The Data Digest: What Keeps US Internet Users From Buying Online?

In the past few months, I've regularly posted Data Digests on people's online shopping behavior. However, not every Internet user actually buys products online. Our Technographics® data shows that about 57% of European Internet users and about two-thirds of US online adults have purchased something online in the past three months. Concerns about privacy, delivery, and returns keep the others from making a purchase; women feel more strongly about delivery costs and the need to see (and feel) the product before they buy than men do.

When asked what would motivate them to start purchasing products or services online, lower shipping costs (43%), lower online prices (42%), and the ability to return products easily (27%) top the list. Retailers have to make the cross-channel shopping experience as easy as possible to cater to the needs of those online consumers who do research products but don't purchase them online — yet.

Mobile Research Calls For Creative Research Approaches

When I came back from holiday last week and looked at my mail, I was delighted to see that the most recent issue of Research World (the ESOMAR magazine) had a number of articles on mobile research. As I mentioned in one of my previous posts, mobile research has really won me over (see also my report, The Challenges And Opportunities Of Mobile Research for full details). The “anytime, anywhere” aspect of the mobile phone, combined with people's emotional attachment to it, makes it an ideal device for people to share their thoughts and opinions in a research context.

When reading the articles in Research World, however, I feel that the industry is missing out on a great opportunity. The emphasis of the conversation here is on mobile research's methodological challenges, such as sampling, guidelines, and research bias. I agree that there are still some hurdles to overcome with regards to representation, costs, technology, and privacy, but I believe market researchers shouldn't get too caught up in these but should instead embrace mobile phones as a new research channel and look for innovative research approaches.

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The Data Digest: Uptake Of Facebook In Asia

In the past few weeks, there have been many conversations about Facebook's privacy changes (and breaches); for example, see this post by my colleague Augie Ray earlier this week. However, what I'm missing in these discussions is how Facebook compares with other social media players worldwide. Although Facebook is the largest social media platform in the Western world, different players lead in other regions. For example, Facebook is struggling to gain ground in Asia Pacific:

With 58% of online adults accessing it, Orkut is the leading social platform in metropolitan India, while 27% of Japanese online adults use mixi; and in South Korea, Cyworld is most popular, attracting 63% of South Korean Internet users. What I'd like to know: how do these networks handle their users’ privacy?

Do Latin Americans Want To Interact With Companies Online?

Hola! Or as they say in Brazil — Olá! I am a new face on this blog, so let me introduce myself. My name is Roxana Strohmenger and I am on the Technographics Operations and Analytics Team, where I work with our clients, analysts, and vendors to make sure that our surveys — both syndicated and custom — utilize sound research methodologies and analytic tools. One of my newer responsibilities, though, is driving the content for our Latin American Technographics® research to help companies understand how technology and the Internet are changing the way Latin Americans go about their daily lives.

I am currently preparing for an exciting opportunity to give a presentation at ESOMAR’s Latin American 2010 conference next week, and I wanted to share with you some interesting findings regarding how Latin Americans want to connect with “others” on the Internet. I emphasize “others” because it is not friends and family that I am referring to but, in fact, companies. Yes, Latin Americans are extremely community-oriented and want to feel connected to their friends and families. And the Internet has become an exciting vehicle for them to stay connected. But, does this desire to be connected also extend to companies?

Surprisingly, the answer is yes. In fact our research shows that more than 75% of metropolitan online Brazilians and Mexicans expect companies to have a presence using social media tools like blogs, discussion forums, and social networking sites. To put this in perspective, we see that only 47% of US online adults have the same attitude. We’ve also found that among online Latin Americans who have this expectation:

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The Data Digest: How Customers Rate Banks, Brokerages, And Insurers By Industry

Early in 2010, my colleague Bill Doyle published a report called 'Customer Advocacy 2010: How Customers Rate US Banks, Investment Firms, And Insurers'. This report includes trended Technographics® data that shows that US consumer trust in financial institutions is returning. One year after the financial crisis that brought the US economy to its knees, customers are more likely to say that their financial institutions do what's best for them, but not all of the financial sectors benefit equally.

Insurers score better than ever compared with other retail financial services firms. Smaller banks also do well, while some of the biggest banks again land at the very bottom of our rankings. And after years of rating higher than banks, investment firms as a group now score worst.

Forrester clients can access the report with the scores for 46 US financial companies here.

It’s Time To Help Me Benchmark!

That’s right: It’s time for us to start thinking about our annual US Consumer Benchmark report. We are currently in the field with our annual mail survey of more than 40,000 US consumers ages 18 and up and are eagerly awaiting the return of the data. While we wait patiently (or not so patiently), it’s time for us to start preparing for our annual Benchmark report. Many of you are already familiar with this mega-data report that we publish each year based on our Technographics® data. For those of you who aren’t, let me get you up to speed!

Each year, we do a thorough analysis of our Benchmark mail survey and create a report called “The State Of Consumers And Technology.” This report covers everything from device ownership to online activities to mobile behaviors, and it serves as the Holy Grail for many market researchers. At more than 20 pages long, this report is an absolute labor of love and takes many hands to make it happen. And this year, we need your help, too! When we begin writing this document, we always start by choosing a lens to use throughout the analysis. Last year, we looked at life stages:

 Lifestage Lens for 2009 Technographics Consumer Benchmark Report

 

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Trends And Challenges In Social Market Research

Has an inflammatory tweet about your brand ever caused a panic in your company’s executive ranks? Has your market research department ever attempted to put into context how representative that one tweet might (or might not) be of your total market? For many companies we work with, the answer to the first question is yes. The answer to the second question is more likely to be “I don’t know.” Well, the time has come for market researchers to understand the implications of social technologies for their role.

After many months of talking up my social market research report on this blog, via Twitter, and with many vendors and clients, my report is now Web live! It’s aptly entitled “How Can Market Researchers Get Social?”, as this was the core question I began asking myself at the very end of last year when I kicked off this project.

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The Data Digest: How US Youth Multitask

A couple of weeks ago I published a Data Digest on European consumers’ media consumption. One of the questions that always comes up when I present this data to clients is how focused consumers are when they're watching TV or using the Internet. Our Technographics® data shows that consumers aren't focused at all: About 40% of US youth were watching TV the last time that they used the Internet, and a third were texting.

But consumers don’t just multitask across different channels; they also do many different things on the PC at the same time. We asked European consumers the following question: "Which of the following activities do you regularly do at the same time when you’re using your PC (by that we mean that you are combining multiple activities)?" About half of European youth use IM when using the Internet, and about 60% listen to music. Undivided attention is something that's hard to find these days.

Back In The Swing Of Things

After being out on maternity leave for the past 12 weeks, I am officially back in the office and jumping into some great new projects. One of the projects I’m most excited about is our annual online youth survey for our Technographics product. Each year, we survey online respondents ages 12 to 17 to get their take on everything from their mobile usage to how they want to interact with companies. Recently, Pew Research Center put out a report on its youth studythat had some interesting points around mobile usage. Most of its findings were in line with our own data. For example, we’ve found that:

  • Seventy-nine percent of youth ages 12 to 17 have a cell phone, up from 73% in 2008. So when your kid comes home and says, “Mom, I need a cell phone. EVERYONE has one!” he’s not that far off from the truth!
  • It’s all about texting. While only a quarter of teens are browsing the mobile Internet, 84% are texting at least monthly.

 

These are only some of the interesting points we have nestled in our data. I personally love working with this age group and examining how they feel about the world around them. Which technologies can’t they live without and which ones do they ignore and why? How do they expect the companies they love to engage them via social media? How do they want to receive advertising? The list goes on and on (in fact, you can search our survey topics here) . . .

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Customer Satisfaction Is More Than Tracking Numbers

For a track session at Forrester's Marketing Forum at the end of April, I dived into the topic of customer satisfaction. For market researchers looking to set up a customer satisfaction (CSAT) study, much guidance is available. However, it also became clear to me why, despite all this advice, many customer satisfaction projects fail.

Most of the information I found -- or the conversations I had, for that matter -- were around the ‘science’ part of CSAT studies: the methodology and set-up. There are many discussions online about questions like which scale to use, which questions to ask (or not), whether a company should focus on relational versus transactional measurement, or if it's better to conduct a customized CSAT project or use an established method like Net Promoter.

However, in my conversations with market researchers, I found that the success of CSAT projects isn't based as much on science -- although a sound and repeatable set-up doesn't hurt -- as much as it is on ‘art.’ The art lies in understanding the company’s business issues; translating these into a well-structured questionnaire; finding the drivers for success; and later, when the results are in, presenting the results in an actionable format.

Any customer satisfaction project that focuses on numbers misses out on the 'art' element of CSAT. Of course, using a standardized methodology helps the company benchmark itself against its competitors. But what does it mean when 80% of your clients are satisfied? The organization will look at this number and want to drive it up, without any understanding of what the impact on the bottom line will be when the percentage of satisfied customers increases from 80% to 82%.

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