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I’M DIGITAL 2010 Report on consumer experience in Chile I’M DIGITAL 2010 Report on consumer experience in Chile 1

SHARE THIS STUDY facebook twitter delicious linkedin You can find the online version of this report at: soydigital.ayerviernes.com 2 I’M DIGITAL 2010 Report on consumer experience in Chile

CONTENTS Before you start 04 ‘Til here 05 Who should read this report? 07 Digital Consuming 08 Digital Consuming: Users on motion 09 9 factors that define a good/appropiate consumer experience 13 Digital Consumer Experience Model 20 Experience Model 22 Accurate positioning and supply 23 Capturing and encouraging decision making 28 Logistics and uncertainty decrease 35 Methodology 38 Study Results 39 Results 41 Work Team 66 About AyerViernes 67 I’M DIGITAL 2010 Report on consumer experience in Chile 3

BEFORE YOU BEGIN ABOUT BRANDS STATUS IN DIGITAL MEDIA 4 I’M DIGITAL 2010 Report on consumer experience in Chile

‘Til Here The end of on&off From customer to competitor Yes, it’s over. Consumers’ lives are different, there’s no such Your customers are reading, talking, discussing and thing as “two lives”. Customers are not digital at night and recommending you. Now, they have the same tools your analogue during the day. Customers live transversally and company has to positively or negatively influence among brands should learn from new behaviors to evolve with them. their peers. For this reason, you can not substract yourself, you must take the lead. Because there has never been so much irrefutable evidence about what your customers do, say, believe and Today, the brand´s mission is to provide the digital comment about your products as nowadays. spaces where customers can talk, collaborate, and share their insights, which are necessary for the constant Nothing will cause more change and affection for brands reinvention of your services and products. than the Experiences that they build to communicate their messages, and the only place where consumers will The customer is now your ally or your competitor, he/she participate and shape these experiences is in digital space. is armed with blogs, social networks, micro-blogging and From now on, your marketing plans cannot offer just the video streaming to say what you do not want to hear. crumbs to “the digital” and keep loosing leadership positions in traditional media. Your duty is to turn messages into transversal experiences across media and therefore, create an underlying synergy. I’M DIGITAL 2010 Report on consumer experience in Chile 5

‘TIL HERE The end of advertising Nothing will remain as before. Those glorious broadcasting because everything is questionable and can be disputed. TV days were replaced by viral forms of communication. Advertising and its campaigns will give down if they stick Esta frase no tiene sentido en castellano -Herbert Spencer to obsolote and sterile business models. 01/12/10 21:03 Did you ask for a touchpoint? Your local TV chain offers you thousands, YouTube and Facebook, The audiences have changed, and therefore, if you want millions. Telemarketing campaigns ended with the Twitter to sell shoes, chocolates or plane tickets, you must talk arrival and toys ceased to be important in the Happy Meal to micro-tribes, which are transversal to C3 and to ABC1, because we entertain ourselves with the Wii. The same people who twitt while they walk, taking photos and as the film industry, and others like music, education, uploading those “rare new hairstyles”, which collude software, military, design, etc... advertising is at its last through MSN and are consumed while chatting. They are throes, like never before. the main characters of this story and they know it. Advertising recently became aware that it never cared Advertising arrived late and had keep giving away spaces about the digital. And it was because it - the digital - was until the moment when there was no possible tactic left thought as something for garage geeks and annoying for traditional campaigns. nerds who only cared about Usability and User Experience. Greetings, Today it’s too late, we are taking possession of the industry Jorge Barahona to challenge everything, CEO AyerViernes SA 6 I’M DIGITAL 2010 Report on consumer experience in Chile

WHO SHOULD READ THIS REPORT? What’s the percentage of the annual advertising budget that I should reserve for the Web? Do my clients use social An invitation to all brands networks? Should I digitalize my brand or organization? Are you a communications team member? Then this report is How should I do it? These are some of many questions that aimed to you. The argument is simple: Today, as never before, professionals from all industries have every year meanwhile there’s been such a significant convergency in areas such as the clock ticks and your customers move away from you today: advertising, marketing, business, innovation, design, because they are digitalizing their lives and you are not public relations, strategic communications unite in order to noticing it. create integrated communications for your consumers life´s. This may be good or bad news, but customers co-exist in Leave behind Philip Kotler’s niche models, by joining the a digital environment, where the only ones who haven´t multi-platform conversation of your customers. Don´t seek for learned how to get into are trademarks. further arguments, your clients are already digital. You have to change now: the future is happening today. Yes, your customers are no longer talking about “the Internet” or “being online”, they forgot to “click here” and won’t read the “about us” section, they expect you to be entertaining, relevant in content, in connectivity and possibilities, in a valuable conversations and all of this, at a human scale. I’M DIGITAL 2010 Report on consumer experience in Chile 7

DIGITAL CONSUMPTION USERS ON MOTION 8 I’M DIGITAL 2010 Report on consumer experience in Chile

DIGITAL CONSUMPTION USERS ON MOTION The use of digital media is rapidly becoming more diversified, what once obligated us to sit at our desks to deal with, today we can handle and carry it for consumption where and whenever we desire. People have taken a leading role in the creation of relevant messages, their mobility hits in real-time and goes a step ahead of the listless reaction to traditional media. They became content producers and their role became blurred because of consumption, therefore, people themselves act today as agents of persuasion by linking brands to their interpersonal networks. It is no longer “a technology problem” that brands cannot relate with their users, because they are already talking to their peers about the experiences they are living minute by minute. A 47.9% of people recommended websites, videos or applications to their closer friends, 45% uploads photos and/or videos through different web services, and 34.7% manages or collaborates in blogs, website or forum; this speaks of avid users in the production and consumption of digital media. I’M DIGITAL 2010 Report on consumer experience in Chile 9

DIGITAL CONSUMPTION: USERS ON MOTION Relational Model Brand - Consumer NT T EN NT E EX PE CO NT RI G CO It must be relevant Should work on EN IN We welcome bidirectional communication, which is Mulit-platforms NT CE VE centered from and to consumers (now also producers). S IN RE Welcome to all experiences that transcend beyond thirty seconds. Our relational model proposes five steps and depicts how a brand must establish its communication so that it leverages experiences that help capture RELATIONAL MODEL best practices (and more consumers) through digital Stratify best niches BETWEEN THE Raise new insights interactions. BRAND AND THE USER N NE W SATIO CON Content VER SU N ME CO TS World of Mouth technique GH RS The content must be relevant and applied into strategic SI IN channels that avoid the disruption in the daily living of the consumer, providing and adding valuable conversations from beginning to end. The content is not always INFLUENTIAL associated to the brand and related by corresponding terms based on client´s interests, preferences, tastes, and activities. Consequently, the balance is not to overwhelm Figure 01: Relational Model between the brand and the user the message as traditional advertising does. 10 I’M DIGITAL 2010 Report on consumer experience in Chile

DIGITAL CONSUMPTION: USERS ON MOTION Experiences Influential Brands should look at technology convergence besides a Today, unknown stakeholders of great reputation are computer or cell phone, the goal is to create multi-platform evangelizing about certain brands, validating concepts consumptive instances, which must be selected based on through social instances where they share their the content. Experience is the message. comments and experiences. They are the ones that give bidirectionality to the message. Conversations New Consumers Consumers talk about brands even though they might not be literally present, this is because customers talk among They emerge from the influence of leaders, stratitified themselves to learn more about a product or service. Word in niches, expanding the target and demanding the re- of Mouth is a natural effect of experience and digital media invention of the brand’s communicational efforts. offers an opportunity to detect these conversations (good or bad) locating insights from the user to the brand. I’M DIGITAL 2010 Report on consumer experience in Chile 11

DIGITAL CONSUMPTION: USERS ON MOTION Communication on the move whenever they have leisure time and when moving from one place to another. Worldwide, the first billion mobile phones was sold in 20 years, the second billion took only 4 years and the third According to respondents, the barriers that hold back only 2; (1) whereas in African countries mobile penetration the expansion of mobile Web, are mainly related to is reaching almost 100% in Kenya more than 7 million the prices of Internet access plans that most of the people make up for the lack of banking resources paying companies offer. bills with their cellphones. 43.1% of those who don’t use mobile Internet We are not talking about a future estimation, but the perceive it is too expensive, also the first reason to present, and about the assets available to people. It access these services would be lower fares for 65.1% of is only a matter of time in Chile, before the 64.2% of people. (1) Chipchase, J. Mobile Phone & The Design of people who reported getting connected to the Internet Mobile Money Services for Emerging Markets via mobile phone, grows even more. The most recurrent situations of people connecting through their mobile devices are related to particular contexts of use: 42.9% gets connected in emergencies, 41.7% when waiting for something or someone and more than a third of respondents, when they have something important to say or review, (1) Chipchase,J. Mobile Phone & The Design of Mobile Money Services for Emerging Markets 12 I’M DIGITAL 2010 Report on consumer experience in Chile

9 FACTORS THAT DEFINE A GOOD CONSUMING EXPERIENCE 13 I’M DIGITAL 2010 Report on consumer experience in Chile

The first rule you must follow when we want to know people’s behavior, is that we cannot conceive them separately from their consumption practices; even more if we reduce the definition of such practices only to the acquisition of certain assets. To understand consumer experiences holistically, we must consider that this field encompasses far more issues than the mere purchase of the good and includes factors as the creation of the necessity, triggering purchasing desitions, levereging rich browsing experiences, product’s use and disposal. 14 I’M DIGITAL 2010 Report on consumer experience in Chile

THE 9 FACTORS DEFINING A GOOD CONSUMING EXPERIENCE From free recommendations that the 782 respondets made about the best online stores that offer —of course— 1. Intelligence a better shopping experience, we identified 9 factors that reflect the key aspects that influence people leveraging 2. Interface a successful Online. 3. Variety Consumer Experience. These are the 9 fundamentals that should support all digital structure that deals with some 4. Trust kind of interaction with consumers, being its appropiate implementation the starting point to establish the 5. Speed conditions for optimal consumer experience. 6. Price 7. Information 8. Security 9. Payment Methods I’M DIGITAL 2010 Report on consumer experience in Chile 15

9 FACTORS THAT DEFINE A GOOD CONSUMING EXPERIENCE 1 Intelligencer: 2 Interface: Do you know the customer? Can you anticipate his or It was the aspect that people attributed greater her interests? If you do, you can provide an optimum importance since it is the visible face of all the processes experience and come in a closer relationship with your and it can heavily affect user experience. consumers by knowing their tastes and being able to present a fresh offer that they can be interesting for them. Cumbersome and aesthetically unappealing interfaces project lack of processes transparency and therefore Knowing to offer with assertiveness (what and when) and mistrust. creating a navigation with contextual elements of value has a direct influence on the volume of products that users Good interface design involves —in addition to reflecting will purchase. Profiling customer’s interactions is about to a particular look & feel— offering all necessary elements taking into account their digital footprint as a model of with proper emphasis, and by doing this, constructing their intent, desires and necessities and being able to react better interaction between customers and your service to them. and outcomming all possible barriers that could alter the normal flow of online consumption. 16 I’M DIGITAL 2010 Report on consumer experience in Chile

9 FACTORS THAT DEFINE A GOOD CONSUMING EXPERIENCE 3 Variety: 4 Trust: One of the key advantages of digital spaces compared Transparency and support of an online store are the two to companies with a physical presence, is their ability to concepts that can leverege consumers’ trust of a brand. have virtually unlimited stock which implies a far greater From here, you can generate responsible “bonds of trust” provision of products and services that may offer. with the consumer during the online experience. Market breadth is the advantage, reaching segmented Many seek the support that offers a recognized brand audiences with more specific tastes and needs, plus or company, but this is not enough because the image the ability to cover a smaller but loyal niche. The digital is not based entirely offline. Its projection and its face- economic model implies offering a rich variety to meet toface customer relation model may not be a reflected specific tastes, over exploitation of selling high volumes. accordingly in the digital environment. Another relevant Variety then allows a much more accurate segmentation; its aspect related to trust, is the emphasis that should exist no longer complete a store that is focused on certain target in the implied promise made by each company while audience, but niche products are those that modulate the interacting with their audience, seen in the after-sales audience that consumes them and in turn the re-informs service, logistics, consultation, support and guarantees the future product inventory to offer. delivered so as to reduce uncertainty with adequate feedback between purchase and final product delivery. I’M DIGITAL 2010 Report on consumer experience in Chile 17

9 FACTORS THAT DEFINE A GOOD CONSUMING EXPERIENCE 5 Speed: smarter decision-making. The consumer seems to assume that online prices include some sort of discount, so it might The importance of speed lies in two aspects: one linked be interesting to determine the ammount that must be to the logistics company to operate the activation of a discounted to encourage consumption according to a purchase and the second on the speed with which the stratified user model. site allows them to interact... how many steps must be followed? This is intrinsically related to interface design and the built environment to promote a logical experience, easy and natural. 7 Information: The level of detail on the products: pictures, videos, comments and ratings from other buyers, external reviews, 6 Price: links, among others, affect the reliability, as consumers seek approval relating to acquisitions. Another important How much consumers pay online v/s shop offline? Here aspect is the information on after-sales, ie estimates of are relevant customer expectations about how prices delivery time and tracking of shipments, anything that should be treated. involves transparently reveal the status of products and monitoring. Prices and costs should be explicit, clear and Although it is more a factor of the business model than transparent. If there is enough information and is well the experience itself, in general, the perception is that presented, decreases and increases distrust the willingness the lower prices are an important incentive for online to consume. consumption, you can find better deals online and comparison affordances exists to guide and support 18 I’M DIGITAL 2010 Report on consumer experience in Chile

9 FACTORS THAT DEFINE A GOOD CONSUMING EXPERIENCE 8 Security: 9 Payment Methods: One aspect which is presented as a major barrier to entry People mention payment method as one of the significant for consumers is the security, expressed in the field of factors that make shopping easier, which has to do with online payments, primarily credit cards. the site’s commercial policies. Many users that recommend certain retail stores, based their choice solely on the fact The perceived safety when interacting with digital media that they needed to have credit cards to buy, since they companies and the projection of confidence associated, could use the corporate credit card that these big stores is one of the most relevant aspects for the consumer that provide and offer as another payment alternative. could stimulate or inhibit consumption. In essence, it is clear that more diversity in the ways to make the payment is relevant to the client, so it must be considered and to offer various options, particularly to provide an alternative to consumers who do not have traditional bank credit cards. I’M DIGITAL 2010 Report on consumer experience in Chile 19

THE EXPERIENCE MODEL FOR THE DIGITAL CONSUMER 20 I’M DIGITAL 2010 Report on consumer experience in Chile

The Digital Consumer Experience Model is based on the need to define the standard flow for the customer/service interaction. Understanding that individuals and their purchase experience is not limited only to a digital space, provides a wider vision identifying significant milestones that shape the flow of interaction that considers both online and offline aspects. I’M DIGITAL 2010 Report on consumer experience in Chile 21

THE EXPERIENCE MODEL For the Digital Consumer Figure 02: Common Problems Most buyed RE O O NL Non-supported credit card Although the model represents NE ST IN is technology, electronic LI E E IN Lack safety TY equipment, airplane / bus / train ST NL a sequential process, it doesn’t O LI tickets and shows tickets Extra charges and fraudulent O RE BI SI use of credit card VI PURCHASE SUP PLY DECISION TRAN necessarily reflect the precise AL SAC Recurring Problems ERN TIO INT N behavior for all users when Excessive advertising, intrusive and out Common Problems of context CHOISE OF WHAT HELPS? HOW DO YOU PAY? ACTIVATION Missed deadlines consuming online; this SPAM THE PROVIDER User reviews, Usually with a credit card, REQUEST Product features that do not comparison with similar products, description of but department store cards, electronic transfer correspond to the real product overarching model depicts all 93,3% Bloggers and other or with the delivery The product never arrives gets informed over the media and relevant factors with blury G IN Internet before buying product pictures R boundaries and constant FFE EO WHERE TO BUY? WHAT DO YOU NEED? FRE Amazon, Falabella, Ebay and París This part of the process is invisible to the user, flow, specilly blury between so the feedback is essential WHAT ABOUT CHILE? for his peace of mind Positioning and the Choice of LAN, Falabella, Ninguno and París ONLINE ONLINE the Supplier. OFFLINE POSITIONING DELIVERY OFFLINE 80,2% have made online purchases 22 I’M DIGITAL 2010 Report on consumer experience in Chile

ACCURATE POSITIONING AND SUPPLY Asking users “which store offers the best shopping Although no major differences exists between the experience?” Of all who responded (599), Amazon.com interfaces of the different competitors, there are many was ranked first for the second consecutive year (2) within alternatives that could explain this phenomenon; including all considerations with 198 mentions. By far, though again branding, but mainly we suggest two: firstly, trust in in second place, Falabella got 82 mentions. Why is this the brand that transcends the digital realm, and second, store (Amazon.com) better regarded than its direct local enormous technical and marketing efforts, both offline competition? and online to spread the brand through various channels AMAZON.COM 198 through which people relate with. The 8 stores recommended by users FALABELLA 82 eBAY 55 Recommendations by users compared to 2008 PARIS 44 AMAZON.COM 198 PCFACTORY 37 FALABELLA 82 MERCADOLIBRE 35 EBAY 55 33% LAN.COM 26 PARIS 44 22.9% Z-MART 13.7% 13.6% 12 PCFACTORY 37 8.4% 7.3% 599 RECOMENDACIONES 2.2% 2.9% MERCADOLIBRE 35 YEAR 2009 AMAZON.COM FALABELLA PARIS LAN LAN 26 YEAR 2008 Z-MART 12 599 RECOMMENDATIONS Figure 01: Shows the Amazon undisputed leadership according to Figure 02: Represents the recommendations between 2008 and 2009. consumers (2) See previous year results: http://tinyurl.com/encuesta-digital2008 I’M DIGITAL 2010 Report on consumer experience in Chile 23 AMAZON.COM 198 FALABELLA 82

ACCURATE POSITIONING AND SUPPLY Without doubt, offline advertising is an important factor in brand building and occupies a prominent place in the What’s the status of digital stage of “free offer”, it acts as a bridge between the advertising? positioning and choosing of a provider. It also helps to Four of the first problems encountered when using Inter- build presence and, hopefully, links people’s needs with the net have to do with the stage of Supply Model and the offering by placing advertising in places where users spend first three are directly concerned with advertising, inclu- most of their time. ding: 1) Invasive Ads The 6 main actions performed by users on the Internet 2) SPAM CHECK MAILS 93,0% 3) Excessive Advertising FINDING INFORMATION 91,1% READING NEWS 81,0% SOCIALIZING (FACEBOOK, FOTOLOG, ETC) 79.2% FILE DOWNLOADING 73,89% INSTANT MESSAGING / CHAT 72,9% Figure 03: Showing 6 of the 21 most frequent activities people perform on the tInternet. 24 I’M DIGITAL 2010 Report on consumer experience in Chile

ACCURATE POSITIONING AND SUPPLY The 5 major problems when navigating Similarly, statements that represent the views of users about digital advertising, are: 1) 40.8% “I think it is excessive” 5.3 % 9.7 % % 2) 36.6% “I do not see” 5 4 4 33. .3% ng ed tisi g spe urces 61 .4% Adver sin So ds e A M 58 ssive w le 3) 34.6% “usually not related to the context of what I’m v asi SPA bro iab Inv Ex ce Slow Unrel doing on the Internet” The feelings about online advertising GIVES ME AN ANSWER TO WHAT I AM LOOKING FOR 2.7% KEEPS ME INFORMED ON TIMELY PRODUCTOS OR SERVICES 11.3% I THINK IS NECESSARY 23.6% GENERALLY NOT RELATED TO THE CONTEXT OF WHAT AM I DOING ON 36.1% THE WEB Y DON’T SEE IT 36.5% I THINK ITS JUST TOO MUCH 41.4% Figure 04: The 3 primary considerations of a total of 12, have to do with any kind of digital advertising. Figure 05: Describes the association of advertising mainly negative attributes. I’M DIGITAL 2010 Report on consumer experience in Chile 25

ACCURATE POSITIONING AND SUPPLY These statements plotted a precarious situation in which brands promote their products and services through various Why is the Amazon.com case so digital channels, specially when the site offers options important? appropriate for its modular offerings, monitor and direct a particular niche, involving a more assertive proposal to In digital spaces, the number of competitors expands, and consumers (knowing what, how and when). the consumers no longer navegate only the local market but international stores as well. They willing to persue the The current situation has to do with a medieval concept of best offer no matter the country limits. All shops in the digital advertising, wanting to dominate a larger area (wide world fit into a browser and the restrictions that might segmentation), become disproportionately larger and try to inhibit the purchase have no longer to do with the cons- draw attention instead to concentrate efforts in the niches traints of local versus the foreign market, but with the that it is relevant and faithful. factors that establish the conditions for a positive user experience, say: usability, accessibility and a design that contain all elements that stimulate the buying process. From this perspective, the shopping experience genera- ted on Amazon.com is a reference for every user who has bought or simply browsed through this site. Due to precision filters, recommendation, cross-selling, —stratification, among other features— make that huge inventory of goods as intelligent as it can be for each user. 26 I’M DIGITAL 2010 Report on consumer experience in Chile

Opportunities for brands: Propose assertively, finding competitive advantages, anticipate to specific niches with consistent offers. Intelligent recommendation filters based on purchasing patterns and navigation behavior to achieve customer needs Profiling, being aware of the particular nature every single digital consumers in some way self-defined by its consumption behaviors Taking position through the generation of relevant conversation fields guided by the brand Creating brand engagement based on good knowledge of customers I’M DIGITAL 2010 Report on consumer experience in Chile 27

ENCHANTMENT AND ENCOURAGING THE DECISION Linked by domestic supply and limits of the online store Products and services purchased by users that consumers chose as suppliers, this space becomes crucial to pass two lines that deal with important decisions: first, trust in the supplier or product that you want to buy TECHNOLOGY 65,4% and second, the option of initiating a transaction at the ELECTRONIC EQUIPMENT 55,4% respective store. AIRPLANE / BUS / TRAIN TICKETS 50,8% What do they consume? SHOWS TICKETS 39,0% BOOKS / MAGAZINES 35,0% Among the products or services that most users have purchased over the Internet we have first technology, Figure 06: Technology, electronics and airplane / bus / train tickets are the electronics and plain / bus / train tickets. items users buy most 28 I’M DIGITAL 2010 Report on consumer experience in Chile

ENCHANTMENT AND ENCOURAGING THE DECISION A positive correlation is found between the purchase of of companies, tending to fade the line between producers tickets and the high value that has LAN.com 1 within and consumers. Chilean online stores (see figure 16 on page number 56). It’s all about empowering the capacity of people to act Certainly the concern of LAN.com for user experience is as influents and to develop relevant rols withing the superior to other sites, while providing a solid platform for productive processes Empoderizar It is the capacity of transactions that do not necessarily have to do with the people to act as influencers and relevant actors within the purchase, but also harmless transactions. productive processes of the marks. The aim is to create collaborative services, which need the direct and active In this sense, the interface and information design participation of all stakeholders - including end users. promotes an accurate and informed decision, showing clarity and projecting confidence in forthcoming stages - Friends, family and coworkers’ opinion are infuential interal offer, transaction and logistics information to people. It is of tremendous importance to consumers, specially because one of the biggest barriers is the confidence in online shopping mode. Wene someone of their peers or related circle purchase, it gives them Which elements build incentives to break the barrier. confidence in users? To create effective interfaces that encourage a purchase Looking a bit beyond the digital domain, we see that the decision, there must be certain conditions, in addition to relations between the users and the brands have changed. delivering tools that create an atmosphere of confidence People ought to occupy a central role within the strategies and trust among the navigators. I’M DIGITAL 2010 Report on consumer experience in Chile 29

ENCHANTMENT AND ENCOURAGING THE DECISION Moreover, when 58.1% of people stated commenting on social networks and 47.9% recommended sites, videos or applications to their friends, which tells of a growing trend towards involvement and building relationships influence, extolling the active role they are taking people on consumption. Your customers already antici- The factors that influence a purchase decision pated (and in real time) Users are more agile and proactive as what the brands USER COMMENTS 77,5% belive they are; users have a relationship with the products COMPARISON WITH within every second that last longer than the traditional 71,7% SIMILAR PRODUCTS BLOGGER’S OR INDEPENDENT 30-second ad. So probably most of the technology 59,9% MEDIA DESCRIPTION and electronics products available in traditional online IMAGES 51,7% stores have been already reviewed, described, rated and USER RATINGS 43.4% commented by any person or independent mean, which SITE’S DESCRIPTION 41.1% means that currently interfaces to support the buying VIDEOS 24.9% decision are highly inefficient, while people have to go MOST REQUESTED PRODUCTS 24.1% elsewhere to seek information in order to preform the purchase decision. Figure 07: 77.5% of people value the comments of other users as references for approval to make a purchase decision 30 I’M DIGITAL 2010 Report on consumer experience in Chile

ENCHANTMENT AND ENCOURAGING THE DECISION Thus, not being alert to real time behavior of the users, with attention and monitoring according to this Transaction dynamism means losing important opportunities for both The link between the purchase decision and the activation business and optimizing customer relationships. order landmark, is the transaction; and is in this section of the process that probably mosts purchase discourage Although 80.2% of people have purchased over the occurs. Internet being that a significant percentage is even a greater proportion of people (93.3%) that have looked for The main reasons why electronic commerce purchase information of product through Internet before making loses the realization at this stage, have to do with the any purchase decision, which gives the digital content a incompatibility of browsers and operating systems that benchmark tool of high value do not support the shop where they want to buy (26.1%, has had this problem). In addition 24.7% of users expressed lack of feedback regarding the transaction, which promotes the uncertainty of the users and generates mistrust, two factors that discourage consumption and erode the relationship with the store. I’M DIGITAL 2010 Report on consumer experience in Chile 31

ENCHANTMENT AND ENCOURAGING THE DECISION The problems of online shopping How users pay I HAD NO PROBLEMS 39.8% CREDIT CARDS 66.8% BREACH OF DELIVERY 29.1% PAYMENT PLATFORM (SERVIPAG, WEBPAY, PAYPAL, ETC) 56.5% DELIVERY FAILURE OF YOUR BROWSER INCOMPATIBILITY WITH OPERATING 26.1% ELECTRONIC TRANSFER 52.8% SYSTEM IN USE OR LACK OF FEEDBACK ABOUT THE TRANSACTION 24.7% DEPOSITS 29.1% PRODUCT FEATURES DON’T REFLECTED REALITY 12.2% GREAT SHOPPING CARDS 22.7% CREDIT CARD WAS INCOMPATIBLE WITH THE SITE 12.2% ON DELIVERY 18.4% LACK OF SAFETY CONDITIONS 10.3% NOT RECEIVING THE PRODUCT OR SERVICE 8.2% Figure 09: Means of payment used by users PRODUCT DAMAGED OR WRONG STATE 5.6% CARD CHARGES HIGHER THAN TO BE 4.8% DOUBLE BILLING 4.5% FRAUDULENT USE OF CREDIT CARD 1.2% Figure 08: Main problems encountered by users when making purchases online 1.042 CONTESTADAS 32 I’M DIGITAL 2010 295 SIN CONTESTAR Report on consumer experience in Chile

ENCHANTMENT AND ENCOURAGING THE DECISION What elements destroy the Other problems that user survey and inhibiting digital consumer are: confidence of the consumers? Products that do not correspond to reality shown in If we consider the reasons why people have not shopped the offer stage (see figure 08 on page 32) online, we see that 43.8% feel that the system does not give security and does not give confidence. This show an Incompatibility of the site and the browsers or unfinished work of online stores to stimulate the digital transactional problems (see page 31) consumer, which is about to propose basic safe and friendly interfaces. It must provide solid space generating a positive Credit card incompatible with the site experience, which is the first step towards strengthening the percentage of people unfamiliar with the procurement Lack of safe of goods through the website. Charges on the card different of what the site shows Fraudulent use of credit card Double billing I’M DIGITAL 2010 Report on consumer experience in Chile 33

Opportunities for brands: Deepen and broaden the relationship with audiences, people leave their practices reflected in consumer interaction with digital watermarks and thus becomes a task for the brand observing these insights and propose accurately and assertively satisfying customers needs. Consider consumers as partners, co-construct with them the digital strategies of the brands included to encourage new and more powerful influencers. People are taking their time to interact with the companies, so that it is for brands to promote discussions of value and know how to listen. Create interfaces that encourage consumption, which reduce mistrust and uncertainty. 34 I’M DIGITAL 2010 Report on consumer experience in Chile

LOGISTICS AND REDUCTION OF UNCERTAINTY The success of the stages of delivery and logistics, are the material expression of what was previously acquired. more related to offline internal processes than with the The user has no choice but to surrender to the logistic interface and direct user action. In this scenario, brands system of the the company and hope that within the time should generate instant reports of the status and location specified, the product he bought will be delivered to his of the order to convey confidence, display this information door. and give the users the possibility to claim their rights as consumers and enforce, for example, the delivery 60.2% of users reported having experienced one or more commitment of company. problems to make a purchase online, a figure that depicts the strategic digital immaturity of the brands and the poor consumer experience that is offered at most sites. Commitment of the brand, Moreover, knowing that within 9 factors that users consumer confidence identify as relevant to the digital consumer, two have to do with safety and confidence. Since the activation order a line of visibility is passed that By specifying the main obstacles that consumers have establishes a new relationship with customers: people no found in their shopping experience, approximately one longer have control over the purchase, emerging a bond of third of respondents (29.1%) stated that the failure trust and bidirectional commitment with the business. fulfilling with the deadlines committed by the offeror was In the delivery stage we’re able to see more explicitly the a serious problem. integration of a complete model that includes digital and A quarter of the respondents identified as a necessary physical spheres. It is a relevant contact point because it is impediment to the lack of feedback on service delivery I’M DIGITAL 2010 Report on consumer experience in Chile 35

LOGISTICS AND REDUCTION OF UNCERTAINTY during the logistics process (24.7%). To a lesser extent (12%), but equally important, the receipt of a different product or with other features not shown by the original purchased piece, followed closely (8%) by nonreceipt of the product, create impediments to making the purchase in stores Online. View Graph No. 08 on page 32. 36 I’M DIGITAL 2010 Report on consumer experience in Chile

Opportunities for brands:r Comply the implicit promise to deliver an order without problems, resulting in increased confidence in the processes offered by the brand and icreased loyalty of the customers. Stimulate consumption and promote the digital medium as aneffective channel for online shopping, focused on reducing costsand customization. I’M DIGITAL 2010 Report on consumer experience in Chile 37

METHODOLOGY The following report collects information about trends Media sites used as difusion: and changes in the Internet use in Chile. In essence it FayerWayer.com examinates the habits of Internet users and gives an DaleAlbo.cl overview point of where new trends are going. Zancada.cl 192.cl If we wanted to sum up this study in one question, it would be: How does the chilean people use the Internet? PolíticaStereo.tv IAB.cl The exposure of the survey took place between August 10 tuvidasana.cl and 13 October 2009, released in digital media or web, tecnoblog.cl which enables a large number of users involved. Now we’ll educablog.cl show the detail of some figures obtained as a result of this maqueros.cl report: Twitter Polls validly answered: 1339 datoblog.cl Confidence level: 97% MercadoCapital.cl Erresese.cl Error: 3% Vaquelita.cl dokshor.com jbarahona.com Yukei.net Facebook 38 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS FIGURES ANNEX AND COMPARATIVE ANALYSIS I’M DIGITAL 2010 Report on consumer experience in Chile 39

The following pages gather the results of each questions asked on the survey, described qualitatively in order to support the analysis related to digital consumer experiences. You can find a high quality version of each of these graphs in AyerViernes’ Flickr. The content of this work has been created under a Creative Commons “Attribution-Noncommercial-No Derivative license”. So, feel free to copy, distribute and transmit it according to the license conditions. 40 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS For the second consecutive year, Amazon.com takes the first place within the preferences of users who consider 1.Which site offers the best shop- it as the store that offers the best digital consumer ping experience? experience. Over the last year, Amazon.com had a considerable increase in its sales percentage, while Falabella kept the same percentage according to the AMAZON.COM 198 user´s preferences. This trend demonstrates the leadership position of an international store compared to any other FALABELLA 82 chilean actor and announces the clear strategic vision that EBAY 55 this store has in relation to its other digital businesses. The following graph shows the changes in the percentage PARIS 44 related to each of stores compared to year 2008. PCFACTORY 37 MERCADOLIBRE 35 33% LAN 26 22.9% 13.7% 13.6% Z-MART 12 8.4% 7.3% 2.2% 2.9% 599 RECOMMENDATIONS YEAR 2009 AMAZON.COM FALABELLA PARIS LAN Figure 1 shows the undisputed leadership of Amazon according to consumer’s prefe- YEAR 2008 rences AMAZON.COM 198 FALABELLA 82 I’M DIGITAL 2010 Report on consumer experience in Chile eBAY 55 41 PARIS 44 AMAZON.COM 198

SURVEY RESULTS 2. Since when do you use the Preliminarily, the difference between the years 2008 and 2009 in the first 3 groups seems to be too small to Internet? establish a trend and confirms that the numbers of users have considerably grown, nevertheless, each year it is % closer to the total of population. ears 26.8 1% 6y yea rs 9. 4 to to 4 7% 2 rs 1. However, there is a second interpretation based on the 2 yea 1.1% 1 to ear than1y thinking of a parallel development between the Internet Less (medium), the different industries(organizations) and the users; a place in where all of them have been able to perceive the changes as much in platforms and digital tools as in the rise of new social networks, digitization of brands and organizations in recent years. n6 years Mor e tha % 61.3 1.333 CONTESTADAS 6 SIN CONTESTAR Figure 02: The majority of the people polled have been users of the internet for over 6 years. 42 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 3. Frequency of Internet accesst 4. Activities carried out by people when they are connected to the Internet Several times a day 95,7% CHECK EMAIL 93.0% Once daily 3,1% INSTANT MESSAGING / CHAT 72.9% Some times a week 1,0% GAMES 34.8% JUEGOS A few times a month 0,2% SEARCH 91.1% Never or rarely 0,1% FILES DOWNLOADING 73.8% VIDEO WATCHING 65.8% Figure 03: 95.7% of all the internet users access Internet more than once COMMUNITIES / FORUMS 49.3% daily WORK RELATED ACTIVITIES 52.5% ACADEMIC ACTIVITIES 54.5% 60.8% In this question, it is easy to see a bias because of the fact that WATCH PHOTOS BUY 35.2% 95.7% corresponds a group of intensive Internet users that NEWS READING 81.0% have increased their participation and have become active users GENERATE CONTENT ( i.e. UPLOAD PHOTOS) 50.9% increasing their internet access several times daily regardless of SOCIALIZING NETWORKS (FACEBOOK, FOTOLOG, ETC) 79.2% the purpose(to work, search or interact with other people). FIND A JOB 21.7% BANK TRANSACTIONS 52.2% CHECK BANK ACCOUNT 60.0% BLOGS READING 60.0% LISTEN TO MUSIC 57.9% FEEDS READING (RSS) 35.7% INVOICES PAYMENT 43.1% Figure 04: The 93% of people check their mail, as one of the most recurrent activities to connect to the Internet I’M DIGITAL 2010 Report on consumer experience in Chile 43

SURVEY RESULTS The table above shows very well the intensity of the various organizations and media have positioned themselves internet uses between the people polled. Though activities thanks to social networks which have probably helped to like checking e-mails, searching information and reading the democratization and their use. the news are in the top of the ranking, one of the most important aspects is the intensity of social networks use; take notice that 79.2% of people polled declare to use the 5. Problems presented while Internet to interact with other people. This percentage people surf internet is important if it is considered that social networks have increased their presence in our country in these last 2 or 3 9% years focusing mainly on Facebook and Twitter. The level % 21, % % 9.7 % 8.5 3.4 d4 .6% y 5.3 s1 le 3 pee 22.3% rs 10 ntialit ess 5 site reliab of penetration reached by these networks in a very short ne ns ie e c ble ctio curity e barr on d ing ex 2.6% .4% hensi re no t 61. 3% 3.9% 1 y2 7.5 % f se guag k of c vertis uses 3 M 58 ompre rces a con o sive shing* wser tibilit time is similar to the place taken by news sites and is not Low Lack Lan Lac Ad Vir SPA Inc Sou Intr u Phi Bro ompa inc far from the use intensity level neither of emails nor of search engines. This trend was present in the same survey conducted in 2008 where the item “socializing” took the fifth place as one of the most requested activities carried out by users, and then, a year later would take the first place. It gets interesting to know what is the level of presence and how brands, Figure 05: The first 3 points from a total of 12 are related to some kind of digital advertising. *Phishing 44 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS Compared to year 2008, problems experienced by users are quite similar. Users continue detecting the presence 6. User perception of online of advertising quickly which impede to have a fluid advertising navigation. Advertisers are looking for new instances of GIVES ME AN ANSWER TO 2.7% WHAT I AM LOOKING FOR communication through new digital formats (multi • platforms) but still use the classic advertising features KEEPS ME INFORMED ON TIMELY PRODUCTOS OR SERVICES 11.3% that pretending to be something else. Maybe the biggest problem is not creativity, but rather the need to generate I THINK IS NECESSARY 23.6% stratified communication with the different types GENERALLY NOT RELATED TO THE ofexisting users. CONTEXT OF WHAT AM I DOING ON THE WEB 36.1% This challenge was born in traditional media, but Internet Y DON’T SEE IT 36.5% has opened new doors thanks to its ability to create micro- segments, though advertisers and media still maintain the I THINK ITS JUST TOO MUCH 41.4% relationship of massive communication centrated on many similar users not considering digital efforts. Figure 06: User perception in relation to online advertising. Image Text I’M DIGITAL 2010 Report on consumer experience in Chile 45

SURVEY RESULTS For most users, online advertising is just excessive and interrupted with new offers on every click that they do. it is not related to the activity that they are doing. On the other hand, the 36.6% of people polled declared not Finally, a small group feels it is relevant and even positive. see online advertising. These 3 points above show that In general, they are agree with ads of the page where they online advertising begins to be rejected by people polled, are browsing while they inform about special promotions and finally not reaches completely its purpose of informing, or discounts related to own products. and even less to reduce the communication gap existing between audiences and advertisers. Here, we turn to the initial problem what is the level of segmentation chosen for some types of promotions and It is because of them that users declare to block pop-ups how important can be for the users have a stratification so in order to avoid publicity which is in general boring and wide. unremarkable, and for others the way it appears is simply “disrespectful”, comparing it to the “second 31 of a commercial” that just seeks to encourage, in a synthetic and inappropiate way, ads created for traditional media. Others, however, recognize that online advertising is a “necessary pain” represented in this survey by 23% of people polled who selected this option. A “necessary pain” that is useless because makes people less receptive to online advertising who only want to continue shopping or informing themselves without being 46 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 7. Activities carried out by The main activities undertaken by users in social networks are related to media like watching videos, uploading people in social networks and downloading images and reading blogs known as the main Social Media formats. We should think that the intensive use of these social platforms is favourable because they provide a good place to put advertising, .4% 9 6% ging) 3 allowing in many cases to have a better knowlegde of the 34. 7% 38. 9% ki ng ze, tag 47. etc ds for u m, 1 % 58. .9% or thin tegori y fr ien 1.9% 3 users’ preferences. ite, ng n (ca to m orks ebs tos 6 % doi io % pho rces 6 t 45.0 t i’m i cat 0.2 ations netw g, w deos, u e a s t7 c l ab lo i so tern wh n cla terne r apli soc ia 9.3 % s, v t re in ay w n This is the case of Facebook. Through its advertising ith um enden os to ad y o s on i os o ses on os1 .7% te w , for p e nce er m t o v ide u v ide 6 ibu log s e d o ind tos, vi least te und s, ph o s, ca and above e/ con tr nb nd o t nt o blog a ad ph cast a favo h vide ri o site ps or end grou cts odu of th e system it allows to do segmentation using different nag me plo Broad Keed Watc Recom Join t m o pr Ma C om R ead U R ank N one variables as interests, activities and preferences, though it can not still be well used as it presents two main problems. (1) Not all users complete their profile, which makes difficult to choose correctly targets. (2) Many advertisers still prefer to gain wider audiences ensuring a big participation rather than being loyal to just one niche. Another major advantage of social networks is that, as Figure 07: Represents the level of collaboration and use of social networks Figure 07 shows, many people use them to recommend I’M DIGITAL 2010 Report on consumer experience in Chile 47

SURVEY RESULTS other sites to their friends, people with who they usually have common interests and where trust is important to 8. Using the Internet to make a validate the information before taking any decision. purchase decision This effect, typical of the known as “Word of Mouth”, become a digital space more linked to “The Word of Mouse”, where users recommend, relate, validate, tag via Internet, a place where conversations are open and honest, No 6.7% but also, where many organizations still do not are willing to hear the dialogue of markets, increasing the distance between them and their users / consumers ignoring the convergence of multi-conversational platforms existing today, returning to one-way type of communication. 3 % Ye s 93. Figure 08: 93.3% of users have made their purchase decision based on the information obtained in the internet 48 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS Regarding the previous question, it virtually remains the same proportion than last year, increased slightly but not 9. Have you purchased online? enough to claim that there is a substantial increase in the number of people who query, verify or get information online before buying. Comments, voting, rankings are some of the features that 80.2% have bought something at least enhance purchase decisions on the Internet. As they once develop better eCommerce services (including variety of inventories and better recommendation filters) experience will be enhanced. These services will probably lower their function as mere information channels to become totally transactional services, filling the big gap between product search and delivery. Figure 08: Shows the number of users who report having ever purchased on the Internet I’M DIGITAL 2010 Report on consumer experience in Chile 49

SURVEY RESULTS In connection with purchases online the proportion is virtually unchanged from a year earlier, being a 80.2% the 10. Items that users value to number of users who have ever shopped online. make a purchase decision While this number should increase in coming years through the digitization of the buying process, the first impulse should come from the same stores to achieve a complete IN-SITE DESCRIPTION 41.1% experience (based on the answers given by respondents). USER REVIEWS 77.5% DESCRIPTION OF A BLOGGER OR INDEPENDENT MEAN 59.9% COMPARISON WITH OTHER SIMILAR PRODUCTS 71.7% VIDEOS 24.9% IMAGES 51.7% USER VOTES 43.4% RANKING OF THE MORE DEMANDED PRODUCTS 24.1% Figure 10: 77.5% of people value the comments of other users as references to make a purchase decision 50 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS As we´ve seen in the qualitative analysis, the information better replicate the physical shopping experience that held by customers on products is one of the most usually the consumer contemplates several alternatives important variables to consider in assessing the online and weigh their properties according to its own scale of consumer experience that gives them a particular store. assessment. Again becomes relevant the views of their peers as a source of validation, given the sincerity with which itoperates. Most of the renouned international stores have promoted transparency by creating spaces for open conversation, voting systems, recommendations, ratings, among others initiatives with the goal of delivering tools, more real than a Focus Group, and even take more relevance to the stores —depending on the degree of commitment that exists in wanting to improve your shopping experience— but also helping to redirect business model of a store. This can be illustrated when a user generates a comparison with similar products, which some sites can do, delivering a simplified comparison chart. One functionality, that to the eyes of a user is minimal, could improve the experience because the system could cross more data of the purchase behavior through special filters - functionality that allows I’M DIGITAL 2010 Report on consumer experience in Chile 51

SURVEY RESULTS 11. Products purchased online The ranking is virtually unchanged as in 2008, where technology and electronics products are the strongly leading the preferences, followed by plane fares and AIRPLANE TICKET / BUS / TRAIN 50.8% show tickets. This suggests to ask what’s the development HOLIDAYS PACKAGES 7.5% status of each of these industries with the highest level of SHOWS TICKETS 39.0% e-Commerce demand. TECHNOLOGY 65.4% APPLIANCE 15.7% In general, the products that require more details or a shopping experience more akin to the face-to-face FURNITURE 12.0% (clothes, furniture, etc..) are less popular, though there is FLOWERS 12.5% an important amount of users who have purchased these ONLINE HOTEL BOOKING 23.9% items through an e-Commerce site. MOVIE TICKETS 24.5% MOVIE RENTAL 19.0% Online stores such as Threadless.com are mentioned CAR RENTAL 4.8% by users, as they felt it offered the best online consumer FINANCIAL PRODUCTS (i.e. CREDIT) 16.4% experience for their excellent inventory, level of FOOD 14.8% customization, good prices and safe delivery. GIFTS 31.5% BOOKS / MAGAZINES 35.0% CLOTHING 3.5% ELECTRONIC EQUIPMENT 55.4% Figure 11: Technology, electronics and tickets are the items that most people buy. 52 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 12. Number of online purchases 13. Which one (s) of these tran- in the last 3 months sactions have you made by Internet? % 4.5 % .3% 3.5% 4.0% more 1 15.8 22 -3 3 -5 1 57 .1% One 2 4 or 6 one N .1%7 4% )5 gas 51. 29. 4% % ter, me nt 0.8 wa pay ent n1 ht, ym (lig vi ces % 9% ys pa ctio nt 9% nsa me ser 9.0 76. Highwa 64. tra es pay eph one 9.6 % rk 3 ctio ns tion ea ny wo ed erv ic Tel an1 ape r ans a sio n lara tm ad ic s le / k lo al p k tr ces dec en’ Bas Cab Ban Leg Ban Con Tax Hav 244 Figure 12: 33.5% of people have made a purchase online in the last 3 Figure 13: The largest percentage of transactions has to do with banking months issues I’M DIGITAL 2010 Report on consumer experience in Chile 53

SURVEY RESULTS 14. Payment methods used by In this aspect there are strong changes versus 2008. The number of users that state use credit cards to buy grows people 39.9% to 66.8%. The use of payment platforms is also elevated, possibly by CREDITS CARDS 66.8% a greater knowledge of the use thereof by the user and DEPARTMENT STORE CARDS 22.7% also the companies have promoted the online paymento, helping to relieve the crowded sotres and cashiers by ELECTRONIC TRANSFER 52.8% automating the processes and decreasing maintenance ON DELIVERY 18.4% costs associated with personnel, infrastructure, materials, DEPOSITS 29.1% among others. PAYMENT PLATFORM (SERVIPAG, WEBPAY, PAYPAL, ETC) 56.5% This change can be contrasted with the first version of the survey where 2008 was 23.5% and in 2009 growing at Figure 14: Means of payment used by users 56.5%. The electronic transfer also appears to have experienced a considerable increase, from 21.7% to 52.9% which is clearly a positive sign for the bank in its looking for digitizing their processes. 54 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 15. Problems encountered when We can see that the main problems that users have are related to interface design, an item that totally depends buying online. on the services providers. This should be able to answer how a brand is projected through a good proposal interface allowing to create a positive shopping experience NOT RECEIVING THE PRODUCT OR SERVICE 8.2% for users. PRODUCT FEATURES DON’T MATCH REALITY 12.2% PRODUCT DAMAGED 5.6% In parallel, non-compliance deadlines, lack of feedback DELIVERY TIME EXCEEDED 29.1% on the transaction, incompatibility of systems and the lack CARD CHARGES HIGHER THAN THE ONE SHOWED BY THE SITE 4.8% of truthful information of products, are the most frequent FRAUDULENT USE OF CREADIT CARD 1.2% problems. All these are related to controllable aspects of the consumer experience, as the companies can and must LACK OF SAFETY CONDITIONS 10.3% invest time and resources to improve if their goal is to LACK OF FEEDBACK ACOUT THE TRANSACTION 24.7% expand the online customer base. DOUBLE BILLING 4.5% INCOMPATIBILITY WITH BROWSER OR OPERATING SYSTEM IN USE 26.1% One of the most important fact-findings of this question is HE HAD NO PROBLEMS 39.8% that security issues as the fraudulent use of credit cards, CREDIT CARD WAS INCOMPATIBLE WITH THE SITE 12.2% which a priori appears to be highly relevant, occur in only 1.4% of those who have made purchases online. Figure 15: Major problems encountered by users when shopping online This suggests that although the perception is that there is lack of security in online transactions, only a small percentage excperienced the problem. I’M DIGITAL 2010 Report on consumer experience in Chile 55

SURVEY RESULTS Thus, the mission must be to break down this prejudice giving enough information to satisfy the user by telling 16. Chilean site that offers the best him that the appropriate measures are taken to ensure the Online Consumer Experience security of his transactions. Billing errors, though rare, do not represent a security issue or bank fraud, but internal problems of the information systems of each company. % % .3% 4% .8% % % 0.8 .5% 9.0 on’s 0 1.1% 21.2% ac 4. ella 37 o 7.2 23.0% 2.4 Polar AN 46 ipley ns m b Easy La L R Joh L ide r P aris S odi Fala b J um N one Figure 16: 23% of users believe that “None of the sites listed offer a good shopping experience online 56 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 17. Reasons NOT to buy online Although most users said they do not buy online because they have not had the need to do it, the results show us how customers are living online experience. 45.5% 36.8% 5.8% I need to see what I’ve tried but 1.2% 43.8% are unsure, lacking confidence, attached to I have not had the need I’m going to buy have not succeded It’s more expensive having to see what they are going to buy (36.8%). Thus, the small percentage (9,1%) representing the ones that have had a bad expriences, becomes highly relevant in orden to understand that it isn’t a problem about digital platforms, but there’s a lack of strategic 43.8% 9.1% 5.0% encourrage towards the customers, reducing the mistrust I have heard of I don’t know how I feel it is unsafe, and it does not give me con dence bad experiences (empowering the Word of Mouth) and also increse the purchase incentives for the users that don’t buy online. Figure 17: Shows the reasons why the 6.7% of users have not purchased online I’M DIGITAL 2010 Report on consumer experience in Chile 57

SURVEY RESULTS 18. Have you used the mobile 19. What activities do you carry Internet? out when you connect to the mobile Internet? Yes 64.2% SEND / RECIEVE E-MAILS 70.2% WRITE/UPDATE BLOGS 13.0% No 35.8% SURFING THE WEB JUST FOR FUN INFORMATION SEARCH (WEATHER, NEWS, ETC.) 44.1% 50.7% MAP SEARCH (ADDRESSING, ROUTING) 49.6% DOWNLOADING / LISTEN MUSIC 14.1% UPLOAD AND SHARE PHOTOS 21.0% CHAT 36.0% VISIT SOCIAL NETWORKS (FACEBOOK, OTHERS) 57.4% ONLINE GAMES 8.4% Figure 18: A 64.2% of respondents reported getting connected to the Mobile Internet BANKING SERVICES 19.1% MICROBLOGGING 28.0% GEOLOCATION 32.8% Figure 19: Shows the activities that mobile users carry out 58 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS The popularization of mobile equipment has led to a shows that in some cases are already accessing mobile Hyperconnectivity of users, where the undisputed internet plans to maintain its connection to their leader in terms of activities is e-mail. Probably, what it has communities. helped his bid has been the explosion in the market for Smartphones that allow greater responsiveness in their connectivity. Mobile Internet remains primarily a tool of work and productivity for businesses and telecom companies have promoted the recruitment of their plans with dedicated advertising campaigns. Furthermore, it is noteworthy that the use of social networking via mobile Internet appears un second place, unlike what happens with the use of Internet search engines traditional, indicating that they prefer to socialize through their mobile equipment and do the search on the second screen (computer). If a make a cross-tabulation is made between users of mobile Internet and the age of the respondents we observe that 36% are between 18 and 24 years and 46% are between 24 and 32 years, the first of these most used social networks and also I’M DIGITAL 2010 Report on consumer experience in Chile 59

SURVEY RESULTS 20. Instances when users Apart from users who use mobile web connection in emergency contexts - who use it mainly to send e-mails - access mobile Internet we see a strong use of this service during the downtimes or idle (when people use the public transport, while they are waiting for someone). 42.9% 38.4% When I have something 31.9% Every tome I have 14.7% At work / of ce Interesting thought: how can a brand build entertaiment Emergencies important to say / review planty of time content for mobile users who are using their phones during idle time? 41.7% 35.4% 20.1% While I wait for something When I’m transported from I am always or someone one place to another connected in any place Figure 20: Represents the movement of mobile Internet connection with the navigation context 60 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 21.Why don’t users access to The entry barrier remains the very high prices for consumers who want mobile Internet access (43.1%). mobile Internet? This increases telecom companies’ efforts to gain new customers. 43.1% 33.2% 5.9% But you can clearly see that 37.7% don’t need a mobile It’s too expensive My cell phone isn’t capable I did once but didn’t found it ef cient web connection, making duplicate efforts of sales and marketing areas to provide more accessible plans, proving to be useful for those who do not see the need to be connected to the Web from the third screen. 37.6% 11.2% 2.5% I don’t need it I tried but failed, Don’t have I didn’t tried again cell phone Figure 21: Main reasons why users do not use the Mobile Internet I’M DIGITAL 2010 Report on consumer experience in Chile 61

SURVEY RESULTS 22. What reason do you think It is clear that for potential mobile Internet users, the price is the key variable to get started. would motivate you to access the Internet using your cell A relevant aspect is that 39.2% of people polled, who are phone? under 24 years, say that lowering mobile internet plans would motivate them to use it, which means there is a potential market waiting for this service. CHEAPER FARES 65.1% MOBILE SITES EASIER TO USE/MORE FRIENDLY 21.8% In parallel, another relevant point is that 24% of the FASTER INTERNET 34.3% people polled say that “Nothing can motivate them to MORE MOBILE SOTES 17.6% access mobile Internet”, which means that in the market OF INTEREST still exists a lack of digital and transversal maturity from NOTHING 24.4% users on this technology. Figure 22: Motivations to increase the number of mobile Internet users 62 I’M DIGITAL 2010 Report on consumer experience in Chile

SURVEY RESULTS 23. Country of Residence 24. Please indicate your area of residence REGIÓN METROPOLITANA 61,2% VALPARAÍSO 18,7% BÍO-BÍO 5,1% LA ARAUCANÍA 2,5% ANTOFAGASTA 2.1% MAULE 1,6% Figure 23: All the people polled who participated on this survey are Chilean Figure 24: The Metropolitan area concentrates the bulk of participants in this survey I’M DIGITAL 2010 Report on consumer experience in Chile 63

SURVEY RESULTS 25. Age 26. Sex 13-17 4.6% 74.8% 18-24 35.1% 25-34 44.6% 35-49 12.0% 25.2% 50-64 3.5% 65 OR MORE 0.1% Figure 25: The largest range of users is between 25 and 34 years old Figure 26: The majority of participants are male 64 I’M DIGITAL 2010 Report on consumer experience in Chile 74.8%

SURVEY RESULTS 27. Education Level 28. Average income PRIMARY 3.7% 1% 2% 0% .2% 1% SECONDARY 10.6% 6.4% 18. 17. 12. 0 9 17. ss 2 0 .00 0 00 00 re .00 0.0 00. mo 0o r le 400 650 0- 90 1.1 00 or 8.3% 00 000- 000- 00 000- .0 TECHNICAL DEGREE 159. 1 60. 401. 651. 901. 1.101 COLLEGE 59.3% PROFESSIONAL DEGREE 9.6% MASTER 7.0% DOCTOR 1.4% 1.265 ANSWERED 74 NO ANSWER Figure 27: The 59.3% of people polled have higher education Figure 28: The 26.4% reported having a mean income equal to or less than $ 159,000 Chilean pesos I’M DIGITAL 2010 Report on consumer experience in Chile 65

TEAM WORK Jorge Barahona Paulina Meyer Digital Experience Designer. Professor of User-Centered Design, Graphic designer PUCV. Expert generate communication throughout School of Architecture and Design, PUCV. Professor of Applied the design between brands and audiences in digital environments. Communication Master of UDD. Pablo Altamirano Herbert Spencer Industrial Engineer UAI. Executor of methodology and analyst in the Interaction Designer, Professor, School of Architecture and Design interpretation of statistics. PUCV. MDes Interaction Design, Carnegie Mellon. Estefanía Trisotti Pedro Arellano Graphic designer PUCV. Expert in interface design and interpretation AyerViernes Head of Research Area. Pyschologist in User Experience of statisticsoriented visual design. Research. MS in Consumer Behavior, UAI. Professor of Applied Communication Master of UDD. Robert Sharman Consultant modeling methodology and statistics. Industrial Engineer Katherine Exss UAI. Information Architect and Research Experience Users. PUCV graphic designer. Rodrigo Frías Communicator expert in brand building in digital environments. Publicist, MS un Applied Communication, UDD. Professor of Digital Communication and Digital Media Marketing, UPA. 66 I’M DIGITAL 2010 Report on consumer experience in Chile

ABOUT AYERVIERNES AyerViernes is a strategy and design company For more information AyerViernes on the projects dedicated to deliver digital solutions that foster better he has done or work areas, visit our website: communication between brands and their audiences. www.ayerviernes.com or follow us through the following social media: Using a people-centered design methodology, we position our clients in new and valuable relationships • Blog: www.erresese.com with their audiences by promoting through design spaces • Twitter: @ayerviernes where consumers can perceive succesful experiences of • Facebook: www.facebook.com/ayerviernes use in both web and mobile, intranet, social networks, among others. • Flickr: www.flickr.com/ayerviernes (All graphics are avaliable in high resolution) A fundamental part of our work involves understanding the behavior and usage trends in digital media, considering Contact Information users as the articulators of our work; we are constantly ayer@ayerviernes.com researching and innovating, looking for solutions that can raise the return on investment (ROI) of our customers and Santiago, Chile: +56 - 2- 361 0505 the positions of their competitors. Viña del Mar: +56 - 32 - 215 6588 AyerViernes a member of: I’M DIGITAL 2010 Report on consumer experience in Chile 67

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I'm digital2010

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