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Human Motivations Amid Disruption: 5G, COVID-19 & More

Posted by Chris Neal

Mon, Oct 26, 2020

Question: What do a global pandemic, 5G technologies, and puberty have in common?

Answer: Massive disruption as we know it.

Let’s start with the global pandemic. Like everyone, my household has had to adapt drastically in the face of a pandemic. In addition to stocking up on toilet-paper, our family’s digital dependence has sky-rocketed. It has exposed the limits of our internet access and Wi-Fi functionality, and frayed the fragile fabric of our family’s functionality. Our use of streaming video apps is much higher now, and it’s unlikely to go back to pre-pandemic levels long after the pandemic is gone. And we are not alone—in CMB’s COVID-19 tracking research, streaming video app usage across the US has also increased dramatically, and most people don’t expect it to return to pre-pandemic levels even after the virus is contained:

5G Blog COVID Data

Putting this problem into the Fogg model, we see our motivation to try something different/better for our internet access situation has increased dramatically. But, like most zip codes, broadband ISP competition is scarce. Better internet access is competing with toilet paper now in that upper left-hand quadrant of Foggville:

5G Blog Oct 2020 Fogg Model Internet Access-1

And this brings me to 5G technologies, the fifth generation technology standard for broadband cellular networks and the successor to 4G LTE.* This technology will increase the ability of many people to significantly improve their internet connectivity and potential, either as a fixed internet access substitute alternative, or for some households who may want to use 5G cellular connectivity as their only internet access (both inside and outside the home):

5G Blog Oct 2020 Fogg Model 5G-2

Oh, yeah: and puberty? My household is also navigating this pandemic with two teenagers, which is a miserable time of life to be stuck in the house with your parents pretty much 24/7. GenZ is the first generation to grow up not knowing life before pervasive mobile internet connections. One of their first waking memories was discovering the delights of a mobile fart app on the iPhone. And while I personally thought that was the pinnacle of potential for the mobile internet at the time, the industry has since risen to much greater heights. 5G is going to open a whole new world of application possibilities, and GenZ will be key in determining which of these take off. Video-enabled communications with friends (TikTok, FaceTime, Zoom, etc.), and online gaming will benefit most from 5G in the near-term. Usage has gone through the roof since the pandemic, and is unlikely to ever fully return to “normal”. The next wave may well be driven by Virtual Reality and/or Augmented Reality-enabled applications. Coincidentally, GenZ have the strongest interest in VR/AR gaming, and we know this generation is using online multi-player gaming for socialization more than ever during the pandemic.

UNDERSTANDING HUMAN MOTIVATION IN THE FACE OF CHANGING TECH ABILITIES

Any company trying to capitalize on the opportunities presented by a dramatically increased ability to deliver new and better 5G-enabled services to people can benefit by analyzing which specific human motivations are most important for any given new service, and how the pandemic may have altered these.

BrandFx Four Benefits Pillars

Let’s take basic broadband internet access in my household as an example:

  • FUNCTIONAL (what I want to do): our existing internet access is insufficient now that two teenagers are doing remote learning most days and two adults are teleworking: all four individuals are spending much more time on video streaming platforms, often simultaneously. This impacts the adults’ work productivity and the kids’ learning. Additionally, we are all streaming more digital entertainment (TV shows, movies, and online gaming for the kids) now that we don’t go out anymore. The Functional motivation is very clear.
  • SOCIAL (where I want to belong): Other people I know have switched to a 5G internet service. I’ve heard through online forums from people I don’t know about their experiences with 5G.
    • My kids rely on fast internet service with low latency for social connections. Problems with Facetime glitching or high ping/latency while playing Sea of Thieves with friends increases their (already high) sense of social isolation.
  • IDENTITY (who I want to be): I’d like to think I’m smart, leading edge, and open to change. I won’t keep to the status quo just because it’s familiar. And I solve practical problems around the household.
  • EMOTIONAL (how I want to feel): I am very frustrated and annoyed by my current internet service plan: the internet quality and reliability doesn’t meet my family’s current needs during this pandemic, I don’t feel like I’m getting value for the price I am currently paying, and I don’t feel respected when I call customer service.
    • I feel anxious, however, that switching to 5G may compromise the security of my internet access. And I am concerned that it may be unreliable (e.g., glitchy when there is severe weather, because I’ve heard about this with satellite TV connections).

Across many industries and products, we have found that the emotional, identity, and/or social motivations are just as—and often more—important determinants of a new product’s success than the functional ones. And the interactions across different types of motivations can be highly prescriptive for laying successful go-to-market plans in the face of extreme uncertainty.

We are neither soothsayers nor oracles, but we do know how to leverage the power of psychology to help navigate a future that promises to be full of change and more disruption.

*No, this is not another conspiracy blog about how 5G technologies caused the Covid-19 outbreak. They did not.


Christopher NealChris Neal, VP of CMB's Tech & Telecom Practice, has over 20 years of experience in high tech, online, consumer electronics, telecom and media insights, analytics, and consulting.

Follow CMB on Facebook, InstagramLinkedIn, and Twitter for the latest news and updates.

Topics: technology research, strategy consulting, technology solutions, mobile, business decisions, consumer insights, millennials, internet of things, marketing strategy, Consumer Pulse, emotional measurement, brand health and positioning, customer experience and loyalty, growth and innovation, Market research, emotion, Artificial Intelligence, BrandFx, consumer psychology, technology, Gaming, Gen Z, AR/VR, collaborative intelligence, COVID-19, consumer sentiment, Next-Gen Gaming, customer centricity, AI, Habit Loops

COVID-Induced FOMO in Young Investors

Posted by Lori Vellucci

Wed, Oct 07, 2020

COVID FOMO Blog Opener

By most measures 2020 has been a sharp stick in the eye. But Millennials and Gen Zers have had it especially rough– in fact, they’ve experienced economic, environmental, and political upheaval for most of their lives. Many have never known a time when the United States was not at war with someone. They arrived to the party with a certain baseline of anxiety and fear shaped by the world and personal events throughout their formative years. As they say, “change happens in a crucible” (thanks, Mack Turner), and with the added stress of the pandemic, many young investors took their anxiety and fear and boldly channeled it into a new proactive approach to investing. They were determined not to miss the market sale, as many of them did for one reason or another back in ‘08/’09. New account openings were at an all-time high this past spring for traditional financial services brands and the plethora of born-online digital platforms.

Who Will Young Investors Turn To?

With this new focus and new money floating around, coupled with the stark realization that the markets go in both directions, these new investors need knowledge and guidance. Many firms have stepped up and made significant efforts to provide both to these less affluent newbies. But the final answer to an important question remains, who will they trust most with their future? There are two knee-jerk responses to this question: (1) the storied and well-established institutions which have reached a hand to these new potential customers OR (2) the born-online, new, fresh tech platforms targeted to these digital natives.

Are YOU Missing Out on the Young Investor?

There’s good reason to choose either of these options as the answer. However, investment firms must consider the four psychological benefits that drive brand engagement: emotional, identity, social, and functional. For brands across industries, leading prospects to expect these benefits drives consideration, and delivering these benefits to customers drives loyalty. And, for investment firms—disruptors and established alike—these psychological benefits are the key to winning the hearts and wallets of young investors.

BrandFx Four Benefits Pillars

We know that financial services brands (traditional or digital) deliver against these four pillars with varying degrees of success. However, there are other players outside of financial services and fintech that bear consideration and a watchful eye (and which already deliver important drivers of engagement in spades). Tech Brands like Apple, Google, and Amazon already have the attention of young investors in other aspects of their lives. Further, some have begun to make forays into financial services through offering of credit cards and mobile payments. It may be a short reach for them to move their customers into high yield savings and investing through partnerships, purchases, or built-from-scratch offerings. While there are certainly barriers in place to jumping in with both feet, the strength of these brands warrant a watchful eye.

So where do financial services firms start? Functional benefits are table stakes, so delivering those benefits alone aren’t enough to attract new investors. It’s therefore crucial for brands to deliver the identity, social, and emotional benefits to drive engagement. Make young investors feel safe and secure (emotional benefits) through every touchpoint. Find a way to help them to express themselves (identity benefits) by ensuring that their financial brand aligns with their values and help them to connect with others as they embark on their investing journey (social benefits).

YI Experience Micrographic Sep20 (2)

Three Takeaways for Investment Firms

As detailed in our latest report: Get Inside the Mind of the Young Investor, here’s what you can do so that you don’t miss out on the young investor:

  1. Ensure representatives are focused on helping young investors leave each touchpoint feeling positive, low activation emotions like peace, calm, and security
  2. Understand your customer identity and ensure campaigns and marketing assets present a compelling image of the typical customer for young investors
  3. Deliver Social Benefits that resonate through ESG and socially responsible investing and building communities of like-minded investors

Lori VellucciLori Vellucci, VP Financial Services Practice Leader
Don't forget to immerse yourself in our latest financial services research: Get Inside the Mind of the Young Investor. And stayed tuned for more of our findings—experiential and beyond.
Immerse Yourself
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Topics: financial services research, brand health and positioning, Market research, BrandFx, COVID-19, financial services, young investors

The Power of Disruption: Uber's COVID-19 Story

Posted by Tara Lasker

Wed, Aug 05, 2020

Uber COVID19 Blog Opener Aug2020

I couldn’t have imagined that four years after I blogged about Uber’s evolving brand promise, we’d be debating the safety of a trip to the grocery store. The disruption wrought by COVID-19 has only accelerated that by advancing technology, socio-economic change, and evolving consumer needs. So how will Uber and other disruptive tech-driven brands face the challenge of how it best fits in consumers lives today? With so much in flux, we do know this: a deep understanding of consumer motivations is critical to successfully innovating amid disruption.

At CMB, we use our proprietary BrandFxSM framework to help brands uncover threats and opportunities brought about by disruption. We know that when brands help people fulfill people’s core needs by delivering on Functional, Social, Emotional, and Identity they drive trial, use, and advocacy—this is true whether or not their lives are upended by a pandemic!

For example, we know that a failure to help passengers feel safe and secure was a barrier for the ride sharing industry early on and was subsequently addressed after both Uber and Lyft took action (e.g., evolved rating system, license plate confirmation). Today’s safety concerns look a lot different than 4 years ago—the fear of a fellow passenger’s aerosols may be more top-of-mind than the fear of an ill-intentioned driver. Keeping a pulse on consumers evolving needs during this extraordinary time will help Uber deliver what consumers need to consider or continue ride sharing. Uber should ask themselves:

  • Are people using ride sharing differently now? (e.g., getting to work where public transportation feels unsafe)
  • What can Uber do to provide customers a sense of safety in these uncertain times?
  • How do safety concerns rank against other drivers like stability and anxiety right now?
  • What will it take for consumers to consider ride sharing again?
  • What emotions (e.g. anxiety) play a larger role in today’s consumer behaviors than more rational considerations of 4 years ago (e.g., convenience)?

Having the right tools in place to successfully deliver those benefits are also crucial. Contact-free tech such as autonomous vehicles have resurfaced as a major opportunity. As we’ve reported in our research, fear has been a majority barrier to adoption, but in a world where health anxiety is at an all-time high, we expect to see chasms crossed in record time (think about how much time you spent on Zoom before March)!

Additionally, pivoting areas of focus with acquisitions and partners is a winning strategy for innovative brands. Partnerships allow companies to tap into centers of excellence and provide faster routes to market and/or greater market share. Uber’s purchase of Postmates is a good example of how the brand is investing in partnerships that reflect changing needs. In another change since 2016, if you go to Uber.com, Uber Eats has a prominent space on the home page. Understanding the broader context of Uber’s core mission – setting the world in motion - we understand how this pivot allows Uber to leverage its core competencies with the desired benefits the marketplace seeks (a night of not cooking when date night means staying in).

Disruption and uncertainty aren’t going away but neither are the core drivers of consumer decision-making. Brands that don’t merely survive but thrive amid this disruption will be the ones that use a deep understanding of what truly drives people and combines it with agility and the will to innovate and develop meaningful partnerships.

Contact us to learn more about our cutting-edge research into consumer motivation.

CONTACT US


Tara LaskerTara Lasker is a Senior Research Director at CMB, and former frequent Uber customer who misses having engaging conversations with her Uber driver.

Follow CMB on Facebook, LinkedIn, and Twitter for the latest news and updates.

Topics: technology research, strategy consulting, technology solutions, consumer insights, marketing strategy, brand health and positioning, customer experience and loyalty, growth and innovation, Market research, BrandFx, consumer psychology, technology, engagement strategy, COVID-19, consumer sentiment

Quirk's Virtual Roundup: Building the Plane While Flying It

Posted by Taylor Trowbridge

Tue, Jul 21, 2020

Quirks Virtual Blog Opener July 2020 (2)

“The new normal.” Nearly every speaker at the Quirk’s Virtual Event uttered the phrase, and while there wasn’t a clear consensus on what that normal will be (or when), the dual themes of disruption and change were ever present. In terms of the conference itself, the newly virtual event meant remote video sessions, online connections, and every now and then earning a merit badge. Although not without its quirks (get it?), the event offered great thought leadership, insights, and ideas, as well as many excellent learning and networking opportunities.

Not all the change discussed was driven by pandemic and politics. I was particularly drawn to the sessions focused on the power of insight to drive organizational change. While a few suppliers spoke to the importance of this, the most unique perspectives came from the client side, including:

  • Nestlé’s Mary Colleen Hershey, who tracked the journey her team took to transform the company’s team of talented research experts into business building consultants. I loved her advice to stop romanticizing the research and get passionate about results and impact.
  • Michael Franke and Monica Stronsick shared how Progressive is embracing change and building a more robust and cohesive customer experience program by effectively linking 9 experience surveys.

Another heartening theme was the need for human connection and empathy amid disruption (and not just the good-natured acceptance of tech snafus).

  • Our own Vice President of Consumer Psychology, Erica Carranza, PhD shared how the human factors—specifically the psychological benefits emotion and identity—give us a critical understanding of consumer decision-making. Grounding concepts in a world where the only constant is change.
Watch The Human Factors Here
  • The Discover.ai team had two great sessions about the humanizing potential of AI, including the Durex case study presented in “The newest methodologies for some of the world’s oldest questions,” which provided a bit of a respite from some of the stodgier subject matters. The real takeaway was in the power of new technologies to deepen our understanding of people—their needs, desires, and motivations.

What we’re all wrestling with—personally and professionally—is how not just to survive despite change but to boldly grow because of it. Everything from brand experiences to research methodologies are being turned on their head. As Voya Financial’s Keri Hughes says, we are, “building the plane as we are flying it.” And as we learned at Quirk’s Virtual, we can weather the storm by embracing change and our humanity.


Taylor Trowbridge-2Taylor Trowbridge, CMB Account Director and proud owner of Orville, one sleepy bulldog living the dream in North Carolina.

Follow CMB on Facebook, LinkedIn, and Twitter for the latest news and updates.

Orville_QuirksVirtual

Orville taking a power nap during Quirk's Virtual

Topics: business decisions, consumer insights, marketing strategy, emotional measurement, conference recap, brand health and positioning, Market research, Identity, Artificial Intelligence, BrandFx, consumer psychology, Social Benefits, COVID-19, Emotional Benefits, customer centricity

The Power of the Brand: The Peloton COVID-19 Story

Posted by Daniel McDonald

Mon, Jun 15, 2020

Pelaton Blog Opener

“You have a Peloton? Are you crazy?” I’ve heard this multiple times from people who are shocked that I was willing to pay “that much” for an exercise bike. Yes I did, and frankly, my fiancée and I love it (#NotAnAd).  I still remember the first Peloton commercial I saw. It featured a fit younger female biking in the middle of her living room in what appeared to be a penthouse in New York City. It came off as a luxury, a product for the rich, not something that belonged in the corner of your dining room where the only view is an outdated china cabinet. Fast forward to Christmas 2019, Peloton takes a seemingly innocent—now notorious—approach to being more obtainable with the slogan, “for anybody that wants it.” Peloton’s attempt to balance luxury with affordability and attainability has proven challenging.

Enter COVID-19, suddenly, that initial sticker shock seemed rather small when my only option is working out at home. In the past few months I have heard more and more of my friends buying a Peloton bike, including a few that called me crazy when I took the plunge a year ago. Peloton has recently reached over a million subscribers and their biggest problem is delivering bikes fast enough. So how does a brand go from a widely panned marketing flop to selling more products in a few days than they expected in the entire month?

It's not a complex formula, when you take away an outlet for people, they are going to look to fill it somehow. That’s exactly what’s happening for Peloton during COVID-19, they’ve been able to capitalize on a bad situation. But what happens when gyms reopen, and people adjust to the new normal? How does the rapid growth Peloton has been experiencing become more than just an outlier? True, this won’t be a toilet paper situation, they can’t expect people to start hoarding exercise bikes, but that doesn’t mean Peloton can’t become the first-choice outlet for working out.

Peloton has always been willing to spend money on advertisements, and even the infamous ones, have made Peloton a well-known name. In fact, I would argue that the average person can’t name more than 2 or 3 stationary bike brands. This means, that even though the market is oversaturated, people only recognize a few brands. Now more than ever Peloton should continue pushing their advertisements, but with a different approach. Recently, we’ve seen a shift in advertisements due to the pandemic, whether its poking fun at the fact that there is always that one person who can’t figure out how to unmute themselves on Zoom, or just showing their compassionate side towards the situation. The main point is brands are acknowledging our experience in a timely manner. Peloton is a unique brand because even during this troubling time, they can remain almost fully functional. They have trainers constantly putting out new classes, both from the comfort of their own home (safely and alone) and inside one of their New York studios. They must let everyone know, whether they are an existing customer or not, that they remain focused on physical fitness and can provide anyone the opportunity to stay healthy. Now more than ever Peloton can realize their goal of providing fitness “for anybody who wants it”.

One thing is for sure, change is inevitable for everyone. People are eager to get back to a gym or spend the money on advancing their own home gyms. No one can be sure what the new normal or long-term impact will be like when this is over, but in a time where interaction is unfeasible, connection is critical. Brands like Peloton, Netflix, and HelloFresh are emerging as leaders because they are focused on the human element. They clearly benefit from more people staying at home but what happens when those people start to leave? How do the brands that have seen exponential growth during COVID-19 transition themselves into the new normal? But humans are creatures of habits, and as long as Peloton continues to stress their flexibility, compassion, and purpose, exercising at home will remain a habit.


Daniel McDonaldDaniel McDonald, Associate Researcher, is a proud first-time homeowner, which is the perfect addition to his Peloton bike.

Follow CMB on Facebook, LinkedIn, and Twitter for the latest news and updates.

Topics: consumer insights, advertising, marketing strategy, brand health and positioning, growth and innovation, Market research, retail, consumer psychology, COVID-19