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This case study examines consumer opinions about mobile payment technologies.

This case study examines consumer opinions about mobile payment technologies.

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  • 1. ANALYTICS THAT INFORM & EMPOWERActivity-based metrics lack research value, and are not actionableActionable metrics provide research analysts with new consumer intelligence Analyze global consumer opinion on public and private companies Identify and explain shifts in consumer product tastes over time Gauge consumer reaction to disruptive technologies Uncover and quantify the factors driving customer pain and praise Evaluate appeal of competing solutions in the industry LIKES FOLLOWERS SENTIMENT MENTIONS Learn the impact of news events and advertising on brand affinity PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 2. CASE STUDY: MOBILE PAYMENTS Product ComparisonsINDUSTRYPLAYERS: Square  Google WalletBUSINESSQUESTION: How is my new mobile payment technology being received by consumers?METHOD: Develop a framework for evaluating competing mobile payment products to inform marketing initiatives, and new product development, by analyzing online consumer discussion during 2011 and 2012. PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 3. MOBILE PAYMENTS: INDUSTRY OVERVIEW How Do Consumers Feel About Mobile Payments? FINDINGS: (5/1/11 – 11/1/12)  42, 277 Relevant Posts A. Consumers are bullish about the industry, driven by excitement toA use new technology (43%) B. Over an 18-month period, the proportion of consumer excitementB increased 15%, while total bearish sentiment fell by 13% C. Security of payment products is the greatest concern for consumers C PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 4. MOBILE PAYMENTS: SQUARE (BRAND) Square: Brand Perception(5/1/12 – 11/1/12)  71,312 Relevant Posts FINDINGS: A. Square brand is perceived very positively, driven by healthy product discussion (47%) A B B. Proportion of consumer excitement and satisfaction with C Square increased 14% since May 2012 C. While negative opinion wanes, brand discussion enters November on a very positive trajectory PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 5. MOBILE PAYMENTS: SQUARE WALLET Consumer Reactions to Square Wallet FINDINGS (9/1/11 – 11/1/12)  2,647 Relevant Posts A. Over the past 14 months, reactions A to Square Wallet (Pay With Square) have been very positive (86%) B B. 24% say the technology is the future of paymentsC C. Over half of total conversation is consumer praise of Square Wallet and clamor for a more widespread implementation PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 6. MOBILE PAYMENTS: SQUARE WALLET “I LOVE that I can pay for my Consumer Reactions to Square Wallet FINDINGS @starbucks with my (9/1/11 – 11/1/12)  2,647 Relevant Posts A. Over the past 14 months,believe @SquareWallet! I cant reactions how fast it seems @square has A to Square Wallet (Pay With Square) grown! #futurenow #winning” have been very positive (86%) -@eriktimmons B B. 24% say the technology is the future of payments “Just bought lunch w/C C. Over@PayWithSquare from @Square- half of total conversation is consumer praise of Square Wallet once you do this you want EVERY and clamor for a more offer it. So retailer/restaurant to widespread implementation so great.” seamless, -@ronxo PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 7. MOBILE PAYMENTS: SQUARE-STARBUCKSPARTNERSHIP Consumer Reactions to Square-Starbucks Partnership FINDINGS (8/8/12 – 11/1/12)  54,252 Relevant Posts A. Reactions to the announcement A were overwhelmingly positive (96%); many excited to use Square Wallet at Starbucks locations B. 45% decree this partnership will change the landscape of mobile B payments, and ignite the industry PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 8. MOBILE PAYMENTS: SQUARE-STARBUCKSPARTNERSHIP “Excellent! Now I can Consumer Reactions to Square-Starbucks Partnership FINDINGS use square wallet at (8/8/12 – 11/1/12)  54,252 Relevant Posts Starbucks. One step A. Reactions toto not needing closer the announcement A were overwhelmingly positive my wallet =)” (96%); many excited to use Square -@griffinkelton Wallet at Starbucks locations B. 45% decree this partnership will change“Woke up to amazing news this the landscape of mobile B morning! Starbucks officially payments, and ignite the Maybe Ill accepts Square Wallet! industry start drinking their coffee.” -@BHisaRockstar PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 9. MOBILE PAYMENTS: SQUARE-STARBUCKSPARTNERSHIP Consumer Reactions to Square-Starbucks Partnership FINDINGS Themes of Negative Conversation • Despite minimal negative opinion (4%), consumers are quick to point out Square does not yet integrate with Starbucks’ loyalty program • Though not a substantial risk at present, prudence dictates monitoring this concern over time PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 10. MOBILE PAYMENTS: GOOGLE WALLET Consumer Reactions to Google Wallet FINDINGS (5/1/11 – 11/1/12)  25,298 Relevant Posts A A. Despite 10x greater volume, net sentiment on Google Wallet is more unfavorable than Square B. Absence of NFC technology in C smartphones frustrates Google Wallet hopefuls, stalls adoption; Square remains unaffected C. Compared to Square (43%), Google B Wallet fails to create an impetus for merchant adoption (4%) PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 11. MOBILE PAYMENTS: KEY TAKEAWAYS• Consumers respond to disruptive technology with considerable excitement, and are bullish about the industry • New product messaging could emphasize security measures to address the largest public concern (22%)• In contrast to Google Wallet, Square is perceived as game-changing technology • The voice of the consumer has equated Square Wallet with overall industry appeal: the future of payments PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.
  • 12. MOBILE PAYMENTS: KEY TAKEAWAYS• Consumers weigh in on the battle of technology standards • The case of Google vs. Square illustrates how financial firms can take the public pulse on social media to learn how the voice of the customer could impact an investment decision• Deep analysis of online consumer opinion complements due diligence on new market entrants and potential investment opportunities • Gauge the appeal of subsequent retailer partnerships, and uncover the causes for new excitement or reasons for competitor migration PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2012. ALL RIGHTS RESERVED.