••• financial services research
Something Millennials aren’t killing: Bitcoin
The cohort takes the lead in adopting cryptocurrency
According to a study by researcher YouGov, Americans’ familiarity with cryptocurrency is on the rise. Most Americans (81%) have heard of at least one kind of cryptocurrency, although Bitcoin is by far the most well-known – 75% of U.S. adults say they’ve heard of it, as opposed to Bitcoin Cash (24%) or Ethereum (17%).
When it comes to actually buying cryptocurrency, Millennials have the other generations beat. Among all U.S. adults who are familiar with at least one kind of cryptocurrency, 18% say they’ve purchased cryptocurrency in the last year. But among Millennials familiar with cryptocurrency, this number nearly doubles – 35% have bought at least one type of cryptocurrency within the past year.
Millennials are more hopeful about cryptocurrency in general than their Gen X and Baby Boomer counterparts. More than one-third (35%) of Millennials familiar with cryptocurrency say they believe it is a good investment; whereas, only 21% of Gen Xers and 10% of Baby Boomers with the same familiarity level say the same. On the other end of the spectrum, 44% of Baby Boomers believe cryptocurrency is a somewhat or very bad investment.
Similarly, Millennials are more likely than older generations to believe cryptocurrencies will become widely accepted as a means of transactions for legal purchases within 10 years. Four in 10 (40%) Americans familiar with at least one form of cryptocurrency believe cryptocurrencies will become very or somewhat widely accepted for legal transactions before 2030. A majority (55%) of Millennials believe this, along with 41% of Gen Xers and 29% of Baby Boomers.
But even as most Americans believe cryptocurrency will become more widely accepted, there are still some reservations about it. A majority (56%) of those familiar with cryptocurrency say they are not at all interested in the idea of the United States converting to primarily using cryptocurrency instead of U.S. dollars. Even Millennials, who tend to be more familiar with and confident about cryptocurrencies, tend to say they would be not at all interested (39%) in converting primarily to using cryptocurrency. Another 19% say they would be “not very interested.”
The study was conducted by YouGov and included a total sample of 1,262 U.S. adults, including 1,035 who are familiar with at least one type of cryptocurrency.
••• consumer privacy
Alexa-9000?
The battle between privacy and personalization
Results from a study by Selligent uncovered the fine line between creepy and helpful when it comes to voice-enabled devices and brands’ use of consumers’ social media information. As it turns out, consumers increasingly want a customer experience that is highly personalized, yet they also face concerns about privacy and how their data is being used. Survey respondents look for a customer experience tailored to them and believe that this sort of customized experience is central to customer service – 71% stated that personalization is “very important.” Fifty-one percent said they are willing to share personal data for more a personalized customer experience and 71% expect customer service to know their story after first contact.
Conversely, 74% of respondents said that privacy is more important than online experience and 51% worry that their voice assistants are listening without consent. Forty-five percent of respondents use voice assistants and 69% find it creepy when they receive ads from voice assistants based on unprompted cues. About four in 10 (41%) of respondents reduced social media usage due to privacy concerns. The concerns and behaviors surrounding privacy vary between generations; younger generations, although more wary of how their data is being used, are also most interested in having their personal details used to provide a more personal experience.
However, younger generations also take the lead in reducing social media due to privacy concerns. Fifty-two percent of Gen Z respondents have reduced social media, followed by Millennials (48%), Gen X (39%) and Boomers (28%). The same trend continues for those who quit social media altogether, with Gen Z and Millennials tied in the lead (43%) followed by Gen X (39%) and Boomers (28%). Facebook took a 20-percentage-point lead as the top social media platform abandoned across generations.
When it came to brands proactively targeting consumers based on what they believe they would be interested in purchasing, consumers held mixed feelings. When there was a precedent for a brand interacting with a consumer, such as a previous purchase, favorited social media post or product search, consumers tended to view the brand’s actions as more helpful than creepy (although not by a wide margin). However, when brands targeted ads to consumers based on what they said around their voice assistant, prompted and unprompted, consumers found this behavior creepy rather than helpful. Essentially, consumers like to make the first move and when brands offer unsolicited suggestions its often viewed as overreaching.
As social media has increasingly become a platform for brands to advertise to potential customers and customers have begun to use social media more judiciously, brands may need to rethink how they are using social media platforms to interact with consumers, who have come to establish specific online/offline purchasing behavior. Seventy-eight percent of respondents reported that they are more influenced by their own research than information provided by a brand and 64% research online before purchasing a product in-store. Another 61% do their research and purchasing both online, while just half (50%) of consumers want to hear recommendations and make their purchases in-store.
Again, the youngest generations – those most wary of social media platforms – are also the biggest spenders via social media ads. In the last six months, 36% of all respondents made a purchase through an ad on social media, while Gen Z and Millennials did so at 47% and 48% respectively. Millennials were the most likely to have future purchases influenced by social media ads at 54%, followed by Gen Z (53%), Gen X (38%) and Boomers (22%). Just under half (42%) of respondents found social media ads “somewhat annoying,” while 23% remained neutral and another 23% found the ads to be useful or informative. A minority (12%) responded that ads were the “worst thing about social media.”
Consumers expect brands to be attentive to their needs, with 96% of respondents expecting brands to respond within 24 hours of a flagged issue and 90% expecting a resolution within 24 hours. The most common reason customers contact customer service is to ask a question about a service or product (40%). About a quarter (26%) respondents said they contacted customer service to file a complaint, 21% to make a return and 14% to follow up on an order or check an item’s shipping status. Customer service is the preferred method to resolve issues across generations, although Gen Z is much more likely than other generations to simply find information online or troubleshoot an issue on their own.
Forty-three percent of consumers worldwide prefer to speak to customer support on the phone as opposed to less personal routes such as email, social media or texting, and 74% of consumers do not trust brand that don’t reply to customer service or social media complaints. When an initial effort to resolve an issue fails, 58% of consumers prefer to escalate their efforts by speaking to an agent on the phone – notably, respondents from North America showed a 52-percentage point preference for speaking on the phone as opposed to email, whereas European respondents showed only a 17-point preference. At the point where an issue has escalated, 71% of consumers expect companies to know all of their information rather than ask them to repeat their story or complaint – and brands have a slim margin to correct their customer’s experience. Fifty-four percent of respondents said they abandon a brand after a few negative experiences. Another 22% turn their back on a brand after only one bad experience.
The balance between respecting privacy and delivering a highly personalized, responsive experience is what Selligent refers to as a value exchange. Ultimately, consumers want their data used to better their experience, on their terms, enabling consumer to feel that their interactions with a brand are part of a partnership.
The study was conducted by Selligent and polled 5,000 respondents from North America and Europe aged 18-75.
••• loyalty research
I’ll buy that
Survey explores consumer attitudes toward tokens
The use of tokens is on the rise, offering new opportunities to strengthen brand loyalty and enhance customer experience, and according to a recent survey of American consumers commissioned by KPMG, consumers are becoming more open to the idea of using tokens as they become more familiar with how this digital currency can be used. While just one-third of survey respondents are highly familiar with the modern-day, blockchain-based definition of tokens, the majority of that group (63%) appreciate the advantages of tokens as a form of payment. Fifty-five percent believe tokens will enable them to make better use of loyalty reward points.
No demographic is more accepting of tokenization than Generation Z, 83% of whom identify themselves as being interested in the future of tokens. Perhaps more surprisingly, over half of older Americans ages 65 and up say they are also interested in the future of tokens.
Loyalty programs are already being redefined by tokenization and represent an ideal platform for businesses to introduce tokenization. Eighty-two percent of consumers are willing to use tokens as part of membership in an existing loyalty program and 81% would trust the use of tokens more readily if they are already a part of a company’s loyalty program. Thus, program enhancements driven by tokenization could further cement a brand’s engagement with loyalty members.
Tokenization enables organizations to seperate consumer data from their specific personal information, offering increased security for consumers. That’s important, as 45% of consumers with high familiarity with tokens are concerned about fraud-related issues. Companies with token programs who address the security advantages of tokens are likely to gain a competitive edge among customers worried about privacy and security – 78% of Americans are more willing to use tokens with companies they already buy from, offering brands an opportunity to increase trust and customer loyalty.
Still, some consumers are unsure of tokens – if tokens are proven to be simple to use, 79% of Americans would be more willing to use them. And tokenization is not necessarily evenly accepted across industries. While 42% of Americans believe tokens are useful in gaming and 38% see their benefits in e-commerce, other industries and sectors lag farther behind. However, industries where consumers already express high levels of loyalty are prime for tokenization. For instance, when asked how loyal they are as purchasers of products or services across industries, survey respondents reported high levels of allegiance to banks and credit card companies (87%), restaurants/fast food/coffee shops (86%), electronics companies (81%) and media/telecom companies (79%).
Tokenization can enhance existing businesses and it’s not an endeavor limited to big-name brands. Sixty percent of Americans are more likely to use tokens to make payments to small businesses and 64% see the value in tokens for any kind of e-commerce transaction.
The survey was conducted by Ketchum Analytics on behalf of KPMG and polled 1,000 Americans aged 18 and older.
••• entertainment research
Maybe the cord was better?
Study explores streaming-subscription fatigue
A Variety article by Todd Spangler recently called attention to the downside of having a few too many options when it comes to video streaming services. The article, which reported findings from Deloitte’s annual Digital Media Trends survey, explores the “paradox of choice,” in which consumers are now compelled to stitch multiple streaming services together in order to continue watching the same content.
The result is subscription fatigue among consumers, who are now faced with an array of subscription streaming services that includes Netflix, Hulu, Amazon Prime Video, HBO, CBS All Access, Showtime, YouTube Premium, Apple, Disney, WarnerMedia, NBCUniversal and others still looming on the horizon. There’s a big downside to so many options – 47% of U.S. consumers say they’re frustrated by the ever-expanding list of subscriptions required to watch what they want. More than half (57%) say they are tired of content disappearing because the rights for a particular streaming service have expired.
There are more than 300 over-the-top video options in the U.S. On average, U.S. consumers subscribe to three video streaming services and 43% subscribe to both pay-TV and streaming services. Most consumers are forming their own entertainment bundles from multiple providers but the constant shift of content to different platforms presents a real frustration to consumers.
There’s another layer to this paradox of choice, however. More than half (49%) of consumers report feeling overwhelmed by the amount of choices available in just one platform. Respondents say they know what they want to watch 69% of the time but 48% say content is hard to find across multiple services. The breadth of both content and services can be an immediate deterrent to some consumers, as 49% report giving up on searching for content if they can’t find it in a few minutes.
While consumers are increasingly subscription-fatigued, video streaming services still show strong growth, with 69% of households now subscribing to one or more. Notably that number is on par with the 65% of U.S. households that subscribe to cable, satellite or telco TV.
One thing that consumers don’t seem to tire of is original content, as seen in the sweeping success of shows like The Handmaid’s Tale and Stranger Things. In fact, 57% of U.S. streaming consumers say that original content is why they subscribe to streaming video services and that number jumps to 71% for Millennials.
Consumers, particularly younger audiences, have become more and more ad-avoidant. The majority (75%) of consumers say they would be more satisfied with pay-TV services if there were fewer ads and 77% said ads on pay TV should be under 10 seconds. Respondents indicated that 16 minutes or more of commercials per hour would drive them to stop watching but eight minutes of ads per hour was a reasonable limit.
Video streaming services have begun to dip their toes into streaming video games as well, which might hold appeal to the 41% of U.S. consumers who play video games at least weekly. This transition would be relatively seamless for many consumers who already use gaming consoles as an entertainment hub to stream shows and movies (46%), watch online content (42%), browse the internet (34%), stream music (25%) and stream e-sports (11%).
While subscription streaming services ought to be aware of the negative impact choice overload can have on consumer sentiment, these platforms still hold a massive advantage in the highly personalized, on-demand experience that many of these services offer. Within this mass of options lies an opportunity for platforms to reaggregate these services into more manageable choices, all the while offering new ways to engage with streaming like video games and e-sports.
The 13th edition of Deloitte’s Digital Media Trends survey was collected from an online survey of 2,003 U.S. consumers fielded from December 2018 to February 2019.
••• gen z research
Tackling the big issues
Gen Z girls concerned about the world they live in
Pollfish got to the heart of what Gen Z girls are thinking about in a recent study, which revealed that this cohort feels very strongly about changing their world for the better but could use some backup – from their peers and lawmakers alike.
When asked what three issues are most important to them at this point in their lives, respondents listed education as the most pressing concern, followed by preserving the planet and sexual and domestic violence. Gen Z girls lack confidence in the world’s ability to tackle these issues, however – 18.9% of respondents cited preserving the planet as the issue they are least optimistic about being resolved, selected from a list of 20 options.
Gen Z girls see room for improvement when it comes to social and legal equity. Forty-one percent of respondents feel that their rights are as protected as those of their male-presenting peers, though they still felt that gender identity affected their right to equal treatment under the law – race topped this category at 20%, followed by gender identity (18%) and sexual orientation (15%). Seventy-six percent of Gen Z girls are at least somewhat concerned about losing their reproductive rights and 11% are not concerned at all.
In a generation raised amid the Brock Turner trial and the #MeToo movement, it’s not surprising that this cohort feels strongly about consent and raising awareness about sexual violence – while 94% of respondents feel that they understand the concept of asking for and giving consent, only 65% feel that their peers understand the idea. And girls lack confidence that sex ed programs are doing their job – just 36% of respondents feels that their school’s sex ed program does an effective or very effective job of teaching consent, while the remaining 64% rate their school’s program anywhere from not effective to very ineffective.
Sixty-four percent of respondents are very or extremely anxious about the state of the planet and another 64% are very or extremely concerned that their hometown will be harder to live in 50 years from now. The majority of Gen Z girls are making changes in their personal lives in response to these concerns – 65% of respondents said they are taking steps to address climate change. Eighty-three percent have not changed their diet because of climate change and those that have (17%) reported efforts such as limiting meat consumption, reducing purchase of packaged products, using recycled and organic products, buying local and reducing waste. Many respondents say they are trending toward vegetarianism or veganism to battle these concerns.
The majority of respondents (72%) reported that their shopping habits have not changed but those who said they have changed the way they shop (28%) cite efforts similar to those who have made changes to their diets, including buying responsibly sourced products, using reusable shopping bags, reducing plastic use, buying in bulk, avoiding fast fashion and working toward being waste-free. Others responded that they would change their habits more if they could afford to do so.
The study was conducted by Pollfish on behalf of Girls’ Bill of Rights and surveyed 2,000 women and feminine-presenting respondents ages 14-22.
••• shopper insights
Gift-giving with a conscience
Consumers look to companies to uphold their values
The vast majority of U.S. consumers plan to spend at least as much this year on holiday gifts as they did last year and will be turning to stores for holiday gift inspiration, according to results of the 13th Annual Holiday Shopping Survey from Accenture. The study also found a growing trend of “responsible retail,” with shoppers increasingly concerned about the environmental and social impact of their purchases.
The study found that Americans expect to spend $637 on holiday shopping this year, on average, with approximately six in seven respondents planning to spend either the same (57%) or more (28%) than they did last year. On average, men expect to spend approximately 15% more than women – $685 versus $588. Gift cards and clothing or footwear topped the list of planned purchases.
Consumers are approaching this holiday shopping season with a level of caution, however, as the percentage of those who anticipate spending less rose slightly year on year, from 11% to 15%. The two leading factors that respondents cited as affecting their holiday shopping are rising food bills (32%) and the desire to limit their credit card debt (31%).
Despite talk of the demise of physical stores, on average respondents say they expect to do half of their holiday shopping this year in a store or mall. Many consumers hope to gain gift inspiration in-store, and consumers were significantly more likely to say that, after seeing an item in a store, they would purchase the item in the store rather than searching online for a better price and purchasing online. Perhaps not surprising, 82% of respondents cited lower prices as the top factor that would tempt them to make an in-store purchase, followed by special offers and discounts (77%).
Consumers are showing a greater interest in purchasing sustainable and eco-friendly products. Respondents want clear labelling that products are made in sustainable or ethical ways, to be shown the origin of materials and ingredients and offered the option of packaging-free products and deliveries. Consumers are aware of the environmental impacts of shopping and ordering online and are increasingly opting to ship items together rather than separate and choose ground shipping methods or in-store pickup.
Shoppers aren’t stopping at environmental issues, however. Almost half (45%) of respondents said they are more likely to do their holiday shopping with retailers that address wider social issues through their business practices and working conditions.
In addition to buying products that are eco-friendly and socially responsible, shoppers are looking to eat healthier and are adjusting their shopping habits accordingly. Respondents said they expect to spend more this year on fruits, plant-based foods and organic and vegan foods while spending less on cakes, desserts, sweet treats and soda.
Fashion retailers with a rental service could be set to gain this holiday season. Nearly a quarter (24%) of all respondents and one-third (34%) of older Millennials said they would be likely or extremely likely to rent clothes for holiday parties. With mounting awareness of fashion waste, vintage is in vogue, as nearly half (48%) of respondents said they would consider giving secondhand clothing as gifts and even more – 56% – said they would welcome gifts of this kind for themselves.
Shoppers are aware of the rising trend in package theft and are taking steps to combat “porch piracy.” Almost one-third (29%) said they use delivery tracking and notification apps and schedule deliveries for dates and times when someone is home. One-fifth (21%) are moving entirely away from home delivery and picking up in-store instead.
Shoppers want greater transparency and commitment when it comes to pricing and personal data security – more than half (52%) of consumers think that a retailer’s responsibility for price-matching guarantees increases during the holidays. In addition, they want retailers to make a greater commitment over the holiday period to keep their personal data safe and secure when making online purchases.
Many respondents say they’re less inclined to shop on Black Friday or Thanksgiving than they were a few years ago – 55% for Black Friday and 58% for Thanksgiving, as compared to 50% and 51% previously. Respondents cited battling crowds, missing out on family time and the ability to find equally good discounts on other days as deterrents for shopping during this time.
The Accenture Holiday Shopping study surveyed 1,500 U.S. consumers online. Respondents were split evenly between gender and by age group.