Cable service satisfaction hangs on a phone call
Making the call to a cable provider’s customer service line is perhaps one of the most dreaded troubleshooting methods one could engage in, but a study conducted by researcher Frost & Sullivan on behalf of Englewood, Colo., customer interactions company CSG Systems International Inc., suggests that the well-established stigma of the crappy cable company may be causing consumers to be unfairly harsh - and causing cable companies to try even harder to build good relationships with their customers.
The threshold for poor customer service experiences is low, in many cases prompting a customer to label a cable operator as a poor customer service provider after only one negative experience. Respondents stated that it takes only two occurrences of bad customer service before they become likely to change their opinion of the service provider to one that has poor customer service. Respondents ages 24-29 are more likely to alter their opinion of a service provider with just one occurrence of bad customer service.
The top three bad customer service incidents chosen by respondents were being on hold for an extended period (68 percent); rude/impolite service representatives (66 percent); and being told an issue is resolved when it isn’t (63 percent). Regardless of age or gender, a majority of respondents will switch to another service provider when bad customer service occurs more than 50 percent of the time.
Friendly staff consistently ranked highest (77 percent) as a meter of good experience with a service provider, followed by fast, polite and courteous service. More than 10 percent of respondents said they would write about a good customer service interaction on a social media site. This statistic nearly doubled for a bad customer service experience (i.e., a service disruption). Speed of response (37 percent), faster service changes (36 percent) and fast resolution of issues (35 percent) most influence the decision to use online customer care channels. For more information visit www.frost.com.
Americans resistant to scandal; brands stay safe
From Michael Phelps and his bong to Tiger Woods and his harem, it seems each week there is a new celebrity scandal to which the various entertainment magazines, Web sites and television shows devote hours of time. Sometimes, an underlying consequence of these scandals can be the loss of an endorsement deal for the celebrity involved. Does this matter to the average consumer?
According to a study from Rochester, N.Y., research company Harris Interactive, the answer is: not really. But for those who care the most? Look to middle-aged Midwesterners to flee a brand after a bad-press crisis.
Three-quarters of Americans say when a celebrity endorser gets involved in a scandal, it doesn’t impact the way they feel about the brand or brands they endorse. Just over one in five say they feel worse about the endorsed brands, and 5 percent say they feel better about them.
There is an age difference when it comes to attitude toward the endorsed brands after a scandal. Eight in 10 Americans ages 55+, as well as 77 percent of those 35-44, say the scandal has no impact on how they feel about the brand. Those 45-54 are most likely to have a negative feeling, as 28 percent of them say they feel worse about the brand. Those 18-34, however, are most likely to think positively about it as 11 percent say they feel better about an endorsed brand after a celebrity gets involved in a scandal.
There are also some regional differences in attitudes toward brands after a celebrity gets caught doing something wrong. Those in the Midwest are most likely to have a negative attitude. Over one-quarter of Midwesterners say they feel worse about the brand a celebrity endorses compared to 19 percent of those who live in the East. For more information visit www.harrisinteractive.com.
Will media-multitasking and mobility mean unfocused respondents?
Consumers around the world are changing how they seek and share information. A single e-mail account and a desktop computer are no longer enough to satisfy the need to be constantly connected, and the global population in skewing more and more toward media multitasking and on-the-go communication, according to a global research study conducted by Shelton, Conn., research company Survey Sampling International among adults in the U.S., U.K., France, Spain and Japan.
Media multitasking - such as simultaneously searching Web sites, e-mailing and talking to someone - is prevalent in all countries, particularly among younger consumers. In the U.S., 60 percent of 18-34-year-olds report talking to someone while texting, compared to just 24 percent of those ages 35+. “We started to see this trend a few years ago, when focus groups with panel members revealed they often surfed the Web or watched TV while taking surveys. Our latest research shows this trend is growing, posing both complications and opportunities for market researchers,” says Mark Hardy, SSI’s chief strategy officer and managing director, North America. “We now have more ways to reach people, but their focus is often splintered. Researchers will need to rethink how to succeed in this fragmented environment. For example, they may choose to add questions about people’s surroundings or other activities into surveys.”
Adding to the complexity is the fact that consumers worldwide also prefer to be on the move and may take surveys anywhere. In Japan, more consumers own laptops (73 percent) than desktops (54 percent). In the U.K. and Spain, laptops have caught up with desktops. Only in the U.S. and France do more people still own desktops. When focusing on those under 30, however, laptops are replacing desktops worldwide. In the U.S., 80 percent of 18-24-year-olds own laptops while just 67 percent own desktops. The gap is even larger in Japan, where 80 percent of younger consumers own laptops, compared to 52 percent who own desktops.
The rise in cell phone usage also underscores the trend toward mobility. In every country studied, more than 70 percent of participants own cell phones, and that number exceeds 80 percent in France, Spain and Japan. Even more telling, in all countries but France, more people own cell phones than landline phones, and that gap is particularly dramatic among 18-24-year-olds.
Social media is widely used in all countries. In the U.K., U.S., France and Spain, about half of study respondents used social media within the last week, with younger consumers the most avid users. Japan shows a different profile, with less social networking and more blogging. Twenty-four percent of Japanese respondents have their own blogging space compared to just 4-7 percent in other countries.
Around the world, phone remains the primary way people stay in touch. Even among 18-24-year-olds, the phone is the top way people connect. Among younger consumers, however, texting and social networking make up a significantly larger portion of the communications mix than among older consumers. In Japan, texting actually has overtaken phone among 18-24-year-olds. For more information visit www.surveysampling.com.
With growing ubiquity, mobile consumer profiles morph
With the proliferation of mobile devices on the rise and recent reports of one in four houses going cell-only, there are many different ways and levels of intensity in which consumers can engage with the mobile universe. From can’t-live-without-it to can-barely-make-a-call-on-it, research from Stamford, Conn.-based InsightExpress found that mobile behavioral profiles are evolving and advancing.
The company’s Digital Consumer Portrait study identified a shift in three major mobile user profiles: Mobile Intensives, Mobile Casuals and Mobile Restrained, indicating that the mobile-adept crowd is growing and the mobile-novice crowd dwindling.
Mobile Intensives. This group represents 23 percent of the mobile universe, up from about 15 percent in early 2008. Members are characterized by smartphone ownership (68 percent) and a desire to utilize all capabilities offered by their mobile phone (mobile Internet, texting, videos, apps, etc.). The vast majority of Mobile Intensives (86 percent) fall within the sought-after 18-44-year-old age range, and just over half (54 percent) make over $50,000 a year. Mobile phones play a key role in the lives of these consumers; in fact, 45 percent check their mobile phone either first or second thing in the morning (the bathroom is the phone’s main competition).
Mobile Intensives are more likely to have decision-making responsibility for key verticals such as travel, finance, health and other discretionary spending areas. They also consider themselves to be influencers (i.e., other people come to them for advice) in categories such as travel (hotels, airlines, car rentals), investments, discretionary spending (restaurants, clothing, electronics, movies, cable/satellite) and prescriptions/personal care items.
Over half (53 percent) agree that they “look at advertisements to see what I should purchase,” while 44 percent agree that they “make a want list” of products advertised.
Mobile Casuals. Mobile Casuals represent 24 percent of the mobile universe (on par with early 2008) and are characterized by their use of mobile phones simply as a lifestyle-enhancing convenience. While smartphones seem to be an emerging interest for this group (15 percent own one), 85 percent own a feature phone. Mobile Casuals are more likely to be female (65 percent), fall into the 35-54-year-old age range (59 percent) and make under $50,000 a year (also 59 percent).
Unlike Mobile Intensives, Mobile Casuals are not devoted to their devices. However, they are more likely than the Mobile Restrained group to use their phones for texting and photos. Almost three quarters (73 percent) text once a week, 43 percent take pictures once a week, and 21 percent send pictures once a week.
Mobile Casuals also appear to be almost as engaged in advertising as their Mobile Intensive peers. Forty-six percent agree that they “look at advertisements to see what I should purchase,” but only a third (35 percent) agree that they “make a want list” of products featured.
Mobile Restrained. Currently representing 53 percent of the mobile universe (down from 60 percent in 2008), Mobile Restrained individuals are the least-sophisticated mobile users. A whopping 96 percent own a feature phone instead of a more advanced smartphone. More than half (57 percent) are over 45 years old, and more than half (55 percent) make less than $50,000 a year.
The Mobile Restrained group is also less active when it comes to texting and photos, with 47 percent texting once a week and 27 percent taking a mobile picture once a week. Like Mobile Casuals, 47 percent agree that they “look at advertisements to see what I should purchase,” but Mobile Restrained individuals are least likely (28 percent) to agree that they “make a want list” of products featured in advertisements. For more information visit www.insightexpress.com.
Women take no-muss, no-fuss approach to beauty products
Women want effortless beauty - beauty products, that is. When it comes to selecting cosmetics, consumers look for brands they trust and brands that make makeup - both buying it and applying it - natural and easy.
According to a study conducted by Market Force Information, a Louisville, Colo., research company, consumers favor Cover Girl over any other beauty brand. And while teens and young women may be recession-weary and making their last tube of lipstick stretch out through the summer, tween girl use of certain beauty products is on the rise, according to a study from Port Washington, N.Y., research company The NPD Group.
Seventy percent of the Market Force survey respondents said they wear cosmetics. As far as the products that are the most popular, a well-known name and mass-merchant sales have helped Cover Girl become consumers’ favorite cosmetics brand. Out of 60 cosmetic brands, Cover Girl was cited by 14 percent as their favorite, placing it on top. Clinique was second on the list with 10 percent of the mentions, and Maybelline (L’Oreal) and Mary Kay tied for third with 8 percent each.
When the consumers were asked what they loved most about their favorite makeup line, they chose brand trust over all of the other factors - the actual product attributes mattered much less. More than two-thirds said they love their makeup because they trust the brand, while only one-third cited loving it “because it feels wonderful.” Factors like “uses humane testing/is environmentally safe” were not weighted strongly and emerged toward the bottom of the list.
Cover Girl led the other brands in most of the attributes consumers care about most, scoring highest in categories such as great value, brand trust, wears well throughout the day and easy, no-mess application. Clinique was named second in brand trust and rated highest of all the brands in the uses humane testing/is environmentally safe category. Although Mary Kay was the fourth favorite cosmetics brand, it still scored well for several attributes, including ranking third for brand trust.
A common sentiment that emerged in the survey is that makeup wearers want a natural and authentic look, rather than something ultra-modern. More than 40 percent selected the adjectives “natural” and “no fuss” to describe their favorite makeup line. Conversely, adjectives like “edgy” and “sassy” were at the bottom of the list.
When consumers were asked where they go to purchase their cosmetics, their answers showed there is no one clear retailer category of choice. The majority - 29 percent - said they purchase them from mass retailers like Walmart and Target, and another 21 percent buy from drug stores such as CVS or Walgreens. Slightly fewer, about one in five, shop for cosmetics in department stores. Sephora was a crowd favorite in the specialty retailer category. Out of the 12 percent who reported buying cosmetics from specialty retailers, more than one-third said they purchase from Sephora.
Among those still buying new products, tween girls (ages 8-12) have upped their product usage while teens (ages 13-17) and young women (ages 18-24) reported declines in their usage of beauty products. Tweens reported increases in regular usage of mascara (+8), eye liner (+6) and lipstick (+5), relative to 2007 levels. In fact, regular usage of mascara almost doubled in the past two years among tween girls (from 10 percent to 18 percent), as did eye liner (from 9 percent to 15 percent). Overall, tweens reported to use on average 4.5 different beauty products regularly, consistent with levels reported in 2007 (4.3).
Significantly more influential than TV and even their friends, these girls say that they “look to their parents and siblings to see what they are using to help decide what to buy and use.” For more information visit www.marketforce.com or www.thenpdgroup.com.
Consumers find social networks untrustworthy but influential
Despite lingering trust and privacy issues, nearly half of all U.S. Internet users say online social networks are a good place to advertise, and 18 percent say they have purchased a product because of something they saw on a social network. Yet even though online social networking sites bring consumers closer to the most trusted parts of their lives, namely their family and friends, consumers place little trust in the networks themselves and don’t consider online social networks, forums and blogs to be as trustworthy as traditional media channels such as television, radio and newspapers, according to research from Vancouver, B.C., research company Vision Critical.
As social media marketers use increasingly sophisticated tactics to connect with their customers, the research reveals that consumers consider a brand message most trustworthy when it’s discussed or recommended by friends, family or contacts within a social network. Coupons or special offers are deemed the second most reliable method of brand and product placement, followed by product photos and videos, sponsorships and pages dedicated to a brand or product. Traditional banner ads are the least trusted among those tested.
Internet users are receptive to brand placement and advertising on social networks, and this exposure can lead directly to purchases, particularly among those under 35. Nearly half of U.S. respondents (48 percent) say that online social networks are good places for brands and products to advertise to consumers, while 39 percent of U.K. and 43 percent of Canadian participants agree. More than one-quarter of U.S. Internet users aged 18-34 (28 percent) say they’ve purchased a product because of something they have seen on a social network. For more information visit www.visioncritical.com.