The Mobile Consumer Insights on Global Trends Impacting Mobile Momentum and Customer Engagement
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The Mobile Consumer
Insights on Global Trends
Impacting Mobile Momentum and
Customer Engagement
© 2013 SAP AG or an SAP affiliate company. All rights reserved.Table of Contents
4 Introduction
5 Devices, Appetite and Use
8 Maturity, Lifestyle and Work
11 Preferences and Levers
14 Mobile Wallet Opportunities
17 Conclusion
20 Appendix
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
2 / 21The Mobile Consumer: Executive Summary
Creating demand for mobile services relies on
an understanding of mobile user behaviour.
The following report provides marketers in the
mobile industry with insights on the global trends
impacting mobile momentum.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
3 / 21The Mobile Consumer: Executive Summary
Introduction
A global mobile user base is dynamic, complex Many countries within the regions have already
and increasingly sophisticated in terms of needs reached a level of mobile maturity, yet for
and expectations relating to service delivery. others mobile device use is evolving. This varied
momentum contributes to differences in mobile
Regional appetite for different mobile services ownership, appetite and behaviour.
and applications varies dramatically and the
ways that users transact and communicate via Growth in smartphone technology and the blur of
mobile depends on the activities undertaken. social, mobile and traditional marketing channels
Cultural, economic and technology norms shape have seen users becoming motivated by a range
regional uses of mobile, whilst an array of user of complex factors. The greater the sophistica-
requirements influence preferences towards tion of mobile use, the greater the sophistication
appropriate marketing channels, relationships of consumer needs. As the commercial elements
and incentives as they shop, spend and surf. of mobile interaction continue to take shape,
CMOs capitalising on mobile channels need to
In order to make informed marketing decisions balance the advancement of mobile functionality
and better understand mobile momentum with these needs. Not all successful examples of
and customer engagement across the globe, mobility are based on ‘bleeding edge’ innovation.
SAP commissioned independent research The right service for the right user, marketed in
among mobile users across 4 key the right way is a simplistic, yet appropriate,
encompassing 17 countries: mantra for marketing strategy in the mobile sector.
• North America (NAM)
• Europe, Middle East and Africa (EMEA)
• Latin America (LATAM)
• Asia Pacific (APAC)
RESEARCH METHODOLOGY
12,424 interviews were conducted with adults aged 18+ who own a mobile phone
(basic or smartphone). Respondents completed an online survey in March/April
2013. Research conducted by Loudhouse, an independent research agency based
in London.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
4 / 21The Mobile Consumer: Executive Summary
Devices, Appetite and Use
Mobile devices have always given users the (50%) and speed (50%) as the main benefits of
flexibility to communicate with each other on the communicating and transacting with service
go – 79% either make or receive calls on their providers through a mobile phone.
mobile phone daily, with 62% either sending or
receiving texts on a daily basis. Nevertheless shopping behaviour also brings
challenges for users. A significant minority (46%)
Yet the mobile phone in today’s world has become note the hassle of having to enter a lot of personal
an increasingly powerful Internet tool. Half (50%) information as a significant challenge when
of respondents globally access the mobile Internet transacting and communicating via their mobile
on a daily basis. The way in which users now device. Additionally, 45% express safety concerns
transact has subsequently evolved: while enjoying with mobile transactions, with 43% citing a lack
the benefit of greater flexibility, consumers are of access to the Internet at the time of transaction.
now more inclined to shop on their mobile device.
Indeed, one in three (32%) has purchased products Globally, mobile purchasing shows huge potential,
or services over the last 12 months via their with the majority of users (82%) expressing an
mobile phone. appetite for buying goods and services through
their mobile devices in the future (Figure 1). Over
The convenience of mobile communications and half (53%) have not used their mobile to buy
transactions has been a significant driver behind goods, but wish to do so in the future, whereas
the increase in user adoption. Consumers cite 29% have used their mobile to do so, and wish to
the ability to use their device any time of the day continue. Only 1% has used their mobile to shop
(51%), ability to use on the go (51%), convenience for goods and shows no desire to do so in
the future.
82% of users express an appetite for buying
goods and services through their mobile
devices in the future.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
5 / 21The Mobile Consumer: Executive Summary
Furthermore, 80% of users agree that organisa- Mobile creates an opportunity for marketing
tions should use any available technology to strategy, but also carries a risk. Consumer
make life easier for their customers. Such is the enthusiasm for mobile freedom and flexibility
expectation of interconnectivity amongst today’s must be respected. The desire to do more on
consumers, that users are willing to hold service mobile does not represent novelty, or a blind faith
providers accountable if they fail to uphold high in mobile Internet services. It is a calculated
standards. Indeed, over half (54%) agree that response that comes with conditions – to ensure
they would switch to a different service provider end user engagement mobile must equate to
if they could interact with them better on their simplicity, convenience or value.
mobile phone.
Figure 1
Appetite for purchasing via mobile
Used mobile Not used mobile to
to buy goods buy goods and
and content 1% content 17%
Not used Used mobile to
mobile to buy buy goods and
goods but want want to do it
to 53% more 29%
Net: Want to buy goods / more on mobile: 82%
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
6 / 21The Mobile Consumer: Executive Summary
Such is the reliance of mobile phones in emerging
markets that 83% of users believe that having
their mobile lost or stolen would really affect
their personal productivity, compared to 70% in
developing markets and 52% in mature markets.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
7 / 21The Mobile Consumer: Executive Summary
Maturity, Lifestyle and Work
Just under two-thirds (63%) agree that, compared While emerging markets show a greater pace of
to 12 months ago, they use their mobile phone for change, mature regions appear more reserved.
more activities other than making calls and texting. These groupings show significant differences in
However, the degree to which this is occurring mobile appetite and mobile lifestyle. Enthusiasm
across the globe varies between countries. Three for mobile devices is evidently stronger in devel-
distinct groups emerge when looking at the extent oping markets, and this leads to a stronger appetite
to which people use mobile devices: mature, for mobile phone use. Some 96% of users in
developing and emerging markets (Figure 2). emerging countries express a desire to use their
mobile to buy goods or services in the future,
••Emerging markets: South Africa, India, compared to 59% in mature markets.
Saudi Arabia, Chile, China, Mexico
••Developing markets: Spain, Brazil, Russia, Such is the relationship with mobile services in
Colombia, Egypt emerging markets that 75% of users agree that
••Mature markets: Japan, USA, Germany, they rely on their mobile phone to help manage
France, Australia, UK their lifestyle, compared to 69% in developing
markets and 45% in mature markets.
Figure 2
Agreement with statement: “Compared to 12 months ago, I use my mobile phone for more activities other
than making calls and texting/sending”
Emerging mobile markets Developing mobile markets Mature, saturated mobile markets
87% 86% 84% 83% 80% 74% 69% 67% 66% 63% 63% 50% 47% 47% 44% 38% 37%
Global
63%
Mexico China Chile Saudi India South Egypt Colombia Russia Brazil Spain UK Australia France Germany USA Japan
Arabia Africa
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
8 / 21The Mobile Consumer: Executive Summary
.
Yet the reliance on mobile seen in emerging There are many factors that underpin these
markets is not a smartphone-only phenomenon regional trends, but they can be summarised into
(Figure 3). Only in mature regions is there a strong three key areas:
link between smartphone sophistication and
lifestyle influence. In emerging and developing ••Economy: GDP growth and relative consumer
markets Internet-enabled and more basic devices momentum in BRIC and similar economies
are equally likely to influence owner lifestyles. ••Infrastructure: Mobile network and mobile
Internet services outperform legacy telecoms
Such is the reliance of mobile phones in emerging infrastructure in some developing regions
markets that 83% of users believe that having ••Device culture: Basic handset use and
their mobile lost or stolen would really affect transactional SMS services are more prevalent
their personal productivity, compared to 70% in in developing and emerging regions
developing markets and 52% in mature markets.
Figure 3
Agreement with statement: “I rely on my mobile phone to help manage my lifestyle”
87% 85% 79% 80% 79% 78% 74% 77% 67% 69% 61% 61% 58% 60% 64% 50% 49%
73% 78% 70% 75% 69% 75% 68% 64% 51% 47% 45% 43% 38% 27% 26% 32% 21%
Egypt India Saudi Russia Mexico China South Brazil Chile Spain Germany Colombia Australia UK USA Japan France
Arabia Africa
Smartphone owners
Basic phone owners
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
9 / 21The Mobile Consumer: Executive Summary
The rise in the sophistication of mobile devices
has coincided with a similar increase in the
scope and variety of purchases made through
mobile phones.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
10 / 21The Mobile Consumer: Executive Summary
.
Preferences and Levers
The rise in the sophistication of mobile devices ••Tickets: simple purchases of paper or virtual
has coincided with a similar increase in the scope tokens that provide access to a service or event
and variety of purchases made through mobile •• Bills: mandatory payments for goods or service
phones. Users who make purchases via mobile already received or utilised
are most likely to buy entertainment services •• Retail: physical items purchased and commonly
(43%), pay telecoms bills (42%) or purchase dispatched by post
music downloads (40%) (Figure 4b).
Various marketing levers to encourage mobile
Figure 4a groups various types of mobile purchases use against each purchase type were evaluated
into three distinct categories: Tickets, Bills and Retail. to understand user preferences for things such
These groups represent a spectrum of purchase as prompts or characteristics of the operating
complexity and motivations: environment. Findings from this evaluation
describe a relationship between purchase ‘drivers’
Figure 4a
Drivers for different purchase types using mobile
Tickets Bills Retail
Those who have purchased Those who have paid bills Those who have bought goods by mobile:
tickets by mobile: by mobile:
•• Would pay more by mobile if receive
•• Would pay more by •• Would pay more via regular order updates/if accepted by
mobile if incentivised mobile if easy interface/ more retailers/if incentivised by brands
by brands/services incentivised by brands and services/greater choice of payment
•• Would like to sign up for and services methods
service/promotion via •• Would like to research •• Would like to sign up for service/
mobile products via mobile promotion via mobile
More sophisticated purchases need more complex levers
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
11 / 21The Mobile Consumer: Executive Summary
.
and purchase types that aligns the complexity This ‘sophistication correlation’ can also be seen
of what is paid for with a sophistication of the in other activities conducted on mobile phones
journey to the item or service itself. outside of purchases specifically. When looking for
simple information (such as checking the status of
For example, simple promotions are preferred an order), it is security assurances, discounts and
when buying tickets, whilst order updates, tracking speed of interaction that are likely to drive user
and payment choice prompt more complex behaviour. When executing actions (such as com-
purchases. Indeed, 64% agree that a greater municating with a customer service department)
choice of payment methods would encourage users’ needs change, as they expect a greater level
them to make a purchase from an organisation. of choice, in-depth help and personal interaction.
Ease of use and the need to research are more
prevalent when paying a bill.
Figure 4b
Purchase types using mobile
Entertainment 43%
Telecoms bill 42%
Music downloads 40%
Books/e-books 40%
Clothes/footware/other attire 39%
Tickets for travel/transport 34%
Utility bills 31%
Electronic appliances 30%
Groceries/food 29%
Travel/holidays 21%
Home furniture/goods 16%
Jewellery 9%
Other 14%
Don’t know 2%
Tickets Bills Retail
Base: Those who have bought via mobile (n=3966)
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
12 / 21The Mobile Consumer: Executive Summary
Ease of use is a core principle that will accelerate
user adoption of mobile transactions and should
not be overlooked at any stage of the services
delivery process.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
13 / 21The Mobile Consumer: Executive Summary
.
Mobile Wallet Opportunities
Figure 5 shows that checking mobile phone usage activities and mobile commerce, there is a signifi-
data and researching products, prices and tariffs cant opportunity for Internet brands to develop
are all activities which users would like to do on these processes for future customer engagement.
their mobile phone and which they also feel are Consumers are interested in paying a bill, making
relatively easy. However, transactional activities, a bank transfer and submitting usage data for
such as paying a bill or banking, are felt to be more utilities via mobile devices, but there is a threshold
difficult to conduct on mobile devices. Users to cross.
undertake simple tasks more frequently,
yet express a desire to undertake ‘high value’ The demand for more streamlined transactional
exchanges and transaction although the additional process is reflected in customers’ expectations of
complexity compromises adoption. the ‘mobile wallet’. Users perceive mobile wallets
as a way to pay bills (54%), buy goods online
Despite the relative complexity of transactional (51%) and a way to check their bank balance (50%).
Figure 5
Opportunities – ease of mobile interactions vs. demand for mobile interactions
More
demand Paying a bill Checking the status of an order
Researching products, prices or tariffs
Would like to do more of via mobile
Buying goods Checking usage data for my
Making a bank transfer mobile phone account
Checking usage or submitting Communicating with a customer
usage data for utilities service department
Responding to a promotion or
making use of an offer
Paying money to a friend or
family member Changing contact details or personal
information
Entering a competition
Signing up to a service or promotion
Setting up a new account
Less
demand
Hard Easy
Ease of doing on mobile phone
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14 / 21The Mobile Consumer: Executive Summary
.
A further 47% expect mobile wallets to enable and offers. Coupled with the promise of greater
bank transfers between accounts. Consequently, insights via ‘big data’ analytics and the advent of
71% of respondents, globally, agree that mobile more subtle and intricate customer relationships,
phones will be more important as a payment there is an inevitable complexity surrounding the
method in the future. future of mobile. Ease of use is, however, a core
principle that will accelerate user adoption and
Smartphones and the mobile apps boom increase should not be overlooked at any stage of the
the potential and sophistication of mobile services services delivery process.
71% of respondents, globally, agree that
mobile phones will be more important as
a payment method in the future.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
15 / 21The Mobile Consumer: Executive Summary
On its current trajectory, mobile occupies a
tempting combination of loyalty card, cash,
research tool, location tracker and credit card.
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16 / 21The Mobile Consumer: Executive Summary
.
Conclusion
The commitment to mobile as a recognised Adoption Options
‘transactional device’ changes both the ‘Macro-momentum’ may differ across each
marketing potential and data capabilities offered region, but within each group the research also
by mobile services. On its current trajectory, shows that users express preferences around the
mobile occupies a tempting combination of loyalty functionality and models of engagement based on
card, cash, research tool, location tracker and the type of mobile activity they undertake. Checking
credit card. This transition raises the stakes for a train time is about ease of use, buying the ticket
organisations marketing and connecting to is about speed and security, but reserving a hotel
customers either exclusively via mobile or as room or buying a travel case for the journey online
part of a multi-channel mix. requires all kinds of prompts and assurances:
payment choice, status checking, incentives and
Brand loyalty becomes essential as any business customer service.
on the mobile browser has the potential to own
the customer relationship and all service providers Opportunity Optimisation
now compete for mindshare in a space that was Users enjoy undertaking simple information-based
once the exclusive domain of telecoms businesses. activities as they are easy and, in return, convenient
The research points to five key elements that to do. Yet complex functionality brings with it
should inform CMO thinking to best tackle the practical challenges. A significant opportunity
challenges that lay ahead. exists for mobile service providers and brands to
capitalise upon. Providers should understand that
The Pace of Change users now expect to be able to engage at a higher
The Mobile Consumer research survey shows an level, and they seek to do so simply and effectively.
international mobile user community running at Providers are tasked with meeting and exceeding
different speeds, maturing at different rates these expectations.
and presenting different opportunities, creating
marketing complexity. Emerging economies are Simple Mobility
more enthusiastic about a mobile future and Simplicity forms the basis of why users
make a more overt connection between mobility embrace mobile technology – adoption of services
and its impact on their lives. They are less reliant is accelerated by ease of use. Simplicity brings
on leading edge technology to drive behaviour with it convenience, and this in turns creates
and eager to try new things. Mature economies, benefits for users. However these benefits can
such as Japan, US and UK are more reserved, be compromised by unwanted complexity and
sceptical even, about mobile pace and potential, security threats. The mobile industry should seek
but recognise the significance and value of more to minimise, or at least appease, such concerns
integrated, easier-to-use mobile environment going forward. In practice a careful balance needs
offering a broader spectrum of mobile services. to be maintained. Whilst simple functionality is
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17 / 21The Mobile Consumer: Executive Summary
.
fundamental, if security is the source of complexity providing services via mobile – technology
issues, it is often a necessary price to pay. companies have to become more ‘service-centric’
and service businesses (banks, retailers, etc.)
Smartphone to Smart Services have to adapt to working in a complex mobile
As the level of device sophistication starts to environment. As the landscape transforms,
become commonplace, a transition from focusing mobile brands must understand their customers
on ‘device tech’ to service becomes more apparent. better in order to fully realise and capitalise on
As a result, consumers will be increasingly influenced the customer relationship. By doing so, mobile
by service excellence over technology sophistica- providers and brands will be better placed to
tion. This places pressure on the marketing and engage users and create higher value services in
operational infrastructure of business selling and the future.
Providers should understand that users
now expect to be able to engage at a higher
level, and they seek to do so simply and
effectively.
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18 / 21The Mobile Consumer: Executive Summary
Consumers will be increasingly
influenced by service excellence
over technology sophistication.
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19 / 21The Mobile Consumer: Executive Summary
Appendix
Country Breakdown Research Methodology
12,424 interviews were conducted with adults
USA aged 18+ who own a mobile phone (basic or
USA 1072 smartphone). Respondents completed an online
survey in March/April 2013. Research conducted
EMEA by Loudhouse, an independent research agency
UK 1159 based in London.
South Africa 638
France 513
Germany 523
Russia 1043
Egypt 500
Saudi Arabia 502
Spain 564
LATAM
Brazil 1012
Mexico 513
Colombia 514
Chile 583
APAC
China 1000
India 1050
Japan 651
Australia 587
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
20 / 21About Loudhouse As part of Octopus Group, Loudhouse is one of the UK’s leading performance and influencer marketing agencies, working with blue chip clients in technology, business services, finance and retail sectors. For more information, go to loudhouse.co.uk About SAP As the market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP empowers people and organisations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 195,000 customers to operate profitably, adapt continuously, and grow sustainably around the world. For more information, go to sap.com © 2013 SAP AG or an SAP affiliate company. All rights reserved.
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