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.
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?
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.
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.
A recent report from my colleague Alexander Hesse on 'The State Of Mobile Banking In Europe: 2010' shows that about one in eight European Net users with a mobile phone use mobile banking today — with SMS account alerts being the most common type. Many European banks like Rabobank and Lloyds TSB let customers set up time- and event-triggered text alerts, but currently, only 10% of European online mobile phone users actually use them.
We expect that 39% of European mobile phone users will use the mobile Internet by 2014. Why? Smartphones becoming the norm, more widely available, all-you-can-eat data plans, and more compelling content will drive uptake. Today's iPhone and BlackBerry users are, for example, already nearly three times as likely to use mobile banking as other mobile phone users.
In general, online African Americans are less well-off and spend less while shopping online compared with other online consumers. However, several factors point to the opportunity of further engaging with this group. Our Technographics® research shows that African American online users are much less annoyed by the amount of advertising today compared with online users overall: 60% of the US online population agree that they are annoyed by advertising, versus only 39% of online African Americans. Furthermore, ads inform the purchase decisions that online African Americans make: Nearly twice as many African American online users (27%) as overall online users (15%) agree that ads help them decide what to buy.
Furthermore, 24% of online African Americans recognize that owning the best brand is important to them, compared with only 16% of all US online consumers. Therefore, brand reputation is a much bigger influencer in their purchase decision process.
There’s a lot of debate around which media channels consumers access and how much time they spend on each. Our Technographics® data reveals that young Europeans spend a total of about 40 hours per week on any type of media, and this number then declines with age. The biggest drivers of young consumers’ high levels of media engagement are Internet use and time spent playing games, both of which drop dramatically among older age groups:
However, these numbers are for the total European population and include countries like Spain and Italy, where Internet uptake is lower both in general and especially among older consumers. When we look at these numbers for the UK Internet population, for example, all age groups spend around 41 hours per week on different media activities. The total time spent doesn’t change much by age group, but the type of media activity does: Older consumers spend more time watching TV and reading newspapers than younger consumers, while the time they spend on the Internet decreases.
A recent published report called 'Mobile Coupons: Gold Rush Or Fool's Gold?' shows that both consumers and advertisers are curious about mobile coupons but that few consumers have trialed mobile coupons. Our Technographics data uncovers that only 3% have requested a coupon via cell phone, and only another 3% have actually used a mobile coupon. But mobile coupons help marketers reach new audiences, particularly those consumers ages 18 to 24 — 79% of whom typically spend less than 1 hour per week reading a newspaper. Younger consumers are most interested in mobile offers, especially for restaurants, drinks, and music/DVDs.
Advertisers will need to realize that some consumers — especially younger, new customers — may be mobile-only and that this mobile-only audience requires different promotions to encourage the behavior that merchants seek. Start with campaigns that are close to their heart (or mouth to be more precise) to win them over.
Online banking has shown a fair amount of growth over the years in Europe. Forrester's Technographics® data shows that more than 50% of European Net users bank online today, up from about 35% in 2002. Northern Europe leads in the adoption of online banking, with 90% of Dutch and 87% of Swedish online consumers having used it in the past three months.
Interestingly, the countries that close the list with regards to online banking are actually leading the uptake of mobile banking in Europe. In Spain and Italy, about one in five mobile phone owners uses some kind of mobile banking — for example, to check their account balance, transfer money, or pay bills using text messaging (SMS) or the mobile Internet.
About 40% of US online adults now have a home theater audio system connected to their TVs, providing a better sound experience than the typical speakers connected to a PC or those built into a boom box. Forrester’s Consumer Technographics® data shows that US consumers who have home theater systems take home entertainment seriously; they have a variety of entertainment devices, including set-top boxes, connected to their TVs.