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How consumers use technology & its impact on their lives

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How consumers use technology & its impact on their lives

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Modern society thrives on technology, and the advancement of technology.

Technology connects the consumer to the world at any given time, and the demands, even expectancies of the consumer are ever increasing.

Join me as we take a more in depth approach to understanding the technological demands of the consumer and how it affects their lives.

Modern society thrives on technology, and the advancement of technology.

Technology connects the consumer to the world at any given time, and the demands, even expectancies of the consumer are ever increasing.

Join me as we take a more in depth approach to understanding the technological demands of the consumer and how it affects their lives.

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How consumers use technology & its impact on their lives

  1. 1. THE IMPACT OF TECHNOLOGY ON CONSUMER LIFE: INTRODUCTION Modern society thrives on technology, and the advancement of technology. Technology connects the consumer to the world at any given time, and the demands, even expectancies of the consumer are ever increasing. Join me as we take a more in depth approach to understanding the technological demands of the consumer and how it affects their lives.
  2. 2. ACCESS TO THE INTERNET The internet as we know it today was conceived in March 1989 when Tim Berners-Lee circulated a proposal for “Mesh” (later to be known as the World Wide Web) to his management at CERN (Press, 2015). Originally conceived and developed to meet the demand for automatic information-sharing between scientists around the world (for cern.com, n.d.), more than 4.1 billion users (statista.com) are now connected through one device or another. In 1991, way back when Bryan Adams’ ‘Everything I do (I do it for you) topped the charts for a record breaking 16-weeks, dial-up connection internet speeds topped out at 56kbps (Wright, 2017), and people were fine with that. It was perfectly normal for a 3-minute song to take up to half an hour to download, and if you wanted to download a movie you could be waiting a week, that’s just how it was. Fast forward 27 years and the very notion of having to wait for a song to download, a connection so slow half the time only text would load would just seem unthinkable to the current generation. Here’s a brief history of how we went from no-speed to light-speed in the blink of an eye... 1991 1998 2001 The internet was first introduced and with a download speed of 56Kbps a 3-minute song could take up to half an hour to download and video streaming was non-existent. Dial-up internet required a phone line to operate so calls couldn’t be made whle the internet was in use. 1995 2000 2004 By 1995 there were 16 million global internet users, which equated to 0.4% of the world’s population. The early 2000’s saw a breakthrough in internet connectivity with the introduction of broadband. Broadband networks allowed the signal to be split between a phone line and an internet line, meaning calls could be made whilst connected to the internet. Broadband network also allowed people to download at much faster speeds of up to 512Kbps, which would pave the way for a whole new world of online media. 2004 saw the launch of social networking site Facebook. Conceived in a Harvard University dorm room, Facebook has become part of everyday life for billions of people the world over. The initial 1 million users per month would turn into 6 million in just 12 months and 2.2 billion today which would ultimately place more demand on faster connectivity as users’ social activity and demand for information grew. Google opened it’s first office in California with the intention “to organize the world’s information and make it universally accessible and useful.” By August 2001, the global digital population had reached 513 million, equating to 8.6% of the population, a rise of 2.7% in 12 months. As broadband prices became more and more affordable the demand for digital information would increase exponentially. 2005 By 2005 download speeds had hit 2Mbps which paved the way for global video streaming following the introduction of YouTube. 2007 2007 saw the smartphone boom. Apple set the standards with the launch of the iPhone, which was followed by Windows and Android. Smartphones literally put the internet in the palm of peoples hands at any given time. The evolution of 3G into 4G meant that users had a download speed of upto 300Mbps. Over the next decade the global digital population would see an increase of over 262%. 2018 The global digital population now stands at 4.1 billion users, 3.8 billion of those accessing the internet via a mobile and 3.3 billion being active social media users. The average global download speed is 7.2Mbps 0.4% 4.1 b HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES
  3. 3. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES 4,156,932,140 7,634,758,428 As of the 1st January, 2018, the total number of internet users across the world was With the world’s total population estimated at 738,539,792 In China, the number of active internet users is Google is the most popular search engine with over which is over double the entire population of the United States 55.3% of the world’s population is using the internet (thenextscoop.com, 2018) (websitehostingrating.com, 2018) 1.4 Tbps In 2014, scientists in the UK created the fastest ever real-world internet connection, using commercial-grade fibre optic lines to clock up speeds of Believed to be the fastest speed test of its kind, it would allow users to download 44 high-definition films in a single second and the entire English version of Wikipedia would in just 0.006s. (independent.co.uk, 2018) 58.9% More people access the internet on a mobile device than a desktop computer. In 2017, mobile internet usage was This is expected to rise to 61.2% in 2018 (websitehostingrating.com, 2018) 26.7 Mbps South Korea averages the world’s fastest download speed at compared to 16.5 Mbps in the UK which ranks 31st in the world (fastmetrics.com, 2018) 3.5 billionsearches every day (thenextscoop.com, 2018) Of North Americans use the internet, which is the world’s highest penetration rate 88.1% (websitehostingrating.com, 2018)
  4. 4. DIGITAL DEVICES USED BY AUDIENCES Statcounter.com found that as of July 2018, mobile and tablet devices accounted for 56.89% of internet access worldwide, whereas desktop devices accounted for 43.11%. The advancement in mobile and tablet technology means it now more convenient than ever before to access the internet the internet using a hand-held device 52.95% MOBILE TABLET DESKTOP 3.94% 43.11% HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES
  5. 5. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES HOW CUSTOMERS SEARCH FOR INFORMATION Though it started out as a platform for individuals to share photos of their friends and family, social media has evolved to become much more impactful. Social media is now a key component of organisations’ marketing strategies (Barker,2017). According to Hubspot data 71% of consumers are more likely to make a purchase based on social media referrals (Ewing,2017) According to vividfish.com, 89% of customers begin their buying process with a search engine (vividfish.com, 2017). As we have already touched upon, mobile/tablet browsing has overtaken desktop in recent years, meaning that more information than ever before is at the touch of our fingertips. Google is undoubtedly the most popular search engine with over 70% of the search market share and capturing 85% of mobile traffic. Additionally, recent changes to their algorithm aim to fulfil consumer needs directly on Google without having to click any links. (Forsey, 2018). This makes it much easier to access key information from a consumer point of view but more difficult from a business point of view to capture the website traffic you want. SEARCH MARKET SHARE MOBILE TRAFFIC CAPTURE 89% 71% 70% 85%
  6. 6. I reached out to David Glenwright, Head of Training and Special Projects at JC Social Media Ltd to gather his insights as to how consumers search for information. Here is what he had to say: - David Glenwright, JC Social Media Innovations and developments in technology have had a remarkable effect on our natural thirst for knowledge, and of course impatience. Smartphones and the ease with which we can access the internet now means that arguments down the pub can be resolved with a 30 second Google search, that directions can be found without the need to find someone who knows the answer, and we can be kept up to speed with everything that is happening in the world with a moment's notice. On the surface, this is a good thing. We have unprecedented access to knowledge, and thanks to social media we are able to stay informed and know what is happening with our friends and family. As a society we are connected in a way that was once unimaginable. However, at the same time we find ourselves becoming increasingly separated from those around us. What was once a lively 10 minute discussion in a pub has now been relegated to a minute-long recital of fact. What was once an opportunity to meet a local and discover a hidden gem of a restaurant is now a straight search and directions for whichever place happens to top the search algorithms. What was once an exciting afternoon catching up with a friend you haven't seen for 5 years is now a couple of hours reminding each other of things already seen online. To see what is now possible, and how easy it is for society to access is an incredibly exciting thing, but it is important that it is always placed in the correct context. Smartphones and online searches are not there to replace human interaction, but rather to enhance it. We should always strive to engage with other people where possible, to enjoy our friendships face-to-face, not face-to-Facebook. The abilities of our smartphones are incredibly powerful, and we should be mindful that that comes with responsibilities to match. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES
  7. 7. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES In markets around the world categories such as travel, entertainment (books, music, events) and durable goods (fashion, IT/mobile, electronics) are the front runners for consumers to enter the online retail sphere. After two decades of e-commerce retailing, these categories have higher online purchasing penetration and frequency of purchasing than most consumer goods categories. (nielsen.com,2018). WHAT CONSUMERS BUY ONLINE FASHION TRAVEL MUSIC & BOOKS IT & MOBILE EVENTS TICKETS 61% 59% 49% 47% 45%
  8. 8. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES Every marketer has questioned when and how they should be using video in their projects and campaigns. While you’re still chewing over whether you should get on board, your competitors are producing how-to videos, promo campaigns with video bloggers and using an animated header for their Facebook page. They know where the future is headed (Iakovleva, 2017) ONLINE VIDEO CONSUMPTION 500,000,00 80% People Watch Facebook videos every day 1/3Of the time people spend online is devoted to watching videos In 2019 it is expected that 80% of all internet traffic ill come from video 19% 90% 80%Mentioning the word ‘video’ in the subject of your email increases the open rate by 19% 90% of customers ay that videos help make buying decisions Video on landing pages is capable of increasing conversions by 80%
  9. 9. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES Since the start of the smartphone boom in 2007 the internet has become more and more accessible year after year. The continuous rise of social media usage means information is becoming ever more available to consumers. Internet access is now anywhere, anytime thanks to the increasing affordability of smartphones, tablet devices and even wearables such as smart watches. Marketers are taking advantage of this and online retail is taking more and more of the market share at the expense of traditional brick-and-mortar stores. Consumers now have the ability to shop around more than ever before, using smartphones and tablet devices they are able to quickly and easily compare products, shop around for the best deal and use social media to gather opinions and reviews of other consumers. Recent advancement in voice search technology has seen an increase in popularity for connected devices such as the Amazon Echo and homeowners are investing more and more in smart home features making everyday living more automated than ever. In short, technological advancement over the past few years has seen a significant rise in consumer convenience but comes at a price. The high street is becoming ever more desolate, bricks-and-mortar stores closing on a weekly basis as they simply cannot compete with the convenience of online shopping shopping. With the growth of social media, people have begun to act, think, and purchase differently. The attention span of each person has been diminished to less than 8 seconds (Beall, 2017), and it i becoming increasingly more important that businesses adapt their marketing mix accordingly. CONSUMER TRENDS
  10. 10. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES Technological advancement has led to the ‘I want it now’ culture. Since the launch of the first smartphone 12 years ago consumers have become increasingly dependant on convenience. What used to be a trip into the nearest town to make a purchase is now a quick search from the comfort of the consumer's home, or office, or wherever they they be, delivered to their door from as early as the next day. Consumers demand personalised solutions from companies and they demand it now. How many times have you scrolled your favourite social media platform in your lunch hour and been served an advert for a product you did a quick Google search for the previous night? As a result, consumers are becoming more savvy when it comes to online retail, using platforms such as social media and review sites such as tripadvisor to gather the opinion of other consumers before making a buying decision. Abandoned cart email marketing is a great tool for businesses to increase conversion but the savviest of online shoppers are starting to take advantage of this. Just recently I personally managed to save 10% on a TV purchased from a popular technology company, purely by getting to the point of checkout and closing my browser knowing full well that in the coming days I would be receiving an email with offer tempting me over the line. I was always going to buy the TV but after a few minutes of reading positive reviews to make sure the product fulfilled my requirements, and ensuring that I had found the cheapest price, I knew I could better the price by making the retailer come to me. The effect of technology on consumers lives is that of convenience and resourcefulness. Consumers can make an informed buying decision based on research, reviews and peace of mind that they are buying at a competitive price. Wearables such as smart watches make it simple for people to keep a track of their health and activity and smart home devices not only automate the home but make it easier to keep an eye on the cost of living. SUMMARY
  11. 11. REFERENCE LIST Ahmad,I.,2018. The State of Video Marketing in 2018. [Online] Available at: https://www.socialmediatoday.com/news/the-state-of-video-marketing-in-2018-infographic/518339/ Accessed 22 January 2019]. Barker, S.,2017. How Social Media Is Influencing Purchase Decisions. [Online] Available at: https://socialmediaweek.org/blog/2017/05/social-media-influencing-purchase-decisions/ [Accessed 16 January 2019]. For bazaarvoice.com, 2018. How online reviews influence offline sales. [Online] Available at: https://www.bazaarvoice.com/resources/the-robo-economy-infographic/ [Accessed 16 January 2019]. Beall,G.,2017. 5 ways technology is changing consumer behaviors. [Online] Available at: https://thenextweb.com/insider/2017/11/10/5-ways-technology-is-changing-consumer-behaviors/ Accessed 17 February 2019]. Boyd, J., 2018. The History of Facebook: From BASIC to Global Giant. [Online] Available at: https://www.brandwatch.com/blog/history-of-facebook/ [Accessed 28 August 2018]. For cern.com, n.d. The birth of the web. [Online] Available at: https://home.cern/topics/birth-web [Accessed 28 August 2018]. Claveria, K., n.d. 4 examples of how technology is changing consumer behavior. [Online] Available at: https://www.visioncritical.com/4-examples-how-technology-changing-consumer-behavior-1/ [Accessed 27 August 2018]. Ewing, M.,2017. 71% More Likely to Purchase Based on Social Media Referrals. [Online] Available at: https://blog.hubspot.com/blog/tabid/6307/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-Referrals-Infographic.aspx [Accessed 16 January 2019]. For fastmetrics.com, 2018. Internet Speeds by Country (Mbps). [Online] Available at: https://www.fastmetrics.com/internet-connection-speed-by-country.php [Accessed 29 August 2018]. Forsey, C.,2018. The Top 7 Search Engines Ranked by Popularity. [Online] Available at:https://blog.hubspot.com/marketing/top-search-engines [Accessed 16 January 2019]. For google.com, 2018. From the garage to the Googleplex. [Online] Available at: https://www.google.com/about/our-story/ [Accessed 28 August 2018]. For internetworldstats.com, 2018. INTERNET GROWTH STATISTIC. [Online] Available at: https://www.internetworldstats.com/emarketing.htm [Accessed 28 August 2018]. For gs.statcounter.com, 2018. Desktop vs Mobile vs Tablet Market Share Worldwide. [Online] Available at: http://gs.statcounter.com/platform-market-share/desktop-mobile-tablet [Accessed 30 August 2018]. Iakovleva,S.,2017. 2017 VIDEO MARKETING STATS: WHY YOU NEED TO START USING VIDEO [INFOGRAPHIC]. [Online] Available at: https://blog.depositphotos.com/2017-video-marketing-stats-why-you-need-to-start-using-video-infographic.html Accessed 22 January 2019]. Lister,M.,2018. 37 Staggering Video Marketing Statistics for 2018. [Online] Available at: https://www.wordstream.com/blog/ws/2017/03/08/video-marketing-statistics [Accessed 18 January 2019]. HOW CONSUMERS USE TECHNOLOGY & ITS IMPACT ON THEIR LIVES
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