Cultural Immersion: Early Tech Adopters

THE EARLY TECH ADOPTERATTITUDINAL TARGETING FOR ISIS

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BACKGROUNDA majority of American adults now own smartphones and mobile usage is as high as its ever been. Analysts predict that mobile wallets are inevitable, the wave of the future; but the current reality is that awareness is not translating to use.

How can we change that?

Secondary Research• Learned about the mobile payment marketplace – from its bright

future to its current struggles• Looked into the current Android market and examined how the NFC

barrier plays into ISIS’s future • Delved into the tech landscape and drew insights around the people,

trends, and culture that make up this world

Primary Research• Conducted four hour-long interviews with young influencers in the

tech community

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EXECUTIVE SUMMARY

THE MOBILE PAYMENT MARKETPLACE

The race is far from overWhile each of the major players certainly has their niche, the overall race for mobile payment supremacy is wide open. Many of these companies and other consultancies have tried to target defined segments of potential users, but none has truly broken through yet.

Consumer concerns trump competitionThe marketplace is crowded, with new start-ups entering the space seemingly everyday. While the industry and those who write about it are preoccupied with who will win the tech roll-out race, consumers are more concerned with things like security and privacy.

The NFC barrier Isis faces a unique challenge in the NFC barrier. When it comes down to it, iPhone users are 50% more likely than Android users to be early adopters. These early adopting trendsetters are the brand ambassadors Isis needs.

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EXECUTIVE SUMMARY

THE HACKING CULTURE

Geek is ChicToday, being a nerd is something of a badge of honor. Geek culture is everywhere, it’s diverse, it’s valuable, and it’s a brand.

The New Rock StarsThe kids who grew up reading comic books and playing video games are now the driving force behind broad and valuable swaths of popular culture and technology. These are the new celebrities.

The Hacking GenerationAs start-up and geek culture have seen a meteoric rise in popularity, a new generation of techies have emerged. This generation of hackers represents one of ISIS’s biggest opportunities.

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EXECUTIVE SUMMARY

OUR TARGET AUDIENCE

Pushing BoundariesThese millennials have redefined the tech landscape. They have different relationships with brands, have pushed convention in all facets of culture, and they’re more knowledgeable and empowered than ever before.

Age is but a Number While this group is our hotspot target, inclination toward ISIS and Android have less to do with the year they were born and more to do with their attitude and mindset.

It’s All About UtilityFrivolous apps can be fun, but are often short-lived. When it comes down to sustained use, our target is looking for utility. They want things that will improve their lives, make things easier, and serve a true purpose in their daily life.

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WHAT TO EXPECT

The Mobile Payment Marketplace

Talking Android

The Hacker’s World

The Hacker Generation

Who Else Fits the Profile?

Implications

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WHAT TO EXPECT


Talking Android




Implications

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“Within five years, 50% of smartphone users will be using their phones and mobile wallets as their preferred method for payments.”

“The global value of proximity payments, both NFC and mobile bar code transactions, will reach $296 billion by 2017.”

“In the US, proximity mobile payments will top $1 billion in 2013 before expanding rapidly to reach an estimated $58 billion by 2017.”

Analysts predict that mobile wallets are inevitable, the wave of the future

“In 2011, there were 7 million NFC-enabled phones; by 2015, this number will grow to 203 million.”

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THE PLAYERS

Square Google Wallet

Level Up Other Challengers

for small businesses

for local deal-seekers

part of an ecosystem

nimble start-ups

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THE PLAYERS

RT’d by Square to nearly 130,000 followers

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BUT THIS IS THE CURRENT REALITY

Awareness isn’t translating to usage

41% of US smartphone users are highly aware that they can use their phone as a payment device

but only 16% have ever done so

AccentureSource:

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BIGGEST HURDLES

45% 37% 37%

Consumers are focused on a few key concerns:

concerned about security

think their current methodis convenient enough

worried about privacy

AccentureSource:

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WHAT WE’VE LEARNED

37%

THE MOBILE PAYMENT MARKETPLACE

• The overall race for mobile payment supremacy is wide open and far from over. Each of ISIS’s competitors has its niche, but none has truly broken through yet.

• Consumers are less focused on individual brands and more concerned with things like security and privacy. These concerns need to be quelled before the projected bright future can take hold.

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WHAT TO EXPECT


Talking Android




Implications

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ANDROID & ISIS

45% 37% 37%

People are reluctant to switch phones, carriers, or banks

Just 7% of non-users are willing to switch phones in order to make mobile payments.

iPhone users are extremely brand loyal: 80% have owned a previous iPhone

How do we keep Android users on board?

25% of Android owners would prefer to have iOS

Accenture, ComScore, Mintel Sources: 15

THE CURRENT MARKET

45% 37% 37%

In the tale of two smartphones, Android users are…

Android53%iOS

36%

Other 11%

Smartphone

Market Share

Android Apple

24%41%

37%

36%

39%23%

Mobile Banking Maps Search Weather0%

10%20%30%40%50%60%70%80%

37%

50%58%

67%

43%

57%64%

72%

Share of Users Engaged by Activ-ity

Android iPhone

• 10% more likely to be men• 17% more likely to live in the suburbs• 80% more likely to only have a high school

diploma• 29% more likely to prefer saving their money• 71% more likely to say they tend to follow rather

than lead

$100k+

$50-100k

<$50k

AnnualHHI

Shareby

Platform

ComScore, Hunch, Mintel Sources:

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WHO’S REALLY USING ANDROID?

45% 37%

In looking at the current Android market, three major groups of consumers stood out:

1. The Thrifters

2. The Contrarians

3. The Hackers

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THE THRIFTER

45% 37%

The less money you have, The more likely you are to choose Android

Widespread success not due to objectively great phones, but the marginal phones that

are priced to move

Correlated socioeconomic factors also show Android

leanings

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THE CONTRARIAN

45% 37%

Think Different.

“Today, if you ‘think different,’ you’re looking

at Android.”-Guy Kawasaki, former Apple Fanboy

There is a segment of former Apple users who have grown disenchanted with Apple’s

present path and future

Others want to buck the trend and believe that Android is simply better

than Apple

THE NEXT BIG THING IS ALREADY HERE.

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THE HACKER

45% 37%

It boils down to choice, choice, choice Why wouldn’t a phone give its sole user a vote on

how their device works?

Android offers the ability to pick from the features which matter most to you, while some

believe that Apple’s one size fits all policy stifles innovation

Much of Android’s strength stems from its open nature, which allows third parties to

do what they want with the platform

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HACKING IS NO LONGER A BAD WORD

Hack (n.): A good creative solution to a technical problemHacker (n.): Someone who thinks about problems, technical and not, in a new way

MTV InsightsSource:

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37%

TALKING ANDROID

• Isis faces a unique challenge in the NFC barrier. People are reluctant to switch phones, carriers, or banks to access mobile wallets, and many early adopters still prefer iOS.

• Android users are more likely to be male, have lower household income, be less educated, and interestingly, be followers rather than leaders.

• Three types of consumers are likely to purchase Android phones: the thrifters, the contrarians, and the hackers. Contrary to popular opinion, ‘hacker’ is not a negative word.

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WHAT TO EXPECT


Talking Android




Implications

1

2

3

4

5

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Today, being a nerd is a badge of honor

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Today, being a nerd is a badge of honor

Geek culture is everywhere, it’s diverse, it’s valuable and it’s a

brand…

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Start-ups are at the tipping point of culture – especially for millennials, who dreamt up many

of today’s most successful start-ups.

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37%

THE HACKERS’ WORLD

• Geek culture is everywhere, it’s diverse, it’s valuable, and it’s a brand.

• Kids who grew up reading comic books and playing video games are now the driving forces behind valuable swaths of pop culture and technology. These are the new rockstars.

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WHAT TO EXPECT


Talking Android




Implications

1

2

3

4

5

6

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THEY ARE MILLENNIALS

60%

“Hacking is part of what defines my generation”

72%

“I have a real desire to create things other people love”

72%

“Life is like an app; I’m always in ‘beta’”

Experience = Social Currency

Everything PersonalizedBuilding Communities

MTV InsightsSource:

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SIZING UP THE AUDIENCE

45% 37%There are 80 million millennials in the U.S.

alone

These millennials

are 2.5x more likely to be early adopters

13% of millennials

fit the profile of a

gadget guru

Skew male and single with HHI ≥ $100,000

Successful, wired yet

free-spirited, confident

but at-ease

Greatest device

ownership, often push

and contribute to

content

Boston Consulting GroupSource:

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The Hacker Generation’s

impact on technology

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impact on technology

Hacking can change the world

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place in culture

From pocket protectors to PBR

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IDOLS & INSPIRATIONS

45% 37%Elon Musk

Joss Whedon

Kevin Systrom & Mike Krieger

Belinda Parmar

Marissa Mayer

Felicia Day

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RELATIONSHIP WITH BRANDS

45% 37%

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45% 37% Functional, Emotional, & Participative Benefits Price

The New Definition of Brand Value

Σ=

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45% 37%

Brands as badges, as extensions of self

Ray-Ban Remix Nike: Fuel Band

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45% 37%

Tell me a story, don’t show me a logo

Oreo: Daily Twist Dove: Real Beauty Sketches

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45% 37%

We have different values, and we hope you do too.

Honest Tea: The Honest Store TOMS: One for One

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MEET HUNTER

45% 37%

Age: 24Hometown: PortlandCurrently City: San Francisco

• Self-taught developer who’s always had a thing for tech; now he works at a start-up

• Strives to “code for good” – sure, the money’s in First-World Problem solving, but he wants to make change and knows he can do that through software

• He might wear Ray-Bans and drink craft beer, but he still loves the more stereotypically geeky things like comics and video games.

• Hunter doesn’t fit neatly into one box

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MEET KAT

45% 37%

Age: 25Hometown: DallasCurrently City: LA

• Works at a digital agency as an interactive producer

• She’s a tech-savvy trendsetter, but doesn’t let it rule her life.

• Blogs about everything she loves – nerdy obsessions and all – for the Tumblr world to see

• Reads Pitchfork “on the reg” and lives for festival season

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37%

THE HACKER GENERATION

• As start-up and geek culture have seen a meteoric rise in popularity, a new generation of techies have emerged. This generation of hackers represents one of ISIS’s biggest opportunities.

• The Hacker Generation has redefined the tech landscape and rewritten the rules for interacting with brands.

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WHAT TO EXPECT


Talking Android




Implications

1

2

3

4

5

6

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WHO ELSE FITS THE PROFILE?

37%

The hacker generation might be the primary target, But there are a couple other groups to note.

Oldies but goodies These two other targets are the Graying Geeks and the Digital Moms

• Driven by utility rather than being motivated by being the first ‘in the know’

• They are fast followers, if not early-adopters themselves, and like to discover trends (set by the hacker generation) on their own

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EARLY ADOPTERS ARE NOT JUST THE DIGERATI

37%

But in reality, early adoption is not restricted by age. It’s has more to do with their attitude and mindset than the year they were born.

Meet “Generation C”:They thrive on creation, curation, connection, and community. while 80% of people under 35 are Gen C, only 65% of “Gen C” is under 35.

90% of tech companies target 10% of the population: the young, socially mobile digerati

-John Gerzema, BrandAsset Consulting

Think with GoogleSource:

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MEET GREG: THE GRAYING GEEK

37%We were the ones who had to know how to use escape codes to get our printers to work and sometimes wound up building our own PCs.

- Lary Magid Tech Journalist &

Baby Boomer

• Greg has a desktop at work, a laptop at home, a netbook for travel, an Android smartphone and just last week he bought an iPad; He’s also 55 years old

• He’s comfortable with most technology and is insulted when his generation is painted as tech novices who might want to “get on board” with modern tech

• For him, the purchase process is more thoughtful: He buys tech for a specific use, as opposed to being motivated by being the first in the know

• At 55, Greg is no more like a 72 year old than he is a 22 year old

BIG SPENDERS: Baby boomers represent 25% of the population, but they consume 40% [in total dollars spent] of it.

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MEET DANA: THE DIGITAL MOM

37%

• Dana’s kids are her full-time job and keep her on the go; she’s always looking for tips, tricks, and tech that will make her life easier

• Like many moms today, she loves social media – even more than TV. Over 50% of moms used social to gather information in 2012 (+21% from 2009)

• Lifehacking is a trend she’s always watching, usually on Pinterest or one of the several “mommy blogs” she follows

• Dana is constantly connected and attached to her smartphone – averaging more than 6 hours of use per day. She is truly a 21st century mom who believes that technology can help her be a better mother

Moms with kids under 13 recommend brands, products, and services to other moms at least monthly

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37%

WHO ELSE FITS THE PROFILE?

• Our target is defined by a mindset, more than an age.

• When it comes down to sustained use, each of our targets is looking for utility. They want things that will improve their lives, make things easier, and serve a true purpose in their daily life.

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LET’S REVIEW


Talking Android




Implications

1

2

3

4

5

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With the race still wide open, Consumers are focused on a few key concerns like security and privacy.

Isis faces a unique challenge in the NFC barrier.

Today, being a nerd is a badge of honor. Geek culture is everywhere, it’s diverse, it’s valuable, and it’s a brand.

The Hacker Generation has redefined the tech landscape and rewritten the rules for interacting with brands.

Our target is defined by a mindset, more than an age.

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WHAT TO EXPECT


Talking Android




Implications

1

2

3

4

5

6

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So what does this mean for ISIS?

1. Test-Drivers Research has shown that once consumers make their first mobile payment, they are much more likely to become converts.

So how do we get them to try it that first time? Is it about incentives? Or can we create something interactive so that our target can engage with the product in a hands-on way?

2. Problems of PerceptionPrivacy and security are issues of perception. To overcome such perceptive issues, a lot of education needs to happen, whether its 3rd party referrals or talking about it in advertising.

Once we convince the earliest adopters that security and privacy are not an issue for ISIS, the rest will follow; how can we do this? Beyond 3rd party referrals and explicitly talking about it in traditional advertising, how do we convince them more tactically that ISIS is secure? 55


3. Follow the LeaderWe know that our target places more weight on the recommendations of the tastemakers and their peers more than they do brands, with Android users being 71% more likely than iPhone users to say they follow rather than lead.

So how do we get ISIS in the hands of influencers? And how do we turn them into brand ambassadors? Additionally, how can we drive ISIS to be the leader in this space, to set the trends that these known followers will follow?

4. Technology as Culture We know that geek and start-up culture are permeating the pop culture space and becoming wide-reaching, diverse, and valuable brands.

Are there facets of this culture that we can capitalize on? Events we can participate in? Beyond injecting ourselves into geek culture, how can we actually earn some credibility or thought leadership in this area? 56


5. A New Social MindsetCommunities are very important to our target, and it goes beyond just a network of friends. They’re constantly creating new ways to be social, often planning events and meet-ups with likeminded people, both friends and strangers.

So how can we leverage this evolved social mindset?

6. Attitudes Over Age We know that our target has much more to do with a mindset than an age.

So how can we be inclusive of these older consumers who still thrive as early adopters? Can we use behavioral targeting to reach each group where they spend the most time? Utilize different retailers, but similar messaging, to attract both the younger and older early adopters?

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7. Utility is King We know that each of our targets is highly driven by utility.

So what extensions can ISIS explore to make their mobile wallet even more appealing as a utility for this discriminating audience? How do we make ISIS the better alternative to credit cards, what can we do in terms of utility to build that out?

8. Icon Loyalists Our target – specifically the hacker generation and digital moms – are very brand loyal. The hackers, in particular, look at brands as a badge of what they care about and often look to iconic brands as an extension of themselves.

Are there partnerships with iconic brands that ISIS can explore? How can we make ISIS an iconic brand itself?

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THANK YOU!

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Cultural Immersion: Early Tech Adopters

Business

extremely

mobile payment

nfc barrier

current android

mobile payment

make mobile

payment device

mobile wallets