• by Jack Loechner , Staff Writer, May 6, 2015

According to MCD Partners’ latest research study, consumers are obsessed with on-demand. By Popular Demand found that for some services convenience isn’t the number-one reason for use (groceries, taxi/car service and laundry delivery are a given for convenience – especially for city dwellers). For the 40% who use on-demand services to schedule a massage at home or work do so for pure luxury … and the 38% who use on-demand doctor services do so out of an urgent need.   

The research found that Millennials use the most on-demand services (6.58 “services.”) Seniors ages 65+ use an average of 3.70 services (with other ages leveling out in between). Any consumer who uses on-demand services is willing to pay an average of 14% more over traditional services (this number slightly rises to 16% when looking at 18- to 34-year-olds).  

The study findings reveal sizable interest in digital on-demand services across both the general population and within certain user segments, and explores 13 digital on-demand services that represent both the on-demand standbys familiar to many, as well as some new and novel ones.

Out of these 13 digital on-demand services, on average, people are “likely” or “very likely” to use 5.59 of them. Certain services have more appeal among the general population, while others are more specialized.

While almost all of the digital on-demand services are decreasingly popular as the age of participants increases, See a doctor is an exception, as the likelihood of use is highest for both the youngest and oldest populations. Not only does likelihood of use spike for people aged 65 and older, but this is also the highest level of interest that this age group has in any service. The frequent need to see a doctor and the sense of urgency often associated with healthcare for this segment of the population are likely reasons for elevated levels of interest.

However, the older population is not keen on paying more for it. The amount that digital on-demand patients are willing to pay as compared to the traditional service cost falls as age increases. 

Convenience is the driving interest when asked why they would be “likely” or “very likely” to use each type of service, and given the options of “convenience”, “luxury”, “availability”, “urgency”, “value”, or “other”, the largest share of consumers ranked “convenience” as the #1 reason for every single service.

That said, it is more prominent as the #1 reason for some services than others:

• Get Babysitter Coverage: 41% ranked Availability  first  
• Get Massage At Home Or Work: 35% ranked Luxury as #1 reason
• See A Doctor: 31% ranked Urgency as #1 reason

And Convenience is more prominent as the #1 reason for use:

• Groceries Delivered: 68%
• Get Picked Up By Taxi Or Car Service 61%
• Have Your Laundry Or Dry Cleaning Done And Delivered 60%*

While “convenience” is still the most prominent #1 reason to use an on-demand service, “value”, “luxury”, and “availability” emerge as competing drivers among 18-34’s across the services that they are interested in. On-demand services that go beyond convenience and speak to these consideration reasons are likely to resonate with this segment, says the report.

On average, city dwellers are “likely” or “very likely” to use 6.69 of the 13 services we asked them about, which trumps the average number of services that the general, suburban, and rural populations would use: 5.47, 5.17, and 4.60 respectively.

Additionally, the order of popularity of the services stays similar for city dwellers as compared to the general population with few exceptions. Get picked up by a taxi or car service, Get groceries delivered, and Rent office or working space all moved up in popularity for urbanites.

And, the percent of city dwellers that are “likely” or “very likely” to use each individual service is higher than that of the general population for every single service listed.

Parents are “likely” or “very likely” to use an average of 6.68 of the 13 services presented. Like city dwellers, this is higher than the 5.47 and 5.50 on-demand services that the general and non-parent populations would use, on average. And again, the percent of parents who are “likely” or “very likely” to use each service is higher than that percent of the general population for every single service.

18-34 year olds are more likely to use digital on-demand services than the general population or any of the other age segments surveyed. The number of digital on-demand services people are “likely” or “very likely” to use declines steadily as the population ages, starting at age 18:

18-34 year old urban parents are the most interested in digital on-demand services among those surveyed. On average, young urban parents are “likely” or “very likely” to use a whopping 9.15 digital on-demand services. Further, their likelihood to use the digital ondemand services is higher than that of any other segment studied.

In addition to being digital natives accustomed to using digital platforms on myriad devices throughout the day, they are juggling many responsibilities and time management is a constant challenge. Anything that helps them to better manage their daily lives is welcome and appreciated. This is quite the recipe for a desire for digital on-demand services, suggests the report.

One thing is for sure, concludes the report. Beyond questions of business viability, if consumers have any say, more and more of their daily tasks and needs will be easily outsourced in an instant. 

For more information, please contact MCD Partners here.