The Data Digest: The Apple Watch: What Makes Consumers Tick?

Anjali Lai

The unveiling of the Apple Watch in early September left consumers and industry analysts with more questions than answers. After the sluggish sales of smartwatch predecessors, what is the actual market opportunity for Apple’s wrist-based wearable? Will consumers’ perception of the technology motivate them to make a purchase? And what type of consumer is most receptive to this device? 

In my recently published report, I leverage Forrester’s Technographics®360 multimethodology research approach to answer these questions. So far, reaction to the Apple Watch has ranged from skepticism to enthusiasm, and our data shows that the story of Apple Watch adoption is indeed two-sided. Our evaluation of consumer behavior and attitudes reveals an immediate market opportunity for the device as well as psychological barriers to adoption: 

However, the story doesn’t end there. Between the advantages and challenges of Apple Watch adoption emerges a third reality, which synthesizes the two. Apple Watch uptake will evolve, with early adopters, motivated by excitement, biting first and a second wave of mainstream consumers – who can see and experience the benefits of the device – buying next.

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China Will Become The First $1 Trillion Online Retail Market By 2019

During Tuesday’s 11.11 (Singles’ Day) Shopping Festival, Alibaba set new online retail records: 278.5 million orders with a GMV exceeding RMB 57 billion ($9.3 billion) (43% of which came from mobile devices). This comes on the heels of the world’s biggest IPO earlier this year, in which Alibaba raised $25 billion. Alibaba’s smaller rival JD.com, which raised $1.7 billion in its own IPO, received more than 14 million orders (40% of which came from mobile) on Singles’ Day 2014, an increase of more than 120% over November 11, 2013. Powered by the cash that their IPOs generated and growing demand among Chinese consumers, Forrester forecasts that China will become first $1 trillion online retail market by 2019.

Several factors contribute to this tremendous growth, including:

  • The rise of mobile shopping
  • eCommerce’s increasing wallet share and category expansion
  • Improving logistics
  • Penetration into lower-tier cities
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Applying User Metrics To Score And Rank Mobile Apps: Forrester's App Engagement Index

Nicole Dvorak

Do you measure the success of your app? And if so, how do you define success?

App success depends on both the type of app and the purpose of an app; in general, we can't measure success just by counting the number of downloads or looking at the time spent with the app. But for certain apps, such as communication, dating, games, movies, music, news/media, social networking, and sports, it's easier to define success: The more engaged a user is, the better.

To help marketing leaders and app providers evaluate and benchmark these apps as consumers embrace the mobile mind shift, Forrester has created the App Engagement Index. We use actual smartphone behavior collected from more than 3,000 US and UK smartphone owners who have agreed to supply their data — permitting precise usage analysis at a detailed level.* The Index analyzes every app used by more than 2% of the panelists and rates its user engagement and relative performance across four metrics: 

Calculating the App Engagement index

 

The Index combines these metrics, scores each app from zero (not engaging at all) to 1,000 (the maximum possible engagement), and places it on a spectrum of four segments: addicting, engaging, enticing, and intriguing.

Four segments of the app engagement index

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The Data Digest: Managing The Holiday Gift Hunt

Anjali Lai

Here in the US, all signs point to winter: Daylight savings has just begun; specialty holiday drinks have been added to cafe menus; and several cities have already witnessed the first snowfall. And with the arrival of the chilly season comes preparation for the mad rush of holiday shoppers.

Although the holiday retail season is shorter this year, given fewer days than average between Thanksgiving and Christmas, consumer expectations of retailers during this holiday season are greater than ever. When it comes to online retail specifically, consumers seek out – and have come to expect – great deals and free shipping throughout their holiday gift hunt. In fact, Forrester’s Consumer Technographics® data shows that shipping cost is the most important factor in a consumer’s decision to purchase from a retail website (such as Amazon.com or Gap.com):

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The Data Digest: Consumer Perspectives On Healthcare Reform, One Year Later

Anjali Lai

With Kristopher Arcand

If the healthcare industry exhibited symptoms of dysfunction, the US government administered a wave of treatment in the form of the Patient Protection and Affordable Care Act. October 2013 marked the opening of online insurance marketplaces, and set the stage for the act's requirement that most US residents have health insurance coverage. As a result, the industry has witnessed cessations and regenerations, and the pulse of consumer sentiment has fluctuated. Now, one year on, we’re due for a checkup.

At a macro level, US online consumers’ perspectives on healthcare reform today are largely consistent with those immediately preceding open enrollment under the federal law: Individuals continue to be skeptical of policy changes. However, at a micro level, subtle yet fundamental shifts in the consumer mindset signal a gradual evolution in perceptions of healthcare.

Our Technographics 360 research approach, which synthesizes Forrester’s ConsumerVoices Market Research Online Community insight and aggregated social listening data, shows that the conversation about healthcare has shifted from politics to experience -- and, in particular, to a focus on cost:

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Indian mCommerce Will Reach $19 Billion By 2019

India’s online retail market is on the radar of global investors and eCommerce players, which have announced investments topping $3.6 billion in the past three months, including $2 billion in Amazon, $1 billion in Flipkart, and potentially $650 million in Snapdeal. Growth in India’s online retail market is powered by its fast-growing smartphone penetration, as customers are increasingly using their mobile phones to buy products online. More than half of Snapdeal’s and Flipkart’s sales and nearly 35% of

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The Data Digest: Align Technology Investments To Thrive In The Age Of The Customer

Marc Jacobson

Forrester is helping its clients better understand the Age of the Customer, a tectonic business shift characterized by technology innovations that have empowered customers in new and disruptive ways. With computing power we could only have dreamed of just a generation ago now in the hands of well over a billion individuals, businesses are scrambling to keep up with relentlessly growing customer expectations and demands.

A recent Forrester report, called ‘The CIO's Blueprint For Strategy In The Age Of The Customer’, provides CIOs with a strategy to help their companies thrive in these new times. In addition to transforming customer experience with a measurable approach, the authors argue that customer obsessed organizations must:

1.       Accelerate digital business to deliver greater agility and customer value

2.       Embrace the mobile mind shift to serve customers in their moments of need

3.       Turn big data into business insights for continuous improvement

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Big Billion Day Exposes The Opportunities And Weaknesses Of eCommerce In India

October 6, 2014 — “Big Billion Day” — was marketed by Flipkart extensively, both online and offline. The founders of Flipkart, Sachin and Binny Bansal, sent a personalized email to registered users announcing the date and mentioning their emotional connection with the number 610 (the number of the apartment from which they launched Flipkart in 2007). October 6 falls in the festive season of Diwali, a period that accounts for 40% of the total sales of key brands in India. Online and offline retailers are competing for a major share of sales during this year’s Diwali.

2014 was a year of massive eCommerce investment in India. Flipkart raised $1 billion; Amazon announced it would invest $2 billion in its Indian subsidiary; and Snapdeal raised $234 million from private equity firms and an undisclosed additional sum from private investors. These three players are spending approximately 2 billion rupees ($33 million) this season on marketing — and a lot more on improving last-mile delivery and adding fulfillment centers to get a bigger piece of the sales pie.

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The Data Digest: The Counterintuitive Consumer

Anjali Lai

Forrester has been analyzing device adoption since the launch of its Consumer Technographics® studies in 1997. Over the years, it has become evident that although demographics and attitudes influence technology adoption, these elements alone do not predict consumer behavior – subtle factors like context and psychological needs must be taken into account to piece together the technology adoption prediction puzzle. This is because of two essential contradictions that exist between:

  • What consumers say they will do and what they actually do: The concept of introspection illusion reveals the discrepancy between stated intent and subsequent behavior. Consumers are bad predictors of their own technology adoption patterns and are often conservative when estimating their own device usage.
  • What consumers say they want and what they really want: As Steve Jobs famously put it, “People don’t know what they want until you show it to them.” And even then, consumers might not recognize the benefits of the product – needs are transient, circumstantial, and often conflicting. 
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My Highlights from EmTech MIT hosted by MIT Technology Review 2014

Gina Fleming

Yesterday, I had the pleasure of attending EmTech MIT hosted by MIT Technology Review. It was inspiring, exciting and motivating to see the innovators of today give us a glimpse of the emerging technologies that will influence the future. The event was especially fascinating for me because as a consumer insights analyst at Forrester Research, I closely follow consumer technology adoption. At the event, Astro Teller, Captain of Moonshots at Google[x], discussed how the technology giant approaches tackling society’s greatest challenges: The initiative needs to address an enormous problem that can be named, the solution needs to be radical, and is based on science and technology. Working on emerging technologies like the self-driving car, Google Glass, and smart contact lenses, Google[x] is at the forefront of bringing futuristic technologies to market.

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