Digital Consumer Report: 9 Factors that Define Experience

I’M
DIGITAL
2010
Report on consumer
experience in Chile

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

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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


BEFORE YOU BEGIN
ABOUT BRANDS STATUS IN DIGITAL MEDIA


‘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.


‘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


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.


DIGITAL CONSUMPTION
USERS ON MOTION


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.


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.



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.



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


9 FACTORS
THAT DEFINE A GOOD
CONSUMING EXPERIENCE


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.


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


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.



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.



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



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.


THE EXPERIENCE MODEL
FOR THE DIGITAL CONSUMER


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.


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


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

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.



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.



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.


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


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


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.



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



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.



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


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


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.


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


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.


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.


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


SURVEY RESULTS
FIGURES ANNEX AND COMPARATIVE ANALYSIS


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.


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.


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 recu-
rrent activities to connect to the Internet


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


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


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


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


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


Digital Consumer Report: 9 Factors that Define Experience

Digital Consumer Report: 9 Factors that Define Experience

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