May Data Book: 88% of adults own cell phones, 75% text

In January 2012, we released the first version of our Data Book: A PowerPoint compilation of the best publicly available research from the last two years on how employees are using social media, games and mobile devices in their personal lives. It was met with a great deal of enthusiasm and was accessed over 800 times on slideshare.net.

Today, we’re pleased to release the May 2012 Data Book, which builds upon the prior report. Slides that have been revised are marked with “updated” in the upper right hand corner. 

Some highlights:

  • Mobile has become the most accessible communication medium available: 88% of adults in the U.S. now own a cell phone
  • Adults with smartphones (46%) now outnumber those with feature phones (41%)
  • While income is correlated with smartphone ownership rates, those in the lowest income bracket saw the fastest growth in ownership, a sign that smartphones are becoming more widely accessible
  • 80% of adults use the Internet
  • 20-30% of Facebook “power users” drive the vast majority of activity; the rest of users receive much more from their connections than they give

As we did last time, we’ve purposely left this document as a PowerPoint instead of a PDF.  Take the slides. Drop them into presentations. And feel free to send us a note to ask additional questions and share what you’re hearing from your leaders and clients. 

Download it

View it on Slideshare.net

H Engage Is One!

Today is a big milestone for H Engage: It’s our one-year anniversary!

On behalf of our team, I want to sincerely thank you for being a part of it.
 
Twelve months ago, we set out to build a company that would harness consumer technologies like social media, games and mobile phones to reinvent how HR engages people in benefits, wellness and other programs.
 
We’re happy to share that we’ve made considerable progress.
Case studies are coming soon, but here’s a sneak peek from two of our Fortune 500 clients:

  • An international manufacturing organization used H Engage to increase HRA completion rates using timely text message communications that were modeled on behavioral economics and social dynamic principles. Completion rates among participants – many of them rural and working in plant environments – increased by 21%, doubling the impact of the organization’s monetary incentives. Interestingly, the average age of H Engage participants (44 years) aligned with the average age of the overall population (43 years), showing consistent technology adoption across all age segments.
  • One of the largest digital media companies in the world used H Engage’s social gaming platform to help communicate the value of their overall benefits package. By the end of the game, 60% of survey respondents reported a higher appreciation for their benefits. But the real kicker? 70% said they had fun! Yes, fun, all while learning about their benefits. Look up, there’s a pig flying.


Of course, the plural of anecdote is not data. And with that in mind, we’re happy to release the H Engage Data Book
It’s a compilation of the best publicly available research from the last two years on how employees are using social media, games and mobile devices in their personal lives.
View and download it as a PowerPoint (no annoying forms to fill out).

Needless to say, we’re very excited about the upcoming year.  
We’ll be launching H Engage Academy, a resource committed to sharing the latest information on game mechanics and social dynamics, as well as relevant case studies. We’re also forming an H Engage Client Advisory Board 
 a group of innovative clients to help lead the HR industry’s thinking on emerging technologies. 
 
And of course, we’re looking forward to continuing our work with the world’s leading brands to break the mold on how consumer grade technologies are used to drive engagement in HR programs.
 
To end our anniversary note, I’d like to give a very special thank you to the community of people and companies that believed in our vision from the start. 
Your trust and time mean the world to us.
 
We look forward to another incredible year!

Smartphones in context

Here are a couple of excellent graphics from a new Pew Internet report on how Americans use their smartphones. 

Notice that the first graphic indicates that 83% of Americans have cellphones.  You may have noticed we referred to a mobile penetration rate of over 90% in a previous blog post.  Both numbers are actually correct.

Mobile penetration rate = total number of cell phones / # people in a country.  Some people have more than one phone, so it drives this number higher.  

As an employer, the number below matters a whole lot more. 

So, you can reasonably conclude that in absolute terms, only 35% of adults own smartphones. However, when you start applying filters like age and affluence on that number, it tends to go much higher quite quickly. If you’re trying to draw conclusions about your own workforce, we recommend visiting this blog post as well.  

Now for the second graphic which aims to answer an important question: What do people actually do with their smartphones? How have we decided to utilize these revolutionary mini-computers in our pockets? The countless apps? GPS? Video calling EVERYWHERE? Tell us Pew. 

And the #1 activity is…..text messaging.

In fact, the top four activities are all things that can be easily accomplished on simple feature-phones as well. 

A few other takeaways: 

  • This was not an exhaustive list of activities. It doesn’t seem to have a category for “using apps” which seems to be an oversight
  • People love to text on smartphones more than they like to send email - probably in large part because everyone can text back, even non-smartphone owning friends
  • Location based services that try to get people to “check-in” are overhyped

As always, please let us know if you have any questions or comments. 

Household income, age and gender of smartphone users

Flurry collects data from a lot of apps used on iOS and Android - over 90,000 of them as of August 2011. 

They took a sample of more than 60,000 app users and used location data and zip code statistics available from the U.S. Census Bureau to understand their demographics.

Any time we look at data, we like to put some disclaimers around it:

  • We haven’t peeked behind the numbers - we don’t have the details on the methodology or core data set. However, it has been cited in WSJ which is a reputable news source. 
  • The data may be skewed toward Flurry’s customer base. However, it’s such a large customer base that we think that’s OK. 
  • We’re not sure if they normalized the 60,000 app users to align with U.S. population demographics, so take any comparisons with the U.S. population with a grain of salt. 

With all of this in mind, we still think these are great additional data points to have. 

On average, smartphone users are better educated and earn higher household incomes than the average of the U.S. population.

What this implies for a given company’s workforce:

If you have a college educated workforce and higher income workforce, it’s reasonable to assume that smartphone penetration is relatively high. However, keep in mind that  overall only 35% of adults have a smartphone, so this data applies only to these 35% of adults that have a smartphone.  

For the portion of the workforce that is not college educated, take a close look at the age brackets the population falls into. If this portion of the workforce skews younger there is a much higher chance that they have a smartphone. 

Keep in mind that the Y axis below = “% of all smartphone users”, as opposed to “% of all people in the age bracket”.  

We have some other stats available here and here so we encourage you to take a look at them as well. 

Please feel free to leave us a comment or question.

AT&T Revamping Texting Plans: Unlimited or Pay-Per-Text Only

 

AT&T on Thursday confirmed that it will revamp its text messaging plans to focus on unlimited offerings starting August 21.

The move will eliminate a plan that currently offers 1,000 messages for $10 per month. Instead, individuals can select an unlimited plan for $20 per month while families can get an unlimited plan on up to five phones for $30 per month. Existing customers, however, can keep their current plans.

Source: PCMAG

What this means: More and more people will have unlimited text messaging plans. This will increase the number of texts people send and decrease sensitivity to the number of texts people receive. 

Smartphone Sales Will Hit 420 Million In 2011, To Take 28 Percent Of The Total Phone Market

According to Google, November is the worst month for health.

Google is more than a search engine:  It’s a window into people’s interests.

Our questions: 

  • How interested are people in health and wellness throughout the year?
  • How consistent are those interests over time?

We ran an analysis on people’s searches from 2004 to present on terms commonly associated with health and wellness. The bars represent the relative popularity of the terms. “Diet” is far more popular than “gym”.  Due to the spikes in traffic caused by the health reform law, we purposely excluded the word “health” from the analysis - but pre-2009 the same patterns generally held true.

Overall pattern:

Close-up of 2008 to present

Year after year, the two following observations hold true:

1. We care about health the least in November.

  • People did the least number of searches associated with health & wellness. 
  • Hey, wait a minute..isn’t that open enrollment time at most companies? No wonder it’s so hard to get people to pay attention. 

2. We care about health the most in January. 

  • That’s the spike you see every year. 
  • It’s a slippery slope from there. 

This graph was inspired by Gizmodo.

Practical lessons about the impact of relationships on participation in H Engage

Conferences are a petri dish of human behavior. Many of the social dynamics and challenges we witness in real life are intensely magnified when hundreds of people are packed into small spaces and given tight agendas. We’ve been fortunate to have the chance to launch games of H Engage at four conferences, each of which has informed a detailed record of how the application of game mechanics can influence the behaviors of individuals and social networks, in widely different environments.

In the past, we’ve been invited to conferences to help introduce benefits professionals to emerging technologies. In the same spirit, Towers Watson invited H Engage to deploy a game at IABC World Conference.  Attendees could sign up and play for two days, at the end of which there was a chance to win cash prizes.

Our deployment at IABC on June 13 and 14 was an important addition to our data set, but for a reason we didn’t expect: For the first time, H Engage didn’t have a high participation rate.

We were perplexed enough to conduct a pretty extensive analysis, both qualitative and quantitative. Ultimately, we identified concepts that in retrospect seem quite obvious, but can also be very easy to miss.  We believe these concepts are important for any organization that intends to roll out an initiative that involves employee engagement.

ANALYSIS RESULTS

Our analysis found that the number one determinant of whether someone signed up to play H Engage was the relationship a potential player had with the person or organization prompting him or her to join.  In fact, we documented three distinct types of relationships that impacted participation in our game:

  • Organizational – “I’m going to sign up for this game because an organization that has steered me right in the past asks me to”
  • Peer-to-peer – “I’m going to sign-up for this game because people who I trust are doing so”
  • Leadership – “I’m going to sign-up for this game because someone in a position of leadership (like a speaker on stage) asks me to”

In past conferences, we benefited from organizational and leadership relationships. For instance, at the Conference Board Employee Benefits Conferences, Kathryn Yates (Global practice leader of Towers Watson’s Communications and Change Management Practice) and Adam Wootton (head of Towers Watson’s Social Media efforts) launched H Engage during their speech on social media in health care.  People joined en masse.  In fact, 84% of people who signed up did so during their speech.  Why did people join?  Well, knowing that the game was happening certainly helped.  But we believe that there were two additional drivers: Adam and Kathryn exercised the power of leadership relationships, because by being on stage presenting they were looked to as leaders by the audience.  Additionally, they also exercised an organizational relationship because many in the audience were Towers Watson clients.

At IABC, we didn’t benefit from the leadership relationship because there wasn’t a moment where we could get up on stage to prompt people to join.  We also didn’t benefit from much of an organizational relationship because a lower percentage of people at the conference were familiar with Towers Watson. Instead, we had to launch the game from a booth in the exhibit hall.

The only way to sign people up was one by one, when they decided to stop by the booth.  We knew that signing people up individually would be tough.  Many attendees never stopped by the exhibit hall, and when they did, it was during a few “high traffic” times, the duration of which we estimated to be about 2.5 hours.  Using some basic assumptions (3 representatives at the booth, 5 minutes per sign up, 25% conversion rate), it was reasonable to project that we would sign up about 22 to 23 people.  In fact, of 35 non-TW players, we signed up exactly 25 at the booth.

We knew that in order to achieve a high participation rate, we had to drive people to sign up each other, or said differently, the game had to go viral.  To accomplish this, we added a feature for the conference where a player could earn referral points for each person he or she signed up. We even added a special prize of $150 for the player who signed up the most people.

Yet, to our chagrin, it still didn’t take off.  What happened?  In the words of players who tried to sign other people up:

“I tried asking the woman sitting next to me to join, and she just refused.  In fact, she became increasingly weary.”

“I don’t really know anyone at the conference, so I didn’t ask people to join.”

Even with a large incentive tied to game mechanics that worked in the past, the lack of widely held peer-to-peer relationships prevented people from signing other people up.  As with most conferences, there simply weren’t many existing connections between attendees.

However, there was one notable exception that proved the rule: Yvonne from Symantec, who performed the seemingly improbable task of signing up 10 people to play H Engage.  How did she do it?  Was she particularly outgoing?  That may have been a contributing factor, but upon closer inspection, it may not surprise you to learn that 7 of the people she signed up were from her company.  There’s that peer-to-peer relationship, with some leadership relationship sprinkled in (she was her team leader).  

To conclude, here are the practical implications of our experience for launching any initiative:

  • Honestly assess which types of relationships are your strengths.  The categories we’ve presented here are probably not a bad start. You may find others that fit your organization. We would love to hear any you recommend keeping in mind in the comments below.
  • Manufacture situations to amplify your strengths.  In the Conference Board example above, Kathryn and Adam built upon an organizational relationship (Towers Watson) with a leadership relationship (being on stage)
  • This is a bit trite, but it really can’t be said enough: Choose key metrics to measure, and then track how the decisions you’re making over time impact them. For example, in this analysis our key metric was sign-ups, and we looked at how different conference environments impacted the volume of sign-ups.  If we wanted to examine consistency of play, we would look at a very different set of data.

In the end, even with the relatively low participation rate, we had a great game with a group of highly engaged players (see two of our three winners below).  As Sue from Symantec put it: “Now, if benefits was only this much fun ALL the time!”


Pictured are two of our game winners. To the left, Yvonne Thomson, to the right Sue Fuller. 

Do you have opinions on what we wrote here?
Were you at the conference and have some commentary to add?

Please leave a comment or ask questions. 

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74% of cell phone owners text
Pew