Podcasts > Most Innovative Companies > The Hyper-Connected Consumer

The Hyper-Connected Consumer

By Mansueto Ventures

In the latest episode of "Most Innovative Companies," Josh Christensen and Brendan Vaughan engage with Sowmyanarayan Sampath from Verizon in a discussion about staying ahead in the fast-evolving landscape of consumer behavior. Sampath identifies the crucial role of adapting to technological trends and generational differences in technology engagement. His perspective on leveraging social listening and data analysis offers insights into effective strategies for businesses to comprehend and meet the expectations of a diverse clientele, including communities that are often overlooked.

The trio delves into the impact of demographic changes and the importance of network planning in an era of mobility and remote work. They reveal how mobile devices have become indispensable in daily life, underpinning the necessity of high-bandwidth internet for activities like streaming and gaming. Furthermore, they explore the massive influence of video content and social media platforms, and discuss the potential of emerging technologies such as the Metaverse and AI that predict a future where consumer interactions are greatly simplified and more integrated into our everyday digital experiences.

The Hyper-Connected Consumer

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The Hyper-Connected Consumer

1-Page Summary

Staying Connected to Changing Consumer Behavior

Sampath, from Verizon, underscores the importance of businesses adapting to changing consumer behaviors driven by technological advancements. He notes that while older generations appreciate technology, they engage less with it, in contrast to younger generations who readily adopt new technologies. Essential to keeping up with consumer habits, Sampath advocates for open dialogues and social listening to glean insights into consumer preferences. Additionally, he highlights data analysis on usage and behavior to understand and meet new consumer expectations. Specifically, Verizon aims to reach underserved segments, like the Latino community, to broaden their market and cater to diverse customers.

Mobile Devices Transforming Lives

Demographic shifts and pandemic-induced population migrations present challenges and opportunities in network planning and connectivity. Sampath discusses how network usage and billing address changes reflect significant migrations, such as from New York to Florida and California to Texas. With the resurgence of people in the South and Midwest returning to offices, network planning is tough due to the time required to build new capacities. Moreover, the recent surge in home connectivity investments underlines the growing necessity for high-bandwidth internet to support daily activities like streaming, gaming, and remote work.

Rise of Video, Social, Metaverse and AI

Video and social media consumption currently dominates data usage, with platforms like TikTok and Roblox significantly altering engagement patterns in the digital space. Sampath mentions that TikTok usage has tripled in time spent weekly, and Roblox is attracting attention similar to PlayStation. Looking forward, the Metaverse and AI are positioned to drive the next growth wave. However, the Metaverse needs to develop more use cases to maintain momentum. AI is predicted to play a crucial role in enhancing networks and improving productivity, potentially transforming the consumer experience through simpler interfaces and integrating the Metaverse into everyday activities.

1-Page Summary

Additional Materials

Clarifications

  • The Metaverse is a concept that envisions a collective virtual space where users interact through avatars, often in 3D, emphasizing social and economic connections. It is rooted in the idea of a universal, immersive virtual world facilitated by technologies like virtual reality (VR) and augmented reality (AR). Companies are exploring the Metaverse as a potential future platform for various activities, blending elements of social media, gaming, and virtual experiences. Privacy, addiction, and safety concerns are being raised as the Metaverse evolves, drawing parallels to challenges faced by social media and gaming industries.
  • Roblox is an online game platform where users can create and play games made by themselves or others. It was created in 2004 and gained popularity in the late 2010s, especially during the COVID-19 pandemic. Users can develop games using Roblox Studio and can purchase in-game items using a virtual currency called Robux. The platform has faced criticism for moderation issues and microtransactions.
  • Open dialogues and social listening involve actively engaging with customers through conversations and monitoring online discussions to understand their preferences, feedback, and sentiments. Open dialogues encourage transparent communication between businesses and consumers, fostering trust and building stronger relationships. Social listening entails tracking social media platforms, forums, and other online channels to gather insights that can inform business strategies and decision-making processes. By leveraging open dialogues and social listening, companies can adapt their products and services to better meet the evolving needs and expectations of their target audience.
  • Network planning challenges and opportunities in the context of demographic shifts and pandemic-induced population migrations involve adapting to changes in network usage and billing address patterns due to significant migrations. Challenges arise from the time required to build new capacities to meet the shifting demands, especially with the resurgence of people in different regions. Opportunities lie in the growing necessity for high-bandwidth internet to support various daily activities like streaming, gaming, and remote work, driving investments in home connectivity. Balancing these challenges and opportunities is crucial for ensuring efficient network planning and connectivity in evolving demographic landscapes.
  • High-bandwidth internet refers to a type of internet connection that can support large amounts of data being transmitted at high speeds. It allows for faster and more reliable internet access, enabling activities like streaming high-definition videos, online gaming, and remote work without interruptions. This type of internet connection is essential for households and businesses that require a robust and stable internet connection to support multiple devices and bandwidth-intensive applications. High-bandwidth internet is crucial for meeting the increasing demands of modern digital activities and ensuring a smooth online experience for users.
  • AI enhancing networks and improving productivity involves using artificial intelligence algorithms to optimize network performance, predict issues before they occur, and automate routine tasks. By analyzing vast amounts of data in real-time, AI can identify patterns, anomalies, and trends to enhance network efficiency and reliability. This technology can also streamline operations, reduce downtime, and enhance overall productivity by enabling faster decision-making and resource allocation. Ultimately, AI's role in network management aims to create more resilient, responsive, and efficient systems to meet the increasing demands of modern digital environments.

Counterarguments

  • While open dialogues and social listening are important, they may not always capture the full spectrum of consumer preferences, especially those of less vocal or marginalized groups.
  • Data analysis is useful, but it can also lead to privacy concerns if not handled with proper data protection and ethical considerations.
  • Targeting underserved segments like the Latino community is commendable, but it must be done with cultural sensitivity and without stereotyping or making assumptions about the community's needs or preferences.
  • The emphasis on network planning due to demographic shifts might overlook the importance of improving existing infrastructure to ensure quality service for current residents.
  • The focus on high-bandwidth internet for home connectivity assumes that all consumers prioritize or can afford such services, which may not be the case for lower-income households.
  • The assertion that video and social media consumption dominate data usage does not consider that this trend could shift rapidly with the emergence of new technologies or platforms.
  • The popularity of platforms like TikTok and Roblox may be significant, but it's important to acknowledge the potential negative impacts on mental health and productivity associated with excessive screen time.
  • The Metaverse and AI are anticipated to drive growth, but there may be skepticism about the practicality and accessibility of these technologies for the average consumer.
  • The development of AI and integration into consumer experiences could lead to job displacement and a need for workforce retraining, which should be addressed alongside the benefits.
  • The success of the Metaverse is contingent on user adoption and the creation of compelling content, which may not materialize as quickly or extensively as predicted.

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The Hyper-Connected Consumer

Staying Connected to Changing Consumer Behavior

In a recent podcast, Sam Path, CEO of Verizon Consumer, highlights the crucial need for CEOs to understand the evolving wants and needs of consumers in an age where technology constantly reshapes the marketplace.

Understanding changing consumer wants and needs

Brendan Vaughan points out the rapid speed at which consumer preferences shift, largely driven by technological advancements. Sampath, Verizon's Executive Vice President, indicates the significant differences in technology adoption between various age groups. He observes that while the older generation acknowledges technology's benefits, they prefer not to engage with it directly. Conversely, the younger generation is more willing to engage with technology and understands its trade-offs.

Leveraging data and travel to understand consumers

To keep up with these evolving habits, Sampath emphasizes the value of open dialogues with customers. These personal communications can yield direct insights into consumer needs. Social listening is also crucial, divulging consumer interests through their online interactions, which they often believe are anonymous.

Additionally, Sampath discusses the importance of mining data insights on usage and behavior in order to understand how connectivity affects people's lives. This understanding is crucial for businesses t ...

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Staying Connected to Changing Consumer Behavior

Additional Materials

Clarifications

  • Social listening is the practice of monitoring online conversations to understand what customers are saying about a brand, industry, or topic. It involves tracking social media channels, forums, blogs, and other platforms to gather insights and feedback. By analyzing these conversations, companies can gain valuable information about consumer preferences, sentiment, and trends. Social listening helps businesses make informed decisions, improve their products or services, and engage with their audience more effectively.
  • Mining data insights on usage and behavior involves analyzing large sets of data to uncover patterns, trends, and valuable information related to how people use products or services and how they behave in various contexts. This process helps businesses understand customer preferences, habits, and interactions, enabling them to make informed decisions to improve their offerings and tailor their strategies to better meet consumer needs. By examining data on usage patterns and behaviors, companies can gain valuable insights that guide them in optimizing their products, services, and overall customer experience. This data-driven approach is essential for businesses to stay competitive and relevant in today's rapidly evolving market landscape.
  • Adapting business to new consumer expectations involves aligning products and services with the changing needs and preferences of customers. This process often requires companies to invest in digital technologies and strategies to enhance the overall consumer experience. By understanding and responding to evolving consumer demands, businesses can stay competiti ...

Counterarguments

  • While open dialogues with customers are valuable, they may not always represent the broader market due to self-selection bias.
  • Social listening can provide insights, but it may not capture the full spectrum of consumer behavior, especially for those less active online.
  • Data mining is powerful, but there are privacy concerns and ethical considerations that must be addressed when handling consumer data.
  • Rapidly adapting to new technologies can be beneficial, but it may also lead to neglecting stable, long-term strategies that have proven effective.
  • Focusing on digital capabilities is important, but there should be a balance to ensure that non-digital consumers are not alienated.
  • While targeting underserved segments is commendable, it is essential to ensure that such efforts are not perceived as tokenistic and that they genuinely address the needs of these communities.
  • Emphasizing the differences in technology adoption between age groups might overlook the nuances an ...

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The Hyper-Connected Consumer

Mobile Devices Transforming Lives

Sampath offers observations regarding population movements and how they affect network usage and connectivity demands, marking demographic shifts and the need to enhance in-home Wi-Fi connectivity to support the growing reliance on high-bandwidth activities.

The pandemic has undeniably shifted population migration trends, influencing how network capacity is planned and utilized.

Tracking migration through network usage data

Sampath uses network usage data to describe the movements of people between states, including a notable influx into areas like Nashville, Tennessee, and the Research Triangle of North Carolina. Furthermore, many New Yorkers have relocated to Florida without a significant return movement, despite lifestyle differences.

He notes that billing address changes in cellphone data effectively reflect migration trends, detailing significant population shifts from New York, New Jersey, Connecticut to Florida, and from California to Texas and Arizona. Sampath points out that Florida has seen an additional 1.8 million people post-COVID compared to pre-COVID, a trend that is still ongoing.

The return to office trends, influenced by the pandemic and work policies, present challenges for network planning, as offices adopt hybrid approaches and regions like the South and the Midwest witness a "pretty big resurgence" of people returning to work compared to the Northeast. Sampath emphasizes the difficulty faced by networks in adjusting to these rapid population changes since network capacity cannot move as swiftly as the population. Building such capacity typically takes two to three years.

Connected device ...

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Mobile Devices Transforming Lives

Additional Materials

Clarifications

  • Population migration trends impact network usage and connectivity demands by shifting the concentration of users in different regions, leading to varying demands on network infrastructure. Changes in population movements, such as the influx of people into specific areas or the relocation of individuals from one state to another, can significantly affect network capacity planning. Understanding these migration patterns is crucial for network providers to anticipate and address the evolving connectivity needs of users in different geographical locations. The challenges lie in adapting network capacity to accommodate these shifts efficiently, especially considering the time and resources required to build and enhance network infrastructure to meet changing demands.
  • Tracking population movements using network usage data involves analyzing patterns in how people use their devices to understand where they are located. Billing address changes in cellphone data can provide insights into where individuals are moving to or from based on the updated information associated with their mobile accounts. This data can help identify trends such as migration from one state to another, highlighting shifts in population distribution over time. By examining these digital footprints, researchers can gain valuable information about demographic changes and the impact on network usage and connectivity demands.
  • Networks face challenges in adapting to rapid population changes because the infrastructure required to expand network capacity, such as adding more servers or upgrading equipment, is not a quick process. It typically takes two to three years to build the necessary network capacity to meet the increased demands resulting from population shifts. This delay in scaling up network resources can lead to issues like congestion, slower speeds, and connectivity problems as the existing infrastructure struggles to support the sudden surge in users and data traffic. The time lag in expanding network capacity underscores the importance of proactive planning and forecasting to anticipate and address future connectivity needs effectively.
  • The relationship between population migration trends and the need to enhance in-home Wi-Fi connectivity is linked through the changing demands on network infrastructure. As people move to different regions, there is a shift in network usage patterns, requiring adjustments to accommodate the increased reliance on high-bandwidth activities at home. Enhancing in-home Wi-Fi connectivity becomes crucial to support the growing demand for seamless internet access as mo ...

Counterarguments

  • While network usage data can indicate migration trends, it may not capture the full complexity of population movements, such as temporary relocations or the nuances of rural vs. urban shifts.
  • Billing address changes in cellphone data might not be a completely accurate reflection of migration trends, as some individuals may not update their billing addresses promptly or at all.
  • The figure of 1.8 million additional people in Florida post-COVID could be misleading without context, such as natural population growth, birth rates, and international immigration.
  • The challenges of network planning in response to return-to-office trends might be mitigated by advances in technology that allow for more flexible and rapid deployment of network resources.
  • The assertion that networks struggle to adjust to rapid population changes assumes a static approach to network planning, which may not account for modern, scalable solutions that ...

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The Hyper-Connected Consumer

Rise of Video, Social, Metaverse and AI

The digital landscape is undergoing rapid transformation as video and social media platforms dominate connectivity, and emerging technologies like the Metaverse and AI are poised to drive the next wave of growth.

Video and social media dominating connectivity

Sowmyanarayan Sampath points out that video comprises over half of all data usage. In addition to this heavy investment in video, about a quarter of data usage comes from a combination of social media and gaming, suggesting that these mediums are central to modern connectivity.

Emergence of new platforms like TikTok and Roblox

TikTok seeing over triple time spent

Sampath shares that time spent weekly on TikTok has more than tripled in the last five years, with an average person now spending an hour and 45 minutes a day on the platform. This significant increase highlights TikTok's growing influence in the social media space.

Roblox rivaling PlayStation engagement

Continuing the discussion on new platforms, Sampath also discusses how Roblox, perceived as the early start of the metaverse, is gaining substantial engagement that rivals traditional gaming platforms like PlayStation. However, he suggests that Roblox will need to improve its monetization strategy to capitalize on the amount of time users are spending engaged with it.

Metaverse and AI poised to drive next wave of growth

Metaverse needs more use cases to take off

The conversation shifts to the metaverse's current state and potential. Vaughan inquires about its development, and Sampath explains that the metaverse started off strong but then stalled because there wasn't much to do. To thrive, the metaverse needs to identify vertical use cases, such as Roblox providing a platform for gaming among young kids and Quest catering to another demographic.

AI set to unlock metaverse ...

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Rise of Video, Social, Metaverse and AI

Additional Materials

Clarifications

  • The metaverse is a collective virtual shared space, typically created by the convergence of virtual reality, augmented reality, and the internet. It aims to provide users with immersive, interactive experiences. Currently, the metaverse is in a stage where it needs to develop more practical applications and use cases to fully realize its potential. This includes creating diverse experiences and functionalities that cater to different user demographics and interests. The successful integration of technologies like AI is seen as crucial for unlocking the metaverse's full capabilities and enhancing the overall user experience.
  • Roblox is often referred to as an early start of the metaverse due to its immersive, user-generated 3D worlds where players can interact, socialize, and create experiences. The platform allows for a wide range of activities beyond traditional gaming, resembling a virtual universe where users can explore different environments and engage with diverse content. Roblox's focus on user-generated content and social interactions aligns with the concept of the metaverse, a collective virtual space that is persistent, interconnected, and immersive. This association positions Roblox as a precursor to the broader vision of a fully realized metaverse where digital experiences transcend individual platforms and seamlessly blend with the physical world.
  • AI and the metaverse are interconnected as AI technologies play a crucial role in enhancing user experiences within virtual environments. AI can personalize interactions, streamline processes, and create more immersive and engaging virtual worlds in the metaverse. By leveraging AI capabilities like natural language processing and machine learning, the metaverse can offer tailored content, intelligent automation, and dynamic experiences that adapt to users' preferences. This integration of AI in the metaverse aims to revolutionize how users interact with digital spaces, making them more intuitive, responsive, and interconnected.
  • AI's impact on American productivity over the next 20-30 years is expected to be significant. AI technologies are predicted to enhance efficiency, streamline processes, and enable new innovations across various industries. By automating tasks, pr ...

Counterarguments

  • While video does comprise a significant portion of data usage, this trend may not be sustainable due to concerns about digital wellness and screen time.
  • The assertion that social media and gaming contribute to about a quarter of data usage overlooks other significant contributors such as streaming services, online education, and remote work.
  • The increase in time spent on TikTok could be a temporary trend, and user engagement may plateau or decline as new platforms emerge or as users experience platform fatigue.
  • The average time spent on TikTok might not accurately reflect a broader demographic, as usage patterns can vary widely across different age groups and cultures.
  • Roblox's engagement levels, while impressive, may not be directly comparable to PlayStation's due to differences in their respective user bases, business models, and types of content offered.
  • The suggestion that Roblox needs to improve its monetization strategy assumes that the current strategy is not effective, which may not be the case given its popularity and growth.
  • The metaverse's need for more use cases assumes that the concept will become mainstream, which is not guaranteed given current technological limitations and user adoption challenges.
  • The idea that identifying vertical use cases is crucial for the metaverse's success may overlook the possibility that a horizontal, integrated approach could be more effective in some instances.
  • The claim that AI is set to unlock the metaverse and transform the consumer experience assumes that AI development will continue at its current pace and that there will be widespread acceptance of AI in consumer applications.
  • The impact of AI on American productivity over the next 20-30 years is diff ...

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