You’re about to step out your front door...

But wait just a moment! You can only take your phone or your wallet, which will it be?

Pre-smartphone there would be no contest, I’d take my wallet. But times have changed, and the balance has now tipped in favor of my beloved iPhone. Beyond checking email, I use my phone to deposit checks, see when the train is coming, read the news, record my ski stats, listen to music, and if I've also forgotten my lunch, I can use a mobile wallet app to buy a sandwich at the deli across the street.Of course there’s more to mobile wallets than the fate of my lunch, there are billions of dollars at stake for the banks, credit card companies, start-ups, tech giants and others who want to dominate, or just cash in on, the evolving relationship we have with our smartphones. In our latest Consumer Pulse, we surveyed 1,479 smartphone users about what they know about mobile wallets, what’s keeping them from using, what features they’d like to see, and who they'd trust to provide them.

First things first, half of respondents said they were familiar with mobile wallet technology (or proximity payments)—apps that let users swipe or tap their phone at the point of sale, rather than using credit cards or cash. When we asked this 50% to tell us about their experience and expectations for using mobile wallets most said they didn’t plan on adopting a mobile wallet…but nearly a quarter said they were planning to try out the technology in the next 6 months (TWEET THIS). That’s no small number considering smartphone ownership is nearly ubiquitous.

Now let’s consider our more reticent smartphone users, what’s keeping them from trying out the technology that’s already at their finger-tips? We weren’t surprised to find that security (73% called it a barrier to adoption)—particularly identity theft—was high on the list of what’s keeping people from giving up on cash and credit (TWEET THIS). The good news for mobile wallet providers is 79% said they’d be more likely to adopt if they were guaranteed 100% protection against fraud and theft. While many mobile wallet providers already offer this protection, the results show there’s a real opportunity to benefit from promoting this type of security measure (TWEET THIS).

If you’ve assuaged the fear of being scammed, stolen from, and over-charged (remember when people were afraid to shop online?) what’s next?  Aside from the novelty of scanning your phone, what’s the incentive behind using a mobile wallet over your, just as convenient, credit card? We found reward and loyalty points were very appealing, particularly when offered as additions to existing rewards people get with their credit cards—80% of non-adopters said they’d be more likely to adopt if offered these extra rewards (TWEET THIS). Of course people like rewards and points—you don’t need to be a marketer to understand that. But nearly as many (66%) said that getting the same rewards they got with their credit card would increase their likelihood to adopt—to which I say, c’mon people aim a little higher.

So yes, rewards are nice, but one of the best things about smartphones is the ability to look stuff up. Think of how many arguments have been nipped in the bud by a quick search of imdb.com or Wikipedia. That ability to find the information you want any time, any place, is just as compelling in a shopping context. Including location-based services like the ability to easily compare items in stores nearby increases likelihood to adopt among 78% of non-adopters (TWEET THIS). But we also found people were a little leery of getting too many alerts, both because they can be annoying and because they suck down battery life. Note to providers, offering people the choice of what alerts and discounts they receive could be a major draw as they decide who they’d like to provide their mobile wallet service.

The topic of mobile is rightly dominating the discussion in almost every industry, but the fact is, for most people mobile wallets are still incredibly new. Amid all the noise and growth, there’s still tremendous opportunity for providers who understand the concerns, goals, needs, and desires of the millions (billion?) of people with the technology right at their fingertips.

Download the full report and learn more about what will drive (and block) adoption, and who has the advantage as we enter the next leg of the mobile wallet race.

Megan is CMB's Product Marketing Manager, she loves Alpine Replay, and longs for the day she can unlock the front door with her phone.

While the rest of us breathe a sigh of relief that the fiscal cliff threat is behind us, the MedTech industry is feeling the pain of the new medical device excise tax, a part of the Affordable Care Act (ACA).  While it remains to be seen whether the promised influx of patients resulting from the ACA will ultimately generate enough revenue to offset the tax, looking at the current state of US healthcare (Click on Figure 1 for Larger Version) it is painfully clear that additional tax revenue alone is not the solution; rising costs must be addressed in a meaningful way. 

Innovation to develop products, services, and systems that are more effective and efficient is critical to solving the healthcare cost problem. While the majority of MedTech organizations historically focused their sales and service efforts on their relationship with physicians, there is an increasingly vocal group, including doctors, patient advocates, and policy makers, who believe the key to healthcare innovation lies in empowering patients. Because patients ultimately make decisions about things like diet, exercise, when to seek treatment, and disease management, they have an enormous influence on the cost and the effectiveness of their own care.  In fact, some believe that 80% or more of healthcare decisions are made by patients, not medical professionals. The idea is that if we can empower people to be more informed and engaged in their care decisions, they will be the driving force behind improving the efficiency and effectiveness of the healthcare system. 

Assuming the care system does evolve in a way that empowers patients, many MedTech organizations will be under increased pressure to incorporate features in their products that impact patient’s behaviors and help them make better lifestyle decisions.  For example, imagine a pacemaker that can provide a patient with information in real time through a smart phone app that will help him become more conscious of decisions about sleep, diet, and exercise.  These types of patient empowering innovations have the potential to dramatically change healthcare in the US (and worldwide).  And MedTech companies have the opportunity to drive this change; however it will require a shift in how they have traditionally learned about their markets.

As MedTech companies race to innovate, they will likely hold internal brainstorming sessions, meet with physician advisory boards, and speak to their sales and customer service groups. The problem with these approaches is that it leaves out the most critical component— the patient, the key to successful innovation.  To generate this intimate knowledge of patients, organizations need a plan—a change from how MedTech organizations traditionally approach innovation.  One that does the following:

1. Identifies what customers ultimately want and need from their healthcare.  Talk to patients living with the disease state; understand their daily struggles, and what would improve their healthfulness.

2. Prioritize what matters most to patients based on the most pressing needs of the patients; organizations should not invest time and money in trying to address each item identified by patients.  Fortunately, all wants and needs were not created equal. Instead, companies should focus on developing solutions that address those needs that are most important to healthcare consumers.  Additionally, there are likely groups of patients that have different priorities, and organizations should consider whether and how they address these different groups.

3. Translates these prioritized wants and needs into solutions.  Armed with a detailed understanding of what matters to healthcare consumers, organizations can apply their expertise to develop elegant solutions that satisfy the most critical unmet needs.

4. Establishes metrics that indicate whether the solutions they have developed are truly empowering healthcare consumers and adding value to the system.

MedTech companies face a future of great uncertainty and opportunity; however it seems clear that in the context of the Affordable Care Act and the evolving nature of today’s care model, patients are going to become increasingly important.  MedTech companies will need healthcare consumer insight programs to uncover the wants and needs of their patients and discover the addressable white space. Their intimate understanding of their patients is enabling them to pull ahead and gain a decided competitive advantage.The winners aren’t going to be those who bring solutions to market first but instead those who can translate deep insight of patients into game changing products and services. 

Andrew runs CMB’s MedTech practice and has spent the better part of the past decade helping some of the most successful MedTech companies make difficult strategic decisions.  In his free time, Andrew enjoys scrubbing into tracheotomies with clients, and running with his dog Moby.

You may have heard the latest from Disney—they’re about to introduce a new “MagicBand” wristband letting wearers take advantage of perks like skipping to the front of the line for rides, as well as pay for meals, and purchase gifts.  It offers guests the ability to leave the wallet and paper tickets at home and focus on having fun.  The benefits to Disney can be huge, and a lot of people are seeing it that way; as one headline proclaimed: “Disney creates the happiest data mine on earth.”  Pretty clever, but of course there are those who aren’t quite as happy about the innovation; besides the thought of Big Brother entering our lives, won’t somebody think of the tan lines?But let's focus on the business aspect, the ability to track all activities and purchases on-park creates an immense opportunity for marketing, and much of the chatter concerns how Disney can use the data for direct marketing.  Did the guest ride all of the roller coasters?  Target promotional offers touting the latest thrill rides.  Did the guest get a picture with one of the cast members?  Send a doll to the guest’s suite to increase engagement.  Did the guest make a purchase at any of the retail stores?  Give them a coupon for a Disney store near their home.

Nearly everyone is coming up with ideas for how this might help Disney directly sell more of what it offers.  I’d like to think about how Disney can learn from this data in order to innovate and improve the experience.  In the direct marketing examples, the data remains data— it’s used solely to trigger marketing offers.  For market researchers, the data isn't useful until we find relationships that are relevant to decisions.

So, here is my challenge for you: what type of analysis do you think needs to be done?  What potential relationships might Disney find to innovate and change the experience?

I’ll get it started:

Disney could run on-property communication tests to improve messaging and information delivery.  By placing unique signs throughout the park, Disney can track all guests who pass each sign and capture behaviors after passing the sign.  Instead of waiting many weeks or months to gather feedback, Disney can get an “immediate” understanding of which signs work best – and potentially why.

Tell me your ideas in the comments:

Jeff is VP, Market Science Solutions at CMB. He'll have a pair of shiny new mouse ears for the most interesting idea. If he's not wearing his wristband you can still find him tweeting @McKennaJeff.

As a market researcher, there are times I can’t help but look at the upcoming presidential election as the ultimate marketing campaign. A successful political campaign often adapts many of the same strategies used by marketers, and just as savvy marketers have adapted their campaigns to the overwhelming number of Americans who own a mobile device, our candidates have strategically followed suit.Due to the overwhelming and increasing number of voters who own smartphones, it’s easy to see why politicians today are placing so much importance on taking their campaigns mobile.  A study released this month by the Pew Research Center found that 88% of registered voters own a cell phone, and roughly half (48%) of these folks own a smartphone. Of the registered voters who own a cell phone, 27% have used it to stay up to date on the 2012 election or politics in general.

The rise in mobile phone ownership has created opportunities for both the Obama and Romney campaigns to increase exposure in hopes of gaining voters, and one of the biggest ways our presidential hopefuls are getting their message out is through mobile advertising. During this election, both campaigns and their supporters are expected to spend about $159 million on internet ads alone, and it’s expected that mobile advertising will consume a large portion of their online advertising budgets.  The Obama campaign has focused much of this mobile ad spending on an online Google advertising platform, while the Romney campaign has invested heavily into iAd; Apple’s mobile advertising platform made especially for its products including the iPhone, iPod Touch, and iPad. This type of advertising has been used extensively to augment existing television ad campaigns and to encourage voters to visit campaign websites.

The campaigns are also using mobile devices in their fundraising efforts and to keep supporters updated on campaign news and events.  Supporters can easily donate to their favored politician at campaign events by swiping their credit cards on mobile payment platforms like Square; a portable credit card machine that attaches to most mobile devices and can quickly accept electronic payments.  Campaign supporters who have their credit card already on file can also text to donate to either campaign—a major benefit because the less onerous the payment process the more likely people are to donate.

When supporters aren’t at fundraising events or texting donations to their favored politician, they can stay connected to the election using their favorite mobile application. Romney supporters can use their iPhones to upload pro-Romney images to Twitter and Facebook, order tickets to see him speak, and stay updated on campaign news and information, while Obama supporters can use an app to check out ways to get involved with the campaign locally. The Obama for America app enables anyone to look up information regarding news, events, community activities, volunteer activities, the President’s policies, as well as information on how to vote.  Of course voters needn’t limit themselves to partisan apps; there have been ample opportunities for voters to search for information on their own—the Pew study found 35% of smartphone owners have used their phone to fact check a campaign or candidate this election season.

Just four years ago, the internet played a critical (and much discussed) role in organizing, informing and motivating voters. mobile technology deepens and expands this impact— facts can be checked on the spot,  polls conducted, and prospective voters reached anywhere they take their phone. Raise your hand if you had your phone out while you watched the debates.  And who knows, maybe someday we’ll be able to secretly text our votes instead of filling in a box or pulling a lever.

Kathleen is CMB's Field Services Associate. She wants to make sure you get off your phone and vote on November 6th!

For more on how mobile is changing consumer behaviors, check out our Consumer Pulse: The New Banking Value Proposition.

Join us Wednesday September 12 to discover the who, what, and how of the new rules of television viewing.

Topics include:

• Online viewership of TV shows and movies among age segments.
• Device viewership scenarios.
• Preferred TV viewing device by occasion.
• Online viewing pain points and barriers.
• Needs analysis of new technology platforms.

Register here

Download our free Consumer Pulse report: The New Age of Television