1. 2014 DIGITAL RESEARCH REPORT
[ How to Create More Effective Brand Communication ]

2. [STUDY PURPOSE]
To obtain a global view of consumers’ attitudes
towards digital communications and technology innovations, including
sector-specific insights for the grocery, airline and banking categories.
This study was a follow-up to Aimia’s 2012 Digital Research, which looked at
the drivers influencing consumer attitudes toward digital marketing.
With the adoption of smartphones and tablets by consumers and
smarter data analytics by marketers, Aimia wanted to explore how technologies
are impacting the relationships between brands and their customers.
> Background

3. [GOAL]
Develop an understanding of how brands might best
interact with customers to maximize the effectiveness
of marketing messages delivered to them via
email, SMS and app notifications.
> Background

4. [STUDY METHODOLOGY]
The 15-20 minute online survey was conducted
by Aimia Intelligence Research in November
20-29, 2014. A minimum of 2,000 respondents
were sampled from in each country, each of
which was a nationally representative sample.
The respondents were given visual as
well as descriptive stimuli during the survey.
n=2027
n=2077
n=2074
n=2064
n=2046
RESPONDENTS
> Background

5. [THE DILEMMA FOR MARKETERS]
The ability to collect
data is a critical aspect for
enabling marketers to
deliver what consumers say
they want and expect —
relevant and personalized
content and information.
> Executive Summary
Marketers are caught in a
bind.
If they push too hard with
their communications to
customers, they risk
losing the ability to gather
data and possibly even
the relationship with the
customer itself.

6. [YOUNGER, TECH-SAVVY CONSUMERS
TEND TO BE MORE SENSITIVE]
While “Deletist” consumers
likely know how to change
settings and communication
preferences in order to
control how they are
contacted by marketers,
they will often simply end a
relationship if they feel they
are being overwhelmed.
> Executive Summary
“Deletist” consumers
are likely to be younger
and more tech savvy,
and they tend to be
more aware of privacy
concerns and
intrusions.

7. [THE DANGERS OF OVER COMMUNICATIONS]
If high-sensitivity consumers feel
they are getting too many
messages, they will rebel and
take steps to change the
relationship with the brand.
These actions will reduce the data
assets that can be collected,
lessening the marketer’s ability to
personalize communications or
ending the brand’s chance to
reach that consumer digitally.
Block Number Close Account
Unfriend/Unfollow Opt out of Email
Turn off Push Notifications Change Settings
Delete Apps
> Executive Summary

8. [CONSUMERS WILLING TO SHARE THEIR DATA IN
EXCHANGE FOR RELEVANT COMMUNICATIONS]
Our research shows that
consumers are willing to make a
fair trade with brands and give up
some of their personal information
in exchange for relevant and
personalized messages.
If the offers and content have real
utility and value, consumers will
permit the use of the demographic
and behavioral data.
But this willingness to share does
not imply their comfort level with
the volume of communications.
Their current location via mobile device
Access to phone features such as the
camera, microphone, contacts, calendar
The ability to post on social media
THEY WILL SHARE:
> Executive Summary

9. [IS MORE ALWAYS BETTER?]
Many marketers today subscribe to the theory
“the more brand communication with customers the better.”
Ease of deploying communications has led to overuse.
This is often driven by the marketer’s need for short-term
results and instant gratification.
> Executive Summary

10. [THE RISE OF THE “DELETIST” CONSUMER]
When marketers send too
many messages, consumers
tune out and turn them off,
especially if messages are
not relevant and
personalized, providing no
meaningful utility or
benefits.Consumers will take action if they feel brands have over
communicated.
Stop sharing data with companies
Change settings to stop notifications and texts
Completely opt out of communications
Consumers will “delete" their relationship with companies if:
Messages are not relevant
Messages are not personalized
Our research suggests that consumers will avoid and abandon
companies that “over message” and will stop sharing their
data with brands completely.
> Initial Findings

11. [SENSITIVITY TO MARKETING
MESSAGES FALL INTO TWO CAMPS]
Cluster analysis took into
consideration over 50 behavior and
attitude questions and three modes
of communication:
Through cluster analysis, we identified two distinct
groups of consumers:
1. Those with a high sensitivity to a high volume of
messages.
2. Those with a low sensitivity to a high volume of
messages.
Consumers with high sensitivity are most likely to
become “Deletist” consumers.
But consumers in both groups are equally
apt to share data with marketers.
> Initial Findings

12. [WHAT IS A HIGH-VOLUME-SENSITIVE CONSUMER?]
High-Volume-Sensitive
(HVS) consumers have
many subtle differences
compared to Low-Volume-
Sensitive (LVS) consumers.
HVS consumers are a
significant portion of the
population that is currently
underserved.
Likelihood of being
HVS over LVS
Millennials 44%
Generation X 13%
Baby Boomers -25%
> Initial Findings

13. [WHO IS A HIGH-VOLUME-SENSITIVE CONSUMER?]
Unsurprisingly, those
consumers identified as High-
Volume Sensitive Consumers
are also more likely to own
newer technologies.
LVS HVS
Owns a computer 98% 97%
Owns a Smartphone 67% 81%
Owns Other Mobile Phone 36% 32%
Owns Tablet 48% 60%
Owns Smart TV 31% 40%
Owns Game Console 31% 40%
> Initial Findings

14. [HIGH-VOLUME-SENSITIVE CLUSTER SNAPSHOT]
LVS HVS
Millennials/Gen X
Baby Boomers
> Initial Findings
Compared to Baby Boomers,
Millennials and Gen X
consumers tend to be more
technological savvy.
Our research is suggestive of
this, but each attribute was
identified independently of the
others.

15. [RECEIVING A HEAVY VOLUME OF EMAIL,
BUT NOT A PROBLEM. YET.]
EMAIL – Receive 72 per week, the most of any country
Although 68% say it is too much, they feel they can handle it
SMS - Receive 8 per week, not a concern with few indicating this to be an issue
APP NOTIFICATIONS - Receive 9 per week, not seen to be a concern
Older consumers are more likely to perceive that communication volumes are increased.
> Initial Findings

16. [HEAVY VOLUME OF EMAIL; THREE-QUARTERS SAY
IT’S TOO MUCH ]
EMAIL – Receive 48 per week
And 74% say it is too much, the most of any country
SMS - Receive 5 per week, not a concern with few indicating this to be an issue
APP NOTIFICATIONS - Receive 7 per week, not seen to be a concern
Older consumers are more likely to perceive that communication volumes are increased.
> Initial Findings

17. [MUCH LOWER VOLUME OF EMAIL AND OTHER
COMMUNICATIONS THAN US NEIGHBORS]
EMAIL – Receive 32 per week
65% say it is too much
SMS – Receive 4 per week, not a concern with few indicating this to be an issue
APP NOTIFICATIONS - Receive 7 per week, not seen to be a concern
Older consumers are more likely to perceive that communication volumes are increased.
> Initial Findings

18. [VOLUME OF TEXT MESSAGES IS BIGGEST
CONCERN AMONG INDIAN CONSUMERS]
EMAIL – Receive 34 per week
59% say it is too much
SMS – Receive 25 per week, with the volume a concern for many
APP NOTIFICATIONS - Receive 19 per week, seen to be a concern for some
> Initial Findings

19. [CONSUMERS IN FRANCE ARE MOST LIKELY
TO SAY THEY GET TOO MANY EMAILS]
EMAIL – Receive 66 per week
77% say it is too much, the highest percent among the five
countries studied
SMS – Receive 7 per week, not seen to be a concern
APP NOTIFICATIONS - Receive 9 per week, not seen to be a concern
> Initial Findings

20. [THOSE WHO CAN COPE WITH THE VOLUME
HAVE CLEAR STRATEGIES]
“I feel like some companies do not know the difference between a good amount
and excessive; the more things you sign up to you end up getting more spam”
“There is far too much from third parties that shouldn't have your email so a
lot of the time you don't even read the mail you just delete it”
“I have learned the hard way to never give out my number. Companies will find
other ways to get your number so they can text you but I particularly hate texts
and calls to my phone - Because it's unsolicited and I'm not interested in it”
“It's distracting enough now. And they misuse push by pinging a notification for
every tiny thing. I would prefer fewer, but more important push notifications”
“Not always easy to unsubscribe”
Unsolicited distractions prompt complaints and a lack of trust,
which creates privacy concerns
Consumers will
revoke permission
to interact with
them when they
feel overwhelmed
by the amount of
communications
they are receiving.
The majority of
consumers
worldwide feel
they are receiving
junk email daily.
> Further Insights

21. [UK CONSUMERS CANCEL OR CLOSE ACCOUNTS
RATHER THAN ADJUSTING SETTINGS]
Instead of changing
settings, overwhelmed
consumers will resort to
more drastic measures to
stem the tide of receiving
too many
communications.
The danger of turning a
current or potential
customer into a “Deletist”
consumer is real.
Unfriend/Unfollow:
69%
Delete Apps: 55%
Avoid downloading
apps altogether: 40%
Close Accounts
and subscriptions:
69%
Block Numbers: 59%
> Further Insights

22. > Further Insights
[ CLOSING ACCOUNTS AND SUBSCRIPTIONS IS MOST
COMMON RESPONSE AROUND THE GLOBE]

23. [SOME HAVE DEVELOPED TACTICS
AND COPING SKILLS]
About half of our respondents
are willing to adjust settings
and/or share personal
information, which indicates an
understanding of the value of
trading their information in
exchange for relevant
communications.
Consumers in India, however,
are much more likely to change
settings and share information
compared to other markets.
> Further Insights

24. [CONSUMER ATTITUDES TOWARD APPS AND
WEB ARE CONSISTENT, EXCEPT IN INDIA]
Indian consumers are more
interested in using apps to
stay up to date.
They are more open to web
advertisements and having
their data used to receive
targeted advertisements.
71% of Indian
consumers agree they
like to use apps from
companies in order to be
kept up to date while
they are on the go
> Further Insights
44% 57% 44% 40%

25. [CANADIANS GET PLENTY OF JUNK EMAIL,
BUT ONLY ABOUT HALF OPT OUT]
After Indian consumers,
Canadians are least likely to
feel they are getting too
much junk email, and after
the French, they are least
likely to opt out of marketing
email communications.
They receive too much junk email: 72%
They have opted out of email communications
because they are getting too much: 53%
They have accidently deleted important emails: 41%
They miss emails due to the level of junk email: 33%
Many consumers agree:
> Further Insights

26. > Further Insights
[JUNK EMAIL IS A GLOBAL CONCERN]

27. [THE UK AND INDIA ARE AMIDST A
RISING TIDE OF TEXT MESSAGES]
Both of these countries are
seeing higher amounts of
unexpected SMS messages
from companies consumers do
not know and with which they
have no prior relationship.
However, in India, consumers
are more likely to feel that text
messages they receive are
personalized.
> Further Insights

28. [FAMILY AND FRIENDS COME FIRST
WHEN IT COMES TO EMAIL]
Over 90% of consumers
open emails from family and
friends first (except in
India), reflecting a clear
priority over email from
companies, whether or not
they have opted into
receiving them (see next
slide).
MOTHER COMPANY
> Further Insights

29. [NEARLY 30% OF INDIAN CONSUMERS
WILL OPEN MARKETER EMAIL FIRST]
Indian consumers are much
less likely to read a family
email first than those in the
UK, US, Canada and France.
> Further Insights

30. [CLEAR EVIDENCE THAT CONSUMERS AVOID
COMPANIES THAT MESSAGE TOO MUCH]
Consumer across all regions
have strategies to dodge
companies that they perceive
to be sending too many
communications.
> Further Insights

31. [LARGE MAJORITY OF CONSUMERS WILL NOT
ALLOW MARKETERS ACCESS TO PHONE FEATURES]
When asked about permitting
grocery retailers, airlines and
banks to access their phones,
the vast majority of consumers
will not allow any type of access
at all.
The rare exception is willingness
to share location information.
However, Indian consumers are
the most open to permitting
access to their phone.
> Further Insights

32. [PRIVACY AND LACK OF UNDERSTANDING TOP
REASONS FOR NOT ALLOWING SMARTPHONE ACCESS]
This attitude was
consistent across all
markets.
Privacy was the top
concern by a significant
margin, but consumer
concerns with receiving
unwanted messages and a
lack of understanding their
benefits also contributed
significantly.
67% of U.S. and Indian
consumers state data
privacy concerns as the
number one reason for
not allowing companies
access to phone
features, the highest
among all regions.
> Further Insights
65% 64% 54%

33. [PRIVACY CONCERNS ARE GREATEST AMONG LONG-
TIME SMARTPHONE OWNERS]
Except for Canadians, the
longer consumers have owned
their phone, the more likely
they are to be concerned about
privacy when being asked to
allow access to apps.
> Further Insights
TIME OWNED

34. [TO PREVENT DISSATISFACTION, MARKETERS
MUST SEND RELEVANT MESSAGES THROUGH
APPROPRIATE CHANNELS IN THE US]
Consumers in the US are most
likely to express discontent with
receiving messages “not relevant
to me.”
The second pet peeve from US
consumers is receiving messages
through the channels they do not
like.
Receiving too many —or too few—
communications from marketers
ranks fourth.
What causes consumers to disengage with
brands/companies?
Messages not relevant to me: 39%
Sending messages through channels I don’t like: 27%
Too many or too few communications: 23%
Sent at inappropriate times: 11%
> Further Insights

35. > Further Insights
[EXCEPT IN FRANCE, THE TOP REASON CONSUMERS
DISENGAGE FROM BRANDS IS BECAUSE MESSAGES
ARE NOT RELEVANT]

36. [THE LEAST LIKLEY TO NOTICE TEXT MESSAGES,
ALONG WITH INDIAN CONSUMERS]
Once again, email is by far the
tactic most noticed in Canada
and consumers are
comfortable with this channel
for receiving marketing offers,
customer service and product
updates.
Traditional media is noticed,
but not as likely to be used by
companies to communicate
with consumers.
Most likely to be noticed:
> Further Insights

37. [USE EMAIL TO BE NOTICED BY CONSUMERS]
Similar to the UK, email is by
far the tactic most noticed in
the USA and consumers are
comfortable with this channel
for receiving marketing offers,
customer service and product
updates.
Traditional media is noticed,
but not as likely to be used by
companies to communicate
with consumers.
Most likely to be noticed:
> Further Insights

38. [USE EMAIL TO BE NOTICED BY CONSUMERS]
Email is by far the tactic most
noticed in the UK and
consumers are comfortable
with this channel for receiving
marketing offers, customer
service and product updates.
Traditional media is noticed,
but not as likely to be used by
companies to communicate
with consumers.
Most likely to be noticed:
> Further Insights

39. [EMAIL REMAINS KING, BUT OTHER
CHANNELS ALSO BREAK THROUGH]
While more than 50%
of consumers in the US, UK and
Canada say they are most likely to
notice marketer emails, only 44%
of the French notice email.
Text messaging, which gets single-
digit percentages in other countries
except India, is noticed by 14% of
consumers in France.
Direct mail performs better than in
France compared to any of the
countries we studied.
Most likely to be noticed:
> Further Insights

40. [TEXT GAINS ON EMAIL FOR GETTING NOTICED]
Email is still the top tactic for
marketers to use to get noticed
by Indian consumers, but India
is the only country in which
SMS messaging comes in
second.
Most likely to be noticed:
> Further Insights

41. [CONSUMERS PREFER TO RECEIVE INFORMATION WHEN
THEY ARE NEARBY GROCERS]
Across all markets (with India
as the strongest), consumers
prefer to receive messages on
their mobile phone when they
are about to enter a
supermarket or when they
are outside of the store.
22% of UK consumers
would prefer to receive
offers from grocery
retailers when they are
about to enter the
store.
> Further Insights
17% 23% 23% 54%

42. [CONSUMERS PREFER TO ENGAGE THROUGH
DESKTOP-BASED BANKING ]
In every country but
India — where consumers are
most likely to accept offers
inside a physical bank —
consumers are much more
interested in receiving offers
from banks when they are
logged into online accounts
than through smartphone
access.
> Further Insights
32% of US consumers
would prefer to receive
information from their
bank when they are
accessing their account
online (not through
their phone)
31% 26% 45%28%

43. [CONSUMERS ACCEPT OFFERS WHEN SEARCHING,
WANTING SERVICE INFORMATION NEAR FLIGHT DATE ]
Across all markets (with India
the strongest), consumers will
accept offers and messages to
their phones if they are
actively seeking flights online,
as well as when the flight date
approaches.
> Further Insights
19% of Canadian
consumers would prefer to
receive a phone message
related to service
information about a flight
when they are searching for
a flight online
21% 25% 29%17%

44. [TRANSITION FROM PRINT TO DIGITAL IS MIXED]
Email is preferred over direct mail (48% to 29%), but
print is still preferred for coupons (55% to 29%)
Still prefer printed direct mail over email (46% to
43%), and prefer print more so for coupons (54% to 35%)
Similar profile to the US
Trending toward email over print (45% to 31%) and
digital coupons and vouchers
Heavily weighted to all-digital, especially younger
consumers. They prefer digital coupons 57% to 36%
> Further Insights

45. [WALLETS NOT YET TOO FULL FOR COUPONS ]
Consumers across countries
and age groups strongly
disagree that their wallets are
so full that they only want
digital offers.
India is a notable exception,
with younger consumers
agreeing strongly (see next
slide).
“My wallet is so full I
would only use offers
that I can carry around
on my phone.”
> Further Insights

46. > Further Insights
Percentage of consumers who agree with statement,
“My wallet is so full I would only use offers that
I can carry around on my phone.”

47. [BEWARE OF OVERUSING MESSAGING,EVEN WHEN
RELEVANT AND LOCATION BASED ]
Across all markets and modes of
communication (email, SMS, apps),
consumers strongly agree that they
don’t want to be bombarded with
offers; they just want the most
relevant.
And they strongly agree that
location-based marketing would
become annoying if they were sent
a large number of offers during one
shopping trip (see next slide).
> Further Insights

48. > Further Insights
Percentage of consumers who agree that location-
based marketing would become annoying if they
were sent a large number of offers during one
shopping trip.

49. The opportunity: To build long-term, two-way relationships based on
trust where consumers trade their personal data in exchange for
relevant, meaningful and personalized offers and messages via email,
SMS and apps. This is loyalty-based foundation can foster repeat sales
and turn customers into advocates and influencers for brands.
The risk: If the messages are not personalized and relevant, or they are
delivered too often, a line will be crossed. Consumers will shut down,
delete and avoid company relationships where they feel their privacy is
being violated or they are getting too many non-personal messages.
This will result in a loss of customers and revenue.
Smart companies need to balance risk and reward by being
disciplined about their digital communications. And, by
recognizing customer needs as the focus for all interactions.
> Conclusion
Around the world, we are in a
time of transition from
traditional modes of
communication to digital and
mobile methods. This presents
great challenges and
opportunities to marketers.

50. [ABOUT AIMIA INSTITUTE]
We are informing marketers, around the world,
on how to build long-term customer relationships.
Aimia Institute is the thought leadership centre
for Aimia, a data-driven marketing
and loyalty analytics company.
For more information on Aimia visit Aimia.com.
.