User Survey Smartwatches - CCS Insight...need to charge them daily US and UK respondents exhibited...

User SurveySmartwatches

October 2018

2© CCS InsightEnd-User Survey, Smartwatches

Contents

▪ Scope, Methodology and Sample

▪ Summary of Findings

▪ Purchase Journey

▪ Usage

▪ Satisfaction

▪ Replacement


Scope, Methodology and Sample


US1,003

Total Respondents2,003

▪ Online survey▪ Conducted in

August 2018

UK1,000

Research Conducted in the US and UK


Research Scope and Sample

▪ The main purpose of the survey was to understand ownership and usage patterns of smartwatches

▪ Sample size: 2,003 respondents

▪ Geographic reach: US (1,003 respondents) and UK (1,000 respondents)

▪ The survey was conducted online, on a desktop, laptop, tablet or mobile phone

▪ Sample definition: smartwatch users aged 16 or over

– 50% users of Apple Watch

– 50% users of other brands of smartwatches


Summary of Findings


Summary of Findings

▪ Physical stores remain an important channel for smartwatches

– 44% of smartwatches are purchased in a store or a mall, and 56% are purchased online

– Apple's particularly strong sales in physical retail stores reflect its large number of stores in the UK and the US

– In the US, Best Buy is a key bricks-and-mortar retail channel

– In the UK, there is no dominant bricks-and-mortar retailer for smartwatches

▪ Amazon dominates the online channel in the US and the UK, with 42% and 30% of the online sales respectively

– Sales through smartwatch brands' own websites and stores also represent a significant proportion

▪ In the US, about 20% of online and offline sales were through brands' own stores

▪ In the UK, brands' own stores were responsible for 17% of the online and 39% of the offline sales

▪ Majority of smartwatch owners saw their smartwatch in real life before buying online

– Four-fifths of Apple Watch owners said they bought the device after they saw one in real life

– This highlights the importance of having smartwatches in physical retail

– Word of mouth and online reviews also play a huge role in the decision to purchase


Summary of Findings

▪ Users of Fitbit, Apple and Samsung smartwatches are highly engaged

– Over 90% of these owners use their smartwatch every day or most days

– This level of engagement with smartwatches is higher than demonstrated in our previous smartwatch surveys

– US and UK respondents exhibited similar usage patterns

▪ Checking the time, messaging and activity tracking are the most-used smartwatch features for all brands

– People particularly value notifications for activity updates, new messages or e-mails, and incoming calls

– Smartwatches are useful in wide-ranging scenarios — at home, at work, exercising or any other activity

▪ Users on average download seven apps to their smartwatch

– Apple owners download more apps, with a quarter of them having downloaded more than 10

– Fitness, music and messaging apps are downloaded on all smartwatch brands

▪ Use of digital assistants among owners of Apple Watch, Wear OS and Samsung smartwatches is fairly high

– On average, 86% of users have tried using the voice assistant and 75% use it often or sometimes


Summary of Findings

▪ Smartwatch users are highly satisfied with their smartwatches

– We believe this reflects the huge progress in smartwatches, in terms of functionality and design

▪ Wear OS smartwatch users are less satisfied than others

– This is reflected in the lower engagement levels with Wear OS: only 75% use the device every day or most days, compared with at least 90% for Apple, Fitbit and Samsung smartwatches

– This is a cause for concern, but we believe the latest wave of Wear OS smartwatches aims to address such problems

▪ Overall, smartwatches have mostly met or exceeded people's expectations

– In contrast to the first generation of smartwatches, we believe people's expectations are now aligned with the reality

▪ Longer battery life and waterproofing were the most-requested improvements for future smartwatches

▪ More than half of current users plan to replace their smartwatch within the next two years

– Only a very small number of respondents are planning to not replace their device, which is very encouraging


Purchase Journey


Physical Stores Are an Important Channel for Smartwatches

▪ Although online is the largest channel, physical stores play an important role and account for 40% of the sales

▪ Physical stores play a more important role in the US than in the UK

– This is likely because of high engagement with smartwatches in important retail channels like Best Buy in the US

Base: All respondents (2,003).Q: Where was your smartwatch purchased?

Place of purchase by country

Base: 2,003 1,003 1,000

52% 49% 56%

40% 45% 36%

6% 5% 7%

0%

20%

40%

60%

80%

100%

Total US UK

I don't know

Other

In a store or mall

Online


US: Amazon Dominates Online Sales, and Best Buy Is the Leading Physical Retail Channel

▪ About 30% of Apple Watches in our US sample were purchased at an Apple store or online on Apple's website

▪ 50% of Fitbit owners and 45% of Samsung owners purchased their devices on Amazon

▪ Best Buy is a significant channel for Fitbit and Samsung

Purchases in US online stores Purchases in US physical stores

Base: US respondents who indicated that their smartwatch was purchased in either online, in a store or other location (939).Q: Which website (or store) was it purchased from?

Base: 489 Base: 450

42%

19%

10%

4%

4%

4%4%

11%2% Amazon

Smartwatch brand's own website

Best Buy

Carrier online store

Target

eBay

Walmart

Other

I don't know

37%

21%

12%

9%

7%

4%

9%2%

Best Buy

Smartwatch brand's own store

Carrier store

Walmart

Target

Sports retailer

Other

I don't know


UK: Amazon and Apple Stores Dominate

▪ Mobile operators and mobile phone retailers are not a significant channel for smartwatches in UK

▪ Amazon is weaker in the UK than in the US

– Nevertheless, Amazon is a significant channel for all smartwatch brands

▪ Beyond Apple stores, no physical retailer is the dominant channel for smartwatches

Base: UK respondents who indicated that their smartwatch was purchased in either online, in a store or other location (919).Q: Which website (or store) was it purchased from?

Purchases in UK online stores Purchases in UK physical stores

Base: 558 Base: 361

39%

14%13%

8%

6%

4%4%

9%3% Smartwatch brand's own store

Currys/PC World

Argos

John Lewis

Carphone Warehouse

Tesco

Mobile operator

Other

I don't know

30%

17%

10%

9%

6%

6%

4%

11%

5%Amazon

Smartwatch brand's own website

Argos

eBay

Currys/PC World

John Lewis

Very.co.uk

Other

I don't know


Usage


Users of Fitbit, Apple and Samsung Smartwatches Are Highly Engaged

▪ Very high usage of Apple Watch, Fitbit and Samsung devices means that users find significant utility in smartwatches despite theneed to charge them daily

▪ US and UK respondents exhibited similar usage patterns

▪ This level of engagement with smartwatches is higher than our previous surveys, indicating considerable improvement in the design and functionality of smartwatches over the past five years

92% 91% 75%

Smartwatches used every day or most days, percentage of brand owners

Base: 1,003 Base: 387 Base: 111

93%

Base: 358

Base: All respondents (2,003).Q: In an average week, how often do you use your smartwatch? (Every day, most days, sometimes, rarely or I've stopped using it).


Lower Engagement with Wear OS Smartwatches Is Cause for Concern

▪ On average, 61% of owners use their smartwatch every day

▪ Lower engagement with Wear OS smartwatches is a cause for concern

– This is reflected in lower satisfaction levels with Wear OS smartwatches (see pages 42 and 43)

▪ US respondents on average use their smartwatches slightly more often than UK respondents

Base: All respondents (2,003).Q: In an average week, how often do you use your smartwatch? (Every day, most days, sometimes, rarely or I've stopped using it).

Smartwatches used every day or most days by brand

Base: 1,003 387 358 111

63% 60% 65%

44%

29% 32% 28%

31%

6% 7% 5%

14%

6%5%

0%

20%

40%

60%

80%

100%

Apple Watch Samsung Fitbit Wear OS

I've stopped using it

Less than once a week

One to two times a week

Most days

Every day


Most Owners Have Tried Using a Digital Assistant on Their Smartwatch

▪ Voice assistant is used significantly more often by Apple Watch users than owners of other smartwatches

– A very small number of Apple Watch users have never used Siri on their smartwatches

▪ Between the three groups of owners, on average 86% have at least tried using the voice assistant

▪ Note that voice assistants are currently not available on Fitbit, Garmin or other smartwatches in our sample

Base: Users of Apple Watch, Samsung and Wear OS smartwatches (1,491).Q: How often do you use a digital assistant like Siri, Google Assistant or Alexa on your smartwatch?

Usage of digital assistants by brand

Base: 1,001 384 106

42% 34% 30%

33%35%

34%

17%13% 19%

8%18% 17%

0%

20%

40%

60%

80%

100%

Apple Watch Samsung Wear OS

Never

Rarely

Sometimes

Often


1%

10%

29%

29%

41%

43%

47%

43%

47%

41%

40%

Other

Changing my smartwatch settings

Controlling my smart home devices

Starting workouts

Opening apps

Navigation and directions

General information and search

Setting timers, alarms or reminders

Playing music

Sending messages

Making calls

1%

6%

40%

39%

45%

53%

51%

51%

56%

53%

54%

Other



Starting workouts

Opening apps




Playing music

Sending messages

Making calls

1%

26%

33%

37%

38%

41%

44%

46%

52%

53%

53%

Other



Starting workouts

Opening apps




Playing music

Sending messages

Making calls

Digital Assistants Are Used for Broad Range of Functions

▪ People use digital assistants for a broad range of functions

– US respondents use navigation and general information features slightly more than UK respondents

What do you use the digital assistant for?

Base: 757 Base: 265 Base: 68

Base: Users of Apple Watch, Samsung and Wear OS smartwatches, who use a digital assistant on their smartwatch – either often or sometimes (1,090).Q: What do you use the digital assistant like Siri or Google Assistant for? Please select all that apply.

1

2

3 1

2

3

3

1

2

3

1

2

3


Satisfaction


Satisfaction with Smartwatches Is Very High

▪ Across all smartwatch types, respondents were highly satisfied with their devices

– This reflects the huge progress in smartwatches in terms of functionality and design

▪ US respondents were slightly more satisfied than their UK counterparts

– In the US, 77% were very satisfied with the overall experience; 64% in the UK. This might be culturally defined

▪ Wear OS smartwatch users are less satisfied than others

Base: Respondents who own and use a smartwatch (1,985).Q: How satisfied are you with your smartwatch?

Satisfaction with smartwatches

54%

55%

62%

63%

71%

31%

30%

31%

28%

24%

11%

11%

5%

7%

5%

Value for money

Availability of apps

Functions used

Design

The overallexperience

Very satisfied

Somewhat satisfied

Neither satisfiednor dissatisfied

Somewhatdissatisfied

Highly dissatisfied


Battery Life Is the Biggest Reason for Dissatisfaction

▪ Battery life is the biggest reason for dissatisfaction

▪ Other sources of dissatisfaction are connectivity, availability of apps and a lack of features

Base: Respondents who are not “somewhat satisfied' or 'highly satisfied' with the overall experience of their smartwatch (116).Q: You told us that you aren't completely satisfied with your smartwatch. Why is that?

Reasons for dissatisfaction with the smartwatch

7%

11%

12%

13%

14%

14%

15%

16%

20%

22%

25%

27%

32%

Other

I can no longer get software updates

Fitness monitoring isn't accurate enough

Its screen isn't always on

It doesn't have built-in Internet connectivity

It requires a lot of updates

It took too long to set up

It's unreliable

It doesn't have a camera

It doesn't have the apps I want

It doesn't have all the features I need

It loses connection with my phone or Wi-Fi

It runs out of battery too quickly


Longer Battery Life and Waterproofing Are the Most-Requested Features

▪ The requirement for longer battery life might be a constant: users always want more from their battery

▪ The requirement for waterproof devices is quite significant, as it will mean that people will need to remove their smartwatch from their wrist less often and so make the devices even less likely to be abandoned

Base: Respondents who own and use a smartwatch (1,985).Q: What would be the top 3 improvements which you would like to have in your next smartwatch?

What would be the top three improvements in your next smartwatch?

1%7%9%11%

14%15%16%16%16%17%19%21%

36%46%

OtherNone

A round displaySupport for payments

A different designDifferent strap

Cellular connectivityBetter choice of apps

Better fitness trackingLouder speaker

Bigger screenThinner or lighter

WaterproofLonger battery life


Replacement


Only 4% of Owners Would Not Replace Their Smartwatch

▪ 64% of current users plan to replace their smartwatch within the next two years

▪ US respondents are more likely to replace within a year

▪ Responses were very similar for all brands

Base: Respondents who own and use a smartwatch (1,985).Q: When do you think you will replace your smartwatch with a new one?

When do you think you will replace your smartwatch with a new one?

Base: 1,985 994 991

32% 37% 27%

32% 30% 34%

9% 8% 11%

23% 22% 24%

4% 3% 4%

0%

20%

40%

60%

80%

100%

Total US UK

I don't think I will replace it ever

I'm not planning to replace it yet

Within the next three years

Within the next two years

Within a year


Apple Watch Owners Exhibit Highest Degree of Loyalty to the Brand, Followed by Samsung

▪ Users of Apple and Samsung smartwatches are very loyal to the brand

▪ Wear OS users are more likely to switch to another brand

▪ Almost no one wants to switch back fully to a traditional watch

Base: Respondents who indicated that they are planning on replacing their smartwatch (1,460).Q: What are you most likely to replace your smartwatch with?

What are you most likely to replace your smartwatch with?

Base: 1,460 739 299 250 74

70%82%

70%56%

42%

17%13%

14%

20%36%

1% 2%1%

3%

12% 4% 14%24% 19%

0%

20%

40%

60%

80%

100%

Total Apple Watch Samsung Fitbit Wear OS

I don't know yet

A traditional watch

Smartwatch from adifferent brand

Smartwatch from thesame brand

User Survey Smartwatches - CCS Insight...need to charge them daily US and UK respondents exhibited...

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