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Understanding Connected Consumer Behaviour

/ 1st April 2019 /
Ed McKenna

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Every business is being disrupted by technology advances and people are adapting their consumer behaviour as a result. Finian Murphy, planner with Core, explores Core’s research to find out what digital consumers want

It is no great surprise to learn that the majority of Irish people primarily use digital channels to find out about the latest news and information. But have you considered the role of technology in Ireland on other everyday activities? Are we all using tech to buy our food? Is tech helping us hail a taxi? Are we sharing funny stories with friends on digital channels or do we hold some back for the pub on Friday night?

In 2019, companies and brands have an opportunity to assist people with nearly every activity in our lives. At the same time, technology is playing an increasingly active role in helping or hindering these activities. At Core, Ireland’s largest communications company, we were keen to understand the extent to which people use technology and digital in a variety of activities, and how this is likely to evolve in the near future.

Our research study, ‘The Connected Behaviour Map’, tracks the role technology plays in 54 behaviours. In November 2018, we interviewed 1,000 Irish people, representative of the population who use technology, about their digital life. Our analysis allows us to plan digital marketing solutions and predict technology adoption over the coming years.

Customers have high expectations

The category which has invested the most in digital is banking, such that the new norm there is using an app and not a bank branch to manage personal finances. Around 85% of ‘Connected’ people check their balance using technology ‘always’ or ‘a lot’. The one-click access to your bank balance has led 40% of digital customers to expect more tech in their banking experience.

In Association with

This adoption of tech is not unique to banking, with technology involved in every other activity we analyse. Across the 54 activities we reviewed, only one-third of the things we do involve little technology. The majority of behaviours across nine categories are influenced or helped by technology.

In information and news, 78% of people told us they use a lot of tech to keep up to date with news, 74% use it to get sports headlines and 81% to check the weather. When it comes to listening, 62% use tech to listen to music, while 19% listen to podcasts every week.

Moving away from media, we can see that tech has had an impact on transport. For instance, buying and checking-in on flights is predominately a tech behaviour. However, despite the Dublin tech bubble, only a minority of the connected population is using tech (e.g. MyTaxi / FREE NOW) to get a taxi, with the majority choosing to call or walk up to a taxi rank.

Within the commerce category, Ireland’s connected consumer is now very savvy, not only when buying event tickets online (72% use a digital site), but also in selling second-hand goods on sites such as Done Deal (68% use a digital channel). However, this digital behaviour does not transfer to doing our weekly shop, with only 7% claiming they always do their grocery shopping using technology or digital channels.

Future projections

The majority of people are satisfied with the amount of technology they are currently using, indicating that they do not want more or less. However, while connected consumers will continue using technology throughout their everyday tasks, there is a growing need to address the quality of the online experience for this connected population. This is clearly illustrated by the study, as currently only one in five people find online ads entertaining.

Currently for connected customers, digital performs better when it comes to delivering relevant information, with 56% agreeing that ‘online advertising can be useful to find something new’. More concerning? One in three online users find Irish websites really difficult to navigate, demonstrating the need to improve the user experience (UX) of many websites.

With this level of frustration both with brand and user experience, there is a need to take action and deliver a better experience. This need is compounded by the reality that those who do want a change in the amount of technology are demanding more. Some 31% say they intend to use more tech for DIY or home inspiration, 32% say they will use more tech to find a date, and over 35% of people say they will use tech to research holidays, food, cars and financial products.

As marketing professionals, we will use this study to collaborate with our clients for better digital experiences. Our focus remains on ensuring the relevant message is in the most effective media, while ensuring the user experience benefits people and business. Our digital consulting is built on three key principles: media, message and experience.

Media We are committed to viewing our target audience beyond demographics. Demographics continue to be relevant in media targeting, but digital allows us to understand with greater detail the motivations, interests and values of customer groups. We are interested in why they would be here, not who is here.

Message We are focused on carefully considering the format and the frequency of the message. We will design content for the correct canvas and ensure that the user is not frustrated with the level of re-targeting. We will design content that will emotionally connect with people, based on their need state. This may involve encouraging people to feel secure and safe while going about a functional transaction, or exciting people with the latest story about a personal passion.

Experience While media and message are focused on the journey, the destination can often be let down by the user experience: the website, app or digital platform. We will build our digital marketing on the right foundations, ensuring that user design is correct before asking people to experience them. Once we are confident with the experience, we will trial and innovate to connect customers in new ways as technology evolves.

Photo(l-r): Alan McAuley, Hannah-Louise Dunne, Emer Lawn, Jen Walsh and Finian Murphy

 

‘Technology will shape the future of shopping for groceries’

In the US, Amazon now takes one dollar for every two dollars spent online. The ‘Store of Everything’ is the most dominant retail player, killing off every business that is slow to react to changing consumer behaviours and expectations. In our study, we analysed a variety of commerce activities, all of which highlight how Irish people have become accustomed to using tech. However, in the most frequent retail experience, adoption of technology is slow – for now.

When Irish people choose to attend a gig or event, 72% of ticket buyers use a digital channel to buy their tickets. Similarly, after a spring clean, 68% of people use a digital channel to sell second-hand goods. When it comes to paying utility bills, 66% of bill payers say they use digital channels. However, with this acceptance and understanding of transacting online, there is one frequent retail transaction that continues to be a predominately offline experience.

Only 7% of grocery shoppers say they always use technology or digital to do their grocery shopping. A further 11% say they use a lot of tech (but not always) to help them with grocery shopping.

 

Core’s Future of Retail report in 2018 discovered that one in four people are frustrated with their current retail experience, and would be interested in new ways to shop. This group tends to be young growing families, slightly more affluent and living close to urban areas. There is no doubt that this demand for a better and technology-enabled experience will shape the future of shopping for groceries.

Retailers and their brand partners need to understand the growing role technology will play in people’s life. In 2019, people are tech savvy across numerous activities and these behaviours will transfer to every category.

We will see customers expecting more from the in-store experience and a streamlined digital experience. We will also see customers go directly to brands for non-perishable goods, with subscription models replacing off-shelf purchasing.

Digital is transforming our world. To keep up, focusing on people’s behaviour is key.

 

 

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