With the number of smartphone users worldwide expected to exceed two billion - more than a quarter of the global population – upgrades increasingly account for a large proportion of new device sales.
The problem is that we don’t know a great deal about how and why customers make key decisions when it is time to upgrade their device. In many cases, the timing of an upgrade will be linked to the expiry of a contract, a price reduction, or a sales promotion.
But with new smartphone models being released all the time this is an increasingly competitive market, and it has led to some commentators to suggest people are experiencing 'upgrade fatigue' as new models disappoint.
Deloitte predicted in 2015 that one billion smartphones would be purchased as upgrades for the first time, generating over $300 billion in sales. Deloitte’s research found that seven in ten smartphone owners in 14 developed markets had upgraded their phone in the previous 18 months. This is more frequent than for any other consumer electronics device.
However, the trend is that people are waiting longer to upgrade their phones.
A recent report by Kantar found that people in the UK waited 23.5 months between upgrades in 2015, three and a half months longer than they did in 2013.
Analysys Mason's recent smartphone forecast suggests that annual smartphone unit sales in these three regions will reach a peak in 2017, before entering decline. The smartphone market is reaching saturation point in developed markets around the world.
Given the size of the market, it is important for mobile operators and manufacturers to have an understanding of how their customers research and purchase smartphone when it is time to upgrade. This insight can have a huge impact on their business and help them stay one step ahead of their competitors.
Remote unmoderated testing
A new study by Userzoom has revealed how consumers go about researching their options for new smartphone upgrades. The research was conducted using open research methods through remote unmoderated usability testing from real users. This means that participants start on a blank webpage and are not offered any guidelines or pointers to complete an online task.
By taking an unguided approach, users behave much more organically, which enables a better understanding of the user journey and how users behave.
While businesses today aren’t short of quantitative data once visitors land on their sites, open research provides missing information when it comes to customer behaviour patterns before this step.
Participants were asked to research smartphones online as they normally would and select one they would be interested in purchasing. They were then asked to go through the process of purchasing the smartphone they selected in the first task.
Generic research vs specific brand loyalty
200 people took part in the testing and the research uncovered a number of interesting findings particularly on the question of how people research their next smartphone.
The majority (76 per cent) used a generic search term to start their research process, while the rest typed a specific URL directly in the address bar. Participants most commonly searched for a device brand (31 per cent), suggesting that most participants had a specific brand in mind. Meanwhile, 29 per cent used general terms, such as “best smartphones” to begin their research.
After using generic search terms, most participants visited either device manufacturer sites (e.g.,samsung.com) or network service sites (e.g. verizonwireless.com) to research smartphones.
Cost, screen size, brand, battery life and operating system were the most important factors in selecting a smartphone. 75 per cent only researched one device and Samsung (59 per cent) and Apple (31 per cent) were the most
common brands researched.
Making an online purchase
The research also tested how participants went through the checkout process. 42 per cent started the checkout process on a service provider website. 92 per cent of these participants were able to complete the checkout steps until the billing page on the same website. Overall, 70 per cent indicated that the process of purchasing smartphones online was “very easy”.
Samsung devices proved most popular with 39 per cent opting for devices from this manufacturer during the checkout process. 29 per cent selected Apple products. As a result, Samsung Galaxy S6 phones were the most researched smartphones, followed by the iPhone 6. LG was the next most popular brand researched by participants.
The vast majority of people (69 per cent) indicated that they are likely to purchase their next smartphone online. 60 per cent said that they were satisfied with the purchase experience and that they would not change anything, whereas 15 per cent said that they would like the process to be faster, with fewer steps in the process.
Informing product strategy
With market trends indicating that fewer people are upgrading their smartphones, mobile operators and manufacturers need to learn more about how their customers make key decisions when researching their new device.
Research which leverages remote unmoderated usability testing provides valuable insight for these companies by providing feedback from real users. This gives companies a powerful tool that can help inform product strategy and improve user experience.
Some of the above findings may not be seen as groundbreaking revelations for mobile companies but in an increasingly competitive market with new smartphone models being released all the time this type of data can prove invaluable in improving their understanding of customer behaviour.
By Arthur Moan, Client & Professional Services Director, EMEA at Userzoom
PrivSec Conferences will bring together leading speakers and experts from privacy and security to deliver compelling content via solo presentations, panel discussions, debates, roundtables and workshops.
For more information on upcoming events, visit the website.
comments powered by Disqus