With help from the rapid proliferation of mobile devices, mobile data connectivity with affordable data plans from mobile network operators and wifi services and innovations from the apps and contents ecosystems, the online and mobile Internet today has been shaping how consumers are consuming apps, services and contents and converting into daily habits.
Here is an analysis on how the daily habits of online and mobile users with respect to the different categories of apps, services and contents, served up and consumed on their feature phones, smartphones, tablets, PCs etc, are being segmented. The 4 types of segmentation are characterised against the frequency of usage vis-a-vis retention over time (source: analysis of Flurry blog analysis and AC Nielsen consumer studies on apps and second screen).
(1) In the upper right hand corner Quadrant I "High Engagement and Value" segment, communication (email, social instant messaging) and news come up tops being habitually consumed by consumers intensively and to which consumers grow loyal and stick to over time. With a power base of stable, growing audiences, advertising revenue or subscription charging are business models being pursued.
(2) In the upper left hand corner Quadrant II "High Engagement and Churn" segment, social networking, social games, streaming music etc serve as high traffic drivers with consumption often contained within short bursts. To stem churn, acquisition and retention have to be constantly reinforced via for example, in-app item purchases, gamification.
(3) In the lower left hand corner Quadrant III "One-off premium use" segment, contents for education, health and fitness or medical tend to lead to one-off consumption and so warrant a premium charge. Entertainment and personalisation also fall under this categorisation where the situational context could lead to the users needing to buy a piece of music, standalone game or a theme to personalise their mobile devices.
(4) In the final Quadrant IV "Scheduled use but high value" segment, here we see habits for travel, navigation, utilities etc, as they are highly valued by the users when the situational context demands it, like for that schedule business trip or social holiday.
The focus on daily habits of mobile and online users were highlighted by Yahoo's Marissa Mayer when she laid out her vision in transforming Yahoo and bringing the cool of the Internet portal back into its stable. Real life momentum in developing on the daily habits of mobile and online users are in evidence today.
- We constantly see Yahoo continuing on its acquisitions of startups which are entrenched in the daily habits of users - on email management (communication) and to do lists (utilities), Summly (news), Tumblr (social networking, user-generated content, communities) etc.
- SK planet has developed an app "Jukebox Hero" which turns your music library into social music jukebox and more in the portfolio addressing a range of consumer habits.
- eShopping trends today show growth in both ecommerce and mobile commerce.
- Retail Showrooming which see consumers doing price comparison research (Deals) whilst in store
- Retail apps usage are surging 525%
- College students are finding deals on mobile
- What do users want in a location based app - a quora discussion around the emotional and rational drivers on consumer location-based habits
Understanding the daily habits of online and mobile consumers provide great value by helping businesses determine their digital content Internet business go-to-market strategies by reviewing first, which consumer segments, what content categories and business models, how to evolve product portfolio and so on.
I look forward to hear your thoughts and experiences.
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signing off,
Nelson Wee
Photo credit: Phil Hawksworth / Foter.com / CC BY
