Looking to the future: The mobile consumer

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Looking to the future: the mobile consumer

Honey Kirtley

Head of Loyalty & Insight

Presented by:

Simon Atkinson

Assistant Chief Executive

Wednesday 6th November 2013

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Researching the mobile consumer...

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The Ipsos MORI/Logic Group research

Ipsos MORI conducted an online survey running from 8-12 March 2013 among the general public, aged 16-75

1,010 interviews with consumers across GB

Data weighted to be representative of the British offline population as a whole

Survey data is supplemented by Ipsos MORI data from a number of sources – eg the regular @IpsosMediaCT “Technology Tracker”

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3 questions for our consumer research

1. What are consumers using technology for

today?

2. How do they feel about using technology?

Excited? Concerned?

3. And what do they anticipate they will be

doing in the next six months?

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How do I use the

internet?

The Consumer’s Journey (so far)

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The internet is almost everywhere...

Internet usage trends: Was only in the 60s five years ago…

7 Base: circa 2,000 interviews per wave until Quarter 1 in 2010, circa 1000 GB adults aged 15+ per wave thereafter Source: Ipsos MORI

* The wording used for measuring ‘internet connection by mobile phone’ has been

updated which means earlier data is not strictly comparable and is therefore not shown

Internet usage anywhere

Broadband at home

*Connect using mobile phone

Connect via Dongle

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What we do online...

Base: 1,024 GB adults aged 15+: Quarter 1 2013

In which of these ways have you used the Internet in the last three months? % accessing the internet for each task

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We are getting smart with our phones too

Growth in Smartphones: towards 75% in Q3 2015?

10 Base: circa 1,000 GB adults aged 15+ per wave Source: Ipsos MORI

% OWN BLACKBERRY VS. IPHONE VS. ANDROID

iPhone

Males 15-34 25%

Males 35+ 25%

Female 15-34 23%

Females 35+ 27%

Android

Males 15-34 23%

Males 35+ 33%

Female 15-34 19%

Females 35+ 25%

BlackBerry

Males 15-34 20%

Males 35+ 30%

Female 15-34 23%

Females 35+ 27%

Any Smartphone (net)

Customer profile

Very high levels of penetration among under 45s

11 Base: circa 4,000 GB adults aged 15+: Q4 2012/ Q1/Q2/Q3 2013 Source: Ipsos MORI

% OWN A SMARTPHONE BY GENDER AND SOCIAL GRADE ACROSS 2012- 2013

All 15-24 25-34 35-44 45-54 55-64 65+

Males 57 79 78 71 62 36 15

Males AB 61 79 92 86 73 47 23

Males C1 63 82 84 76 70 34 14

Males C2 53 79 71 58 60 34 9

Males DE 47 76 67 56 43 20 7

Females 48 77 71 70 45 27 11

Females AB 55 87 84 80 52 44 23

Females C1 54 84 80 77 47 26 6

Females C2 42 75 62 60 41 18 7

Females DE 39 67 61 56 38 11 7

70-100% 50-69% 0-49%

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Home

On-the-go (e.g., while

commuting, walking)

In a store

Work

Café/coffee shop

Public transport

Restaurant At a social

gathering/function/event

Airport

Doctor's office

School

Somewhere else

The Omnipresent Smartphone…

Source: Our Mobile Planet, Ipsos MediaCT Q1 2013 Base: UK private smartphone users who use the internet in general, 2013, n= 1000

Q16. Where do you tend to use your smartphone? Please select at which locations you ever use it - even if only seldom

Places people tend to use their smartphones

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Where next?

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Big Data? Big Data! BIG DATA

BIG DATA

In the Boardroom

Business is buzzing about what to do with “Big Data”…,

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Just what do I think about

mobile technology?

The Consumer is asking different

questions….

Consumers worry about companies having too much personal info, as opposed to Governments

“The internet gives... too much information about me”

Agree Neither agree or disagree Don’t know Disagree

Base: 973 adults aged 15+, 26 April – 14 May 2013

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Only 30% trust major retailers to

keep their personal information safe

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Consumers are fairly cautious about trusting big business

Base: 1,010 GB adults aged 16-75: 8-12 March 2013

Q1. To what extent do you agree or disagree with the following statements?

Who are the ‘trusters’?

Socio-economic group DE (38%)

Aged 16-24 (34%) or 25-34 (36%)

Children in household (36%)

30%

42%

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Does trust matter in Loyalty Schemes?

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Only 33% would be happy for their

mobile to house their loyalty cards...

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... rising to 54% among consumers who

trust retailers to keep their personal information safe

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We’re even less sure about businesses knowing where

we are...

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mobile’s location to be used to provide relevant

loyalty offers...

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And trust REALLY matters where our money is

concerned

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mobile to house their credit/debit cards...

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So is it a question of trust?

What do you think are the two or three most important things to know about a company in order to judge its reputation? [Spontaneous]

Base: c. 1000 British Public each year , asked face-to-face

The 1980s were then. This is now: the rising importance of honesty and integrity

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Mobile, Loyalty,

Payments...?

Consumer Behaviour (So Far…)

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It’s early days...

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Q2a. Which, if any, of the following have you done in the last six months?

Take up is relatively low... and focused on “research” rather than “action….”

All adults

All adults

I have used my mobile phone to check product details/ product reviews in store

I have deliberately logged into a store’s Wi-Fi network to access the internet

I have used my mobile phone to price match products in store

I have used my mobile phone to check in to my favourite stores and restaurants and receive offers for things I like

I have received loyalty scheme offers via my mobile phone

I have used my mobile phone to pay for things

I have received loyalty scheme offers via my mobile phone while in a particular store, and I have used the offers

immediately

I have used my mobile phone in place of a loyalty card to collect points in store

Don’t know

None of the above

Loyalty schemes and payments are relatively low down the list

Base: 1,010 GB adults aged 16-75: 8-12 March 2013; 8-12 March 2013

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...but trust still seems to matter when it comes to looking at behaviours







I have received loyalty scheme offers via my mobile phone while in a particular store, and I have used the offers

immediately


Don’t know

None of the above

Those who trust major retailers to keep their information safe are significantly more likely to do each of these

Base: 299 GB adults aged 16-75 who trust major retailers to keep their personal information safe; 422 GB adults aged 16-75 who do not trust major retailers: 8-12

March 2013

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What about the future?

36 Base: 1,010 GB adults aged 16-75: 8-12 March 2013; 1, 008 GB adults aged 16-75 who have not done each item : 8-12 March 2013

We see a 50% uplift or more for each activity...

All adults

All adults







I have received loyalty scheme offers via my mobile phone while in a particular store, and I have used the offers immediately


Don’t know

None of the above


Q2b. And which, if any, do you expect to do over the next six months?

37 Base: 1,010 GB adults aged 16-75: 8-12 March 2013;

6 months later: The picture in Autumn 2013?

All adults

All adults

I have used/will use my mobile phone to check product details/ product reviews in store

I have used/I will use my mobile phone to price match products in store

I have deliberately/will deliberately logged into a store’s Wi-Fi network to access the internet

I have used/will use my mobile phone to check in to my favourite stores and restaurants and receive offers for things I

like

I have received/will receive loyalty scheme offers via my mobile phone

I have used/will use my mobile phone in place of a loyalty card to collect points in store

I have used/I will use my mobile phone to pay for things

I have received/will receive loyalty scheme offers via my mobile phone while in a particular store, and I have used the offers

immediately

Don’t know

None of the above

Q2a. Which, if any, of the following have you done in the last six months? Q2b. And which, if any, do you expect to do over the next six months?

Past behaviour + future intention

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With the ‘trusters’ still out in front?

I will use my mobile phone to check product details/ product reviews in store

I will deliberately log into a store’s Wi-Fi network to access the internet

I will use my mobile phone to check in to my favourite stores and restaurants and receive offers for things I like

I will use my mobile phone to price match products in store

I will receive loyalty scheme offers via my mobile phone

I will receive loyalty scheme offers via my mobile phone while in a particular store, and I will use the offers immediately

I will use my mobile phone in place of a loyalty card to collect points in store

I will use my mobile phone to pay for things

Don’t know

None of the above

Q2a. Which, if any, of the following have you done in the last six months? Q2b. And which, if any, do you expect to do over the next six months?

Base: 299 GB adults aged 16-75 who trust major retailers to keep their personal information safe; 422 GB adults aged 16-75 who do not trust major retailers: 8-12

March 2013

Past behaviour + future intention

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Mobile technology is everywhere, although not (yet) for everyone (old, lower socio-economic groups)

Consumers are instinctively sceptical about “all this information”

But just how sceptical? If your customers trust you, you have opportunities…

Getting the pace right: an evolving approach that

suits the needs of these early adopting ‘trusters’ and

can be adapted to suit a wider audience

=> the right conditions for a successful launch and life-span of your mobile offer…

Key take-aways

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Looking to the future of the mobile consumer

Honey Kirtley

Head of Loyalty & Insight

Presented by:

Simon Atkinson

Assistant Chief Executive

Wednesday 6th November 2013