Our last point of comparison of the 17 global industries is on how important they believe it is for them to collect and analyze mobile payment data. (See Exhibit VII-14.) We asked respondents to rate the importance to their companies of collecting and analyzing the treasure trove of mobile payment data that would come to them from consumer purchases of their products and services.
While the banking sector finds it important (since as debit and credit card issuers and processors, they are in the middle of the payment transaction), so do a number of other industries, especially:
- Telecommunications services
Exhibit VII-14: Q23/Global Industries: Importance of Collecting and Analyzing Consumer
Mobile Payment Data (Scale of 1-5, 1= no importance, 5 = of highest importance)
Industries that placed the least importance on collecting, processing and analyzing mobile payments data were airlines and automotive manufacturing.
Who has the bragging rights for spending the most on technologies and services to respond to the digital mobile consumer? Which industries are investing the greatest amounts? Energy, telecommunications, and airlines are at the top of the chart, spending an average $27 million to $31 million per company on consumer mobility annually. (See Exhibit VII-9.)
Exhibit VII-9: Q16/Global Industries: Average Company Spending in 2012 on
Technologies and Services to Respond to the Digital Mobile Consumer (in US $ Millions)
Two industries are at the bottom of the chart: transportation services/logistics and food and beverage manufacturing. Notably, retailers’ spending is less than the cross-industry average — $13 million vs. $17 million per company.
But what about future spending? (See Exhibit VII-10.) By 2015, the industries whose projections would put them in the lead are:
- Airlines ($37 million per company in 2015)
- Telecommunications ($35 million)
Exhibit VII-10: Q16a/Global Industries: Average Company Spending Projected for 2015 on
Technologies and Services to Respond to the Digital Mobile Consumer (in US $ Millions)
At the bottom: food and beverage ($10 million), transportation services ($11 million), and media and entertainment ($12 million).
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We compared our global industry sectors on the percentage of marketing, sales and service transactions with consumers using mobile devices out of total transactions:
- The percentage of total sales transactions (number, not revenue amount) that came through consumers’ mobile devices
- The percentage of marketing campaigns they designed just to be viewed on mobile devices out of total marketing campaigns
- The percentage of post-sale service interactions with consumers who inquired through mobile devices out of total service interactions
Three industries were at the top on all three measures: airlines, energy and telecommunications. (See Exhibits VII-4, 5 and 6.)
In consumer purchases, the airlines we polled estimated that 61% of consumer purchase transactions of flights are made through mobile devices, and that the number would reach 76% by 2015. Energy companies said half of all consumer purchases are made through mobile devices today, and that number would exceed 60% in three years. And telecommunications said 48% of consumer purchases were being made these days through mobile devices, and they predicted they would rise to 60% by 2015.
Industries on the low end were consumer products (14%), health care services (26%) and pharmaceuticals (26%). The low consumer products rate is no doubt a reflection of the fact that most consumers purchase their products through retailers – not direct through the consumer product manufacturer. In many regions of the world, government pays for healthcare services, as well as for pharmaceuticals. So perhaps lower mobile purchase-to-total purchase ratios should be expected in these sectors.
Exhibit VII-4: Q11+11a/Global Industries: Percent of Consumer Purchases
Made Through Digital Mobile Devices (2012 and Projected for 2015)
Who’s on top in marketing to consumers through mobile devices – at least, which industries are funneling more of their marketing campaigns through the little screens of smartphones and tablet devices? (The numbers here may bear little resemblance to data on the largest mobile advertisers. Our numbers only look at mobile marketing campaigns as a percent of total marketing campaigns.) (See Exhibit VII-5.)
The global industries with the highest proportion of mobile marketing campaigns to total marketing campaigns are (once again) airlines, telecommunications and energy companies. The ones with the lowest ratio are consumer products, industrial manufacturing, transportation services, and food and beverages.
Exhibit VII-5: Q12/Global Industries: Percent of 2012 and 2015 Marketing Campaigns
Designed Exclusively for Consumers’ Digital Mobile Devices
So which industries are consumers contacting most frequently after a purchase using mobile devices? The airlines, energy, telecommunications and government sectors (state, federal and local) report the highest percentage of service transactions (out of their total service transactions) coming from digital mobile consumers. (See Exhibit VII-6.) Airlines estimate that 56% of service transactions are with consumers who use mobile devices. They predict the percentage to reach 81% in three years. Energy and telecommunications are a distant second and third (42% and 41%), with government ranking fourth at 39% of service interactions coming through mobile devices.
Industries with the lowest mobile-initiated service interactions are consumer products, industrial manufacturing, and media and entertainment. All say that no more than 20% of their service interactions are coming from consumers using mobile devices.
Exhibit VII-6: Exhibit VII-6:Q13/Global Industries: Percent of Customer Service
Transactions (Post-Purchase) Conducted with Consumers Who Use
Digital Mobile Devices (2012 and 2015)
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As we’ve reported in previous section, we asked survey respondents for a qualitative assessment of the changes they’ve made to date, and plan to make by 2015, in their products and processes. On this 1-7 scale, the global industries that indicate the greatest degree of change are those that:
a) Can deliver their product directly through a mobile device (e.g., media content and telecommunications services). Telecommunications had the highest degree of change in products and processes to date to respond to mobile consumers – 5.42 on our scale of 1-7. (See Exhibit VII-2.) Telecommunications scored much higher than the other sectors on this scale. Since they sell the very products (mobile devices and wireless services) that enable consumers to do business electronically when they’re on the go, it’s understandable that telecommunications have made major changes in their products and in the way they deal with consumers in marketing, selling and servicing those products. Media and entertainment companies were fourth, at 4.82. This industry, too, is increasingly delivering its product to consumers’ mobile devices: movies, sports, news, videos, and other digitized content.
b) Must deliver a significant amount of information to consumers so they can better understand what they’re purchasing (retail and travel/hospitality/leisure). Companies in these industries generally don’t deliver their products through mobile devices. Retailers sell consumers physical goods, and travel and hospitality firms provide hotel and other accommodations. Retailers and travel providers finished second and third on the scale of change. Both industries can be seen as businesses that provide information and access to products and services. Retailers, of course, stock their shelves largely with products that they don’t make themselves. Their websites and salespeople help consumers understand those products. Travel agencies provide information to consumers who need hotels, dining and other services when they’re on vacation or on business – as well those services in some cases. Both industries, therefore, have the opportunity to provide consumers with critical information for making their purchases and the ability to make those purchases.
Close behind (at fifth) on our scale was the energy industry. Oil companies for many years have been at the forefront of mobile payments. For example, Exxon Mobil in the US introduced in 1997 a device called Speedpass that placed an RFID chip into a keychain for electronic payment at the pump. No doubt that 15 years later, such energy companies are gearing up to help mobile consumers use modern technology to make their purchases even more efficient.
The banking, transportation, computers and pharmaceuticals companies also had higher than average scores on this scale. (The average score across industries was 4.60.)
Exhibit VII-2: Q9/Global Industries: Cumulative Average Changes to Products, Marketing, Sales, Service and Supplier Processes to Win the Digital Mobile Consumer
(scale of 1 to 7)
The industries with below average scores included some that have little direct contact with consumers: industrial manufacturing, food and beverage makers, and automakers. These industries largely sell through retailers or dealers, and thus may believe that responding to consumers who use mobile devices is largely the work of those retailers.
Curiously, the airline industry was near the bottom, just above government, perhaps suggesting that the sector long ago had adapted to the demands of the digital mobile consumer.
But how do these 17 industries view the changes to products and processes they must make in the near future to respond to digital mobile consumers? Do they feel they need to make more changes, essentially the same, or less?
Across all the industries we surveyed, the average amount of change on this 1-7 scale was predicted to increase by 2015, to 4.93 from 4.60. (See Exhibit VII-3.) Industries that foresee having to change the most:
- Telecommunications services companies (5.52): This isn’t a surprise given they are in the epicenter of the digital mobile revolution.
- Travel, hospitality and leisure (at 5.24): The on-the-go consumer increasingly wants or needs to make or change his travel plans while on the road.
- Media and entertainment (5.23): Mobile devices are becoming a key channel for their content.
- Industrial manufacturing (5.20): This may reflect how much consumers can spend on big-ticket hard goods: appliances, lawn and garden equipment, etc. Maybe these industries believe consumers will increasingly research their products through a mobile electronic device.
- Retailers (5.15): This sector is the main channel to the consumer for many consumer product manufacturers, from apparel to appliance makers. Retailers increasingly must deal with “show-rooming” – consumers who walk into their stores to get the look and feel of a product and then buy it online someplace else.
- Banking/financial services (5.11): Of course, they are at the center of the whole mobile payments scene. But their influence on the digital mobile consumer goes far beyond that – to being the place where the consumer who’s in motion can check on his investments and make changes.
Exhibit VII-3: Q10/Global Industries: Cumulative Average Changes by 2015 to Products, Marketing, Sales, Service and Supplier Processes to Win the Digital Mobile Consumer
(Scale of 1 to 7)
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- Industries reporting the greatest changes to date to win over the digital mobile consumer: telecommunications, retail, travel and media & entertainment
- Airlines, telecommunications and energy companies report the highest proportion of marketing, sales, and service interactions with consumers using mobile devices (as a percent of total consumer interactions)
- Energy, telecommunications and airlines are spending the most this year to win over the digital mobile consumer (from $27 million to $31 million per company)
Our 664 surveys from North America, Europe, Asia-Pacific and Latin America gave us a sufficient sample to explore 17 industries, from airlines to automotive manufacturing. The exhibit below shows the number of respondents.14
Exhibit VII-1: Q2/Global Industries: Number of Surveys Per Industry
(Combined Across Four Regions of World)
In this section of the report, we have rolled up the data by industry from across the four regions, meaning these sector findings represent the results of industries on a global basis. We will compare these 17 global industries along a number of dimensions.
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14 Note: While the number of airline respondents may appear small (7), their average revenue per airline was $6.3 billion.
Measured by the percent of total consumer interactions that are done through consumers’ mobile devices, North American companies that we polled reported the lowest level of activity of the four regions. On average, North American consumers conducted less than a quarter (24%) of their total purchase transactions through mobile devices with the companies we surveyed. (See Exhibit III-4.)
The companies reported conducting an even smaller number of their marketing transactions (that is, marketing campaigns designed exclusively for consumer mobile devices) – about 21%. And they estimated the percentage of customer service transactions by consumers using mobile devices to be 19% of all service transactions.
Exhibit III-4: Q11/North America: Measuring the
Impact of the Digital Consumer Across Industries
Nonetheless, the North American companies predicted these percentages to increase sharply by 2015, with mobile-enabled purchase transactions rising to 38% of all consumer purchases; marketing campaigns for mobile devices constituting 37% of total campaigns; and post-sale service interactions through mobile devices comprising a third of total service interactions.
The experiences of State Farm Insurance Companies are instructive. The $63 billion (revenue) company launched its first mobile website long ago – in June 2006. Since then, the highly popular site lets consumers find an agent, call for a rate quote, an issue a claim, get help in the event of a car accident, and find a repair facility. “We want our customers to be able to interact with us in any way they choose, any time they choose,” Eli Winn, manager of enterprise Internet Solutions at the Bloomington, Ill., company, told a reporter.10
In looking at this data by North American industries, we see that sectors such as airlines and telecommunications are in the lead, reporting that they conduct the highest percentage of interactions with consumers who use mobile devices.
Exhibit III-5 shows this by consumer purchase transactions in 2012. Surprisingly, the automotive sector finished high on the list, although we imagine that respondents could have implied that “purchase” transactions included quotes.
Exhibit III-5: Q11/North America: Percent of Consumer
Purchases in 2012 Made Through Digital Mobile Devices
By 2015, our respondents in the airline and telecommunications industries foresee more than half of consumer purchases of their products/services to be conducted through mobile devices. The travel and media-related sectors also predict higher-than-average numbers here. (See Exhibit III-6.)
On the other end of the scale, the sectors predicting the lowest percentage of consumer purchase transactions through mobile devices are government, pharmaceuticals, transportation and consumer products manufacturing (food, beverages, etc.).
Exhibit III-6: Q11a/North America: Percent of Consumer Purchases
Expected by 2015 to be Made Through Digital Mobile Devices
What about the way that North American industries market their products and services? Which sectors are already designing and delivering a high percentage of marketing campaigns through mobile devices, and which sectors aren’t? And what about over the next three years?
Our data found that in 2012, telecommunications services, travel-related, airline companies and automotive manufacturers had the highest proportion of marketing campaigns designed for mobile devices (at least 27% of their total marketing campaigns). Those with the lowest percentage were pharmaceuticals, health care services, consumer products, and transportation. (See Exhibit III-7.)
Exhibit III-7: Q12/North America: Percent of Total 2012 Marketing Campaigns
Designed Exclusively for Consumers Using Digital Mobile Devices
What about by 2015? Which North American industries will be focusing significantly in marketing through mobile devices? The two industries that expect the highest percentage of total purchases – telecommunications and airlines – also expect to have the highest percentage of marketing campaigns designed for mobile devices. (See Exhibit III-8.)
In fact, the airlines and telecommunications sectors expect to devote at least 50% of their total marketing campaigns for mobile devices in three years. Travel-related, automotive and retail also expect to have a higher percentage of their marketing campaigns designed for mobile devices than the overall average in North America.
Exhibit III-8: Q12a/North America: Percent of Total Marketing Campaigns in 2015
to be Designed Exclusively for Consumers Using Digital Mobile Devices
The airlines and telecommunications sectors are also by far the two that are conducting the highest percentage of overall customer service transactions with consumers who use mobile devices. (See Exhibit III-9.) This year, the airlines we surveyed said an average 52% of their total customer service interactions would be done with consumers who use mobile devices. Telecommunications were next – although a distant No. 2 – with an average 35% of total customer service interactions conducted by consumers using mobile devices. Industries with the lowest proportion of customer service transactions conducted through mobile devices were pharmaceuticals, media and healthcare services.
Exhibit III-9: Q13/North America: Percent of 2012 Customer Service Transactions
(Post-Purchase) Conducted With Consumers Who Use Digital Mobile Devices
The predicted picture for 2015 looks quite similar for the four industries that reported the highest percentage of service transactions being mobile-initiated this year: airlines, telecommunications, automakers, and energy/utility companies. (See Exhibit III-10.) In fact, North American airlines predict consumers to initiate nearly three-quarters of their service interactions – 72.5% — through mobile devices in three years. Telecommunications predict about 53% of total service interactions. No other industry was close.
However, the banking sector predicts a doubling in the percentage of consumer service transactions through mobile devices by 2015 – from about 16% today to 33% in three years. Retailers, too, expect a spike here, from 17.5% to 32.7% of service interactions coming from mobile devices.
Exhibit III-10: Q13a/North America: Percent of Customer Service Transactions in
2015 Expected to be Conducted with Consumers Who Use Digital Mobile Devices
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10 Feb. 1, 2012 article in Mobile Marketer, “State Farm mobile site ranks top in experience,” by Lauren Johnson.