Feature Sept 2008 - Early Adopters

Leaders of the Pack

What's hot tomorrow? Ask the early adopters. Cherisse Beh goes on a personal journey to find out what makes them tick, and how marketers can leverage on it.

The moment I was tasked to write this feature I knew I had a prime specimen to dissect - my brother. The first younger brother, "The Athlete", was introduced in November 2007 in the Sports Marketing feature, so this month's glory goes to younger of the two, "The Geek".

Ever since we got our first computer at home in 1993, he has been fixing and replacing, installing and tinkering, buying and selling computer parts online. With three laptops, one lead CPU and two other working ones in the storeroom, I could easily start up a mini LAN-shop at home. Despite being the official technician for the family (no, make that extended family and friends), he is also responsible for destroying the most computers at home due to his incessant over-clocking and "love" for hearing the computers go beep.

Imagine please, for a long while the computer tower we had at home did not have a shell. We had to use a pair of scissors to "stroke the fins till we see a ‘spark'" and voila, the computer powers up.

His homepage is either fixed on engadget.com or vr-zone.com, depending on which computer he uses. He was sent parts from Asus to test their latest graphics card before

its official launch. His "Favourites" bookmark leads to price and performance comparison charts.

At 13 he started a webpage, yourxp.org, when Microsoft XP was launched to help promote the product and trouble-shoot systems, (apparently he even saw page hits of over a thousand per day). He would gloat and compare his knowledge of new products and technology-based issues with me, "Miss Pseudo Know-it-all" (just because of the press releases we get daily).

I leave my technology purchase options with him as I am certain he would get me the product which is of the best value for my money (although it may not necessarily be the cheapest).

Albeit a few black sheeps out there who know naught but have spare bills to share - like the richest kid on the block with the latest gadgets sauntering forward with a backpack full of high-tech accessories and a limited edition iPhone 3G in his hands - many early adopters are still individuals with a burning passion to learn what's behind the technology.

The lengthy introduction to the piece brings us to the pressing issue for this month - How do technology companies capture this group of savvy, knowledgeable early adopters? And how do marketers, despite all the information, forums and reviews working both for and against their advantage, slake a geek's lust for bytes, chips and speed, as well as exclusivity (even just for a moment)?

Fraternising with the ‘enemy'

Samsung has a knack of keeping close tabs on non-loyalists, people who are difficult to please, complain way too much and even use other brands. But Irene Ng, Samsung's general manager for strategic marketing, says there is an underlying reason for the almost clandestine relationship as these behaviours are typical of early adopters.

"It is hard to find brand loyalists. Majority of consumers aren't. We are not trying to subjugate and brainwash them to be loyalists. We need them to be more demanding - which is good, because they keep us on our toes," she says.

"They are the ones that are pushing the boundaries of technology and new experience, having them being neutral and objective actually helps Samsung."

Samsung works with early adopters mainly in the consumer electronics sector, which is driven largely by mobile phones and consumer electronics such as MP3 players, mobile phones and cameras. It installed a pilot programme, a youth advisory panel in June last year of about 20 people who were handpicked for being "very in-the-know" and interested in technology. They are used to test marketing ideas and even new products.

Working much like focus groups, the panel gives the marketing team blunt, sometimes harsh feedback - which is actually what the "abused" client marketer wants.

"They provide us with good feedback which we would never get from focus groups and research groups. Sometimes even research companies do not dare to tell the brutal truth simply because we are their clients," Ng says.

Varying from product to product as the local office does not get much lead time before the product launch; products are usually seeded to the early adopters for about four weeks for "road-testing". The "youth advisory panel", whose members range from 16 years old to techies in their late 30s, is actually pretty far from being youthful and they are in fact resourceful, astute to the brink of being impertinent.

"These early adopters are very knowledgeable about products and are also very travel-wise. They are familiar with marketing campaigns and do not like things to be told to them. They like things that are clever and entertaining at the same time. They do not like messages to be straight in their face. They make comments like ‘the touch screen is not sensitive, the design can be improved'. We will in turn send the comments back to the R&D department in Korea. It is not only confined to just products, we test them on marketing concepts too. They like to be teased and challenged, so we try to craft our messages to be as appealing to them as possible."

The first activities the panel got involved in were testing gadgets like MP3 players, digital cameras, and most recently the Omnia range of phones which launched during CommunicAsia in June.

The early adopters actually got hold of the information before Samsung told them of the Omnia phone. It is the case of the early adopters knowing the trend and knowing what to look out for simply because the internet makes such information easily accessible these days.

Singapore was chosen as the launch country as it seems to be leading the mobile technology trend here in Asia. Ng thinks beyond special discounts and exclusivity, there is a more psychological side to letting early adopters "road test" beta products. Most of the early adopters like to be able to influence; they enjoy the empowerment and most of all, they like to tell brands like Samsung what to do.

Samsung is open to early adopters blogging about the trial process, and understand they cannot control the content. The best it can do is to educate the early adopters about the product and show them how the product is used. The rest is up to the early adopter.

"Feedback cannot be controlled - it is just part and parcel of being in the new digital media age. We just have to manage it and so far, we are quite comfortable with it." Ng added.

X marks the spot

Samsung has also entered into marketing partnerships to help promote its technology. One such partner is Microsoft. During the World Cyber Games held in Singapore recently, Samsung showcased its high-definition TV (HDTV) displays with Microsoft Xbox.

"Microsoft has many loyal customers and in that effect the partnership and synergy turned out very good because we tapped each other‘s databases and conducted tutorials and workshops especially on our Samsung phone, which works on a Microsoft Windows mobile platform, giving us a chance to work on different ranges of co-marketing," Ng says.

Xbox 360 regional marketing manager Alan Chou defines early adopters as those "who are first to purchase any new product or technology. They tend to be sophisticated and knowledgeable users who keep in touch with product trends and innovation, and are first in line when the products are released."

Microsoft treats every new release of a game, accessory and console feature as a chance to interact with early adopters, or to be more specific, people who are keen to try the latest games. It tries to identify them as well as its core users. For instance during its launch of Halo 3 and Ninja Gaiden II campaign, Microsoft conducted programmes to get gamers to register their details and subsequently the amassed data aided in notifying the gamers of Microsoft's future game launches or events.

The software giant also recently launched a locally targeted programme called Xbox

Xperts in a bid to boost local Xbox Live participation figures; it appointed known blogger, gamer and reviewer Sheylara as brand ambassador to support the initiative. This, Chou says, was a result of a quarterly "Box Board" meeting with key infl uencers and early adopters to gauge the pulse of the community. The Xbox Live Xperts programme was a direct offshoot of one of those meetings.

"We directly engaged bloggers and had a very positive response. We now regularly include bloggers in our PR efforts and seed them copies of games. Sheylara's role is to help Xbox gamers connect with each other and in turn, grow the Singapore Xbox community. Once you get connected to the community, you'll have the more experienced gamers keen to give the newer ones tips and advice on how to maximise their gaming or social experiences on the Xbox," Chou says.

Through its initiatives with bloggers and the fact this puts the "brand" under the whims and fancies of the early adopter, Chou admits Microsoft does lose a bit of control and there are risks such as early adopters interpreting things differently. "But for the most part it has been very positive, the fact that you take the time to engage them is really appreciated by that segment of the audience," he says.

‘Byte into an Apple, it doesn't matter which'

2008 was certainly an eventful year. The Olympics in Beijing opened new doors for sports sponsorship globally. Locally Sex and the City's much anticipated movie lit up the screens as Carrie floated along Orchard Road with her Coke Light and of course the SingTel Formula One Night race that is bound to leave a trail of dollar tracks to the banks of Marina Bay.

But the big winner is Apple's iPhone. The coveted phone sparked a year-long frenzy in Singapore, because it was officially unavailable locally and because it was Apple's latest product. (The world as we know it is split among those who own an Apple product and those who don't.)

The iPhone 3G's arrival kept the blogosphere abuzz and aficionados were kept awake for nights on end with countless speculations on its price plans as news of its exclusive launch with SingTel spread. In just three days after its official launch on 11 July in 21 countries, Apple hit its one million mark.

"iPhone 3G had a stunning opening weekend. It took 74 days to sell the fi rst 1 million original iPhones, so the new iPhone 3G is clearly off to a great start around the world,"Apple's CEO, Steve Jobs, said.

Globally, smart-phone sales were at 32.2 million in the first quarter of 2008, around 29% higher than the same period in 2007. In North America, smartphone sales were at 7.3 million units in the first quarter of 2008, a 106.2% increase from the same period last year. This can be partially attributed to Apple as it sold 1.72 million units in the quarter, moving into the third spot in the global smartphone market with a 5.3% share. Apple also became the No. 2 vendor in smartphone sales with its market share reaching 20%.

But the most interesting figure was not about the number of phones sold but the number which went "missing". Last year, even though the iPhone was not officially "present" outside the United States, the United Kingdom, Germany and France, it had appeared in China, Singapore, India and even Israel. Those without connections abroad got their phones through unofficial channels like iPhone resale dealers in the gray market. Individuals and even companies sprouted overnight, seeing the lucrative business of selling these ill-gotten phones and even providing options to "prison break" or even to unlock phones to allow their painstakingly procured phone to work on the local network carriers.

Interestingly, even though local retailers were warned not to carry the phones and provide "extra services", Apple's chief operating officer did not seem to see it as a problem. In a Wired article Cook was quoted at a Goldman Sachs Technology Symposium in February as saying, "The demand for the iPhone is so intense in the markets where we aren't offering it that people are exporting it out of the U.S. in many different ways and then running it on local carriers. Of all the problems we face, this is the one I face looking at with a little bit of a smile. Because it means there's great demand for the phone. And to have people stepping over each other to have the phone isn't a bad thing."

Now that the iPhone 3G is officially available in Singapore, despite the bad press the 3G variant has gotten, early adopters of the phone were easy to forgive and forget. Early adopters of Apple products in general, even though some may be just riding on the buzz of getting the coolest gadgets in town, are loyal to the brand. The countless spoofs of Apple ads on YouTube prove there is genuine interest in the brand, and that there are fans, for who else would spend all that time "recreating" the TVCs?

Knowledge is power

SPH's Hardwarezone.com (HWZ.com) has a more distinct definition of early adopters - they are those who keep themselves abreast with the latest news/products from the industry via research through the Internet, but also willing to invest for an opportunity to have a go at the products personally. Brand loyalists, on the other hand, are willing to invest because they are advocates of the brand itself.

Through its forums, HWZ.com is able to identify the early adopters. They usually play a more educational role within forums, giving their perspective on questions and issues posted by the masses. In short, they are the "givers" - relatively high-profiled techies regularly sought for their advice. They generate original content effectively for HWZ.com and complement its editorial team, giving the online platform an additional edge.

"We do not actively approach members to ask them to contribute as we believe if we can bring the masses in, these individuals will want to contribute. The human nature that I want to be seen as the "guru" will do the convincing. Without a doubt, early adopters are at their very best when they are on our forums platform. That's where our community is updated on the latest happenings/products within our site," SPH Magazines' GM for New Media Lim Chuan Jer says.

Consumers are showing more confidence in opinions from independents, individuals like themselves, rather than from the brand owner and to a certain extent the media owner. Lim adds he believes most brand owners are beginning to see this as a big issue, and has had increasing enquiries on how client marketers can tap this group of EAs.

HWZ.com developed a user trial/testimonial programme where early adopters are selected and offered an opportunity to try the latest product from the brand owner; at the same time HWZ.com facilitates the whole process like briefing the early adopters on the activities and tasks that they are expected to complete, after which HWZ.com will then collate the early adopters' experience and publish the unbiased comments in a specially designed micro-site for the masses to visit.

While working with brand owners, HWZ.com realised they do not "control" the content, unlike in an advertorial. Many brand owners may expect it to omit negative feedback rather than accept it as constructive criticism.

"This ‘fickle' behaviour is exactly what a brand owner should tap on. They should ask themselves, ‘how am I able to launch my next new product where these early adopters will be eagerly looking out for?'" Lim adds, "It prompts deep studies into the consumer behaviour to launch the next ‘killer' product."

However, marketers should also be aware early adopters can become mercenary. After they realise their voices carry more weight and brand owners will want to leverage on this, some would try to seek monetary benefits in exchange for their sought-after opinion. When the public gets wind of this, readers may question the early adopter's objectivity.

As for my brother, let's just say he loves a challenge and is happy with his iPhone 2G, which was unlocked without spending a cent. Since then he's had a fun time opening "closed doors" for family and friends. When I asked him about the iPhone 3G, as much as a fanatic he is towards snazzy new gadgets, he says, "Let's just see what comes out next."

Box-Out

Straight from the horses mouth
Early adopters weigh in:
N Nicholas, copywriter, 31;
R Roy, production editor, 35

1. WHAT IS YOUR DEFINITION OF EARLY ADOPTERS?

N: Anyone who has a keen interest in a wide fi eld of developing technologies, are able to differentiate between tech hits and misses, fads and innovations. People who simply buy the latest technological gadgets do not qualify.

R: An individual constantly on the lookout for new technology and innovations which improve the overall quality of life. I have been regularly trying out new promising products which I deem useful and functional has not yet attained mass adoption.

2. WHAT ARE YOU CURRENTLY LOOKING OUT FOR?

N: Technology which utilise solar and renewable energy. Mini wind-turbines, portable solar film, recent green automobile developments... that's the way to go!

R: I am currently replacing my DVDs with Blu-ray titles, and stopped purchasing DVDs. I am looking out for the mass market entry of OLED HDTVs circa 2009/2010, the Ubuntu 8.10 (Intrepid Ibex) operating system, as well as the OpenOffice 3.0 productivity suite.

3. WHAT ARE THE REASONS/RATIONALE BEHIND YOUR EARLY PURCHASES?

N: By gaining an interest and adopting the latest technology, I stand to not make an absolute ass of myself by not buying hokey, technologically backward, gimmicky, overhyped, over-priced, ineffective, loser-centric, crappy pieces of shit that would identify me as a clinically complete and utter dipshit.

R: Early adopters should be not concerned with getting it before others. Rather, a community and open forum should be created for feedback and information sharing that involves both users and manufacturers. This will usually result in a product that satisfies the consumer as well as provide the manufacturer with a steady flow of feedback on their product, enabling them to either improve on the existing product or come up with something even better in future.

4. WHAT POSITIVE OR NEGATIVE ATTRIBUTES MAKES YOU PERFECT AS AN EARLY ADOPTER?

N: I am viewed as not "in" (this is DEFINITELY a positive) because I refused to buy eye-candy gimmicks. People keep asking me for advise on what they should buy (SUPER NEGATIVE! They never follow my advice!). I have a hobby that is actually beneficial to me! (positive). I have a hobby that is fatal to me fi nancially! (negative? I dunno... could be worse)

R: Positive, would be that I am innovative, bold, open to new ideas, democratic and sociable. Negative, would be that I am obsessed, opinionated, snobbish, fastidious and demanding.