Always-On Consumer

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ConsumerSpeak Series Always-On The Consumer

Transcript of Always-On Consumer

ConsumerSpeak Series

Always-OnThe

Consumer

The Always-On Consumer | 2

Soon, if not already, a mobile device will be your customers’ primary digital media channel, creating both

unprecedented opportunity and challenges. The rapid adoption of smartphones and other connected

devices have empowered a world of always on consumers who have the power of the Internet in their

pocket and an increasing willingness to use it.

Beyond the obvious impact on communication and media consumption, the mobile revolution has further transformed the way we learn about and buy products, creating a new type of hyperconnected and highly empowered consumer who moves seamlessly between physical and digital channels along their purchase journey.

While the devices that triggered evolutionary events in the past (the radio, television and computer) were predominantly shared, mobile is an intensely personal medium with each user having their own preferences and the ability to customize their mobile experience. This personal aspect of the medium is one of the most exciting and enticing aspects of the mobile revolution, giving marketers the opportunity to build convenience and value into a powerful omni-channel customer experience and tailor targeting and engagement strategies to specific customers or customer segments. This has led many marketers to adopt a “mobile first” approach to customer experience design, yet interestingly, marketers and the media have a tendency to talk about “the mobile consumer” as if there were just one type and that all consumers use their mobile devices in a similar way. But that couldn’t be farther from the truth.

Experian Marketing Services conducted an in-depth examination of the attitudes and behaviors of today’s smartphone owners and found that there are actually seven distinct types of mobile consumers ranging from those who rarely put their device down to those who barely pick it up. Marketers need to know the difference and the most successful ones will integrate insights like those found in this report with their own customer files to develop data-driven mobile marketing campaigns that take into consideration the unique ways that each of their customer types uses their phone and why. This report will provide marketers with a better understanding of the different types of mobile consumers and give them tips for building mobile marketing strategies that lead to a better brand experience for their customers.

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The Always-On Consumer Segments

Prodigies: Constantly connected, mobile-centric tech trendset-ters. Individuals in this segment set the trends and are the first to adopt new technology. Extremely receptive to ads on mobile devices and social media.

Tribals: Hyperconnected, device agnostic. Mobile devices (often multiple devices) serve as the gateway to social media for this set. They are both heavily influenced by and strong influencers of others through social media.

Personals: This mobile-savvy segment loves their phone, but are increasingly cutting out the middle man when it comes to connecting with friends preferring direct messaging to social media.

Pragmatists: These mobile professionals use their phones to stay on top of work and home. They can be found doing everything from checking game scores to transferring documents, accessing boarding passes and more.

Browsers: Individuals in this set are still learning about everything they can do with their phone. Today, they’re primarily browsing the mobile web and consuming a bit of news. They show potential for expanded use though.

Occasionals: The people in this segment use their smartphones mostly for making calls, playing solitaire and checking the weather despite the myriad of additional features of these devices.

Talkers: Mobile use among this set is fairly light except they do enjoy playing the occasional game and making video calls most likely with grandkids and other family.

Occasionals - 11%

Prodigies - 5%

Tribals - 13%

Personals - 15%

Pragmatists - 18%

Browsers - 24%

Talkers - 13%

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Prodigies are constantly connected, digital natives many of whom came of age during the mobile revolution. More than half of adults in this segment (57 percent) claim they need to be connected to the Internet from the moment they wake up to the moment they go to bed. As such, mobile devices have replaced the traditional PC for many in this group. In fact, 72 percent of Prodigies say they access the Internet today more through their mobile devices than through a computer.

Prodigies say that because of the Internet, they spend less time with traditional media and, as expected, this segment has below average use of television, radio, magazines and newspapers but above average use of connected game consoles and digital tablets.

Prodigies are 52 percent more likely than average to use non-Android, iOS or Blackberry operating systems on their phones, suggesting that they are a strong market for Windows phones or open source platforms like Ubuntu Touch and Firefox OS that allow for greater customization. Google apps like Chrome, Google+ and Google Talk, have high concentrations of Prodigies among users.

Use of mobile devices is truly a 24/7 affair for Prodigies extending the window when marketers

can reach this set. Despite being above average users of their phone during the day, usage levels diverge even more between Prodigies and the average smartphone user overnight. While the rest of the world recharges their bodies, these relatively young consumers take only the equivalent of a cat nap relative to their mobile activities. That’s probably why fully half of Prodigies say they spend less time sleeping because of the Internet.

Social media and mobile advertising are effective at reaching Prodigies. In fact, their receptivity to such ads is part of what defines this segment.

Prodigies are nearly 10 times more likely than the average smartphone owner to say they would be interested in receiving ads on their phones and seven times more likely to say they would buy the products.

Likewise, they are nearly six times more likely to purchase products they see advertised on social media. Prodigies are also the most active when it comes to mobile and online shopping. They’re the most likely to buy online and to use their phones to seek out local deals. They’re the group most likely to want to use their phone to make in-store purchases.

5 percent of smartphone owners

Prodigies

access social media 3 times a day or more.51%

carry multiple mobile devices.51%

need to be connected to the Internet from the moment they wake up until the moment they go to bed.57%

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Mobile, social and even game consoles are good channels for reaching high concentrations of ad-receptive Prodigies. Television may have high reach, but Prodigies are among the most likely to be doing other things on their smartphone while watching.

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Primary smartphone operating system

Prodigies Tribals Personals Pragmatists

Browsers Occasionals Talkers

Android iOS Blackberry Other

49%

24%

11%

16%

45%

46%

4% 5%

50%

28%

9%

12%

48%

41%

4%7%

54%

27%

9%

10%

54%30%

7%9%

65%10%

6%

19%

*Numbers may not sum to 100% due to rounding.

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13 percent of smartphone owners

Tribals

If Prodigies are always on and mobile-centric, then Tribals are hyperconnected and device agnostic. While Tribals are increasingly likely to use their smartphone to connect to the Internet at home, they aren’t so singularly focused on their phone. In fact, they use 9 out of 10 devices or media platforms at above average rates with print newspapers being the only underperforming medium.

What sets Tribals apart from other smartphone owners is their heavy use of social media.

Tribals check social media properties incessantly throughout the day across computers, tablets and smartphones.

While this segment comprises 13 percent of all smartphone owners, Tribals represent a fifth of those who use the Facebook, Foursquare and Pinterest smartphone apps, and a quarter of those use the Twitter and Pinterest apps on a digital tablet. Further, 62 percent of Tribals visit social media properties three or more times a day and 38 percent open social media smartphone apps more than 50 times a week.

Tribals not only leverage their social media connections to exert their influence, they are also heavily influenced by the medium. They are over

three times more likely to say that they buy products that they see advertised or that their friends recommend on social media. Nearly two-thirds (64 percent) also follow their favorite companies on social media and 60 percent say that social media provides them a way to tell others about companies and products they like.

When it comes to shopping, Tribals are the most likely to use the Internet to plan shopping trips as well as engage in “showrooming” which means they find an item in store and then hunt for a better deal online. And while this segment may often be in search of a discount, marketers have other options besides competing on price. Pinterest, Instagram, Flickr and other highly visual properties are natural darlings of the Tribals crowd presenting marketers with an opportunity to engage this influential segment with messages focusing on their products as opposed to constantly focusing on sales and price.

more likely to say “People frequently send me requests to connect via social media.”2x

often access social media from multiple devices.87%

Tribals are 51 percent more likely to own an iPhone.51%

Let’s connect!

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Make it easy for Tribals to share a good brand experience with their social network, but be sure you have the resources to react quickly when something negative is said. A quick response to a dissatisfied customer will establish trust and increase brand loyalty.

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Social media visit frequency

Prodigies Tribals Personals Pragmatists

Browsers Occasionals Talkers

3+ times/day 1-2 times/day 4-6 times/week 1-3 times/week <1 time/week Don’t visit

51%

16%

9%

1%

21%

3%

62%22%

8%

2%

6%

14%49%

4%

22%

5%7%

16%

27%

9%

29%

8%10%

17%44%

20%

8%7%

3%

22%

33%

12%

10%23%

8%

67%

9%

4%

6%

6%

*Numbers may not sum to 100% due to rounding.

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15 percent of smartphone owners

Personals

Personals are mobile-centric with many members having come of age during the mobile revolution.

Unlike other leading-edge segments, Personals are increasingly cutting out social media or less likely to embrace it when it comes to keeping in touch and communicating with friends, preferring to connect directly instead.

Personals are 33 percent more likely than average to use a Blackberry device and one of the most likely explanations for that is Blackberry Messenger (BBM). Messaging apps like BBM, Kik Messenger, WhatsApp and Google Talk that allow smartphone owners to send SMS- and MMS-like messages without getting charged by their mobile service provider are used by Personals at well above average rates. Likewise, this segment regularly turns to apps like Skype and Viber when they need to make free or low-cost voice and video calls.

Personals’ above average use of communication apps, is inversely related to their use of social media. Nearly half of Personals say they don’t use social media and those who do access it less frequently than one might reasonably expect from a segment dominated by consumers under the age of 35. In fact, Personals are 45 percent less likely

than all smartphone owners to say that they often post or comment to social media sites and 29 percent less likely to say that they often send requests to connect with others via social media.

While social advertising may be out, mobile advertising presents a great opportunity for marketers. After Prodigies, Personals are the segment most highly open and receptive to mobile ads. In fact, they are 2.3 times more likely than the average smartphone owner to say they would be interested in receiving ads on their phone and 60 percent more likely to say that they would actually purchase products advertised on their phone.

Personals are 2X more likely to buy products endorsed by celebrities.2x

Even at home, the device most used by Personals to connect to the Internet is their smartphone.

Only 20 percent of Personals say they frequently get requests from others to connect via social media.20%

Let’s connect!

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Get to the point: Keep messaging to Personals simple, streamlined and free of clutter. Campaigns on Kik and other messaging apps are a great way to get personal with this influential segment.

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Device/medium used last 7 days

Television Radio PC at home Magazine Newspaper PC at work Game console MP3 Digital tablet E-reader

Prodigies Tribals Personals Pragmatists Browers Occasionals Talkers

0%

20%

40%

60%

80%

100%

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18 percent of smartphone owners

Pragmatists

We all know Pragmatists. If you’re not one yourself, then you likely sit across from one on the train, in conference rooms or on line at your local coffee house. They’re the ones engrossed in work who can’t stop checking their phone. Pragmatists don’t only use their phones for work; the vast majority also say that their phone connects them to their social world.

With their phones rarely out of arm’s reach, it’s no surprise that the smartphone is the primary device used by Pragmatists to access the Internet from home. Eighty-six percent report using their phone to go online from home compared with 68 percent of all smartphone owners. In fact, Pragmatists are 25 percent more likely to use their phone to go online at home than they are to use a laptop and 76 percent more likely to use their phone than a desktop PC.

Pragmatists use their phones in a variety of ways to entertain, inform and generally get stuff done. That includes everything from banking and paying bills to transferring documents and listening to Internet radio. They use their phone to get the latest news and sports scores, find a restaurant and even pay for their morning cup of joe. After Tribals, the Pragmatists segment is most likely to own an iPhone. Forty-one percent of adults in this

segment say their primary smartphone runs iOS compared to 30 percent of all smartphone owners.

Pragmatists are open to advertising on their phones, but they need to get something in return.

Otherwise, this segment is actually less likely than average to purchase items that they see advertised on their phone. The same goes for social media. They are less likely to purchase products they see advertised on social media and they are less trusting of product information or reviews posted there.

Pragmatists say they would rather read other people’s comments on social media than post their own.

say their mobile phone helps them get work done where and when they want.73%

of Pragmatists are interested in using their mobile phone to make purchases in a store.37%

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Help Pragmatists get the job done. Integrate iPhone apps with Passbook making it easy for them to access loyalty cards, coupons, tickets and more when they’re most likely to need them. Push message campaigns delivering relevant information can also help engage Pragmatists and keep your brand top of mind.

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Devices used to access Internet at home

Phone Laptop Desktop Tablet TV Other

Prodigies Tribals Personals Pragmatists Browers Occasionals Talkers

0%

20%

40%

60%

80%

100%

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24 percent of smartphone owners

Browsers

Browsers are relatively new smartphone owners who are becoming aware of the non-calling/texting features of their phone.

As they explore the new mobile-connected world, they are doing so in a fashion that mimics their PC-connected habits.

That means that instead of jumping into the world of smartphone apps, Browsers are more comfortable accessing online content through their mobile browser.

Browsers can be found accessing all sorts of online content through their mobile web browser, ranging from children’s and women’s sites to gaming and movie pages. They also use their browser to get news and weather updates, despite the fact that many smartphones have native weather apps. Likewise, despite the near universal existence of a native email app on most smartphones, Browsers are 13 percent more likely than average to visit email websites from their phone, suggesting that they still need help setting up their phone or getting comfortable with the app-based interface.

Social media is another thing Browsers are still warming up to with 44 percent saying they still don’t use it. However, more than a third of Browsers say they’re visiting social media properties at least

once a day and 28 percent say they often post or comment on social media sites. While that’s positive news, advertisers will have to wait a while longer before they can expect significant ROI on social and mobile ads targeting Browsers. Among Browsers who use social media, just three percent say that they are likely to purchase products they see advertised on social sites. Even fewer Browsers say they are likely to purchase products they see advertised on their phone.

Browsers are among the most likely to use a desktop computer to access the Internet from home.

Traditional media are still key in reaching Browsers, especially magazines and primetime TV.

Only 9 percent of Browsers say their phone is an expression of who they are.9%

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Marketers determining where to allocate mobile development resources need to be aware that in order to reach this blossoming segment of mobile consumers, they can’t focus solely on mobile apps, as mobile websites are the primary avenue through which Browsers access content from their phones.

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Attitudes towards shopping

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

Want to use mobile phone to make in-store purchases 77% 49% 26% 37% 9% 12% 3%

Like to hear about new products/services via email 64% 38% 28% 26% 22% 13% 16%

Use smartphone to find local deals 63% 59% 25% 41% 18% 12% 3%

Showroom shop to find better deals online after seeing something in a store 65% 66% 32% 60% 44% 38% 30%

Use the Internet to plan shopping trips 49% 53% 28% 42% 34% 27% 25%

More likely to purchase items online than in stores 53% 44% 22% 33% 23% 19% 17%

Like websites that provide suggestions based on previous purchases 74% 61% 33% 44% 34% 24% 24%

Top indexing smartphone apps

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

Chrome PayPal Yellowpages iHeartRadio Advanced Task Killer Solitaire Daily Perks

Google+ Dropbox PicsArt Photo Studio PassbookFamily Fortunes &

FriendsThe Weather

ChannelWeather Bug

Adobe Reader MyAT&T Photo Grid Yelp Find my Friends Dialer Voice Dialer

Google Talk PassbookMusic Download

ParadiseIMDB Google Translate Sprint Zone Emergency Alerts

WhatsApp Instagram Tango FoxNews FoxNews Yahoo! Mail Draw Something

*Highlighted cells indicate that the segment is at least 30 percent more likely than average to agree with that statement.

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11 percent of smartphone owners

Occasionals

For Occasionals, the smartphone is a wondrous technological invention that they use primarily to make phone calls, check the weather and play a game of solitaire. Occasionals compete with the Talkers segment for the lowest smartphone usage rates.

Occasionals’ smartphone usage is so light that there are few apps and mobile sites that they use at higher than average rates.

Those apps that they do use more than most include: Solitaire, The Weather Channel and Yahoo! Mail. They sometimes use their phone to keep up with their favorite sports teams, but they often get that information through mobile sites rather than apps.

Occasionals are on social media but they tend to be more of the “lurker” variety with 49 percent saying that they prefer reading other people’s posts and comments over writing their own. They also usually access their social networks from a PC rather than their phone. Occasionals don’t see much value in social or mobile advertising at this point, so it may not be in the best interests of marketers to leverage these channels heavily when targeting this segment.

Digital campaigns designed to be consumed on a PC are a safer bet given that Occasionals are more likely than average to use PCs both at work and at home. They also over index for print newspapers and e-readers, so native advertising may perform well among this segment.

Serial crime dramas are among Occasionals’ favorite media properties.

19% Occasionals are 19 percent more likely to use an e-reader.

17% Only 17 percent of Occasionals access social media from multiple devices.

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Occasionals are more comfortable using a PC when consuming digital content, so don’t expect to close the deal with members of this segment via mobile. Use it for brand awareness campaigns and complete the transaction when they’re back at their computer.

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Top indexing media properties

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

Myspace.com Flickr.com Mad magazineRunner’s World

magazineUS Airways magazine

NCIS: Los Angeles (CBS)

AARP, the magazine

TMZ.com Twitter.com Shopping.comWired

magazinePerson of

Interest (CBS)Castle (ABC)

Newspaper Editorial section

MTV2 The New Girl (Fox) Fuse network IMDB.com Rookie Blue (ABC)Sunset

magazineConsumer

Reports magazine

NBA.comGame Informer

magazineTeennick CNET.com Unforgettable (CBS)

Real Simple magazine

Newspaper Home & Garden section

Movies.comBaby Talk magazine

NHL NetworkHemispheres

magazineFirst for Women

magazineNCIS (CBS) Masterpiece (PBS)

Top indexing restaurants

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

El Pollo Loco Jamba Juice Mazzio’s QdobaRomano’s Macaroni

GrillRuby Tuesday Perkins

Boston Market On the BorderChurch’s Fried

ChickenHooters

Carrabba’s Italian Grill

Pizza Hut Long John Silver’s

Del Taco Chipotle Wing Stop Sbarro Red Robin Sonic Cracker Barrel

Wing Stop Fuddrucker’s Donatos Pizza Chevy’s O’Charley’s Golden Corral Bob Evans

Jamba Juice Friendly’s Checkers Quiznos Sub Golden Corral Chili’s Grill & Bar White Castle

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13 percent of smartphone owners

Talkers

Talkers, like Occasionals, have very low usage rates when it comes to smartphones. Not only that, but Talkers are often confused by the devices themselves as well as their service plans. They say that they only use their mobile phone in cases of emergencies and will use a landline over a smartphone whenever possible.

As expected, this is an older group of consumers with 40 percent of members being age 55 and older. They likely rely on others, such as their children or grandchildren, to come to the rescue when they need help with their phones. It’s these younger family members that are probably the most influential in showing Talkers what they can do with their phones. In fact, they’re almost certainly the driving force behind one behavior that makes Talkers stand out: video messaging.

While Talkers engage in most smartphone activities at rates well below average, they’re actually among the most likely to make video calls.

When they’re not Skyping with their grandkids, Talkers may occasionally pick up their phone to check the weather forecast or play a popular mobile game that someone told them to try. Jewels

Star, Fruit Ninja and Draw Something are a few games that they play at above average rates.

Talkers are less likely to use computers and visit few online properties, including all social media sites, at above average rates. As such, digital and mobile campaigns should be used primarily to supplement campaigns run in traditional media. Magazines like AARP, Consumer Reports and the television show Masterpiece (PBS) all have very high concentrations of Talkers among their audience. They also read most sections of print newspapers, but are especially fond of the Editorial, Home and television listings sections.

own an Android phone.65%

Talkers are 27 percent more likely to use video messaging apps.27%

Only 23 percent of Talkers go online from their phone.23%

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Mobile devices are confusing to Talkers. If it’s critical that you engage them through mobile, try directing your message to their children and grandchildren who can relay the information and set things up.

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Top indexing retailers

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

Abercrombie & Fitch

J. Crew Palais Royal J. Crew A.C. Moore Jo-Ann Stores Menards

Foot Locker Express Foot Action Nordstrom MenardsCost Plus/World

MarketBelk

Nike New York & Co. Foot Locker Sephora Stein Mart Michaels Ace Hardware

Fry’s Electronics Hot Topic Nieman Marcus H&M Michaels Hobby Lobby Stores Stein Mart

H&M Banana Republic American Apparel Nordstrom Rack Sam’s Club Hallmark Hallmark

Top indexing sports and leisure activities

Prodigies Tribals Personals Pragmatisits Browsers Occasionals Talkers

Soccer SnowboardingDocumentary

moviesFantasy Sports

leaguesWood working/

furniture refinishingNeedlework/ quilting Bird watching

Boxing Disney collectibles Surfing Hockey Coin collectingWoodworking/

furniture refinishingAntique shopping

Horror movies Yoga Racquetball Tennis Drama movies Gardening Gardening

Word gamesFantasy Sports

leaguesAuto racing Jogging Dining out Ornament collecting Ornament collecting

Yoga Bars/nightclubs Boxing Bars/nightclubs Reading books Camping tripsPorcelain figurine

collectables

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MethodologyThe Always-On consumer segmentation was created using the Winter 2013 Simmons Connect Study, a comprehensive survey of 24,852 U.S. adults, including 12,863 smartphone owners. Simmons Connect links consumer lifestyles, attitudes, brand preferences and more to their complete cross-channel media use covering 11 platforms including smartphones, digital tablets, home computers and more.

A cluster analysis was used to segment adult smartphone owners in the sample based on their agreement with over two dozen different psychographic statements that measured their attitudes towards mobile phones, the Internet and social media. Some of the statements include:

•My cell phone connects me to my social world

•I would be interested in receiving advertisements on my cell phone

•Texting is just as meaningful to me as an actual conversation

• I often access social networking/sharing websites from different devices

•I need to be connected to the Internet from the moment I wake up to the moment I go to bed

Smartphone respondents were assigned to one of seven mutually exclusive segments, including: Prodigies, Tribals, Personals, Pragmatists, Browsers, Occasionals and talkers. Results are projectable to the total U.S. smartphone adult population.

About Experian Marketing ServicesExperian Marketing Services is a leading global provider of consumer insights, targeting, data quality and cross-channel marketing. We help organizations intelligently interact with today’s empowered and hyperconnected consumers. By helping marketers identify their best customers, find more of them, and then coordinate seamless and intelligent interactions across the most appropriate channels, Experian Marketing Services’ clients can deepen customer loyalty, strengthen brand advocacy and maximize profits.

For more information, please visit http://www.experian.com/marketingservices.

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