The Digital Consumer- A Perspective

Michael Payne

Director of Insights & One-to-One Marketing

Department for Culture, Media and Sport

Consumer Perspective Seminar

4th July 2012

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The Digital Consumer - A Perspective

1. Digital consumers are not one homogenous group

2. Blissful ignorance and blind trust is prevalent

3. What people say and want online may not be the same thing

4. How people behave offline and online may not necessarily be the same

5. Simplicity is the ultimate sophistication

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For those under 30(ish) the world has always been digital…

• Information on everything and anything is available at the touch of a button….

• … Wider circles of acquaintance, but smaller groups of close friends

• Technology is used as a form of self expression

Others know the net has good deals but worry about…

• …Buying on line• …‘breaking the computer’

• …running up bills

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Blissful ignorance and blind trust is prevalent

• There is poor understanding of the mechanics that cross segment boundaries…

- ‘Up to’ speeds

- Impact of concurrent usage

- Web pages are data

- Computer setting effect speed

- Routers effect speed

- Virus settings

• Help is valued from trusted sources … but the definition of trust is broad

� Advice about the internet must be seen to be independent

‘my friends son

helps me – he’s a

computer whiz kid’

‘… if I’ve actually

spoken with other people

on forums. I feel less

vulnerable to a mistake

when I actually do buy’

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What people say and what people want online may not be the same

• Expect kids protected from improper content…

• Expect better results and products through personalisation…

• Expect online prices to be mirrored offline…

• Expect protection from unscrupulous sellers…

• … don’t want bodies to censor information…

• … want to be able to access everything

• … want to be able to touch and feel products beforehand

• …. are lax in attitudes to passwords and own security

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How people behave offline and online may not be the same

• Online behaviour is dis-inhibited as people feel more remote from the actual event

- Offline: expect rules, control and follow social norms in an offline world and there is an expectation of collective or community responsibility

- Online: expect less rules and controls; more freedom of expression and of behaviour. More focus on individual responsibility.

‘……. I think you

have to give back

a little to the little

people.”

’

‘I can’t imagine

paying for my

music’

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Online is driving higher expectations offline but the relationship is asymmetrical

• Higher expectations:

- instant access, 24 hours, immediate response

- Price comparison behaviour the norm

- Power of the consumer voice

- Simplicity driving increased expectations that no help will be needed

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Simplicity is the ultimate sophistication

• Consumers are more adept …and more impatient

• Expect it to work and be simple

• Expect it now

• Devices expected to work together automatically

� Anything that makes life more complicated will ultimately fail