobile shopping applications for iPhone and Android phones.
But how many consumers are using their mobile phones for shopping-related activities? Our Technographics® research shows that about 6% of cell phone owners have used a shopping application. Dedicated shopping applications that allow consumers to research and purchase products directly from their phones, like the ones from Amazon.com or Domino's Pizza, drive uptake and usage.
It is tempting for retailers to use this technology solely for marketing purposes; however, organizations should focus on services that enhance the customer's multichannel experience. Balancing informative notifications with marketing offers will build trust with customers and lead to better acceptance, as well as higher uptake.
During the past 24 months, the industry has seen an explosion of activity and development on the new generation of Android and Apple mobile phones and most recently tablets. In the report 'Mobile App Internet Recasts The Software And Services Landscape' Forrester estimates that the revenue from paid applications on smartphones and tablets was $2.2 billion worldwide for 2010.
With all this activity and excitement, enterprises are jumping on the app bandwagon to reach customers and bolster the brand. Forrester’s Forrsights Software Survey, Q4 2010 shows that IT is stepping up its mobile app plans. Forty-one percent of the 2,124 North American and European software decision-makers surveyed in October 2010 said that increasing the number of mobile applications for employees, customers, and business partners was a high or critical software priority:
However, this will not come easy to IT departments. One of the issues Forrester sees is support: Given the rate of innovation at both the application and device/operating system levels, IT likely has to support three to four releases per year. This rate of change will tax a whole range of IT processes from project management to release management and testing. IT organizations should look for external help to build a platform to support their companies’ mobile plans.
Today’s Data Digest topic comes from a personal observation involving my family. Last weekend, my husband was working on our Mac, I was doing some online shopping on my work laptop, and one of our kids was playing games on my husband’s work laptop. And I suddenly wondered: “Is this how a typical household looks, with every household member having their own PC?” So I dived into our Technographics data and found that we are indeed not atypical for our generation: More than 80% of US households have some type of PC, and almost half have more than one. About 77% of Gen X has a desktop PC at home, and 61%, a laptop.
Whether people have one PC or two, and whether those PCs are desktops, laptops, or netbooks, PCs serve different functions for different generations in the household. While Gen Yers are more likely to use their computer for media activities like playing games or watching TV, Gen Xers and Boomers use theirs for more practical functions, such as word processing or managing personal or family finances.
My colleague Thomas Husson wrote a report last year in which he looked at ”The Future Of Application Stores.” Overall, uptake of apps is limited: Only 15% of European smartphone owners report downloading an app on a monthly basis. By contrast, 64% of European iPhone users download apps on a monthly basis. Looking at what consumers are interested in most, Forrester's Technographics® data shows that games, music, weather, news, and social networking top the list for both iPhone and other smartphone users.
Companies that want to develop a mobile strategy should begin with a solid understanding of how mobile-advanced their brand's consumers are and will be. Mobile Technographics® places consumers into groups based on their mobile phone usage. The groups are defined by the extent to which the mobile phone user has adopted mobile data services, the frequency of use of these services, and the level of sophistication in the mobile applications he or she uses.
Gen Xers live in device-filled households. Whether it’s gaming systems for the kids, HDTVs and surround-sound systems for themselves, or digital cameras and frames to showcase their families, Gen X households are most likely to have these devices. Gen Xers have mastered the art of functionally integrating technology into their lifestyle and maximizing its benefits. The first generation to grow up with technology, they are comfortable with it and recognize its benefits, as do the tweens and teenagers clamoring for devices in the household.
Boomers remain middle of the road on technology adoption. Both Younger Boomers (ages 45 to 54) and Older Boomers (ages 55 to 65) fall behind the younger generations in terms of almost anything technology-related: from the number of devices they own (on average, seven for Boomers and nine for Gen Yers and Gen Xers) to the amount of time they spend on the Internet. The one area where Boomers are ahead of the technology curve is on the amount of money they spend, on everything from telecom monthly fees to online purchases.
At the end of January, I spoke at the Esomar Shopper Insights Conference and part of my speech was about how technology makes the market insights professional role more challenging in some ways. For example, technology has made the world flat: The Internet makes it possible for information to travel fast, and it feels like we know everything about anything (or at least we could).* But my point was that knowing doesn’t equal understanding.
And in the past weeks, with the world on fire, this thought has been nibbling at the back of my mind. It was there when I watched television and followed the latest developments in Egypt or Morocco. When I read the news or watched the videos and pictures from the earthquake in Japan, or more recently when Britain, France and the US decided to intervene in Libya. I can follow the news minute by minute via Facebook or Twitter (and I do), but I feel I lack the context and local background to really understand what’s going on — like most of us. How will the intervention in Libya change the relationships in that part of the world? How will the earthquake and the issues with the Fukushima Daiichi nuclear power plant affect the Japanese economy? The world is flat, but we are still limited by our own horizons.
Mobile marketing spend is forecast to hit around 750 million by the end of 2011 and more than 1,250 million by 2014. However, the number of consumers exposed to mobile advertising is still low. In fact, Forrester Technographics surveys shows that two-thirds of online mobile consumers don't remember being exposed to any mobile ads. Of those who had been exposed, the majority (52%) didn't take any actions. For those who did respond, calling a local business or storing a number as a new contact were the most popular activities.
But just because many consumers haven't engaged with mobile marketing yet doesn't mean they don't want to. In fact, 13% of online mobile consumers say that they would like to receive coupons to be used while shopping and 10% would like to be able to look up product information. About one-fifth of online mobile consumers are open to receiving SMS messages from companies in return for promotions, discounts, or free downloads(and this number jumps to more than one-third of Gen Yers).
But to be successful at their mobile efforts, companies need to determine which type of engagement will work best with their target audience and what key objectives resonate most. For example, are you trying to drive awareness, foot traffic, or campaign involvement? Understanding these objectives will help determine whether your organization should engage consumers through an SMS campaign offering a reward or whether it should try to intercept consumers while they are searching.
Young consumers are now almost always connected to media — which would rationally lead you to think that the more times and places they are connected, the more ways there are (and the easier it is) to interact with them. This is where market researchers need to step in and push their companies to dig deeper than just measuring the time spent on a media channel. They need to truly understand these consumers' core motivations for using it.
More than 90% of 12- to 17-year-olds who are active on social networks have an account on Facebook, which is their go-to social network, no doubt. But they haven't completely abandoned other networks: almost 40% have an account on both Facebook and Myspace.
With 78% of 12- to 17-year-olds having a social networking account, social networking’s power is undeniable. But it's not enough just to look at these channels to see what type of content or information 12- to 17-year-olds are consuming; it's how, why, and when they're consuming it. Without tapping into these deeper motivations, brands will never fully benefit from this social opportunity.