Market Data / Supplier Selection /     Event Presentations / User Experience     Benchmarking / Best Practice /     Templa...
How We Shopin 2010Habits and motivations of USconsumersPublished     May 2010                                     Econsult...
Contents      1. Executive summary and highlights ................................. 1                1.1.            About...
1.   Executive summary and highlights     The Internet has taken on three major roles in consumer culture: research, direc...
Product Research & E-Commerce SitesThe trend in which consumers have come to rely on, create, and disseminate product revi...
Digital sophisticates – respondents who fit two or more in a basket of attributes, including havingaccessed email on a mob...
1.1.          About Econsultancy              Econsultancy is a digital publishing and training group that is used by more...
2.   Methodology and sample     This report is the product of a survey fielded to a consumer panel managed by Survey Sampl...
Figure 2: Age Breakdown                                                                                                   ...
3.     Communicating and selling to the social       consumer3.1.   Preferred channels for communication and marketing    ...
Respondents by ageFigure 5: What is the best way to receive ads for sales and specials? (Age breakdown)                   ...
Broken out by demographic type we see a more marked preference for email delivery; only the subsetof Moms chooses postal m...
Coupons are the last bastion of postal mail. Only digital sophisticates choose email, and that by a slimmargin. With one s...
Respondents by ageFigure 8: What is the best way to receive coupons? (Age breakdown)                                      ...
Respondents by typeFigure 9: What is the best way to receive coupons? (Breakdown)                                         ...
Figures 10 through 12 show email is far and away the preferred mechanism to receive shippingnotices. Even among digital so...
Respondents by ageFigure 11: What is the best way to receive shipping notices? (breakdown)                                ...
Respondents by TypeFigure 12: What is the best way to receive shipping notices? (breakdown)                               ...
Figure 13 identifies one of the significant failures of consumer-facing businesses in the last 15 years:the slow movement ...
Respondents by AgeFigure 14: What is the best way to get customer service? (breakdown)                                    ...
Response by demographic type generally falls in line with the norm, excepting high-incomehouseholds, which vary significan...
Respondents by AgeFigure 16: How often do you find that there‟s no way to get a specific questionanswered when you‟re shop...
Respondents by TypeFigure 17: How often do you find that there‟s no way to get a specific questionanswered when you‟re sho...
3.2.   Email Programs       Figures 18 and 19 chart responses to a question exploring the value of opt-in consumer email  ...
Respondents by AgeFigure 20: What percentage of companies sends you emails that are valuable to you?                      ...
Good news for emailers is that most sub-types are happier with their email programs than theaverage. Digital sophisticates...
Figure 23 shows the responses of those who indicated they were pleased with more than 50% of theiremail programs. Response...
The demographic types generally fall in line, with the exception of Moms, who are more enthusiasticabout receiving topical...
Frequency is in the eye of the beholder. There‟s no reason to believe that the younger you are, themore likely you are to ...
Not surprisingly, digital sophisticates are sensitive to email frequency, and are twice as likely to citereceiving emails ...
Figure 27: Word cloud of responses to the question “What makes these emailprograms valuable to you?”How We Shop in 2010 Ha...
Figure 7: Word cloud of responses to the question “How could these programs bebetter?”How We Shop in 2010 Habits and motiv...
3.3.   Importance of emailed coupons       For all of the discussion of whether email is still relevant to young people, F...
Respondents by typeFigure 30: Have you used a coupon you received online in the last 12 months?                           ...
3.4.   E-commerce Websites       Shoppers tend to fall into two camps when it comes to online shopping. In Figure 31 we se...
3.5.     E-commerce site features impact on likelihood to         purchase         Across all ages and demographics, havin...
Respondents by AgeFigure 33: Does having product ratings (ex: 3 of 5 stars) affect your likelihood ofusing an online store...
Respondents by TypeFigure 34: Does having product ratings (ex: 3 of 5 stars) affect your likelihood ofusing an online stor...
3.5.2.   Online chat         Most shoppers consider instant chat to be a „nice to have‟ rather than a free standing differ...
Respondents by AgeFigure 36: Does having online chat available affect your likelihood of using an onlinestore?            ...
Chat is important to a significant number of “influentials” and “sophisticates,” as well as roughly onein five of those in...
3.5.3.   Consumer-generated reviews         Like chat and ratings, preference for sites with consumer reviews is related t...
Respondents by AgeFigure 39: Does having consumer-generated reviews affect your likelihood of usingan online store?       ...
Respondents by TypeFigure 40: Does having consumer-generated reviews affect your likelihood of usingan online store?      ...
3.5.4.   Free shipping         Unsurprisingly, free shipping is as strong attraction to all age groups and demographic typ...
Respondents by AgeFigure 42: Does having free shipping available affect your likelihood of using anonline store?          ...
Respondents by TypeFigure 43: Does having free shipping available affect your likelihood of using anonline store? (All res...
3.5.5.   Payment options         Alternatives to credit cards have proliferated in recent years. Figure 44 tracks the rela...
Respondents by AgeFigure 45: Does having payment options like PayPal or BillMeLater available affectyour likelihood of usi...
Respondents by TypeFigure 46: Does having payment options like PayPal or BillMeLater available affectyour likelihood of us...
3.5.6.   Price guarantees         All Respondents         Figure 47: Does having available price guarantees affect your li...
Respondents by AgeFigure 48: Does having available price guarantees affect your likelihood of using anonline store?       ...
Respondents by TypeFigure 49: Does having available price guarantees affect your likelihood of using anonline store?      ...
3.6.   E-commerce site issues       Although younger people are the most likely to notice insufficient numbers of reviews,...
Respondents by TypeFigure 51: How often do you find too few buyer reviews on websites to be helpful?                      ...
One of the most common and important complaints from online shoppers is there isn‟t enoughinformation on a specific site t...
Respondents by TypeFigure 53: How often do you find too little information to decide onproducts/services when you‟re shopp...
Respondents by AgeFigure 54: How often do you find pages on retail websites load too slowly?                              ...
Respondents by TypeFigure 55: How often do you find pages on retail websites load too slowly?                             ...
Respondents by AgeFigure 56: How often that retail websites break or malfunction when you‟reshopping?                     ...
Respondents by TypeFigure 57: How often that retail websites break or malfunction when you‟reshopping?                    ...
Respondents by AgeFigure 58: How often do you find that the search box doesn‟t work well when you‟reshopping online?      ...
Respondents by TypeFigure 59: How often do you find that the search box doesn‟t work well when you‟reshopping online?     ...
3.7.   Social profile sites       The social phenomenon has already changed e-commerce. User-generated reviews were one of...
Respondents by AgeFigure 60: Do you use Facebook, MySpace or another social profile site? If so, howoften do you access it...
Respondents by TypeFigure 61: Do you use Facebook, MySpace or another social profile site? If so, howoften do you access i...
All respondentsFigure 62: When you check [their social profile site] how many of your friends‟ postsdo you read?          ...
Over one third of all respondents reported having forged some type of social connection with acommercial entity in the las...
In what appears to be good news for marketers, several key demographic types are significantly morelikely than the average...
The explosive growth of social media has introduced the question of a „bubble.‟ Will there be a declinein some aspect of s...
The two primary reasons for connecting with a brand online are to advertise that affiliation and tolearn of offers. Figure...
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
Econsultancy: How We Shop 2010 USA
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Econsultancy: How We Shop 2010 USA

  1. 1. Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & InnovationHow We Shop in 2010Habits and motivations of US consumers
  2. 2. How We Shopin 2010Habits and motivations of USconsumersPublished May 2010 EconsultancyNew York Econsultancy London 41 East 11th St., 11th Floor 2nd Floor, 85 Clerkenwell Road New York, NY 10003 London EC1R 5ARAll rights reserved. No part of this publication may be United States United Kingdomreproduced or transmitted in any form or by any means,electronic or mechanical, including photocopy, recording Telephone: Telephone:or any information storage and retrieval system, without +1 212 699 3626 +44 (0) 20 7681 4052prior permission in writing from the publisher. http://econsultancy.comCopyright © Econsultancy.com Ltd 2010 help@econsultancy.com
  3. 3. Contents 1. Executive summary and highlights ................................. 1 1.1. About Econsultancy .................................................................... 4 2. Methodology and sample................................................. 5 3. Communicating and selling to the social consumer ....... 7 3.1. Preferred channels for communication and marketing ............. 7 3.2. Email Programs .......................................................................... 21 3.3. Importance of emailed coupons ............................................... 30 3.4. E-commerce Websites ............................................................... 32 3.5. E-commerce site features impact on likelihood to purchase ... 33 3.5.1. Product ratings....................................................................... 33 3.5.2. Online chat ............................................................................. 36 3.5.3. Consumer-generated reviews ................................................ 39 3.5.4. Free shipping ......................................................................... 42 3.5.5. Payment options .................................................................... 45 3.5.6. Price guarantees .....................................................................48 3.6. E-commerce site issues .............................................................. 51 3.7. Social profile sites .......................................................................61 3.8. Twitter ........................................................................................ 71 3.9. Consumers accuracy when providing personal information ... 74 4. Factors in product research ........................................... 75 4.1. Email-driven purchasing .......................................................... 76 4.2. Media used for product research .............................................. 78 4.3. Priorities in the product research process ................................ 80 4.4. Impact of consumer reviews on additional purchases ............. 87 5. Motivations, attitudes and lifestyle factors ................... 89 5.1. Mobile sophistication ................................................................ 89 5.2. User-generated comments and reviews ................................... 94 5.3. Impact of corporate responsibility factors ............................... 96 5.4. Economic outlook .................................................................... 106 How We Shop in 2010 Habits and motivations of US consumers All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  4. 4. 1. Executive summary and highlights The Internet has taken on three major roles in consumer culture: research, direct sales, and customer service. It might be argued that direct selling will ultimately be the least important of the three. Online product research contributes to a far larger percentage of total retail than the 8% directly attributed to e-commerce while the digital interaction and service is changing the fundamental relationship between producers and consumers. Winners in the equation will be those who use digital communications to best enable and influence offline purchases. This report, How We Shop in 2010, is based on the findings of a survey of over 1,400 nationally representative U.S. consumers. The study focuses on how people prefer to interact with e-commerce brands, how they conduct product research, and contributing factors to their decisions, all through the lenses of age and demographic type. Channels Although a variety of media are competing for consumer attention, email continues to be the desired channel for many types of commercial communication. For example, only respondents over 55 years of age prefer postal mail for the delivery of information about sales and specials. Even in that age range, opinions are changing. Frequency is in the eye of the beholder. The perception of, and reaction to, email frequency has a strong relationship with age. But, that generational sensitivity doesn‟t apply to email in general, but is focused on specific emailers. “Inbox overload” is the least cited reason for dissatisfaction with email programs, while inability to provide relevance receives the highest score. The problem for emailers is their email programs, not spam or displacement of email by social networking. Consumers report a willingness to opt-in, but they have a reasonable expectation of being treated well. At the very least that means sending a minimum of emails, protecting privacy, and emphasizing products that people may find interesting. Beyond that, special pricing for house list members and „first-look‟ offers help increase opt-in rates at the front end, and loyalty in the long term. Social networking and its effect on the nature of brand is the hottest topic in digital marketing, and deservedly so. It‟s still worthwhile for marketers to remember that social network adoption is far from maturity, and that people over 38 are significantly less likely to use social networks to pursue product information, seek recommendations, etc., than younger people. That‟s changing, but will take time. Its our tendency to see things in an either/or light, and that‟s led to renewed questions about the long-term viability of email in the face of increased social media adoption. Based on the respondents to this survey, the role of email in this evolving ecosystem is secure. As Econsultancy‟s Chris Lake referred to it, email is „social media glue‟ – the mechanism for a variety of different types of communication related to social activities. The impact of search on the consumer experience continues to grow. People identify search as their primary source of information for almost all types of purchase. As localized search improves, the line between online and offline shopping gets increasingly blurred. For marketers, understanding the nature of personalized and universal search will be essential. The days of being in the top three results are over for many terms and brands because top results are unique to niche groups and individuals. How We Shop in 2010 Habits and motivations of US consumers Page 1 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  5. 5. Product Research & E-Commerce SitesThe trend in which consumers have come to rely on, create, and disseminate product reviews may beas important as the ability to buy online itself. For while e-commerce represents approximately 8% ofretail, user-generated comments are a significant factor in a large percentage of the offline purchasesthat make up the other 92%.55% of all respondents report having a high product rating makes them more likely to buy, and theinverse is also true. Similarly, 56% report the presence of consumer-generated reviews increases theirlikelihood of using a particular online store. This preference is more pronounced among younger anddigitally sophisticated users, suggesting their impact will only increase over time.The degree to which consumers look to reviews and ratings is in direct proportion to their primarycomplaint with e-commerce: they don‟t get enough information to make a decision. People buyingonline tend to have very specific concerns related to the inability to interact with products in threedimensions. Does it have an input jack? Does the cord reach? High enough? For that reason, it paysto include every piece of manufacturer‟s information at a minimum, and if possible multiplephotographic views as well as unique content.It‟s also apparent that most e-commerce sites aren‟t able to differentiate themselves. Often,customers find a product on one site, research it elsewhere, then decide where to buy. If any site inthe chain is able to create a memorable advantage, the customer may return once their research iscomplete. Amazon creates that advantage with its “One-Click” checkout. Other sites can use brandexclusives, price guarantees, free shipping offers, loyalty points and premiums to accomplish thesame thing.The Youth MarketAlthough the study examines response across the age ranges, it‟s interesting to focus on theconsumers of tomorrow.Young people (those between 18 and 24 in our sample) are often assumed to choose social or mobilemedia over email, but this appears only to be true in regard to messaging. They demonstrate a strongpreference for email as a personal database for company communications, from receipts and shippingnotices to advertising and coupons.They are also highly likely to use email as a conduit for coupons, for use both online and off. For alldemographics types, emailed coupons are a high priority and one that translates into realtransactions. Sixty-eight percent of those 18-24 reported using emailed coupons online and 58% usedthem offline.Younger people ask more of site search functions. They‟re more likely to say site search boxes do apoor job of identifying products. These people have grown up with search and expect it to workinstantly and efficiently.Demographic GroupsIn addition to looking at consumers at the different stages of life, this report focuses on severalimportant demographic types;Moms – women who have identified themselves as having children under 18 years of age in thehome.Influencers – people active on at least one social profile site and have in excess of 500 socialconnections.How We Shop in 2010 Habits and motivations of US consumers Page 2All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  6. 6. Digital sophisticates – respondents who fit two or more in a basket of attributes, including havingaccessed email on a mobile device, paid to download a television program online, and have surfed theInternet on a mobile device.High-income households – respondents reporting annual incomes in excess of $75,000.Gender – differences in how men and women responded are rare. Significant differences are notedin the text, but not displayed as separate charts.Below is a sample of how different groups behave. Men are more likely to use search engines and expert site reviews during a single round of research, especially for lower ticket items. Women tend to take part in more discussion, online and off, at any ticket level. The purchase process for women tends to involve a greater range of media than men, and to take longer. Women tend to be somewhat more loyal to research and purchasing sites than men. Older people are more loyal than women, and everyone is more loyal than digital sophisticates. The age range that‟s most reliant on e-commerce is 25 to 38 years old. These people are comfortable with the Internet, strapped for time, and prize convenience and price. With a greater likelihood of having small children at home, they are less inclined to go to stores and somewhat better able to accept deliveries during the workweek.All age ranges are more likely to trust consumer reviews than formal testimonials posted by a brand.Trends Worth WatchingEach generation of chipsets moves mobile devices closer to the personal computer. Advancedbehaviors today (accessing the Internet or checking email from a mobile device) will clearly soon becommonplace, at least for people still in their working years. Nearly two-thirds of people under 24have checked email on a mobile device (Figure 86).The Green Movement is an important purchasing factor for a small but significant percentage ofthe public. For most the demands of economy and practicality outweigh societal concerns. In general,young people care more about environmental and political issues. So do people with higherhousehold incomes. Young people care less about where a product was made and more about how itwas made, by whom, and under what conditions.Offering alternative payments can be a route to attracting new customers. It‟s a differentiator fornearly half of all respondents. For high-income households and the digitally sophisticated, it‟s almostuniversally viewed as a plus.How We Shop in 2010 Habits and motivations of US consumers Page 3All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  7. 7. 1.1. About Econsultancy Econsultancy is a digital publishing and training group that is used by more than 200,000 internet professionals every month. The company publishes practical and timesaving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the worlds most famous brands use Econsultancy to educate and train their staff. Some of Econsultancy‟s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder. Join Econsultancy today to learn what‟s happening in digital marketing – and what works. Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York). You can also contact us online.Related Econsultancy reportsE-commerce Platforms Buyers Guide 2010http://econsultancy.com/reports/e-commerce-platforms-buyers-guideE-commerce Statisticshttp://econsultancy.com/reports/e-commerce-statisticsConversion Reporthttp://econsultancy.com/reports/conversion-reportOnline Transaction Processing Guidehttp://econsultancy.com/reports/online-transaction-processing-guideCheckout Optimization Guidehttp://econsultancy.com/reports/checkout-optimization-guideThe Innovation Reporthttp://econsultancy.com/reports/innovation-report How We Shop in 2010 Habits and motivations of US consumers Page 4 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  8. 8. 2. Methodology and sample This report is the product of a survey fielded to a consumer panel managed by Survey Sampling International in April of 2010. After the total audience was cleansed for age and location, 1,430 responses were included in the dataset. All respondents reside in the United States and are over 18 years of age. All respondents are Internet users, with email addresses, and have volunteered to participate in a consumer panel. Figure 1: Male/Female Breakdown Response: 1,430 How We Shop in 2010 Habits and motivations of US consumers Page 5 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  9. 9. Figure 2: Age Breakdown Response: 1,430Figure 3: Income Breakdown Response: 1,430How We Shop in 2010 Habits and motivations of US consumers Page 6All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  10. 10. 3. Communicating and selling to the social consumer3.1. Preferred channels for communication and marketing Over the last 15 years, marketers have been beset by a succession of new marketing channels. So have consumers. Remarkably, they‟ve adapted, learning to take advantage of the unique characteristics of each new innovation. In these first pages, we see that consumers have strong and specific feelings about how they‟d like to be communicated with. At first glance it appears that postal mail and email are tied as the preferred method of delivery for sales materials, but Figure 5 shows preferences vary significantly by age. Email wins easily among those respondents under 39 years of age, even though a small but significant part of that same group (18-38) shows a preference for receiving sales info via their social profile sites. For those with an older customer base, it should be noted that throughout our research we found those over 55 to have a marked preference for including some non-digital element of their purchase process, whether it was a paper catalog, phone consultation or in-store purchase of a product researched online. All respondents Figure 4: What is the best way to receive ads for sales and specials? Response: 1,279 How We Shop in 2010 Habits and motivations of US consumers Page 7 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  11. 11. Respondents by ageFigure 5: What is the best way to receive ads for sales and specials? (Age breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 8All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  12. 12. Broken out by demographic type we see a more marked preference for email delivery; only the subsetof Moms chooses postal mail. Influencers and digital sophisticates look to electronic delivery, usuallyby email, but also including social sites. High-income households may not be ready for delivery viatheir social sites, but now express a preference for email that research suggests wasn‟t present asrecently as 2008.Respondents by typeFigure 6: What is the best way to receive ads for sales and specials? (Typebreakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 9All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  13. 13. Coupons are the last bastion of postal mail. Only digital sophisticates choose email, and that by a slimmargin. With one significant caveat, the preference for postal delivery of coupons crosses most ageand demographic variations. People are more open to non-food coupons via email and other forms ofelectronic delivery. In product categories such as electronics, media and services, the preference forelectronic delivery exceeds that for postal mail.All RespondentsFigure 7: What is the best way to receive coupons? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 10All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  14. 14. Respondents by ageFigure 8: What is the best way to receive coupons? (Age breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 11All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  15. 15. Respondents by typeFigure 9: What is the best way to receive coupons? (Breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 12All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  16. 16. Figures 10 through 12 show email is far and away the preferred mechanism to receive shippingnotices. Even among digital sophisticates and influentials, the interest in social delivery is minimal,though a small percentage of those groups is interested in phone delivery, likely meaning digitaldelivery to the device rather than a phone call.All RespondentsFigure 10: What is the best way to receive shipping notices? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 13All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  17. 17. Respondents by ageFigure 11: What is the best way to receive shipping notices? (breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 14All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  18. 18. Respondents by TypeFigure 12: What is the best way to receive shipping notices? (breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 15All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  19. 19. Figure 13 identifies one of the significant failures of consumer-facing businesses in the last 15 years:the slow movement of customer service to email and other digital delivery mechanisms. All responsegroups would prefer to be able to rely on email for customer service, but respondents make it clearthey are frequently disappointed by companies‟ lack of response, quality of response, and responsetimes.The preference for email is highest among the 25-38 year-olds, who may be assumed to be highlyactive on email, comfortable with the Internet, and also to have more commercial relationships thanthe 18-24 year olds. This latter group is the only one with a significant interest (a still modest 8%) incommunicating with brands via social sites.All RespondentsFigure 13: What is the best way to get customer service? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 16All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  20. 20. Respondents by AgeFigure 14: What is the best way to get customer service? (breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 17All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  21. 21. Response by demographic type generally falls in line with the norm, excepting high-incomehouseholds, which vary significantly with 61% preferring email.For marketers considering the question of whether to deploy customer service by email, or how toimprove what they have, consider the top three consumer complaints; No response at all. Email that simply goes into the ether. Often, there‟s an element of technology error here, where emails are sent to email addresses that aren‟t monitored. Slow response. When companies are able to respond within the hour or the business day, customers notice. Even a quick acknowledgement that the issue is in the queue is appreciated. Insufficient information. Companies that rely heavily on automated responses or canned answers can pay the price of infuriating the customer whose question gets an unspecific answer.Respondents by TypeFigure 15: What is the best way to get customer service? (Breakdown) Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 18All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  22. 22. Respondents by AgeFigure 16: How often do you find that there‟s no way to get a specific questionanswered when you‟re shopping online? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 19All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  23. 23. Respondents by TypeFigure 17: How often do you find that there‟s no way to get a specific questionanswered when you‟re shopping online? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 20All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  24. 24. 3.2. Email Programs Figures 18 and 19 chart responses to a question exploring the value of opt-in consumer email programs. Across ages and types, the most popular answer was that roughly half of the email programs respondents participate in are of value to them. It‟s interesting that satisfaction with email has an inverse relationship with age, as shown in Figure 18. This may reflect the importance of email for older demographics, which don‟t have the same range of channels for contact (social, mobile, etc.) that younger ones do. It‟s also true that younger users are more likely to take active control of marketing channels, using filters, folders and the unsubscribe link more easily that the rest of the sample. Figure 18: Percentage differences between age ranges >50% satisfaction <50% satisfaction Difference All 28% 36% -8% 18 - 24 46% 23% 23% 25 - 38 31% 32% -1% 39 - 54 25% 39% -14% 55+ 19% 41% -22% All Respondents Figure 19: What percentage of companies sends you emails that are valuable to you? (All respondents) Response: 1,278 How We Shop in 2010 Habits and motivations of US consumers Page 21 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  25. 25. Respondents by AgeFigure 20: What percentage of companies sends you emails that are valuable to you? Response: 1,278How We Shop in 2010 Habits and motivations of US consumers Page 22All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  26. 26. Good news for emailers is that most sub-types are happier with their email programs than theaverage. Digital sophisticates, who map toward a younger demographic, are the happiest. Older, high-income households are the least so, though still marginally above average.Figure 21: Percentage differences between demographics >50% <50% Difference All 28% 36% -8% High-income 31% 38% -7% Moms 39% 27% 12% Influencers 39% 27% 12% Digital sophisticates 47% 23% 24%Respondents by typeFigure 22: What percentage of companies sends you emails that are valuable to you?(All respondents) Response: 1,278How We Shop in 2010 Habits and motivations of US consumers Page 23All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  27. 27. Figure 23 shows the responses of those who indicated they were pleased with more than 50% of theiremail programs. Responses haven‟t been broken down by age because there‟s little difference throughthat lens.In a statistical tie are the top two benefits cited: special pricing and interesting content. Simply,people want utility and the benefits of membership from email.Figure 23: What makes email programs valuable to you? Response: 1,089How We Shop in 2010 Habits and motivations of US consumers Page 24All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  28. 28. The demographic types generally fall in line, with the exception of Moms, who are more enthusiasticabout receiving topical newsletters and getting early access to product information. In general, webelieve virtually every product and niche has customer-enthusiasts who are motivated by getting thelatest information first, being asked their opinion, etc. This group – which often spans ages and types– is highly valuable. They are likely to spread that information in their social circles, both online andin the real world.Respondents by typeFigure 24: What makes email programs valuable to you? Response: 1,089How We Shop in 2010 Habits and motivations of US consumers Page 25All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  29. 29. Frequency is in the eye of the beholder. There‟s no reason to believe that the younger you are, themore likely you are to subscribe to email programs that send more frequently. But in Figure 25 we seethat perception of, and reaction to, email frequency has a strong relationship with age. Notably, thatgenerational sensitivity doesn‟t extend to email in general, but is focused on specific emailers. “Inboxoverload” is the least cited reason for dissatisfaction.Respondents by ageFigure 25: What aren‟t these email programs valuable to you? Response: 426How We Shop in 2010 Habits and motivations of US consumers Page 26All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  30. 30. Not surprisingly, digital sophisticates are sensitive to email frequency, and are twice as likely to citereceiving emails too frequently than the average. They, and Moms, are also more likely to feelinundated by email in general.Respondents by typeFigure 26: What aren‟t these email programs valuable to you? Response: 426How We Shop in 2010 Habits and motivations of US consumers Page 27All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  31. 31. Figure 27: Word cloud of responses to the question “What makes these emailprograms valuable to you?”How We Shop in 2010 Habits and motivations of US consumers Page 28All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  32. 32. Figure 7: Word cloud of responses to the question “How could these programs bebetter?”How We Shop in 2010 Habits and motivations of US consumers Page 29All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  33. 33. 3.3. Importance of emailed coupons For all of the discussion of whether email is still relevant to young people, Figure 29 appears to indicate they are highly likely to be using it as a conduit for coupons, for use both online and off. For all demographics types, emailed coupons are a high priority (as shown in Figure 30) and one that translates into real transactions. Respondents by age Figure 29: Have you used a coupon you received online in the last 12 months? Response: 1,279 How We Shop in 2010 Habits and motivations of US consumers Page 30 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  34. 34. Respondents by typeFigure 30: Have you used a coupon you received online in the last 12 months? Response: 1,279How We Shop in 2010 Habits and motivations of US consumers Page 31All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  35. 35. 3.4. E-commerce Websites Shoppers tend to fall into two camps when it comes to online shopping. In Figure 31 we see top responses divided between the themes of convenience and security. For most, online shopping represents an easy, cheaper way to shop, but a significant minority continues to view using credit card information to shop online as an unacceptable risk. Figure 31: Word cloud of responses to the question “What comes to mind when you think about shopping online?” Common complaints around online shopping are easy to identify, if not to address. Security: The most common and intense negative feeling people, even online shoppers, have toward e-commerce. The inability to touch: Naturally, the computer screen doesn‟t offer the same tactile and three- dimensional views of being in the store. This can be at least in part countered with better, more varied product presentation software. Too much to choose from: Some sites suffer from an abundance of products, although the real issue is likely product presentation and navigation rather than the raw number of SKUs available. Surprises: Many complain about shipping or other fees that aren‟t visible until late in the checkout process. How We Shop in 2010 Habits and motivations of US consumers Page 32 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  36. 36. 3.5. E-commerce site features impact on likelihood to purchase Across all ages and demographics, having reliable and robust product ratings is a valuable addition to retail sites. Younger shoppers are especially likely to prefer sites offering ratings.3.5.1. Product ratings All Respondents Figure 32: Does having product ratings (ex: 3 of 5 stars) affect your likelihood of using an online store? (Al respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 33 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  37. 37. Respondents by AgeFigure 33: Does having product ratings (ex: 3 of 5 stars) affect your likelihood ofusing an online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 34All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  38. 38. Respondents by TypeFigure 34: Does having product ratings (ex: 3 of 5 stars) affect your likelihood ofusing an online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 35All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  39. 39. 3.5.2. Online chat Most shoppers consider instant chat to be a „nice to have‟ rather than a free standing differentiator. The real value of chat is evident when it‟s seen as a mechanism for customer service that‟s preferred by many. All Respondents Figure 35: Does having online chat available affect your likelihood of using an online store? (All respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 36 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  40. 40. Respondents by AgeFigure 36: Does having online chat available affect your likelihood of using an onlinestore? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 37All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  41. 41. Chat is important to a significant number of “influentials” and “sophisticates,” as well as roughly onein five of those in other demographic types.Respondents by TypeFigure 37: Does having online chat available affect your likelihood of using an onlinestore? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 38All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  42. 42. 3.5.3. Consumer-generated reviews Like chat and ratings, preference for sites with consumer reviews is related to age. The strength of that preference is higher than that for chat, and on par with ratings. For retailers, one advantage of reviews is that they can lead to additional purchases of related and complimentary products. All Respondents Figure 38: Does having consumer-generated reviews affect your likelihood of using an online store? (All respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 39 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  43. 43. Respondents by AgeFigure 39: Does having consumer-generated reviews affect your likelihood of usingan online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 40All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  44. 44. Respondents by TypeFigure 40: Does having consumer-generated reviews affect your likelihood of usingan online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 41All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  45. 45. 3.5.4. Free shipping Unsurprisingly, free shipping is as strong attraction to all age groups and demographic types. Retailers can take advantage of this by making it very clear when products or customers qualify for complimentary shipping. All Respondents Figure 41: Does having free shipping available affect your likelihood of using an online store? (All respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 42 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  46. 46. Respondents by AgeFigure 42: Does having free shipping available affect your likelihood of using anonline store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 43All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  47. 47. Respondents by TypeFigure 43: Does having free shipping available affect your likelihood of using anonline store? (All respondents) Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 44All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  48. 48. 3.5.5. Payment options Alternatives to credit cards have proliferated in recent years. Figure 44 tracks the relationship between youth and a strong interest in alternative payment options, such as PayPal, BillMeLater, SecureEBill and others. Although they make up a relatively small percentage of total purchases (estimates range from 5% to 25% but the reality is likely at the low end of that range for most sites), there are reasons for sellers to consider offering alternatives.  Lower fees – alternatives often charge per transaction percentages than the major credit card companies.  New, wider audience – retailers who offer alternatives often find that the customers taking advantage are new to their lists.  Differentiator – since alternative payment options are far from universal, and are important to fans, they are a way of standing out from the crowd and building loyalty. All Respondents Figure 44: Does having payment options like PayPal or BillMeLater available affect your likelihood of using an online store? (All respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 45 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  49. 49. Respondents by AgeFigure 45: Does having payment options like PayPal or BillMeLater available affectyour likelihood of using an online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 46All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  50. 50. Respondents by TypeFigure 46: Does having payment options like PayPal or BillMeLater available affectyour likelihood of using an online store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 47All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  51. 51. 3.5.6. Price guarantees All Respondents Figure 47: Does having available price guarantees affect your likelihood of using an online store? (All respondents) Response: 661 How We Shop in 2010 Habits and motivations of US consumers Page 48 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  52. 52. Respondents by AgeFigure 48: Does having available price guarantees affect your likelihood of using anonline store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 49All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  53. 53. Respondents by TypeFigure 49: Does having available price guarantees affect your likelihood of using anonline store? Response: 661How We Shop in 2010 Habits and motivations of US consumers Page 50All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  54. 54. 3.6. E-commerce site issues Although younger people are the most likely to notice insufficient numbers of reviews, all segments of buyer find them helpful. For retailers, the question is how to attract more reviews:  Ask for them – ask for reviews after products are delivered, but not so quickly that customers won‟t have an opinion. The right timeframe varies by the type of product. For example, clothing forms an almost immediate impression, while an appliance may take a month or more. Setting up automated emails with timing based on product category can simplify this process.  Make it easy to create and post – the technical process for submitting a review should be fast, and take a minimum of clicks, just like everything else on a good site. If coming from an email, the users should find themselves on the right page, with the product information already provided.  Create an environment that encourages interaction – some sites do this through direct incentives such as points systems and discounts. Others take the longer view and attempt to build a socially driven site that rewards reviewers in the more esoteric but satisfying currency of attention for their contributions. Respondents by Age Figure 50: How often do you find too few buyer reviews on websites to be helpful? Response: 654 How We Shop in 2010 Habits and motivations of US consumers Page 51 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  55. 55. Respondents by TypeFigure 51: How often do you find too few buyer reviews on websites to be helpful? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 52All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  56. 56. One of the most common and important complaints from online shoppers is there isn‟t enoughinformation on a specific site to make an informed decision. Because the Internet offers so manyoptions for information, these shoppers quickly depart via search engines to find the requiredinformation somewhere. Retailers should focus on solving this problem at two levels. Work to provide all available information. People buying online tend to have very specific concerns related to the inability to interact with products in three dimensions. Does it have an input jack? Does the cord reach? High enough? For that reason, including every piece of manufacturer‟s information, and if possible multiple photographic views, will pay off. Some sites use consumer-generated content to fill the gap, but for low traffic and SMB focused direct sellers, there may not be sufficient volume for this solution. Another consideration is that sometimes customers will find a product on one site, research it elsewhere, and then make a decision on where to buy. If the first site is able to create a memorable advantage, the customer may return once their research is complete. Amazon creates that advantage with its “One-Click” checkout. Other sites can use price guarantees, free shipping offers, loyalty points and premiums to accomplish the same thing.Respondents by AgeFigure 52: How often do you find too little information to decide onproducts/services when you‟re shopping online? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 53All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  57. 57. Respondents by TypeFigure 53: How often do you find too little information to decide onproducts/services when you‟re shopping online? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 54All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  58. 58. Respondents by AgeFigure 54: How often do you find pages on retail websites load too slowly? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 55All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  59. 59. Respondents by TypeFigure 55: How often do you find pages on retail websites load too slowly? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 56All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  60. 60. Respondents by AgeFigure 56: How often that retail websites break or malfunction when you‟reshopping? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 57All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  61. 61. Respondents by TypeFigure 57: How often that retail websites break or malfunction when you‟reshopping? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 58All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  62. 62. Respondents by AgeFigure 58: How often do you find that the search box doesn‟t work well when you‟reshopping online? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 59All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  63. 63. Respondents by TypeFigure 59: How often do you find that the search box doesn‟t work well when you‟reshopping online? Response: 654How We Shop in 2010 Habits and motivations of US consumers Page 60All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  64. 64. 3.7. Social profile sites The social phenomenon has already changed e-commerce. User-generated reviews were one of the first intersections between commerce and the online conversation. Moving forward, the permutations and implications of social networking and marketing will continue to change the ways in which we research, choose, negotiate for, and purchase products, both online and off-. There are trends just taking shape today that may become the new reality of e-commerce in years to come.  Location is a more powerful factor in buying equation than many of the other variables that we use to target products. The industry is only beginning to understand the implications of our mobile devices‟ self-awareness. But we are not far from a time when consumers are able to take a photo of a product, access review sites to confirm its quality, and have nearby and online stores compete for our interest, all from our mobiles, which will also serve as payment devices.  In an open-ended question about social media, one survey respondent said, “it seems like Facebook is the Internet.” For many people, that‟s true, and for over 400 million worldwide, Facebook plays a significant role in their lives online. So far, the ways in which Facebook and commerce have overlapped have been limited to marketing and the sale of virtual products (a multi-billion dollar industry in its own right). However, Facebook has exploring ways in which to bring commerce to the site in more direct ways. Whether through the implementation of their own payment-credit system or the integration of existing platforms, Facebook may become a sales channel for all sizes of business.  Collaborative buying takes advantage of easy communication among like-minded people to create groups with the purpose of driving down the price of a particular product or service. This model exists in many forms in the offline world and some online examples exist, like Groupon. So far, most collective buying online has been limited to digital and service products that don‟t require physical fulfillment. The growth in popularity of these affinity-buying groups seems to be inevitable as social networks become a ubiquitous part of the average person‟s daily life. How We Shop in 2010 Habits and motivations of US consumers Page 61 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  65. 65. Respondents by AgeFigure 60: Do you use Facebook, MySpace or another social profile site? If so, howoften do you access it? Response: 1,430How We Shop in 2010 Habits and motivations of US consumers Page 62All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  66. 66. Respondents by TypeFigure 61: Do you use Facebook, MySpace or another social profile site? If so, howoften do you access it? Response: 1,430One challenge to those using social outreach to generate attention is that they‟re competing with anindividual‟s entire social network, which is constantly growing. In Figure 61 we see that for manypeople theflow of posts can be overwhelming and that just over 60% of all respondents report readingless than a page of updates on Facebook (respondents were not asked to make a distinction betweenthe „Top News” and “Most Recent” pages). Influencers are much more likely to invest the time to readbeyond the first page, but by definition, their feeds will be far more crowded than average.All the above suggests that over time, the nature of commercial relationships that people maintain viasocial networks will evolve as they did as the early stages of email marketing, which has matured intotodays channel. Currently in social media, as it was for email 10 years ago, it‟s relatively easy to gainfollowers and friends, at least for some brands. But new people and organizations are competing forattention. Fortunately, in the case of social media, we may avoid the saturation and low quality thatplagues email marketing. Marketers tend to treat their social customers with the respect emailrecipients deserve but d0nt‟ always get, and it‟s the nature of social messaging to be less intrusivethan email.How We Shop in 2010 Habits and motivations of US consumers Page 63All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  67. 67. All respondentsFigure 62: When you check [their social profile site] how many of your friends‟ postsdo you read? Response: 720How We Shop in 2010 Habits and motivations of US consumers Page 64All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  68. 68. Over one third of all respondents reported having forged some type of social connection with acommercial entity in the last 30 days, as did close to half of those in the key 18-24 year olddemographic. Respondents between 25 and 38 are a close second at 42%Respondents by AgeFigure 63: In the last month, have you become a “fan” or “friend” of any companies,products or brands? Respondents: 720How We Shop in 2010 Habits and motivations of US consumers Page 65All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  69. 69. In what appears to be good news for marketers, several key demographic types are significantly morelikely than the average to connect to companies. Figure 64 shows only high-income households hoveraround the average.Respondents by TypeFigure 64: In the last month, have you become a “fan” or “friend” of any companies,products or brands? Respondents: 720How We Shop in 2010 Habits and motivations of US consumers Page 66All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  70. 70. The explosive growth of social media has introduced the question of a „bubble.‟ Will there be a declinein some aspect of social media that mirrors its rise? Figure 65 shows one measure that indicatesotherwise.Respondents by length of membershipFigure 65: In the last month, have you become a “fan” or “friend” of any companies,products or brands? Respondents: 720How We Shop in 2010 Habits and motivations of US consumers Page 67All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  71. 71. The two primary reasons for connecting with a brand online are to advertise that affiliation and tolearn of offers. Figure 66 shows theres some variation based on age, with younger people being moreinclined to connect with brands as an expression of style or support of a brand concept. They alsovalue have a higher expectation of entertainment from a brand‟s communications.Respondents by ageFigure 66: What leads you to become a “friend” or “fan” of a company or product onyour social site? 37% 51% Show that I like the the company or product 48% 49% 43% 49% Learn about specials, sales, etc. 55% 45% 41% 33% Learn about new products/features/services 44% 35% 13% For entertainment - their updates need to be 16% funny or insightful 24% 32% 16% 22% Im making a statement 24% 30% 55+ 9% 39-54 Learn about the companys culture and 21% 25-38 responsibility to the environment, its workers, etc. 15% 15% 18-24 0% 20% 40% 60% Respondents: 720How We Shop in 2010 Habits and motivations of US consumers Page 68All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010

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