Report on Consumers and Convergence


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Join KPMG as the review the fourth iteration of the Consumers and Convergence study in the past five years. Gain a better understating of consumer trends related to mobile technology including: technology used, security and payment, mobile payments, mobile banking and cloud computing.

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Report on Consumers and Convergence

  1. 1. Consumers & Convergence IV<br />November 2010 <br />KPMG INTERNATIONAL<br />
  2. 2. 1<br />Overview<br /><ul><li>The fourth iteration of the Consumers & Convergence study in the past five years
  3. 3. Objective: To gain a better understanding of consumer trends related to mobile technology, including:
  4. 4. Technology used
  5. 5. Security and privacy
  6. 6. Mobile payments
  7. 7. Mobile banking
  8. 8. Cloud computing</li></li></ul><li>2<br />Methodology<br /><ul><li>Survey conducted with consumers in 22 countries worldwide
  9. 9. Americas: U.S., Canada, Brazil
  10. 10. ASPAC: China, India, Japan, South Korea, Australia
  11. 11. EMA: U.K., France, Germany, Ireland, The Netherlands, Russia, Spain, Sweden, Czech Republic, Hungary, Poland, Romania, Slovakia, South Africa</li></li></ul><li>3<br />Methodology<br /><ul><li>Global analysis based on 5,627 respondents
  12. 12. Canadian analysis based on 300 respondents
  13. 13. All respondents had to own either a mobile phone or PDA/smartphone
  14. 14. Data weighted based on estimates of the mobile phone subscriber base in each country surveyed</li></li></ul><li>Key Findings<br />
  15. 15. 5<br /><ul><li>Consumers are adopting mobile apps at ever-faster rates however Canadian consumers indicate lower usage of mobile devices for purchasing and banking
  16. 16. Privacy continues to be an important issue
  17. 17. Consumers are willing to give up information in return for something of value
  18. 18. Canadians continue to seek free content and are relatively advertising adverse
  19. 19. Consumers are redefining trust, value, privacy and security
  20. 20. While ahead of global and US respondents, Canadian consumers appear less aware of cloud services and its potential for business usage</li></ul>Key FindingsOverview<br />
  21. 21. Key Findings:Consumers have a paradoxical view of privacy<br /><ul><li>Consumers are more anxious than ever about the privacy of their personally identifiable information (PII) when using their mobile phone:</li></ul>Canada<br />Global<br />6<br />6<br />6<br />
  22. 22. 7<br />Key Findings:Consumers have a paradoxical view of privacy<br /><ul><li>But consumers also appear more willing to have their PII tracked if they get something of value in return
  23. 23. 58% say they’d be willing to allow their online usage and personal profile information to be tracked if it resulted in lower costs</li></li></ul><li>8<br />Key Findings:The rise of the converged consumer<br /><ul><li>Mobile banking catches fire with consumers globally
  24. 24. Canadian consumers indicate lower usage of mobile devices for financial transactions</li></li></ul><li>9<br />Key Findings:The rise of the converged consumer<br /><ul><li>The growth of m(obile)-commerce
  25. 25. The percent of consumers who say they’ve used an online retailer’s site from a mobile phone nearly tripled to 28% from 10% in 2008
  26. 26. In ASPAC, 40% say they’ve made purchases over their mobile device
  27. 27. In Canada, consumers slower to make retail purchases using mobile sites
  28. 28. Younger consumers more readily engage with m-commerce than older ones</li></li></ul><li>10<br />Key Findings:The rise of the converged consumer<br /><ul><li>Mobile and online consumers are more willing to receive ads
  29. 29. Half of online consumers* and 4 in 10 mobile device users say they’ll accept ads in exchange for free or bargain pricing of services and content</li></ul>* Online consumers: consumers who access online content/ services with their personal computer<br />
  30. 30. Key Findings:Canadians continue to seek free content <br />11<br />If an online or mobile content site you frequently visit begins charging for access to content, would you be willing to pay to gain access to the content? device?<br />11<br />11<br />
  31. 31. 12<br />Key Findings:Identifying “Information Sharers”<br /><ul><li>Emerging group of consumers who say they are ready to share their information
  32. 32. Willing to exchange PII for cheaper/free content
  33. 33. Comfortable doing banking on a mobile device
  34. 34. Comfortable accessing personal medical info on their mobile device
  35. 35. The segment represents 10% of the survey sample</li></li></ul><li>13<br />Key Findings:Identifying “Information Sharers”<br /><ul><li>Who are the “Information Sharers?”
  36. 36. More likely to come from China or India; less likely to come from North America
  37. 37. More likely to be employed full time
  38. 38. More willing to accept tailored ads on mobile devices
  39. 39. More willing to receive ads in exchange for free or cheaper services or content
  40. 40. More comfortable using a mobile device to browse the Web
  41. 41. More likely to buy goods via their mobile device
  42. 42. More likely to use mobile banking daily</li></li></ul><li>14<br />Key FindingsInfrastructure and access: Don’t drop that landline…yet<br /><ul><li>Are consumers ready to drop their landline and go mobile? </li></ul>NO!<br /><ul><li>Globally, 81% of landline subscribers plan to keep their landline phone connection
  43. 43. 90% of cable, satellite and Internet protocol TV (IPTV) subscribers plan to keep their services </li></li></ul><li>15<br />Key FindingsInfrastructure and access: Don’t drop that landline…yet<br /><ul><li>Why are they keeping their landline? </li></ul>For an Internet connection.<br /><ul><li>More than half want to keep their landline for the Internet
  44. 44. Voice usage takes a secondary role</li></li></ul><li>16<br />Key Findings:Not ready for unlimited voice and data<br /><ul><li>Consumers are not yet willing to commit to unlimited voice and data plans
  45. 45. Slightly more than a quarter (28%) have adopted these globally</li></li></ul><li>17<br />Key Findings:Not ready for unlimited voice and data<br /><ul><li>Network quality/coverage, costs, and quality of service are reasons consumers would consider changing mobile carriers</li></li></ul><li>18<br />Key Findings:Positive forecasts for the cloud<br /><ul><li>Two-thirds (66%) of consumers use some type of cloud services
  46. 46. Canadians are avid users of cloud services (72%)
  47. 47. Spain (89%) and India (88%) have greatest cloud penetration
  48. 48. Just 51% of U.S. consumers use cloud computing services
  49. 49. Lowest cloud penetration is in Germany (27%)</li></li></ul><li>19<br />Key Findings:Positive forecasts for the cloud<br /><ul><li>Consumers most comfortable using the cloud for photos,e-mail, contacts, and video
  50. 50. Few are ready to put their medical or financial information on the cloud</li></ul>Main reasons for not using Cloud Services<br />
  51. 51. PossibleImplications<br />
  52. 52. 21<br />Possible Implications:For service providers<br /><ul><li>No single online-access plan trumps alternatives for in-home or mobile activities
  53. 53. Consumers demand a choice of service offerings, particularly from mobile operators
  54. 54. Unlimited voice and data plans are not an unqualified success with either consumers or, it seems, providers
  55. 55. Quality of service and price are the main reasons consumers consider changing providers
  56. 56. Users are willing to juggle a mix of access technologies to get the best value</li></li></ul><li>22<br />Possible Implications:For content providers<br /><ul><li>The majority of consumers believe most content should be free
  57. 57. Not all content is equal in the minds of consumers, and those that will pay for content prefer to pay for parts of a site, not the whole thing.
  58. 58. Generic news and information are considered commodities
  59. 59. There is value in targeted information and content, but consumers may be more likely to provide PII rather than money.
  60. 60. Entertainment content, such as games, video, and music have perceived premium allure.
  61. 61. Regional and national demographics play a huge role in the perception of content.</li></li></ul><li>23<br />Possible Implications:For cloud computing companies<br /><ul><li>Consumers view cloud computing primarily for services such as email, photos and video
  62. 62. Most consumers are not yet ready to put medical or financial data on the cloud
  63. 63. Users see personal benefits from these services
  64. 64. There is surprisingly low use of social networking services by those 24 and younger on mobile devices</li></li></ul><li>24<br />Possible Implications:For financial and retail companies<br /><ul><li>Consumers are willing to experiment with and ultimately embrace new mobile services
  65. 65. While more consumers are comfortable using their mobile phones for banking or retail purchases, the majority still are not, and efforts need to be made to reach these consumers
  66. 66. Security and privacy remain strong forces, but they’re not immovable
  67. 67. Regional and age demographic preferences need to be considered
  68. 68. Financial services firms have an opportunity to create business, attract/retain customers, control costs, and gain other advantages by deploying mobile apps</li></li></ul><li>25<br />Possible Implications:For marketing and advertising<br /><ul><li>Online marketing opportunities are expanding
  69. 69. Consumers generally prefer targeted PII-based ads
  70. 70. Anxiety over privacy means consumers demand transparency; lose their trust and you risk their business
  71. 71. Users are willing to exchange lower cost or free services and content for advertising
  72. 72. There’s still little tolerance for mobile advertising</li></li></ul><li>Insights<br />
  73. 73. 27<br />Conclusion: Convergence is becoming a reality<br /><ul><li>Consumers are willing to accept ads in exchange for cheaper basic services
  74. 74. They continue to embrace a broad range of mobile and cloud-computing applications, BUT …
  75. 75. are reluctant to store sensitive personal information on the cloud
  76. 76. They are ready to use their mobile phones for financial transactions and to purchase goods and services, BUT….
  77. 77. are increasingly concerned about privacy and security when using their mobile phones
  78. 78. They are willing to suspend those anxieties and will offer personal information for something of value</li></li></ul><li>Q&A<br />
  79. 79. Consumers & Convergence IV<br />November 2010 <br />KPMGiNTERNATIONAL<br />