4th wave consumer summary
TRANSCRIPT
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8/12/2019 4th Wave Consumer Summary
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4th Wave Consumer Study
October
2013
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4th wave early adopter and tech savvy consumer surveys
Over the past two years, the customer experience and expectation in connectivity has been revolutionized. The George Jetson era has
arrived, as consumers expect instant access as a way of life and we see products becoming automated, connected and hopefully, simpler.
The mobile phone has become the remote control for our lives and everything from door locks, to thermostats, to home surveillance, to
garage door openers, to wallets, and even health care innovations are now becoming matter-of-fact solutions.
The Fourth Wave of innovation has clearly become the talk of the tech industry, with new innovations in connectivity hitting the market
from every direction as new players emerge. With the emergence of players in Connected Home, M-Health, Mobile Enablers and
Connected Car, the consumer is now starting to embrace connectivity and adopt numerous Fourth Wave solutions. We have seen
accelerating adoption of point to point solutions, as well as scaling of WAN connected tablets (72% of postpaid gross adds with ATT).
The Sprosty Network leaders have been working where disruptive connectivity meets the customer experience in the Fourth Wave arena
for years, so we are collaborating with Chetan Sharma Consulting to ask early adopters if they are ready for the next wave of solutions.
We asked them what products they are likely to buy, how happy are they with the operators, the OSs, and the shopping experience?
What do they see as the top stories? How did the predictions of our industry experts measure up against tech-savvy early adopters?This study with early adopters enables better understand their level of interest in the new products on the horizon to connect their lives.
Quantitative surveys of mobile technology early adopters The methodology for defining for the survey participants as Tech Savvys:
Ages 25 to 54 with at least $50K income with a mix of male and female. All respondents completed 3-question battery to ascertain
early adopter status. 410 respondents attempted battery, 240 completed (59% completion rate) and participated in survey. Very Early and EarlyAdopters (Tech and Early Adopters who purchase technology prior to the curve with high ownership of numerous connected devices (Participants averaged
4 connected products each) 64% rated as very advanced mobile user and 22% rated as advanced mobile user and over 80% were tablet owners
We broke down the fourth wave into Connected Home, Connected Health and Wellness, Connected Car product domains for comparisonand asked participants to rate their likeliness to buy if the pricing was right. The results were surprising!
For further inquiries, email [email protected] or you can reach Dave directly at [email protected]
mailto:[email protected]:[email protected] -
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Summary Findings
PRIVACY BACKLASH AND TRUST: Even with the advances in convenience with solutions such as Google Now, even early adopters
have growing concerns regarding privacy and the backlash. They see this as the top story in mobile for the year on survey 1 and in
survey 2, nearly 50% of the group disagreed or disagreed very much that the value equation, or trade off of data privacy was worth
the value of offers for better managing their life. We also found that 70% of consumers disagreed very much or somewhat that thecarriers are looking out after their best interest.
FOURTH WAVE SOLUTION INTEREST: There is encouraging interest in all solution domains of the fourth wave, with Connected Home
leading the pack. We introduced Completely Connected to the participants as the ability to have instant access to digital information
about the most important things you have in your home and your day to day living. This includes knowing about: Power failures, water
heater function, natural gas issues, household appliances, lights, consumer electronics, doors and windows, inside temperature, and
when your children return from school. You would personalize how you monitor these things by using your smart phone or tablet.
Connected Home had strong interest in all four solution sets which included Automated Home (Connected wireless home services
monitoring thermostat, lights (on/off), and locks (locked/open), Home Security and Surveillance (easy monitoring of windows/doors
managed from your mobile phone or other devices, Home Energy Management/Safety (Home energy function efficiency detection
(e.g., power outages, plumbing leaks, HVAC, etc. and Ubiquitous Home Content (the ability to move content from device to tablet, to
TV easily) +65% of tech savvys are likely or very likely to purchase a connected home product on average.
In Connected Health and Wellness, which includes solutions like Aging in Place, (Products that wirelessly monitor your parent's medical
status so they can stay in their home longer as they age), In Home Health Monitoring (Product that monitors your recovery progressfrom home by using mobile technology, allowing you to stay home when you are sick rather than take a trip to the hospital/doctor and
connected and wearable fitness, (Application that collects solution that collects your current and past workout information from you
home exercise equipment) Average interest was in the 50% range, which was surprising for such new value propositions that
are not clearly understood by the market
Connected Car had the top scoring individual value proposition, with over 70% interested and 34% very interested in auto
diagnostics. Broken down individually, there are also good signs for the future with car Wi-Fi and satellite radio.
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Summary Findings
SHOPPING EXPERIENCE FOR CONNECTED PRODUCTS: When we think about retail, it is on two fronts, Brick and Mortar and
Web/Mobile Commerce. Where will the consumer prefer to purchase, how to they feel about the current complex sale in mobile, and
what is their take on m-commerce and mobile at point of sale?
First, where do customers prefer to purchase these fourth wave complex solutions? Bricks and Mortar is the optimal channel. Even
with Tech Savvys, the preferred channel across domains was bricks and mortar stores over web sites. The Bricks and Mortar channel
winners were different by domain, however.
Connected Home bricks and mortar preference was over 65% on average. The need for consultative interaction may have driven
the lead in preference in full line stores with installation, such as Sears and CE stores like Best Buy, followed by home improvement
stores like Home Depot and Lowes.
Connected Health and Wellness had the biggest anomaly, where the where the split of web vs. Bricks and Mortar moved closer to
50% and Direct from Manufacturer was the top alternative in bricks and mortar.
Connected Car. Full line stores took the top spot for bricks and mortar and usage based insurance was the only product where the web
exceeded bricks and mortar for preferred channel.
Sub-Par Experience: Consumers do not like the experience they are getting at point of sale. How do customers prefer to interact withthe complex product at point of sale? Customers still dont really enjoy the process of purchasing a mobile phone, validated by the
point that over 50% of them disagreed or strongly disagreed that purchasing a mobile was a reasonably enjoyable experience. It is
interesting that even tech savvys valued service as the #1 consideration even over price in the process of purchasing a complex mobile
product that includes service in the selling process. Tablets which are a simpler transection, were the inverse.
NPS and Satisfaction: The level of satisfaction with carriers versus OEMs is surprising. While Samsung beat Apple by 110bps in
satisfaction and by 30 bps in willingness to recommend, the real surprise was seeing their top box scores nearly double the operators.
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Our top ten findings
1. Privacy is the new hot button with consumers, likely due to recent publicity
2. The early adopter is ready to open their wallets for new Connected products
3. Auto Diagnostics was the top likely to purchase Connected value prop
4. Bricks and Mortar is the top channel for procurement of Connected Home
5. The value equation for usage based insurance is still not enough to drive scale
6. Tech Savvys value service even over price in complex transactions like mobile
7. Even with the plethora of new innovation in phones, battery life still rules!
8. There are Apple lovers and a sizable segment of Apple dislikers
9. The early adopters have trouble trusting the operators
10. Our price elasticity research (not shown) validates that people are willing to
pay for connecting their life, but tech savvys do not yet understand the value
equation of disruptive products like Google Glass enough to drive scale.
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Privacy: use of mobile big data not a given
32%
25%
22%
23%
23%
20%
19%
25%
4%
7%
0% 10% 20% 30% 40% 50%
I am fine with the fact that techcompanies, retailers, and service
providers can have ways of using datato find out my current circumstances and
make offers for these circumstancesbased upon my recent purchases.
I dont mind that by knowing where I amnow, where I tend to go, and myupcoming calendar events; tech
companies, retailers, etc. can tell me Imay need to leave to leave early andoffer best route to take based upon
traffic conditions, make recommendatio Agree very much
Agree somewhatNeither disagree nor agree
Disagree Somewhat
Disagree Very Much
Will value propositions like Google Now overcome this growing concern?
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4th Wave Solutions intent to buy scored well with early
adopters. Connected Home leading the pack.
Automated
Home
Home Security
& Surveillance
Home energy
Safety/Cost
Wellness
Aging In Place
M Health,
Monitoring
Wellness &
Fitness
Auto
Diagnostics
Usage based
Insurance
Ubiquitous
Content
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An aggregate of bricks and mortar was surprisingly the top
connected channel. Website fared well in health and UBI
Automated
Home
Home Security
& Surveillance
Home energy
Safety/Cost
Wellness
Aging In Place
M Health,
Monitoring
Wellness &
Fitness
Auto
Diagnostics
Usage based
InsuranceUbiquitous
Home Content
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Consumers continue to dislike the process of subscribing,
confirmed by the rare demand for service over price
Mobile Phone Retailer Tablet Retailer
Gaps in the activation and contract approaches could be driving the significant delta
between tablets (price) and phones (service)
Question Disagree
very much
Disagree
somewhat
Agree very
much
Procuring a phone is reasonably
enjoyable/fun experience
22% 34% 4%
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70% disagreed very much or somewhat that the operators are looking out after
their best interest.
Consumers were tough on the carriers
Question Disagreevery much
Disagreesomewhat
Neither agreenor disagree
Agreesomewhat
Agree verymuch
I believe that mobile phone
carriers are looking out for
my best interest
36% 34% 20% 8% 1%
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Tech savvys are not sitting on the fence with Apple; its
either love or hate relationship
Question Disagree
very much
Disagree
somewhat
Neither
agree nor
disagree
Agree
somewhat
Agree very
much
I love Apple products 13% 9% 16% 30% 32%
I love Microsoft products 6% 13% 31% 35% 15%
I love Android system
products
4% 9% 35% 33% 19%
as Apple clearly bests Android and Microsoft
on the love, but doubles them on dislike
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Most desired phone improvements. Battery life still rules
Even with all of the advances in applications and features over the
years, increasing battery life was most chosen improvement acrossall OEMs Speed of data was a distant second
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Willingness to purchase Google Glass lines up differently than
wearables as a whole, which made the top 5 in study #2
11%16%
34%
4%
2%
8%
$499 $249 $99
Somewhat Likely Very Likely
Interest in shelling out $ Google Glass was low-moderate.
Willing to purchase was 42% Top 2-box (8% Top Box) at $99
Hypothesis: This is consistent with our other price elasticity studies, as it typically occurs
with products prior to launch. The lack of a clearly defined value proposition makes it
difficult to drive a mutually beneficial exchange of value in the eyes of the unaware
consumer. Seeing and touching this product may be essential.
While consistently
low, we saw only a
30bp difference
when halving the
price from $499 to
$259
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Fun Facts Perceived category with most spend 2013
The perception amongst tech savvys is that they are spending more
on apps than messaging or voice.
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Fun Facts: Percentage of paid for apps for phone & tablet
Mobile Phone Tablet
Predictably, customers have a mindset for free apps versus paid on
tablets. They are more likely to pay for smartphone apps.
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We thrive in the connected world and continually revolutionize how retailers and tech
companies execute connected consumer solutions at all industry levels
The Sprosty Network: Building connectivity businesses
We build connectivity businesses all the way to execution and run them. As operators,
we know what works, what doesnt and have the relationships to accelerate scale.
We are known for disrupting status quo by relentlessly focusing on the consumer
POVand iterating quickly. Our hands-on approach to commercialization and
go-to-market gets to the money faster.
Specialized
Interim Talent
Why do we
exist?
How do we
do it?
Why were
different
Our
Services
Customer
Experience
Transformation
Product
Development &
SolutionsCommercialization
Industry Retail
Focus
Go To Market &
Distribution
Private Label
Value Proposition
Solution Development
Business Requirements
Product Roadmap
Sourcing Strategy,
Incubation
Customer Needs
Integrated Solutions
Experience Design
Retail Op Model
Connected Assortment
Assortment & Solutions
IT Integration
Brand Positioning
Channel Benchmarks
Channel Management
Ecosystem Positioning
Strategic Partnerships
Business Model
Market Positioning
CTIA
LMS & Training Platform
Industry Certification
Train the trainer
Industry Customer Focus
C Level
Officer Level
Two in a box on-the-job learning
Vendor Partnerships
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Service Delivery
Environment
Platforms
Fulfillment
Call Center / Chat
Retail Footprint
Truck Rolls
M-Health
Carrier
MSO
Solution
Applications
e and m commerce
Telematics
Security
Home Monitoring
Energy Mgt.
Channel
Customer
Experience
We are known for using customer data and employee insights to
simplify the connected solution value chain
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Our Services build connectivity businesses
Services based on customer needs
Product Development&
SolutionsCommercialization
Customer Experience
Transformation
Go to MarketDistribution
Industry RetailLeadership
Specialized InterimTalent
We are operators who take your business all the way beyond execution to run the business. Our
strength lies in our ability to execute on behalf of our clients to improve chances of faster scale
Product Development & Solutions Commercialization: Weidentify gaps in consumer assortments and design value propositions, then buildconnected products, bundles and solutions together with partners, including PrivateLabel.
Customer Experience Transformation: We see around the cornerto transform and forklift in new integrated customer experiences. Leveragingcustomer data and insights, we design customer value propositions, assortmentsand optimal operating models and can continually manage the business to successor turn it over.
Go to Market and Distribution: We identify the best of breedservice providers and solutions companies to design product and servicespipelines. We create complementary assortments for profitable scaling acrossmultiple channels and can run those channels their behalf.
Industry Retail Leadership: We partner with CTIA, and many other keyplayers to assure that the Retail customer experience is always a consideration bygathering insights and building industry ordained Retail capabilities and training.
Specialized Interim Talent: We provide specialized wireless andmobile talent from manager to C level on an interim basis for companies thatneed help building a new business in the connected world
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Thanks to John Tidwell
PhD in Psychometrics from University of Delaware
Co-author of five publications in consumer behavior
Over 20 years of experience in Market and Social research
International mobile market research experience in Argentina, Brazil, Canada, China,
Germany, Mexico, Peru, United Kingdom
Over ten years experience in Mobile market research
Seven years Director of Consumer Market Research at Nextel & Sprint
Other experience in Financial Services and Manufacturing
Adjunct professor in Statistics at Shenandoah University
Masters degree in Public Policy from University of Delaware