••• health care research
A boom in Boomer health care spending
IRI predicts $230 billion by 2020
It’s no surprise that health and wellness are important to Boomers and seniors. However, this doesn’t mean that they are only purchasing prescription medications and shopping for the typical health care products. Like all consumers, mature consumers are investing in healthier living today to maximize long-term health care expenditures. As a result, “healthier for you” has emerged as a significant opportunity across CPG aisles, according to Aging America: Carving Out Growth in Mature Markets, a report from Chicago researcher IRI.
“By 2020, annual CPG spending by Boomers and seniors will surpass $230 billion,” says Susan Viamari, editor of Thought Leadership, IRI. “Health care-related spending represents a significant share of overall CPG spending for mature shoppers, so it is crucial for CPG marketers to focus on proactive wellness and disease-state management to activate these shoppers. With this type of spending on the table, even a fraction of one share point can easily translate into hundreds of millions of dollars.”
Thus, going forward, retailers and manufacturers must continue to look across the store for opportunities to support and advance consumers’ wellness-related efforts, as the interest in these types of products is not limited to the health care aisles. In recent years, Dannon’s Light & Fit Greek yogurt and L’Oreal’s Advanced Haircare line, for example, have scored with consumers. And retailers are innovating to serve this market, too. Walgreens, for instance, partnered with GlaxoSmithKline to launch Sponsorship to Quit, a free online smoking cessation program.
Consumers are embracing proactive self-care because it’s less costly to maintain good health today than it is to face chronic disease tomorrow. Aging consumers are investing disproportionately in a wide range of preventive care and simple health care solutions. Sales of products such as gastrointestinal liquid, home health care/kits, vitamins and internal analgesics are showing exceptional growth among the mature marketplace.
To protect and grow share in these related categories, marketers must not only understand the broad range of conditions that are prevalent and/or top-of-mind among older consumers but they also must educate consumers on the ingredients and products that can help them prevent and manage these diseases.
“It’s important to remember that mature consumers want to achieve and maintain wellness but they are not interested in the latest fad,” Viamari says. “When you have more than 9,500 new brands hitting retail shelves each year that are touting new ingredients and benefits, it can be overwhelming. That’s why clear communication of product benefits, product uses and value is absolutely essential with these shoppers.”
Older consumers still rely heavily on traditional media, such as circulars and coupons from home as well as signs or displays in stores when making brand decisions. However, marketers should not rule out digital media. More than 27 million people over the age of 55 are engaged in social networking and nearly 71 percent of Boomers and 59 percent of seniors visit social networking sites daily.
To reach mature consumers effectively, marketers must leverage traditional media and supplement with new media programs that are tailored to target consumers’ place on the technology adoption curve. “There’s no question that the mature market is poised for significant growth,” says Viamari. “The trick for marketers is to get a good grasp on the aspirations, challenges and attitudes that mark this unique and mature marketplace.”
www.iriworldwide.com
••• social media research
Audience size determines how we share
Helping me vs. helping you
In a Journal of Marketing Research article (“Broadcasting and narrowcasting: how audience size affects what people share”) Alixandra Barasch and Jonah Berger propose that one simple aspect of social media communication – the size of the audience – might contribute to self-focused behavior.
In a series of experiments, the authors tested the effects of audience size on the content participants shared. Barasch and Berger found that people naturally tend to focus on the self and communicating with many others (broadcasting) does little to discourage this egocentric orientation. As a result, broadcasting encourages self-presentation, leading people to avoid sharing content that makes them look bad (e.g., a story about choosing a bad product).
However, the authors found that one-on-one communication (narrowcasting) prompts people to shift their attention to the message recipient, making them care more about sharing something useful (e.g., information about discount concert tickets).
For example, in one study, the researchers randomly assigned people to have face-to-face conversations with either a single person or a small group, then examined the stories they told about a recent restaurant experience. People who broadcasted told less negative stories than those who narrowcasted. Broadcasters also used more self-focused words (e.g., I, me) and fewer other-focused words (e.g., you, your). In another study, the researchers found that people were more likely to share information about an upcoming sale when narrowcasting.
These findings can help explain why Facebook and Twitter seem so self-focused. Social media posts often address a large audience of “friends” or “followers,” which may encourage disproportionate self-presentation.
“Broadcasting is unrepresentative of everyday life because people may avoid sharing things that make their lives look bad,” note Barasch and Berger.
These results have implications for how firms can manage word-of-mouth by presenting consumers with opportunities to narrowcast or broadcast on their Web pages based on the type of product they sell. Companies that sell useful products (e.g., health care) should provide Web forms for narrow, personalized messages. Conversely, companies that sell products related to self-presentation (e.g., designer clothing) should provide one-click posting onto social media.
••• technology research
Connected devices gaining in popularity
IoT is right for me
Consumer adoption of network-connected technology is on the rise, with 69 percent of consumers planning to buy an in-home device in the next five years, according to Accenture Interactive’s 2014 State of the Internet of Things Study. By the end of 2015, a total of about 13 percent of consumers will own an in-home IoT device such as a thermostat or in-home security camera. Currently, only about 4 percent of those surveyed own such a device.
Adoption of wearable IoT technology such as smartwatches and fitness devices is also expected to gradually increase, with nearly half of consumers already owning or planning to purchase a device in this category in the next five years. The study was conducted by Acquity Group, a digital marketing agency, now part of Accenture Interactive.
Wearable fitness devices will generate the most mass consumer adoption in the next year, with 22 percent of consumers already owning or planning to make a purchase by 2015. While findings reveal consumers are more likely in the next year to adopt connected devices that emphasize health and safety, they are most focused on how IoT products can provide integration to help them live more conveniently long-term.
Taking into account respondents who already own these products, the following connected devices are expected to be most popular over the next few years:
Wearable fitness devices (expected to have 22 percent adoption by 2015; expected to have 43 percent adoption in the next five years).
Smart thermostats (13 percent projected adoption in the next year; 43 percent in the next five years).
Connected security systems (11 percent adoption in the next year; 35 percent in the next five years).
Smart clothing and heads-up displays are expected to see the least overall adoption, with only 3 percent projected adoption in the next year, and 14 and 16 percent in the next five years.
The research reveals ownership will also extend from tech-savvy consumers to late adopters in the next five years. Both plan to purchase wearable and in-home IoT devices by 2019: 92 percent of those who considered themselves mass consumers on the adoption curve and 78 percent of late adopters say they’ll purchase an in-home IoT device in the next five years; 45 percent of consumers and 26 percent of late adopters plan to purchase an in-home device in the next two years; 75 percent of consumers and 62 percent of late adopters say they’ll purchase a wearable device in the next five years; 42 percent of consumers and 24 percent of late adopters plan to purchase a wearable device in the next two years.
“These digital devices present major opportunities for improving a brand’s customer experience for a range of consumers,” says Jay Dettling, president of Acquity Group. “Our data reveals that it’s not only tech enthusiasts who are interested in these kinds of products but late adopters who also express interest in buying them.”
More than twice as many men as women say they have heard of the IoT (nearly 19 percent versus just over 8 percent). The study indicates men are slightly farther ahead on the adoption curve than women, with men more likely to identify as early adopters: 53 percent of men plan to purchase wearable technology in the next five years, compared to 45 percent of women; however, when it comes to wearable fitness devices, women are slightly more likely to have already adopted than men (8 percent compared to 7 percent).
Men are more likely to plan to purchase an in-home IoT device, such as a smart refrigerator, in the next five years compared to women (70 percent compared to 67 percent). Younger consumers are most likely to adopt connected technologies later on, while older consumers are slightly more likely to already own certain products: 53 percent of Millennials (ages 18-25) plan to buy an in-home IoT technology device in the next five years, compared to 32 percent of Baby Boomers (over the age of 45). Thirty-six percent of Millennials plan to adopt wearable technology in the next five years compared to 25 percent of Baby Boomers. Forty-five percent of Baby Boomers plan to adopt a smart thermostat in the next five years, compared to 35 percent of Millennials. Fifty-nine percent of Generation X consumers (ages 26-35) plan to adopt wearable fitness technology in the next five years, compared to 47 percent of Millennials.
The findings of the nationwide study indicate that consumers living in the top 10 largest U.S. cities are more likely to identify as early adopters than the national average. Findings also varied by region: 74 percent of consumers living in the Northeast plan to adopt an in-home IoT device in the next five years, compared with 68 percent in the Midwest and 66 percent in the Southeast. Consumers living in the Northeast are approximately 50 percent more likely to adopt a smart smoke detector in the next year than those living in the Southeast and Midwest; 58 percent of consumers living in the Northeast plan to adopt wearable technology in the next five years, with the Southeast and Midwest close behind at 57 and 55 percent.
“The growth of these devices will have a major impact on customer experience innovation across industries,” says Dettling. “Adoption of IoT technologies can provide digital businesses high-quality brand engagement opportunities with customers and drive more revenues.”
The Acquity Group 2014 State of the Internet of Things Study surveyed more than 2,000 consumers across the United States to gain insight into their preferences for and barriers against use of the Internet of Things. Results were broken down based on demographics, including age, gender and location.
www.accenture.com
••• financial services
Interest rising in mobile banking
Branches remain popular
Almost two-thirds (62 percent) of consumers have at least tried mobile banking, according to findings from the inaugural Bank of America Trends in Consumer Mobility Report, a study that explores broad mobile trends and banking behaviors among adult consumers across the country who own a smartphone and have an existing banking relationship. Of those who use their phones for banking, almost one-third (31 percent) say they log on at least once a day and four out of five (82 percent) access their accounts at least once a week or more.
When accessing a mobile banking app, the most common activities included monitoring account balances and statements, transferring funds and paying bills, as well as depositing checks via mobile check deposit.
But while mobile and online banking services are becoming more widely used, and in many cases are consumers’ primary method of banking, visits to bank branches also remain high: 84 percent of respondents have visited a bank branch within the past six months. This is true among all the age groups polled, with nearly the same percentage of Millennials ages 18-34 (83 percent) saying they have visited a bank branch in the past six months as those ages 35 and older (85 percent).
However, just 23 percent of respondents say they complete the majority of their banking transactions at a branch. Nearly half (47 percent) turn to mobile or online as their preferred method.
Increasingly, consumers are using their mobile banking apps to perform more sophisticated transactions, such as mobile check deposit. According to the report, nearly six in 10 (58 percent) of those surveyed have used mobile check deposit, and nearly four in 10 (38 percent) use it frequently.
Consumers who say they do not use mobile check deposit cite lack of awareness as the chief reason: more than one-third (35 percent) are either not as familiar as they would like to be or are unsure how to use the feature. More than one in five surveyed (21 percent) prefer physically handing checks to a teller, and 27 percent report they just do not have any checks to deposit.
In other findings, if their phone is lost or stolen, consumers are just as concerned about losing their personal contacts (79 percent) as they are about identity/security information (79 percent). In the next two years, 60 percent of consumers would be comfortable with a fingerprint scan/swipe security feature to gain access to their mobile banking app. Nearly one-third expressed comfort with retina scans (32 percent) and voice recognition (33 percent).
••• lifestyle research
PayPal study examines how consumers view time
The weight of waiting
As part of its recent global rebranding, PayPal announced findings from a 15-country survey aimed to understand both universal human attitudes and country-specific variances in perspectives about time, technology, money and other central elements of what PayPal calls the People Economy, a descriptor for its belief that people’s lives can and should be more connected, more human and filled with deeper meaning.
Seventy percent of the world thinks technology should make payments simpler, connected and faster, with more choices and opportunities. For example, in Singapore (73 percent), China (72 percent) and Australia (51 percent), the majority of people want technology to help them avoid long lines.
European shoppers are more fed up with having to wait for someone to take payment or having to get cash to complete a purchase, with Spain (55 percent), Italy and Russia (53 percent), France and Turkey (41 percent) and the U.K. (39 percent) reporting the highest levels of dissatisfaction.
The problems persist online as well; if a site requires a customer to sign up or register before making a purchase, they’re apt to lose more than half of prospective sales in Italy (52 percent), Canada (51 percent) and Spain (50 percent).
Whether waiting in line/queuing to pay for things, commuting to and from work or sitting in traffic, enduring pointless meetings or calls or simply running through the day’s errands, more than half of the world (56 percent) wastes hours each day that they’d like help recapturing. Only Germany has a significant percentage (19 percent) of its population that professes being highly efficient and wasting no time. By contrast, only 2 percent of Americans report feeling efficient.
For the rest of the world, getting to and from work and dealing with daily routines seem to be the biggest time-sucks, with every country averaging more than an hour on each. Italians, however, have the worst commutes, wasting more than two hours each day (123 minutes on average) followed closely by Israelis (117 minutes). Russians waste nearly three hours on errands each day (166 minutes), followed by Brazilians (125 minutes), Americans (118 minutes), the Chinese (115 minutes) and the Turks (112 minutes). In the U.S., being stuck in traffic and pointless meetings, taking calls and answering e-mails come in as a close, combined second for what time is wasted on (22 percent each).
While the fact that we waste time on the day’s necessities may not be surprising, how each country would spend that time if given the chance varies from country to country. Of those wishing to spend more of that wasted time on worthwhile endeavors, Americans lead the world in ranking family time (54 percent) as the way they wish to spend more time, while the Japanese want to treat themselves with solitude (63 percent), the Chinese seek more physical activity (48 percent) and Spaniards want more time for leisure activities (35 percent).
While keys lead the list of things people won’t leave the house without, the smartphone is just as important – beating cash and credit cards on a global scale. This statistic confirms for businesses that figuring out mobile payments is important to future sales. In fact, in some of the world’s fastest-growing economies, the majority of the population has already embraced mobile payments. In China, 90 percent of respondents pay from their phone, followed by Russia (85 percent), Brazil (nearly 70 percent) and Turkey (60 percent). Even in China, however, where mobile is mainstream, 35 percent of respondents wish paying by phone were easier. The world is ripe for continued innovation.
In the U.S., 54 percent say that small local businesses like farmers markets and local shops can benefit from mobile or online payments and 49 percent believe American entrepreneurs overall would benefit from an easier flow of money.
www.peopleeconomy.com
••• shopper insights
Shoppers like tailored e-mails
Make it personal, please
As reported by Christine Kern of Integrated Solutions for Retailers, in an online survey administered by Harris Poll and sponsored by digital marketing technology and services provider Listrak, 80 percent of Americans who read promotional e-mails prefer it when retailers personalize their marketing e-mails based on a consumer’s previous purchases.
The survey of more than 2,000 adults also found that 71 percent like it when retailers e-mail them based on online browsing behavior; 69 percent like retargeting ads showing them an item recently viewed on a merchant’s Web site; and 67 percent like product recommendations on retailers’ sites during their shopping visit.
“Contextual relevance is key when featuring personalized product recommendations,” says Listrak CEO Ross Kramer. “Merchants must consider where shoppers are in their purchase journey when determining the personalized products to show, whether in different types of e-mail campaigns or on different pages of a retail Web site, and should make it clear to the shopper why particular products are being presented, as well.
“Shoppers are on-the-go and often time-challenged and the number and variety of products online can be daunting, so they truly value when a retailer shows its familiarity with their individual personal preferences, current interests and purchase history to present them with products they are mostly likely to be interested in and to want to purchase,” Kramer says.
The study found that 72 percent open and read promotional e-mails from retailers and that 44 percent of Americans who open and read promotional e-mails from retailers get five or more e-mails per week from their favorite retailers; 21 percent receive nine or more weekly.
In contrast, when asked the maximum number of e-mails they find acceptable to receive weekly from a favorite retailer, only 21 percent respond five or more. Seventeen percent report that they don’t have a maximum number and another 5 percent say they are unsure of the maximum number.
“Roughly the same number of shoppers who say between five and eight e-mails weekly is the maximum they find acceptable say they do not have a maximum or are unsure of how many are acceptable. We continue to see proven what shoppers in our 2014 Harris survey reported – subscribers’ willingness to receive more e-mails corresponds directly to how relevant and personalized the e-mails are,” Kramer says.
www.listrak.com