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Recognize User Ecosystems, Drive Brand Affinity

Consumer research over the past few years is shedding light on a heightened desire for control and the rise of self-reliance as an important personal value. This trend is significant for marketing professionals in all industries, but should be of particular importance to those in the technology sector, as a slew of mobile phones and tablets offers people a means for becoming self reliant.

When a device morphs from being a mere status symbol into a practical tool, it takes on an empowering role. Technology is now widely regarded as the means to more effectively manage all aspects of one's life, from professional to personal, implying a radical shift in how it should be marketed.

The quickly evolving smartphone market provides meaningful insights into how marketers can navigate rapid change. Over the past few years, purchase drivers have transitioned from hardware design and functionality to a focus on software, emphasizing the experience that the operating system (OS) provides. This OS is the foundation of the "mobile ecosystem," which determines what experiences are available to users.

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A recent global survey of more than 6,000 mobile phone owners identified significant potential for manufacturers to take market share during this time of rapid change:

  • 37% of mobile phone owners in key global markets are looking to upgrade to smartphones on their next upgrade cycle.
  • Consumers are open-minded about their OS choice for their next device. The majority of smartphone owners (56% globally) will keep their options open, with very few people declaring loyalty to their current smartphone ecosystem.

Apple, an early leader in user experience, earns greater than double the average OS loyalty (59% vs. 25% globally). Overall, consumers are increasingly loyal to brands based on the experience that they provide. In fact, the most important criterion for consumers in their smartphone selection is linked to the seamless experience with other Web-connected devices. Capabilities ranked as most influential in consumer choice are:

  • Ability to sync their mobile apps with their PC, and
  • Ability to access cloud-based services across multiple devices.

So what does the increased reliance on inter-connectedness and utility imply for new product marketers, especially in technology?

  • Emphasize the benefits: Marketers need to focus on the overall experience when communicating a product's benefits, more than the features of the product itself.

For example, as 4G emerges, it will be important to move beyond talking about speed, and emphasize what new and improved experiences 4G provides such as greater quality, greater access, and easier sharing, to name a few.

  • Develop a strategy across the ecosystem: There is a direct link between utility and affinity. Rather than market the product features and underlying technology, emphasize a better and more seamless experience for the applications and features consumers want.

Take for example consuming movies and TV shows. Consumers have more choices than ever before. These include video on demand, streaming, downloading, and rental (in store, kiosk online), etc. As broadband speeds increase and TVs become better equipped for the average user to access content online, new delivery methods are opening up. In rapidly changing markets, it is critical to think about the entire ecosystem in which consumers are accessing your product or service.

  • How will emerging delivery methods impact distribution?
  • How will improved connectivity and data speed influence how your target audience is acquiring and using your product?
  • How are consumers using new devices (tablet PCs, enhanced TVs, etc.) to consume content?
  • Develop a Cross-Channel Brand: Consumers are increasingly integrating technology into their lifestyles, implying that the brand value is highly driven by context. How devices are used is as important, if not more so, than the sum of the features. Therefore, in developing and marketing new products, especially within the technology space, marketers need to account for this shift and tie their brand identity across multiple channels to account for mobile, online, social networks, etc.

Market data clearly indicate that new consumer electronics products loaded with rarely used features and functions no longer meet a market need. Instead, demonstrating how new technology enhances the lifestyle of the socially networked user goes a long way in building brand loyalty.

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