Archives for posts with tag: device

how-mobile-is-changing-business-sm

Hat tip to Kiss metrics for putting together this clear and concise infographic about mobile’s impact on B2C commerce in 2012 and near future.

Here are some key takeaways:

1. Velocity of adoption

Though according to allthingsd.com, only about 20% of all web traffic in the US originated from a mobile device (smart phone or tablet) in 2012, Gartner expects that over 50% of web traffic in 2013 will shift to smartphones and tablets. If both allthingsd.com’s and Gartner’s numbers are correct, that would be a pretty significant shift, especially given the sudden acceleration of that change.

Relevance: Whether Gartner is reading more into the web-enabled device mobile-to-computer curve or not (see infographic above), the shift to devices is coming. It doesn’t really matter if that change happens in 2013, 2014 or 2015: It will happen. Consumers are increasingly likely to search for, find, discover and access your website from a mobile device than from a laptop or desktop PC. Even if that number only increases to 35% in 2013, that is 35% of your potential market. How much is that worth to your business? How many consumers are you potentially turning off or not properly converting by pursuing a digital strategy that is better suited to work in a 2010 digital environment than a 2013 digital environment?

Fix: Companies currently thinking of and designing their brands’ digital experiences and/or e-commerce sites primarily for laptop and desktop users need to adjust their strategy asap. The web is no longer about computers. And we aren’t just talking about website design but search, purpose/utility, UX/UI, e-commerce and social features.

2. 2011-2013: Mobile Sales Explode

Speaking of e-commerce, key indicators like Black Friday sales show an increase of 40% in online purchases made from a mobile device between 2011 to 2012. The number of online shoppers using mobile devices to make a purchase on Black Friday increased by 166% between 2011 and 2012. Paypal also reported a 190% increase in mobile payment volume between 2011 and 2012.

Relevance: Consumers aren’t only accessing websites from mobile devices with greater frequency and in greater volume, they are also becoming increasingly comfortable making purchases from their mobile devices as well. If you are not actively working to make your products easy to purchase via mobile devices, you are leaving money on the table. E-commerce is now indivisible from mobile commerce. What’s your strategy?

Fix: You basically have two options to make this work. The first is to create simple, painless, even fun mobile shopping purchasing experiences for your customers (see Nespresso example below), or you can work with key retailers to ensure that they create simple, painless, even fun mobile shopping and purchasing experiences for your (their) customers. Two examples:

a) Direct-to-consumer sales: Nespresso.

Nespresso sells espresso machines and espresso capsules/pods for those machines. Though every Nespresso product can also be purchased via Nespresso’s website, the company also created a mobile/tablet app that allows customers to order items (especially the capsules) on the fly. The process is quick and easy and is a lot quicker than opening up a browser, looking for a website, navigating through it to find the right page and finally order products.

b) Distribution model: Amazon

Amazon’s web experience is already pretty stellar but their app also allows shoppers to scan bar codes, search for a product by snapping a photograph of it, and so on. Everything about Amazon is geared towards ironing out hurdles between the search/shopping phase of the digital experience and the purchase/order phase of the digital experience. In addition, Amazon has been known to experiment with themed, seasonal mobile and tablet apps like the Santa App they launched in December 2011 (see below) to help children help tell Santa what they wanted for Christmas.

3. Adjusting expectations

44% of mobile app users who will ultimately make in-app purchases take 10 visits to finally take that step. 33% will make a purchase between their second and ninth visit. 22% will become customers after using your app only once. 22% isn’t bad, but remember not to try and set unrealistic goals for your digital team. And remember to design your app around realistic consumer behaviors and not in opposition to them.

Relevance: If your mobile app doesn’t enable and drive some kind of transaction, you probably haven’t designed it with the right objectives in mind.  Also, if your mobile app doesn’t make your customers’ shopping experience easier or better than it was before you launched the app, then it probably doesn’t offer enough value to be effective. Don’t just focus on what you hope customers will do but on why they should want to do it in the first place.

Fix: Don’t create an app just “to be in mobile.” Create an app that improves your customers’ lives in some way and/or solves a problem for them. If you are a retailer, it could simplify the shopping/purchasing/ordering process. If you are a utility, it could help customers pay their bills, browse services they don’t currently know, manage their utility usage, etc. If you are an insurance company, it might (in addition to scheduling payments) provide tips, real-time assistance and even file claims. (Think about car accidents, unexpected visits to the emergency room, etc.).

Note: Having a presence on social media channels can play a crucial part in the process of value creation we just outline. Listening to your customers (and your competitor’s customers) with the help of digital monitoring tools (yes, like Tickr) can help you identify pain points/areas of improvement. These could be turned into your mobile app’s key value-add features and make the difference between your app just being there and your app being a commercial success. Ideally, your presence on social channels also drives a healthy dialog between your company and your customers (don’t just listen to what they’re saying: also respond, ask for their advice, acknowledge their contribution to their process and reward them for their help), but even if you haven’t built that type of social practice yet, active listening will make a world of difference in your app’s ideation process. Don’t just guess. Go find out. It’s easy to do now. All you need are the right tools.

That’s it for today. We hope this post was helpful. And if you aren’t using Tickr Command Center yet, check out what we can do for you here.

You can also come say hello on Facebook and Twitter. We won’t spam you with useless marketing content. Scout’s honor.

Cheers,

The Tickr Team.

by Olivier Blanchard

As the year ends and you start to meet internally to discuss next year’s planning, it might not be a bad idea to think about the changes already underway when it comes to media consumption, channel erosion, technology shifts, and what this all means to your business. Hopefully, this post will help you make smart decisions about where to focus your attention, efforts and funding in the next 12-18 months. No need for us to write a white paper on what it all means. We want to give you the information you need without saddling you with filler, so expect some bullets and key takeaways, but the graphics we have selected should speak for themselves. Pay attention and you should be able to connect the dots all on your own.

Let’s start with the graphic at the top of this post: Global Media Consumption per week 1900-2020. What do you see?

1. The main line: Global media consumption doubles every 25 years or so. Bear in mind that there are only 24 hours in a day, so that curve eventually levels off (even with second and third screens… but we won’t get into that today).

2. The nature of media is changing: 5 years ago, 50% of media was digital. In 8 years, that ratio will be 80%. Think about that and what it means.

3. Individual performance of specific media:

Print is steadily shrinking and has been since the 1940s, contrary to popular lore about the internet killing print. This is not a new phenomenon. It’s accelerating, sure, but it isn’t new. TV started that trend long before most of us were born.

Analog TV and radio formats have been replaced by digital formats. Radio has been relatively flat for a very long time. TV saw enormous growth from 1940 to 1980 but has been relatively flat ever since. Note that this graph doesn’t look at the growth of channels (channel proliferation and fragmentation, but consumption only. Adding 100 new TV and radio channels per day wouldn’t affect consumption).

Outdoor has been relatively flat for over a decade, as has been cinema.

So what’s growing? You already know: Internet, mobile (wireless) and games.

Speaking of mobile:

What this graph tells us:

Mobile cellular subscriptions are steadily increasing worldwide each year, as is the number of internet users. Active mobile broadband subscriptions are also growing quickly. That’s the black bar on the graph. It isn’t even there in 2006 but by 2010, it already reaches about 1 billion.

What’s flat (or close to flat?) Fixed broadband subscriptions and fixed telephone lines.

What does this graph show us?

1. Look at the relationship between internet users (green) vs. Fixed broadband subscriptions. What do you see? There are far more internet users than broadband subscriptions. Part of the reason for that is that one broadband subscription may serve an entire household or office, but there is more to it than that: Mobile broadband. More and more people now access the web through mobile devices. It isn’t to say that PCs are dead, but this indicates a pretty key shift in how people (it’s okay to call ourselves consumers) now access content and information.

2. Look at the relationship between fixed and mobile broadband (pink and black, respectively). In 2006, fixed broadband was it. By 2008, they were essentially tied. By 2011, mobile broadband was double the size of fixed broadband.

Bear in mind: Mobile broadband subscription = 1 user. Fixed broadband = several users. It’s simple math. Regardless of the apples to oranges comparison, growth is growth. Shift is shift. 75% of media will be digital in just 4 years. 80% of it will be digital in 8 years. Mobile devices are becoming the interfaces of choice for digital content. If you aren’t building your business processes and designing your content with this in mind, don’t blame “the economy” for what is about to happen to your market share.

Now let’s look at a quick graph on the relationship between age and internet use in developing economies vs. developed economies:

 Now look at this:

See the change in just 5 years?

Here’s another one that should make you think a bit, especially if your company has a global footprint:

Three things:

1. Globally, 45% of internet users (regardless of the interface) are under the age of 25. Though it may be obvious to most of you, don’t take for granted that every CEO and CMO has figured this out yet: It doesn’t matter if your typical customer is mostly over the age of 35. In 10 years, those 25-year-olds will be potential customers and they will expect you to do business the way they want you to do business. Better start working on them now. And while you’re at it, better start working on bringing every aspect of your business and its marketing/communications up to speed. You wouldn’t believe how many senior executives completely miss this.

2. Developing economies have some catching up to do when it comes to internet use, but they are quickly closing the gap.

3. Look at the growth of 3G penetration between 2009 and 2014: From 39% to 92% in Western Europe. From 9% to 40% in Eastern Europe. From 38% to 74% in North America. Japan hits 100% two years from now. 100%. (Japan is the model, by the way.) Even developing regions like Africa, the middle East and AsiaPac (minus Japan) are quadrupling 3G mobile penetration in the next two years. We are moving towards 80% of all media being digital. Mobile devices are increasingly becoming the digital interface of choice for consumers. Connect the dots.

Here’s a thought if you still don’t understand how this applies to your business: Follow the money. If it isn’t clear why any of this matters or even where things are going, look no further than shifts in advertising budgets in relation to digital and other media:

What do you see? Ad spend is flat in print (actually shrinking a bit) while digital ad spend is steadily growing. Every graph that compares online ad spend to other types of media ad spend look basically like this. If you don’t understand why this is happening, the graphs further up the page will help connect the dots.

Here’s another graph that ought to make you think about how your media planning strategy should already be shifting:

 What this graph shows is the point where online video wins the attention war and TV begins to recede. Same content but different interface, different medium, different level of user control. 2019 will be here before you know it. (The graph may even err on the side of caution. Things might already be moving faster.) What are you doing today to prepare for the television set’s Waterloo? From media buying to content production and distribution, are you sitting on your hands talking to analysts about future trends or are you staffing up with people who understand this and know how to prepare you for it?

Just as importantly, how are you restructuring your market research and consumer insights programs? (Are you? You should be.) This might help.

Let’s continue with today’s #graphfest. This ought to shed some light on what is happening on the interface front:

The 411: Desktop PCs are flat and mobile PCs (laptops) are growing. No surprise there. Also no surprise as to the growth of smart phones and tablets. But check this out:

Smart phones sales overtook desktop PC sales in 2008 and will take over mobile PC (laptop) sales in 2013. That’s next year.

Tablet sales will overtake desktop PC sales (that boxy thing taking up space in your employees’ cubicles) next year.

If you are an executive, go for a walk around your offices and ask yourself: What decade are you operating in? In fact… What century are you operating in? Look at your business processes, internal collaboration, media planning and productivity. Go spend a day at a media conference or tour your local coffee shops. Ask yourself if your business is operating in a bubble or if it is as technologically and strategically competitive as it could be. Be honest with yourself. Tip: If the average twenty-something hipster lounging around at Starbucks is better equipped than your average middle manager or business development team, the answer is no. Here’s another one: If your business isn’t creating apps or content specifically designed for these new devices (let alone social channels), the answer is also categorically no.

Every time you spy an executive working on a presentation on a plane, look at what kind of tech they use. Every time you see one using a boxy old laptop, you know the organization he or she works for is already falling behind. Why are these folks still using 2007 technology in 2012? You don’t see five year old tech winning on the racetrack, the field, the court or the links, right? Business is no different from sports in that regard: Outdated technology doesn’t give anyone an advantage. All it does is make you less competitive. Get unstuck.

Here’s a thought: When the world is changing faster than you are adapting to that change, it’s time to start a) worrying, and b) doing something about it. The idea isn’t even to eventually catch up, mind you. That’s a defensive position, a survival position. The idea is to actually get ahead of that change. That’s where the real competitive advantage is. Survival is a nice default position, sure; many businesses aren’t even there. But with only maybe 5% more thought and work than it would take to just play catch-up, you can shift from being just an “also in” company to becoming the leader in your industry or category inside of 5 years. That sort of surge in competitiveness doesn’t happen by accident. It takes will, foresight and initiative. That takes leadership. Real leadership. And sorry to have to tell you this, but real leaders make it a point to know what matters. “I don’t understand this new digital stuff” isn’t going to cut it anymore. Not understanding how things work anymore isn’t a sign of leadership. It’s an urgent call to action. Learn this stuff. Get caught up. It isn’t that difficult, and yes, we can help.

One last little media-related graphic to close today’s post and help you get your bearings:

Something else to think about: Becoming more “social” is only part of the shift that is taking place in media. It’s important, vital even, but without understanding how media as a whole is evolving, being “more social” probably won’t do most companies a whole lot of good. We’re seeing that already. There is a much bigger field, and the more of that field you and your senior leadership see, the better equipped you will be to not only survive the next decade but come out of it stronger and more competitive than ever. That’s the goal, right?

Final thoughts:

Don’t forget to plan beyond next quarter and/or year.

Get IT more involved in the day to day discussions that affect your business.

Rethink your hiring requirements.

Rethink the way you conduct market research.

Rethink the channels you use to connect with customers.

Rethink your relationship with consumers.

You aren’t necessarily going to become a digital business, but your business does need to be as effective in the digital space as it is everywhere else.

Welcome to the great reshuffling of the Fortune 5000 world.

*          *          *

 

Follow our feeds on Facebook and Twitter for a lot more updates and information about social business, digital media, monitoring and market intelligence. (We promise we won’t spam you.)

And if you haven’t yet, start building Tickr pages right now. It’s simple and quick, and you can take them with you everywhere you go.