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.
Yesterday I attended the first day of the ESOMAR Shopper Insights Conference 2011 in Brussels, and I was pleasantly surprised by the innovative thinking by the presenters, both in the methodologies used and in the way they look at the Market Insights profession.
There were a number of presentations on innovative methodologies, such as eye-tracking. All of them had cool videos to share and gave insights into how these methodologies can be used to better understand shopper behaviors. The presentation that really stuck with me, however, was from Stephanie Grootenhuis, from Kraft Foods International, who talked about the “Incite to Action” initiative.
She came on stage, and said: "All the presentations until now have talked about understanding shoppers better and the difficulties you encounter when doing (global) research. But to be honest, that's not my biggest challenge. What my team struggles with is HOW to share our knowledge and communicate our findings effectively into the organization."
In July 2010, we posted a Data Digest that shows that almost half of US online males and 42% of online females read consumer ratings and reviews at least monthly. Well, what types of decisions are reviews helping these consumers to make?
Our Technographics® data shows that, as most would expect, more than half of the consumers who check ratings and reviews use them to help make more complex decisions such as a car, TV, or refrigerator. However, these are not the only types of decisions consumers are looking to reviews for — in fact, most check reviews to help with a variety of decisions — from entertainment decisions to making purchases for their jobs.
When we look at this data by generation, it is no surprise that Gen Yers are more likely to use online reviews across most of the decision types that we ask about compared to the overall US population. What is interesting is how dependent they are on online reviews when it comes to entertainment choices (44%) and purchasing ongoing services (41%). And although young consumers lead with using ratings and reviews, it is interesting to see that Seniors that are using ratings and reviews show similar behaviors compated to the total US population for most categories -- apart from the job related one.
Next week, on February 28, I will speak at the ESOMAR Insights Conference in Brussels on 'The Evolving Online Consumer' and I'm currently organizing my thoughts around this topic. Looking at the uptake of the Internet globally, the numbers are impressive: 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. 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).
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. But emerging markets don’t just offer a lot of opportunities; there are also many challenges to consider. On top of the needs and wants of the consumers in the different countries, their online behaviors, and the way they are being influenced (and are influencing others) in their purchase decisions, companies need to understand the social and economic business environments.
The democratization of technology has arrived. New IT servicing models like cloud combined with improved user experiences make it easier for non-technical employees to download and install technology services. This phenomenon will only accelerate as these workers bring high expectations into the workplace from their experience with cloud-based services like Facebook and universal providers that allow access from any device.
Forrester's Forrsights Workforce Employee Survey, Q3 2010 shows that the consumerization of the enterprise is not always driven by a lack of collaboration of the IT department, only 8% of business technology users feel that their IT department is either clueless or a hinder. But the majority take things into their own control because they feel that IT is either too busy or they are restricted by corporate policies:
Cloud-based personal and professional services will liberate the individual from device and place, and set the bar higher for workplace IT. Today already 47% of business technology users at North American and European companies report using one or more website(s) to do parts of their jobs that are not sanctioned by their IT department. We expect this number to grow to close to 60% in 2011 as frustrated workers work around IT to self-provision technology.