the rise of the ‘deletist’ consumer

29
17 th June 2015 THE RISE OF THE ‘DELETIST CONSUMERWhy privacy, permissions and preferences lie at the heart of long-term consumer relationships. Vikram Adige Director Business Development, India

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Page 1: The Rise of the ‘Deletist’ Consumer

17th June 2015

THE RISE OF THE ‘DELETIST CONSUMER’

Why privacy, permissions and

preferences lie at the heart of long-term

consumer relationships.

Vikram Adige – Director Business Development, India

Page 2: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

‘INTERCEPTION MARKETING’ TO BECOME NORM

Home

Travelling

High Street

In-store

Aisle

I think I’ll go to the supermarket to buy a new….

2

Page 3: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

BUT ‘UNPLUGGING’: SIGNS OF AN UNEASY

RELATIONSHIP WITH TECH

3

Page 4: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

THE ROLE OF LOYALTY IN A DIGITAL WORLD

Long Term

Less Noise

Trust

Engagement

DIGITAL LOYALTY

Immediate

Real Time

Anywhere

Deal Based

4

Page 5: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

We must ensure that we use technology

to do things for and with our

consumers, not to them…

…building long-term customer

engagement and protecting brand value

5

Page 6: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

THE AIMIA DIGITAL 2.0 RESEARCH PROJECT

6

UKUS Canada France India

Online survey

conducted in 5

markets

A minimum of 2000 respondents interviewed in each

market with a nationally representative sample in each

Survey approximately 15-20 minutes in length

Fieldwork took place approximately between 20th and

28th of November 2014

Page 7: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

WHEN COMPANIES COMMUNICATE BADLY IT HAS

A STRONG NEGATIVE EFFECT

7

• When done badly, communication from companies elicits a very negative and aggressive emotional

response

• In some cases expletives were used (mostly in the UK, Canada and US)

Q19. One word to describe bad communication

Base: All respondents (2074)

Page 8: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

WHEN COMPANIES COMMUNICATE WELL IT IS

ACCEPTABLE

8

• When done well, the opposite is not true. People are not using very positive emotive words, they are

generally satisfied

• Getting communication correct is a hygiene factor of creating a positive relationship with a customer

Q20. One word to describe good communication

Base: All respondents (2074)

Page 9: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

39% SAY TOO MUCH PUSH, 19% ARE AVERSE TO IT

9

High levels of

email being

received

On avg. 34

mails a

week

59% believe its too

much

Two thirds

believe it is

increasing

1 in 7 feel they cant

handle the mail

High levels of

SMS being

received

On avg. 25

SMS a week

52% believe its too

much

Nearly half

believe it is

increasing

1 in 6 feel they cant

handle the volume

Medium

levels of push

received

On avg. 19

push a

week

39% believe its

too much

One third

believe it is

increasing

1 in 7 feel they cant

handle the volume

56%

41%

Receiving Push

Aware Received

40%

22%

17%

Push

Frequency

Far toomuch

Slightlytoo much

Aboutright

69%

14%

Can Handle Can't Handle

Dealing with Push

Page 10: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

THOSE WHO COPE HAVE STRATEGIES, THOSE

WHO DON’T JUST COMPLAIN ABOUT VOLUME

10

Q15c. Why do you say that (in answer to Q15b)

Base: All respondents (2078)

“I think information will be more targeted so it will

be more relevant to me”

“I can manage my subscription and email

preferences and if all else fails just delete any that

I’m not interested in”

“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 to 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 do not get many and a small increase will not be

a problem”

“I do not answer and just erase the message, also

use the option to STOP messages”

“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”

“I am more aware of not giving permission

when apps ask to allow push notifications”

“If it gets too many i will simply delete the

company”

“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”

Page 11: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

Q16. Here are some things people have done in order to manage to the type and or frequency of communications from companies. Which of these statements do you agree with.

Base: All respondents (2078)

52% HAVE CLOSED ACCOUNTS / SUBSCRIPTIONS

TO MANAGE VOLUME, 56% HAVE DELETED APPS

11

66%

70%

63%

57%

24%

54%

56%

57%

53%

69%

69%

62%

59%

57%

55%

52%

49%

46%

71%

73%

64%

57%

24%

60%

55%

54%

51%

64%

69%

61%

55%

31%

60%

42%

50%

55%

61%

52%

65%

56%

44%

56%

64%

64%

66%

Unfollowed/unfriended/unliked

Have closed accounts &

subscriptions because I don't like

the communications I received

Changed settings to reduce or turn off

push notifications

I have blocked numbers

I signed up to a telephone preference

service

I have deleted apps (because of

push notifications)

I have shared personal information so

that companies can send me more

relevant offers and discounts

Have changed my account settings to

manage to #/frequency of contacts

Have multiple emails to keep

personal and other emails separate

Page 12: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

I now avoid certain companies or brands as their messaging

annoyed me so much

I have made up personal details to avoid giving away personal

information

I am overwhelmed by the volume of communications I receive

59% NOW AVOID A BRAND OR COMPANY

TOTALLY BECAUSE OF THEIR OVER-MESSAGING

12

-19

-25

-22

59

49

48

-17

-38

-25

57

40

50

-18

-41

-29

56

33

39

-13

-44

-33

64

27

37

-17

-37

-29

57

42

40

Q21 . Please tell us how much you agree or disagree with the statements below

Base: All respondents (2078,2064,2074,2046,2027

% Disagree % Agree

Page 13: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

I have changed the preferences within apps so they don't send

me messages

I like to use Apps to be kept up to date from companies

while I’m on the go

I don't like to download Apps because they bother me too

much with messages I don't want

I often see adverts on webpages that are for things I am

interested in

It's good that companies use my information to put

relevant adverts on web pages

BUT 71% INDIANS ARE INFO HUNGRY, AND 53%

WILLING FOR BRANDS TO PERSONALISE ADS

13

-20

-10

-27

-10

-27

57

71

52

70

53

-14

-19

-30

-28

-43

71

57

48

47

29

-13

-28

-27

-30

-50

65

44

46

40

21

-24

-27

-23

-34

-55

49

40

49

34

20

-18

-30

-31

-34

-49

59

44

40

38

20

Q17 . Please tell us how much you agree or disagree with the statements below

Base: All respondents ((UK: 625,2078),(US: 596,2064),(CANADA: 440,2074),(FRANCE: 482,2046),(INDIA: 841,2027))

Note: First base size is for top 3 question and next for rest 2 for each countr

% Disagree % Agree

Page 14: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

AND 1/4TH OF US OPEN EMAILS FROM

COMPANIES BEFORE ONES FROM FAMILY

61% 64% 66% 69%

42%

32% 26%27%

26%

27%

5% 8% 5% 4%

27%

2% 2% 2% 1% 4%

Somewhere/someoneyou do not recognise

Companies you havesigned up to

Friends

Family

14

Q18. If you had a number of emails in your personal inbox that were unread, which of the following emails would you read first?

Base: All respondents all markets

Page 15: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

Access to your contacts

Location

Access to your calendar

Access to your network

Access to browser history

Ability to post to social media

Access to camera

Access to microphone

Other apps

AND FOR SHOPPING, 1/3RD ARE OPEN TO

SHARING LOCATION & EVEN NETWORK TO APPS

15

44%

35%

34%

31%

31%

29%

29%

28%

23%

22%

36%

36%

31%

24%

30%

27%

24%

18%

27%

30%

23%

24%

20%

21%

19%

21%

15%

Q23. Which of the following features of your phone/tablet would you feel comfortable allowing

Base: All who own a Smartphone or tablet (1804)

Page 16: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

Q24. Why would you not let an app have access to your phones or tablets features?

Base: All who won't let an app have access to phone (1466)

67% CITE DATA PRIVACY AS #1 REASON FOR NOT

ALLOWING ACCESS TO PHONE FEATURES

64%

49%

47%

45%

19%

18%

4%

16

67%

51%

45%

47%

24%

18%

4%

65%

51%

45%

44%

22%

14%

8%

54%

39%

35%

49%

19%

14%

4%

67%

43%

36%

37%

25%

10%

1%

Data privacy concerns

I don't know whatother info they couldbe accessing off my…

I don't want messagesfrom the app popping

up on my phone

I don't understandwhy the app needs

access to that…

It uses up batteryquicker

I say no out of habit

Other

Page 17: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

Q25. Please rank the following in terms of what would most likely cause you to disengage with a brand/company

Base: All respondents (2078)

45% DISENGAGE MAINLY BECAUSE OF CHANNEL

AND TIME, REST DUE TO VOLUME & RELEVANCE

34%38% 39% 36%

30%

21%

25% 23%24% 33%

23%

27% 27% 30% 21%

Sent at inappropriatetimes

Sending messagesthrough channels Idon't like

Too many or too littlecommunications

Not relevant to me

17

Page 18: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

Q39. And overall what are you most likely to take notice

Q37. For each of the following types of communications (marketing offers/ customer service information/ product updates) that businesses may want to share with

you which channels are you happy to use

Q8. Awareness

Base: All respondents (2027)

18

73%

48% 44%31%

43%

28%

47% 44% 43%36% 33% 33%

48%41% 40%

29%39% 35%

Marketing Offers Customer Service Information Product Updates

96% 91% 94%

65%76%

56%

Emails Company website Social mediapages

Live Chat Digital advertising Push notificationsfrom apps

51%

6% 8%2% 1% 2%

What comms

are you aware

of?

Which

channels are

you happy for

companies to

use?

What are you

most likely to

take notice of?

EMAIL STILL CLEARLY LEADS OVER APPS AND

SOCIAL FOR COMMUNICATING OFFERS

Page 19: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

INDIA LOOKING TO DIGITAL VERSION ACROSS

THE BOARD, DM/EMAIL & COUPONS/VOUCHERS

19

29%

63%

DIRECT

MAIL VS

EMAIL

36%

57%

PRINTED

VS DIGITAL

COUPONS

34%

60%

PRINTED

VS DIGITAL

VOUCHERS

29% 29%

40% 32%

36% 32%

63% 63%

53% 61%

58% 61%

50%61%

70% 65% 61%

47% 48%50%

28% 26% 29% 29%40% 38%

Digital Printed

50% 55%64%

57% 58%

44% 44%50%

37%31% 35% 37% 42%

48%

33%

58%67%

58% 63%

44% 40%

67%

36%29% 34% 32%

43% 48%

Q41. Printed vs Digital

Base: All respondents (2027)

DIGITAL PAPER 16-17 18-24 25-34 35-44 45-54 55-64 65+

Page 20: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

THEY SAY THEY ARE MORE LIKELY TO TAKE-UP

AN OFFER IF ITS PRINTED

20

69%

11%

“I am more likely to use an offer if its printed on paper

as I can see it every time I open my wallet”

75% 63%

83%

60% 58% 64%73% 79% 76%

17% 19% 15% 16%9% 6% 8%

Agree Disagree

Q41B. Please tell us how much you agree or disagree with the statements below

Base: All respondents (2078)

69%

12%73% 62%

0%

58%64% 60%

71% 75% 76%

0%13% 14% 15% 11% 10% 10%

64%

14%71% 56%

0%

57% 55% 60% 65% 68% 73%

0%

20% 19%13% 12% 14% 10%

56%

19%64% 50%

0%

54% 52% 55% 58% 60% 59%

0%

17% 21% 19% 19% 16% 18%

50%

25%64% 50%

33%

46%52% 51% 53% 52% 48%

17%27% 25% 24% 25%

20% 19%

16-17 18-24 25-34 35-44 45-54 55-64 65+AGREE DISAGREE

Page 21: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

AND IN GROCERY THEY SAY HIGHER LIKELIHOOD

OF READING PAPER COMMS OVER DIGITAL

21

53%

15%

56% 50%15% 15%

22%15% 16% 16% 15% 14% 13%

67%

49% 47% 49%55% 54%

60%Digital Paper

Q40. Likelihood to read paper vs digital

Base: All respondents (2078)

67%

11%67% 66%

12% 11%

0%

18% 16% 16% 16% 13% 10%0%

54%61% 63% 66%

74% 80%

68%

14%69% 67%

14% 15%

0%12% 12%

18%12% 9% 5%0%

59% 61%53%

66%73% 83%

66%

15%

70% 63%13% 16%

0%

19%13% 15% 15% 14% 15%

0%

56%67% 64% 66%

72%66%

63%

19%

64% 62%19% 19%

0%

18% 20% 18%24%

15% 19%

67% 66% 62% 63% 58%64% 62%

16-17 18-24 25-34 35-44 45-54 55-64 65+DIGITAL PAPER

Page 22: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

BUT THEY FEEL THEIR WALLETS ARE SO FULL

THAT DIGITAL OFFERS ARE EASIER TO USE

22

“My wallet is so full I would only use offers that I

can carry around on my phone”

Q41B. Please tell us how much you agree or disagree with the statements below

Base: All respondents (2078)

16-17 18-24 25-34 35-44 45-54 55-64 65+

13%

61%

64% 57% 17% 18%27%

17%9% 6% 4%

83%

52%42%

55%68% 69% 75%

Agree Disagree

20%

55%

60% 51%0%

26%35% 33%

16% 9% 8%0%

40% 39% 42%57%

68% 75%

16%

57%

60% 55%0%

22% 27% 20% 14% 13% 6%0%

48% 46% 45%56%

64%78%

18%

51%

60% 55% 0%

24% 20% 24% 17% 13% 13%0%

43% 47% 42%55% 58% 64%

51%

23%50% 52%

17%

48%59% 52% 54%

32% 31%34%24% 20% 24%

16%33%

25%

AGREE DISAGREE

Page 23: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

As you are about to

enter the store

Any time you are not

in the store

As you pass products

on offer

At a time of chosen by

me

When you reach the

checkout

No preference

None of these

GENERALLY PREFER TO RECEIVE INFORMATION

OUTSIDE OR JUST ABOUT TO ENTER STORE

23

22

22

14

8

7

20

35

16

14

8

8

6

22

42

10

13

9

8

6

22

43

Q42. Companies can send you messages via your mobile phone, in terms of offers, information and marketing, when would you prefer this

to reach you if the company in question was your preferred grocery supermarket

Base: All grocery shoppers

23

23

17

11

10

17

35

15

13

10

9

9

20

44

12

13

12

11

7

19

43

17

20

14

11

7

19

42

13

10

6

8

7

20

49

8

11

8

8

5

21

49

23

19

16

11

6

22

27

16

13

9

10

7

25

35

14

7

9

10

5

25

38

54

39

32

29

26

10

5

29

43

32

28

32

14

7

27

29

36

28

24

13

8

Offers

Service Info

Product Info

22 19 20 24 12

40 41 47 28 7

Page 24: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

AND OF COURSE THERE ARE INSTANCES OF

POSITIVE SENTIMENTS TOWARDS BRANDS WHO

DON’T “PUSH IT” (TOO MUCH!)

24

Q45. Example of a company with good digital communication

Q46. Example of a company with good traditional communication

Base: All respondents (2074)

“FLIPKART - they send relevant and balanced volume of

communication”

“DOMINOS PIZZA - sends mails to me about it's offers

and new products on their menu with tons of pictures.

They do it weekly once to just be in touch with what is

happening in their company.”

Page 25: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

25

CONCLUSIONS

• Getting digital communications right is not the selling point of a

business, it’s what is now expected by the customer: when it’s done

badly it evokes a very negative reaction

• There is widespread belief that there is much more to come, and many believe they will

not be able to cope

• Coping methods to date are blunt and quick such as deleting apps

• Some general lack of understanding of why apps need access to phone functions –

businesses need to better explain this to customers

• Delivering the right communication via the right communications channel is identified as

critical for digital communications

• Privacy, Permissions and Preferences will be crucial for consumer

access in the future

• We have to earn the right to gain and keep access. Get it wrong and

they’ll turn you off.

Page 26: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

THERE’S MUCH MORE FOR US TO LEARN ABOUT

CONSUMERS

What I think Where I am What I’m interested in What I watch What I buy What I read What I do Who I talk to What I aspire to What I’ll do next

my life

26

Page 27: The Rise of the ‘Deletist’ Consumer

Proprietary and confidential ©2015 Aimia. All rights reserved.

AND WE HAVE TO GATHER MORE PERMISSIONS

AND PREFERENCES

You are what you earn

You are where you live

You are what you say you are

You are what you do

Social class (Still used as a major media

currency)

Geo -demographics (Still used by direct

marketing industry)

Lifestyle questionnaires: Interesting

but unreliable

You are what you do: Real granular

data creating relevance

You are what you choose to release Permissions and Preferences and Privacy

27

Page 28: The Rise of the ‘Deletist’ Consumer

“It was the best of times, it was the

worst of times…

…it was the age of wisdom, it was the

age of foolishness”

Charles Dickens, A Tale of Two Cities

Page 29: The Rise of the ‘Deletist’ Consumer

THANK YOU

Vikram Adige

Director Business Development, Aimia India

[email protected] | +919987023220