The privacy paradox and how you can use it to increase conversion

The privacy paradox and how you can use it to increase conversionIn the era of Web 2.0, privacy is not only one of the liveliest issues in the debate about consumers behaviour and individual rights, but also one of the most difficult one to solve. Companies want more customer data, customers say they dislike this, yet they freely provide personal data.

Nowadays, the border between private and public is becoming more and more blurred; people are used to sharing their pictures, videos, preferences, personal information, and everyday a huge amount of online data is collected, however, they still appear to be seriously concerned about their privacy and claim it to be an important factor in their online decision-making process. To make things even more complicated, concern about privacy doesn’t in fact match actual online behaviour.

The Privacy Paradox

The privacy paradox is the discrepancy between an individuals’ intentions to protect their privacy and how they actually behave in the online marketplace, it’s the relationship between individuals’ intentions to disclose personal information and their actual personal information disclosure behaviours, which are often very different.

According to several privacy-related studies, the online audience can be divided into three big categories:

1. Privacy fundamentalists: very privacy-oriented and concerned
2. Privacy unconcerned: not at all privacy-oriented
3. Privacy pragmatists: in-between the other two categories

In general, consumers appear to be much more sensitive about the use of their medical, financial, and family information than they are about their product, brand consumption or their media usage behaviour. Why is this? Because things like their medical, financial and family information, when disclosed, can cause potential embarrassment and security problems. People also fear loss of control of this type of information.

Conceptual Model of Disclosure

The conceptual model of disclosure is a theory that states the consumer’s behaviour is influenced by both their perceived risk of disclosing their information and the trust they have with the company.

Conceptual Model of Disclosure

Privacy Paradox Model

In reality, the consumer’s actual behaviour is more highly influenced by trust. This is why people disclose information even when they say they’re really concerned about their privacy.

Privacy Paradox Model

Figure 1 Norberg P., Horne D., and Horne D. 2007 The Privacy Paradox: Personal Information Disclosure Intentions versus Behaviors.

One of the problems is that people have a tendency to over-report their understanding of privacy issues and their willingness to act in order to protect them. There’s a disjoint between users attitudes and opinions and their actual behaviours and experiences online.

This was tested in an “e-commerce experiment” to understand how privacy indicators affect the users decision-making process.

Ecommerce test

Above: Screenshot from e-commerce experiment (Jensen C., Potts C., Jensen C. 2005 Privacy practices of Internet users: Self-report versus observed behavior).

They observed that consumers tend to disclose personal information more easily than they claim to do. What the research highlights is that users self-reported experiences don’t match with their actual online behaviour. What clearly emerged is the importance of “trust-marks” in the interaction between users and digital interfaces.
Trust-marks → factors which may not say anything about the site’s privacy practices, but which are interpreted as such by users.

Users appear to live a “double bind” relationship in dealing with privacy issues on digital interfaces, and this is affecting their decision-making process in purchasing online. The Double Bind theory (Bateson G. 1950) in psychology is defined as a conflicting communication dilemma in which the message doesn’t match with the observed behavior; that causes an emotionally distorted and frustrated reaction in the individual.

Tips to improve trust, acquire more data and lessen abandonment

Here follows some tips that could help interfaces designers in dealing with the paradox, avoiding frustration and consequent abandon in purchasing online.

Visible link to a privacy policy

It has a major effect on purchasing behavior, even though, according to the study, only a quarter of the policies were consulted. In most cases, users had more confidence in a site simply because it had a policy (the impact a policy has is of course more powerful when it is read, but it is not negligible when it is not). Policies are important, not just because of what they say, but because they are there.

Netflights Privacy Policy
• Credit card icons

Even if it does not in fact imply any promise of fraud prevention or privacy protection, consumers find these icons reassuring.

Netflights Credit Card Icons
• Show a contact phone number

Preference for phone information over mailing or email information. Consumers feel reassured to see a phone number to contact the company if any problems occur during the transaction.

Netflights Contact Info
• Development of policy simplifications and standardised indicators

Implement standardized, simple visual indicators for the risks users are exposed to.

It is interesting to note the strong effect policies have despite the fact that users rarely read them. Just having a link to a policy makes a difference. This indicates that in many cases it is the presence of a policy that has a positive effect on users, not its content. Users are looking for “trustworthiness”, not based only on fact but rather on appearance and first impression.

How do you feel? Understanding emotions to craft satisfying experiences

Digital platforms and technology allow us to do things quicker and easier. Well, that’s the theory. The reality can often be far from this. How many times have you been looking for information only to give up and visit a competitor site? Unfortunately, badly structured websites and complicated software are all too commonplace. We’ve been spoilt by the likes of Apple and expect this simple, effective and affective user experience across all our interactions with technology.

Customers want experiences “that dazzle their senses, touch their hearts and stimulate their minds” (Schmitt, 1999)

Our relationship with technology affects our emotions and quality of life. Therefore, in order to provide users with positive and satisfying experiences, understanding their emotional responses is a necessity. Experiential marketing assumes that customers take functional features, benefits and quality as a given.

How do we make users like it?

Making users like something is not as easy as you might think. The qualities of physical products, websites, software and other digital media can be classified into two distinct groups (for this we’ll look at the work of Hassenzahl et al. 2000):

1 Pragmatic qualities

Pragmatic qualities relate to practicality and functionality.

Manipulation

Manipulation refers to the functionality and how that functionality is accessed, i.e. the usability. At a very basic level, can it do what it needs to do? A consequence of pragmatic qualities is satisfaction. Satisfaction occurs when a user uses a product or service to achieve certain goals and those goals are met.

Examples of attributes that are typically assigned to websites (and software in general) are “supporting,” “useful,” “clear” and “controllable.” The purpose should be clear and the user should understand how to use it.

2 Hedonic qualities

Hedonic qualities refer to the psychological needs and emotional experience of the user.

Hedonic qualities are divided into three categories:

Stimulation

Users want to be stimulated in order to enjoy their experience with your site, software or product. Rarely used functions can stimulate the user and satisfy the human urge for personal development and more skills. Digital experiences can provide insights and surprises, for example, if after a period of time a feature hasn’t yet been used, the software could inform the user via a quick tip.

Identification

The human need for expressing ourselves through objects to control how you want to be perceived by others. We all have a desire to communicate our identity to others and we do this through the things we own and the things we use. They help us to express ourselves; who we are, what we care about and who we aspire to be. This is why people enjoy using personalisation on sites such as Twitter. Changing our background wallpaper and header image, helps us to express ourselves.

Evocation

Which memories and feelings does the experience evoke?
Evocation refers to the symbolic meanings that the experience has on our memories and our background. The visual aesthetics of a website may remind you of a past experience. For example, a travel website with a background image of a beach, might bring back memories of a past holiday and all the feelings (most likely highly positive) associated with that experience. As we all have different experiences in our lives, what we feel when we look at an identical website will be unique to us, the individual.

It is the combined pragmatic and hedonic aspects that form the appeal and the amount of appeal that a digital or physical platform has. 

Situation

The users’ experience also depends on the context of use. Where are they? What do they need to do? How many times have they used it? Who are they with? How much time do they have to do what they need to do?

The first time a user tries an application, they may experience some confusion and minor issues, leaving with a slightly negative experience. However, when they become more familiar with all the features and how to access them, they will become more emotionally attached to it, and therefore each use becomes a pleasant user experience. This can be problematic within User Experience design as a poor, inefficient interface may be disliked by it’s users but they can be reluctant to change it because they have learnt how to use it. Therefore their perceived effort to deal with the change and the additional learning is deemed greater than sticking with the poorly designed current system.

Designer's and User's perspectives

Which feelings are felt with a good user experience?

The most satisfying user experiences are related to positive emotions such as, enthusiasm, pride, interest and inspiration. These positive emotional responses are all related to the hedonic qualities of the product: for example enthusiasm is connected to the stimulation dimension and pride is related to the identification quality. The hedonic qualities of interactions are those that make us feel  an experience is satisfying.

In contrast, users who feel irritated, hostile and upset experience more pragmatic (usability) and technical problems.

Emotions and user experience: a recent study

Recent research by Tampere University in Finland (Partala & Kallinen) about the emotional aspects of users’ experience highlights how the most satisfying experiences are related to positive emotions, those that fulfil our psychological needs and are more personal to us.

Our sense of time changes with pleasurable experiences

When people enjoy the most satisfying user experiences, such as playing Angry Birds, they typically report feeling not especially hurried and people often lose track of time. In psychology we refer to this as entering a state of ‘flow’. However, when an experience is frustrating and unsatisfying, a moderate level of urgency is felt and time may appear to go slower.

Satisfying experience and psychological needs

Users that have a satisfying digital experience will report emotions connected to the fulfilment of the most important psychological needs:

Autonomy “I make my own choices and decisions”

Competence “I can do this”

Selfesteem “This makes me feel good about myself”

Relatedness “This is connected to my needs”

As supported in the psychological theory of Self Determination (Deci & Ryan, 2000), the fulfilment of these needs emphasises psychological growth, integrity and wellbeing. An individual’s experience of autonomy, competence, and relatedness is argued to foster the most high quality forms of motivation and engagement for activities, including enhanced performance, persistence, and creativity. So if you want to create engagement or you want to motivate your users, perhaps to change their current behaviour or habits, then you should look to how you can utilise psychological needs.

Understand users and exceed expectations

Nowadays, users are not only looking for efficiency and good usability. What makes the user experience unique and enjoyable is making people feel confident, stimulated and surprised. Connect with your users on an emotional level.

Observing behaviour, analysing and asking users to reflect on their own experiences through user research offers the opportunity to design experiences that satisfy the user’s true needs, leaving them with an experience that exceeds expectations, creates long term engagement, increases brand value and ‘wows!’. People will then use your website or app not because they have to but because they want to.

Call to Action Buttons: 5 Psychology tips to increase conversion 

call-to-actions

What are call to action buttons?

When designing an interface, one of the main goals of the designer, is to ensure that the end user is able to clearly understand what they should do next and where each click will lead them. Call to action buttons are essential to this dynamic, as these buttons are what guide the user through the interface.

The very name of the button, call to action, states there is a necessity for the person engaging with the interface to be stimulated to perform a task. In this case, the designer wants the user to press a button: to make it more enticing so that more visitors will convert. Therefore, your call-to-action buttons should be usable, but they also need to be actively persuasive to encourage more clicks and higher conversion.

Do they really make a difference?

Call to action buttons are the biggest A/B tests run by businesses (they make up around 30% of all tests). The difference between a poor and a great CTA can be anything from a few percent to a few hundred percent and more!

The internet is full of examples of how successful a good CTA can be. Take a look at Which Test Won for some great examples that you can interact with and test your own predictions of which CTA converted better.

So, let’s take a quick look at how we can make these buttons more enticing.

Psychology tips to increase conversion

1 Colour psychology

Colour plays a very important role in determining the pull of your button. The colour you choose can determine who clicks, how many times they click, and how quickly they click.

colour_psychology

For example:

– Females tend to prefer the colours purple, green and blue, while men tend to prefer blue green and black

– Blue is a colour considered to build trust while yellow tends to signify a warning.

These signifiers and others should be taken into account when designing CTA buttons to ensure the right audience is drawn to ‘click’. Not only is it important to choose the right colour, but to ensure that the entire page or interface is aesthetically pleasing. Consider the background colour of your template to ensure colours don’t clash and your button isn’t lost in the background.

2 Placement psychology 

You want your call to action button to stand out on the page, otherwise it will get lost amongst other elements and suffer from less clicks. If your button has an important message, ensure that it is positioned where it will stand out.

You also want your users to understand what happens when they click on your button. It can be a good idea to introduce your button with accompanying short text to support why the user should click it, what are the benefits for them?

Spotify

 

3 Visual psychology

The shape and overall design of the button is where one can get creative, but it is good to keep in mind particular ideas that could add to the ‘clickability’ of the button.

Take into consideration the following:

People like curves. It has been found that rounded corners draw attention to the inside of the button, whereas square edges draw attention away from the centre. Neuro-aesthetics researchers have found that people prefer rounded shapes and these shapes actually cause more activity in the visual cortex (Bar, M., & Neta, M. (2006). Humans prefer curved visual objects. Psychological Science, 17(8), 645-648).

Size = Importance. The size of the button should be determined by how important that particular action is to be carried out.

 

4 Wording psychology

The importance of the message plays a huge part in determining the design of the button. In an increasingly fast paced society, the concept of reading long text becomes less and less appealing. As a result, one wants to ensure that the call to action button is as specific as possible, and gets the message across in the shortest amount of time.

How do we do that?

Be specific. Consider what you want the user to do and use a command to describe the button. For example, buy, watch, download etc. However, take note that some of the bigger conversions come from using less generic and more specific phrases, such as the one below.

CTA-button-test-1

image source

Keep it simple. Professionalism doesn’t necessarily mean big words and difficult commands. Simple commands make it easy for the user to know what to do and what comes next and allows for a smooth transition through the interface.

Clarity. If necessary, include a simple message on the button to clarify any ambiguity that may be there from the command. Through simplicity is important, clarity is essential.

Speak the users language. The larger increases in conversion come from analyzing what your customers really need. In user research we recommend listening to the language they themselves use to explore their mental model and what resonates with them.

Free is one of the biggest persuaders to motivate action so if your service is free or has a free trial, make it obvious for the user to see.

 

5 Emotional psychology

It is important to keep in mind the emotions you want your end user to feel while scrolling through your interface. Whether it be a sense of urgency, pity or excitement, you want to give them a reason to click on your button. Think about what calls you to action and why. Why did you buy those shoes on the internet? Was it because they were on a one day sale, or because they were only available online? Our minds are triggered into action by emotions as well as a perceived sense of need to perform an action. With your button, you have the opportunity to develop a sense of need or create a sense of urgency or desire to take your users to the next step.

Twitter

As humans, we’re pre-programmed to respond to images. They draw us in emotionally. The images you use alongside your CTA can play a huge role in creating the right emotion to engage users and increase uplifts.

 

Example: Basecamp

Basecamp use several techniques to increase the psychological pull of their CTA.

basecamp

Concise explanation with benefits, written in the user’s language (note the informality which makes for a friendly tone of voice), ‘Basecamp helps you wrangle people with different roles, responsibilities and objectives toward a common goal: Finishing a project together’.

– Social Proof to further persuade visitors to sign up. Social proof is evidence of other people using the service, in this case, the ‘4,869 companies signed up to use Basecamp just last week’.

Free. Yes they utilise the power of the word ‘free’ within their CTA.

Specific wording. Note how they could have just used generic ‘Sign up’ wording but they chose to go with a much more personal feel ‘Use Basecamp free for 2 months – it’s on us’. Did you spot the reciprocity there too? The way they bring out the ‘it’s on us’ makes it feel like they’re doing you a favour, psychologically when someone does something for you, you’re much more likely to reciprocate.

 

The exciting part!

Now that we’ve taken you through a number of techniques and examples to show how you can increase your conversion using effective CTAs, there’s just one thing left for you to do, and that’s to try a few of these on your own designs.

We’d love to hear how you get on and if you need any advice or have any questions, we’re always happy to help.

The Biggest list of 35 FREE UX Books

We’ve pulled together the biggest list of free ux ebooks on the internet that will help you to design a better user experience / ux, conduct better user research and improve your usability. You won’t find a list this extensive anywhere else. Please share with your colleagues using the social links above and let us know on Twitter which books you liked the best.

1 UX Design for startups

2 Define app requirements within 20 minutes

3 Designing Interfaces by Jenifer Tidwell (patterns only)

4 Designing Mobile Interfaces by Steven Hoober and Eric Berkman

5 Designing for the web by Five Simple Steps

6 UX Storytellers

7 The Guide to UX Design Process & Documentation. A master collection of frameworks, examples, and expert opinions at every stage

8 The Guide to Minimum Viable Products. A Master Collection of Frameworks, Expert Opinions, and Examples

9 The Guide to Wireframing – For Designers, PMs, Engineers and Anyone Who Touches Product

10 The User Experience Guide Book For Product Managers 

11 Tips on how to recruit participants for usability studies by Nielsen

12 Bright ideas for user experience researchers by userfocus

13 Bright ideas for user experience designers by userfocus

14 Head First HTML with CSS & XHTML by Elisabeth Freeman, Eric Freeman

15 Getting Real by 37 Signals

16 Knock Knock by Seth Godin

17 CSS Cookbook

18 The Fable of the User-Centered Designer by David Travis

19 Converting The Believers by usereffect

20 Usability Guidelines by Michael Leavitt

21 The Guide to Mockups Mockup types, methods and best practices

22 Six circles – An experience design framework

23 Elements of psychology by Henry N. Day.

24 Learning, Remembering, Believing: Enhancing Human Performance by Daniel Druckman and Robert A. Bjork

25 Psychology and Industrial Efficiency by Hugo Münsterberg

26 Mental Models in Human-Computer Interaction: Research Issues About What the User of Software Knows by John M. Carroll and Judith Reitman Olson

27 The Elements of Typographic Style Applied to the Web by Richard Rutter (updated 2014)
TheElementsOfTypographicStyle

28 Search User Interfaces by Marti A. Hearst

29 Web Style Guide by Patrick J. Lynch and Sarah Horton

30 Just Ask: Integrating Accessibility Throughout Design by Shawn Henry

31 Building accessible websites by Joe Clark

32 Time Management for Creative People by Mark McGuinness

33 Taking your talent to the web by Jeffrey Zeldman

34 Introduction to good usability by Peter Conradie

35 Task-Centred User Interface Design by Clayton Lewis

Have we missed any? Help us to keep this list updated for the ux community by letting us know if you find a good free ux book that we should add to the list.

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If you found this list useful, please share it using the social buttons below, and if you liked any of the books, let us know on Twitter, we’d love to hear from you.

Why you shouldn’t use one way mirrors for ux research

Why you shouldn’t use one way mirrors for ux research

Do you use one way mirror labs? Do you value research that gets you the best results? Then you might want to re-consider using one way mirrors. Here’s why…

Talking to users is fascinating! It’s something we absolutely love doing despite having conducted thousands of them! When it comes to location, you can test almost anywhere but there’s one place that we advise against, and that’s one way mirror labs.

What is a one way mirror lab?

A one way mirror lab (also known as two way) consists of two adjoining rooms with a mirror between them. One room is used to interview people and the mirror functions as a normal mirror from this side. On the other side of the mirror is the observation room where people watch the research taking place, from this side the mirror behaves as a window, enabling the observers to secretly observe what’s happening in the research room.

The negative consequences for research

We’ve used this setup many times and sat on both sides of the mirror. These are the problems:

Nervous users

As a researcher you are ethically bound to tell the participant that there are observers behind the mirror. However, there is a problem with this and it’s called the Ironic Process Theory or the White Bear Principle. It refers to the human tendency to continue to think about something after being told not to think about it. For example, if someone says to you ‘don’t think about a pink elephant’, it’s the first thing you’ll picture in your head.

Many users will forget about the mirror. There are other users who will interview ok but afterwards they will admit to feeling watched  (which in turn will have influenced their answers). Finally, some people simply do not interview well with one way mirrors. They may appear nervous, glance at the mirror throughout, whisper some answers to you because they don’t want the people behind the mirror to hear any negative feedback, etc. And the mirror is a difficult thing for people to get over once they have a problem with it, because it’s such a huge object in the room and therefore a constant reminder.

Positively biased responses

If you knew there were a group of people watching you behind a mirror wouldn’t you be more inclined to give positive responses and to withhold negative opinions? It’s natural for people to do this, particularly if they are new to research – they’ll be inclined to want to please you.

Sound leakage

Your observers need to be relatively quiet. I’ve seen labs provide headphones so that observers can turn audio volume up without sound leaking into the testing suite.

When two rooms are next to each other, it’s impossible to soundproof them completely. If the observers next door get quite loud, or turn the volume up, the sound can leak into the adjoining room. Imagine if they laugh and the user hears this (yes this has happened). In some labs, the doors don’t close quietly either – this then becomes another reminder to the participant that there are people watching them.

Noisy cameras

One way mirror labs almost always have cameras that can be controlled in the observation room. These aren’t always silent though. You can be in the middle of a really interesting insight with the participant opening up to you, when all of a sudden you hear the dreaded buzz of the camera . Off-putting to say the least and yet another reminder to the user that they are being watched.

Dark, uninspiring observation room where no one speaks

Observation rooms in labs are awful places really. There are no windows and therefore no natural light, the lights have to be turned off (otherwise you can see straight through the mirror) so it’s a dark, dull, uninspiring room to be sat in all day. In one way mirror labs sometimes the observers can be much quieter than in labs without a mirror, because they can see how close the participant is to them. This isn’t conducive to team working and problem solving.

The issue is these are great setups for observing research, especially focus groups, not UX research. If you have a team of designers observing research, the one thing they’re guaranteed to want to do is sketch, but how do they do that well when they’re sat in a dark room? It’s not an environment that encourages team collaboration, makes a team feel energised, inspired and creative. Conversation and teamworking should be encouraged – now’s the perfect time for the team to get together in one place, collaborate and get to work on designs.

Ironically, no one really observes what’s happening through the mirror!

We spend most of our time watching the TV screens, which give us consistent detail, clarity and control. The glass, for all its glamour, doesn’t always fulfil its worth.

In UX research, the most important interaction to focus on is that between the user and what’s being tested, and in this regard you can’t see anything through the mirror, the detail is through the cameras pointing at what the user is doing. Therefore, the majority of the time, observers are focussed on the tv screen – where the action is. Compare it to UX design…if you want the users attention to focus on something you might give it a more central position, make it bigger, put everything else around it. So when the UI is the most important thing for people to observe, why do labs show this on a small tv screen and give the highest visual prominence in the room to the mirror? It’s crazy!

The solution

The alternative, better solution is to use two rooms that have all the same technology to record and observe the user and their interaction but in the observation room, there are TV screens and no mirror. GDS (Government Digital Services) also use this setup which you can see here. Without a mirror, you’ll get better insights from your more relaxed users and the observation room can now be a creative haven. You can turn up the lights, have natural daylight (windows), have dynamic team discussions and work together on sketches and ideas.

It suddenly becomes an exciting and inspiring workshop to turn user feedback into better designs! And this, is the whole purpose of user research.

World Usability Day 2014

world-usability-day

Happy World Usability Day! Yes today is that time of year when all usability practitioners reflect on another year of helping businesses to improve their user experience and making the lives of everyday people better. It’s a day when we can reflect on the improvements we’ve brought to the world. We’re a little like silent heroes, busily working away to make the average persons day a little easier and less frustrating, without them ever realising who we are, just how much we fight for good design on their behalf or the end difference we make to their lives. Great design is invisible.

History of usability

This year is a particularly special anniversary for usability because as a discipline, the origins of usability and user experience are grounded in industrial efficiency during the world wars and of course the year 2014 marks the 100 year commemoration of the first world war. It was during war time that the value of human factors and ergonomics was recognised as a great way to create more efficient and effective soldiers, i.e. better killing machines. Our usability predecessors spent their days working on the battleground, ensuring that soldiers could get on with their daily tasks in the most optimal manner. What kinds of things did they do? Well, their work involved much more focus on human factors and ergonomics, taking into account the effects of workload, fatigue, physical task design, mental workload, teamwork, environmental effects.

It was during the second world war, that practitioners expanded their focus to aircraft and how through more intuitive design of airplane cockpits, pilot error could be greatly reduced.

Usability as we know it, didn’t really come into effect until the 1980s but it always struggled to gain recognition and respect. The term User Experience helped raise awareness of usability into the mainstream and the last 5 years have seen a phenomenal increase. What was once a highly skilled profession of human factors and usability engineers is now fragmented. However, the benefits are that usability finally has achieved the aim we all had many years ago of raising the awareness of its importance and those of us who have been around a while no longer have to fight our corner like we used to have to, which is a brilliant achievement! That in itself is worth raising a glass to. We did it!

We’re going to end this post with a look at the new Sainsburys Christmas advert which recreates the Christmas truce that happened during World War One (and that has just blown the annual John Lewis advert completely out of the water!).

Keep It Usable is an active supporter of the Royal British Legion. If you would like to help please get in touch with Lisa.

Infographic: 2015 E-commerce Opportunities

Ecommerce-infographic-2015

Source: Statistics from the e-commerce expo October 2014 day 1 and day 2.

More fascinating e-commerce insights for 2015! Expo day 2

Following our hugely popular write-up of the e-commerce expo day 1, here’s what happened on day 2. It’s even better, with fantastic insights on how to be successful in e-commerce in 2015, with advice from Paypal, Maplin and leading successful entrepreneurs!

The future of payments now

Rob Harper, Paypal

paypal mobile

Mobile payments are growing rapidly. More and more consumers are using their mobile to purchase. It means they’re buying on their terms and on their device.

However, £1.5bn was lost to uk commerce in the last year! Why? Payment friction is one of the leading reasons why customers leave websites. According to a poll by Harris, 47% of customers failed to complete a purchase as the process was too difficult on their mobile phone. What makes this worse is that 63% of consumers are less likely to buy from the same company through a different purchase channel after abandoning a mobile transaction due to poor performance.

Rob described how on average, it takes the user 140 taps to pay through a smartphone (see Smartphone Steve below).

average_moible_payment_process

Of course Paypal were at the expo because they believe they have the solution to this. Using Paypal, the number of taps is reduced to just 19 taps. He claimed it was more convenient, secure and Smartphone Steve doesn’t have the hassle of trying to find his wallet (which a lot of people don’t carry with them all the time, whereas they’ll always carry their mobile). Rob said that 47% of UK Paypal mobile users wouldn’t have made the purchase had Paypal not been available.

Paypal are also expanding into the mobile payments market in the offline retail space – will they be successful?

Driving performance through paid media optimisation and rich content

Michel Koch, Maplin, and Emmanuel Arendarczyk, NetBooster

Hands up if you know who Maplin are! That was one of the first things we were asked and a room full of hands shot up in the air. Apparently we were fairly unusual, as the average percentage of people who recall Maplin, is just 9%. However, just earlier this year, this figure was as low as 3%. They launched a TV campaign which was seen by 70% of tv viewers, pushing up Maplin’s recall rate to the current 9%. The TV ads focussed on Maplin Moments. If you don’t remember the ads, here’s a reminder below (I especially love the first bit, “This guy, let’s call him…. Guy”):

“The customer first, always”

Focus on your audience, on people and their behaviour. Maplin’s motto is “the customer first, always”. Maplin used to only focus on keywords, now they focus not just on people, but people with a certain behaviour.

It may (or may not) come as a surprise to hear that Maplin has a fantastic NPS score. They score second, directly beneath Apple. Beneath Maplin, in order, are First Direct, Amazon and ebay.

Maplin have heavily invested in mobile and TV channels. They advise going to where your customers are. For them, this is YouTube (the second biggest search engine in the world, after Google) and they have invested in the creation of how to videos for YouTube viewers. Video is incredibly powerful and lots of companies have seen increased conversion due to them: ‘1 minute of video is worth 1.8 million words’ Forrester.

maplin_youtube_results

Customer engagement trends – how to stay ahead in 2015

Steven Ledgerwood and Saima Alibhai, Emarsys

customer_engagement

Steven and Saima, advised that your starting point should be the above 4 key questions: Who is the customer, what content fits the customer, when to reach the customer ad how to reach the customer.

3 key trends of 2015

1. Understanding customer behaviour

Your website gives you 10x more user generated data compared to email alone and is the most up to date data, however the challenge is getting value from this (big) data.

Right time + right content + right person = positive perception + revenue + engagement

For example, if a user comes from facebook to your site, use the right content and language: ‘Thanks for coming from facebook…”

And if the user leaves without purchasing you can now send them an email reminding them to purchase. Then when they come back to your website you would remind them about the item in their basket that they were going to buy as well as some additional cross-sell suggestions.

2. Multichannel personalisation

94% of companies agree that personalisation is critical to future success, however, more than half of companies are not using their CRM data to personalise how they communicate with their customers. 72% understand the importance of personalisation but they don’t know how to do it.

What to use to segment and personalise campaigns: gender, purchase behaviour, email behaviour, preference centre, team knowledge (see pic)

market_segmentation

Focus on what people are doing RIGHT NOW.

3. Automate! Automate! Automate!

The biggest opportunity available to marketers and those in e-commerce is the 92% of all website visitors that aren’t converting. Of the 8% who convert only 50% buy again. 8% of customers generate 41% of revenue.

website_visitors_not_converting

An example was given that if people don’t purchase, you could send them an email, offering them a discount along with photos of other products they might be interested in.

How digital tools will change the in-store shopping experience

Juha Mattson, Walkbase

Juha really was presenting the future of e-commerce and I loved this presentation. It showed how you can now analyse and treat conversion online and offline together to have one overall ROI. Focussing on an omni-channel approach. Physical stores can be measured the same as online:

retail_store_engagement

There are two levels of analysis: crowds and individuals.

Crowds: useful to analyse crowds when opening a new store in a new location, christmas sales, etc.

The in-store sales funnel. How many go past the store, how many come in, how many are engaged. If you run an offline campaign what’s the roi? Footfall and repeat visit patterns. You can now work this out.

Walkbase enables you to compare and benchmark online and offline together. How does it work? It uses wifi, bluetooth, door counters, video cameras to bring you new segmentation insights and rich customer profiles. Once you have this data, you can then engage more with the customer:

Example: Customer browses products online then when they enter a physical store they get these products retargeted to them as ads or offers in-store.

online_offline_marketing

The game changing opportunities in omni-channel retail:

1. Measurability of physical stores

2. Online-offline integration

3. In-store engagement

Walkbase enables retargeting across all devices and was said to be very easy to install. You need to install wifi detectors unless you already have wifi. Walkbase also uses beacons that you place in different locations in the store.

Panel debate

Liam Patterson of TopLAD and Osvaldo Spadano of Elastera

ecommerce_expo_panel_debate

Surprisingly, throughout the expo there was very little mention of going out and talking to customers, researching them and getting to some real, qualitative insights. I suspect this is because most of the presenters were very data driven people / product providers. Refreshingly, the panel session was purely about the personal experiences of two highly successful entrepreneurs. And do you know what they both said was the key thing to their success? Listening to the customer!

I nearly jumped out of my seat and punched the air at this point. Two whole days it took for someone to say, look what really works is actually talking to the customer. Yes data is brilliant and vital but if you don’t get out and talk to real life physical people you’ll never truly understand what your customer thinks, feels, wants, needs and discover what’s at the heart of their interaction with your brand.

Listen to the customer

Put the customer first is the key thing we learnt” said Liam “really understand your audience”.

Osvaldo was particularly passionate about talking to customers:

“It’s important to listen to your customer, not just rely on the data. It’s a big, BIG mistake.”

Osvaldo described, how it was only by going out and talking to customers and asking lots of questions that he was able to get the real human part of how his product was going to help people. Note: This is only something that can be gathered through real one-to-one conversation.

Beware of feature creep

Liam warned that it’s easy for businesses to become too feature led. He advised stepping back, think about what’s going to move your business forwards for your customers. Do you see how everything comes back to what is best for customers? If you’re only ever looking at data and doing small one-way remote testing, you’ll never get a deep understanding of your customer as a person, and you’ll miss crucial insights that could propel your business forwards.

I’ll conclude this post with advice from Osvaldo:

“It’s very powerful to go and talk to the customer. Try to understand their problem. Why do they want to do something about it? It’s all about problem solving. If you get good at it, you’ll have a good business.”

 

Did you miss our write-up of day 1? Read our overview of day 1 of the e-commerce expo >

Watch out for our next blog post: Your 2015 e-commerce crib sheet.

Fascinating insights: E-commerce expo day 1

This week we attended the London e-commerce expo to discover the latest statistics, technology and importantly, what’s predicted to be big in 2015. Here’s our write-up of the sessions we attended on day 1 (day 2 to come soon). What’s very clear is that mobile will be massive in 2015! New technology enabling more advanced tracking of customers offline and online will also pave the way for advanced data, customer engagement and retargeting across channels (more of this in our next blog post: day 2).

Driving Sales in a connected world

Tracy Yaverbaun, Facebook

facebook mobile
Mobile was a key theme in Tracy’s presentation. There has been a huge change in devices and multi-device use, for marketers this is a huge challenge!

Mobile is where the growth is and where it will continue to be but brands aren’t moving as fast as consumers.

Only 4% of budgets go into mobile but it’s where 20% of consumers time is. Everything has to work on mobile for facebook now.

80% of Facebook’s users are mobile. 26m daily users on facebook, out of these 23m are mobile .

Mobile is disrupting commerce. Physical shop real estate is shrinking so e-commerce is more important than ever. Yet the screen size is smaller so marketers have to work harder on the small screen real estate.

Consumers want msgs relevant to them at the right place at the right time. You need to consider:

1. Discovery. People can find your brand. The Facebook newsfeed is one of the best places for consumers to discover products. Most people check their newsfeed a whopping 14 times every day!

2. Personalisation. Personalisation at scale. E.g. Amazon used Facebook to only target people who didn’t own kindles and were frequent flyers (using their CRM to filter out people who had kindles). It’s all about ‘good targeting’.

3. Measurement. ROI no matter which device consumers start or end their journey. Mobile has a huge amount of traffic but a lot of brands discount this. Marketers are obsessed with looking at clicks but they don’t matter, what matters is return on investment. Even if people don’t click, they’ve seen your message and taken in your brand. Facebook now has cross device measurement capability.

The future of ecommerce is personalised discovery across devices and that you can measure every step along the way.

The future of mobile on the high street

Andrew McClelland and Matt Norbury

Future of mobile on the high street
What was very clear in this keynote, was that mobile is a huge, growing market and the key takeaway was that if you’re not focussed on mobile you are already getting left behind. Here are some of the key points:

Mobile growth is larger than tablet. 186% average growth in sales via mobile compared to 131% in tablet e-cmmerce. Average mobile conversion last year was 1.1%, this year 1.4%.

Basket size on mobiles is almost equal to desktop. £76 average basket value for mobile, average for desktop is £80.

8 in 10 smartphone users will use their smartphone at some point during the purchase process.

Mobile is critical to retail in the coming years. You have got to give people a real reason to engage – games and fun stuff. Add sufficient value that people keep coming back.

Don’t fear ‘showrooming’. Although people are using their mobiles inshore, most are actually just checking their email and social networks, not comparing prices.

Provide wifi. Wifi in-store is becoming a requisite – people expect it. Some people will leave a store if it doesn’t have wifi. Good for the guys whilst the girlfriend is shopping – keeps the boyfriend happier, keeps the girlfriend in the store for longer, everyones happy and the girlfriend has spent more.

Personalisation is big. 70% of people will give personal information and preferences to get something valuable in return such as offers.

Use beacons to measure footfall. Can measure uplift of message and conversion from a voucher you sent them. See the full end-to-end conversion, starting online, ending offline.

Five tips to make sure that customers transact with your app

David Pope, Jumio

Mobile commerce transactions

25% of downloaded apps are NEVER used.

Nearly 66% of consumers making purchases on a tablet or phone, regularly abandon their purchases during the payment process.

David explained his top five tips to get customers using and buying from your mobile app:

1. Be aware which operating system or platform will deliver the best return for your app. Interestingly, although Google Plays market share is way more than Apple’s, Apple’s users actually spend more – almost five times as much! ios users display 6 times the engagement of android users and tablets drive about 20% more spending on avg. Avg spending is 89 eur for tablets, 67 for pcs, 66 for smartphones. Although this isn’t the same in every industry and he specifically excluded travel and gaming as not applicable.

2. Be sensitive to data privacy concerns that may inhibit app usage. Trust is the number  barrier to growth of mobile content and commerce. 99% of users will not share their contact information. Less is more. Don’t ask for location, don’t ask how old the user is, don’t ask to access their contacts – greed for data gets in the way of transactions.

3. Reduce payment friction. This is all about your User Experience. David specifically talked about the keystroke level model – timing how long it will take customer to type data into your forms and working to reduce this number. And the gestalt laws of grouping (this is a more general design rule). Quite rightly, he pointed out that lots of apps still show alphanumeric keyboards for numeric data input – this is really frustrating and time consuming for your users. He also spoke of form length as important for reducing friction and gave the example of one change reduced to just 4 fields that resulted in 160% increase in conversions.

4. Balance functionality with speed and performance. There is a direct link between the performance of an app, number of downloads and its rankings in the app store. Tagman widget for calculating performance optimisation for your app. David recommends taking an MVP approach.

5. Build customer retention into your app. Integrate social features e.g. Sephora. Create a sense of community and use timely reminders, e.g. Map my run. Promote the benefits of your app, e.g. Swiftkey, tells you how much time you saved compare to normal keyboard. Personalise your customers experience.

Jumio
David’s aim in describing the above, was in promoting his product, Jumio. Basically instead of typing in their details, your customer would use Jumio on their mobile to scan their credit card and all the fields on your form would be populated automatically (Fastfill). Apparently this aids validation and reduces fraud. Note, legally, the customer still needs to manually enter their CVC number. It’s claimed that the average increase in form completion rate is 18-33%, coupled with less data entry errors.

Watch the video:

The customer journey report 2014

Dave Chaffey, Smart Insights

Dave’s slides can be viewed below. He placed focus on the customer journey and how wide it actually is – you need to focus on all channels, both online and offline and how people interact with / switch between them. It’s also important to use the right language for each of your personas to appeal to them in the words they use.

It was fairly disappointing to see that only 33% of respondents in the survey make use of usability studies but I’d be willing to bet that these 33% are the more successful companies. Clearly, there are a lot of companies that need to make greater use of user research methods as opposed to just analysing numbers.

Beware of the box: Don’t let your commerce software dictate how your business works

David Winterbottom

David’s presentation was from  a more technical viewpoint, being from a developer background originally. I loved his approach to writing software requirements which is called YAGNI (You ain’t gonna need it). We often experience feature / scope creep in our UX world and we’re always battling against it, so YAGNI is definitely an acronym I’m going to be using! Quite rightly, David also advised that companies shouldn’t write a long list of software requirements at the RFP phase as this should be open at this stage to allow the company you work with to come up with the best solution, otherwise you’re already limiting them and telling them the solution.

I also liked the example that in Korea, customers can now scan QR codes to purchase things in the store. Soon, you’ll also be able to have your items delivered so that they’re waiting for you when you get back home (very cool).

David spoke briefly about an open source platform they’ve created called ‘Oscar‘. It’s totally free, designer friendly (apparently), and mobile by default. It’s built in Django and quick for prototyping which David said can be done in just a few days.

Read part 2 : More fascinating e-commerce insights for 2015!

The future of e-commerce: Generation Z

generation_z_technology_devices

The next up and coming wave of consumers are called generation Z. Born between the mid 1990s and 2010, these young people have been brought up with the internet and social networks. They are ‘Digital Natives’ and as a marketer or product owner you will need to approach this generation of consumer very differently. So, let’s learn more about them…

Who are Generation Z?

Right now they are aged between 4 and 19 years old.
They currently make up more than a quarter of the US population and this is still growing.
They spend nearly every waking hour online. 46% are connected 10+ hours per day!
They influence household purchases. You can’t just advertise to parents – Gen Z are major influencers of their parents decision making.
Tech savvy and heavy users of mobile. They’ve grown up in a digital world.
Always connected, especially to social networking channels.
High online spenders.

Prefer to shop online

Gen Z have been brought up with the internet and they prefer to buy just about everything online as opposed to offline. 20% of girls aged 12 and under regularly visit online shopping sites. The ability to easily make purchases online and delivering the right product information at the right time will be key.

Despite having very low incomes (think pocket money) Gen Z spend much more of their share of income online compared to previous generations. When this germination grows older and their income increases, they will drive major e-commerce growth.

Born to share

Gen Z have the ability to impact your brand via social like no generation before. They’ve been born and raised in a world of social websites. If they don’t like your website or product, they won’t call you, they’ll put it online so their connected web of contacts can see. They’re more likely to communicate with brands via social media and will be more demanding, they’ll tell you exactly how they feel. 77% will vent frustration of poor service over social media and expect an immediate response and resolution.

Listening and fast response will be key to managing this generation online. And to encourage this generation of sharers to share your content, you’ll need to ensure the content you create will be something Gen Z will enjoy – a fun brand voice, engaging content and incentives for sharing.

Traditional advertising won’t be as effective

A Forbes study claims that 57% of Zs saying they would rather save money than spend it immediately: “After seeing their parents lose jobs and their older siblings move back home, this generation will avoid debt. They’ll find the best deals and will expect to test out products physically or virtually before they buy.”

Gen Z will research everything themselves, turning to online reviews, bloggers and product experts to learn about products. Do you have a brand advocacy strategy? You will need to. By harnessing people who love your brand, and encouraging or incentivizing them to share their opinions online, you’ll provide a source of authentic information that Gen Z is likelier to trust.

Multi-screening and multi-tasking are the norm

They multi-task across at least 5 screens daily. “They suffer from FOMO (fear of missing out) more than millenials, so being culturally connected is critical” researchers from Sparks and Honey wrote.

Mobile internet preferred

According to a survey by Ericsson, 58% of Gen Z prefer surfing the web on their mobile as opposed to watching TV.

High tech – Even the youngest age group (9-11 years) shows advanced technology adoption and mobile internet usage similar to their older brothers and sisters. 31% of US children aged 6-12 wanted an iPad over any other electronic device for christmas in 2010 (followed by a computer 29%, and iPod touch 29%) – gone are the days of wanting lego!

Respond more greatly to visual stimuli

A Wikia study shows that 54% visit YouTube multiple times a day. Visual sharing sites like Instagram and Snapchat are also huge avenues of communication for teens.

Marketers will need to start communicating visually to a diverse audience, across multiple screens.

Prefer simple, short, interactive content

Gen Z have the lowest attention span and they prefer media that is simple to use and interactive as opposed to passive TV. Getting and keeping their attention will be challenging though as they like to communicate in bite sizes. Easy to use and simpler platforms appeal to this generation.

Addicted to social networking

Many children now feel that social networking is more important than other aspects of their life, including their family. According to a study by the University of Maryland, 79% of children showed symptoms of distress when they were kept away from social networking devices.

Goodbye Facebook, hello Instagram

Every year, the amount of Gen Z leaving Facebook grows. 25% of 13-17 year olds left Facebook in 2014. They prefer visual platforms; the numbers joining Instagram grew from just 12% in 2012 to 23% in 2013. They also prefer incognito media platforms such as Snapchat, Secret and Whisper.

They want to change the world

60% of Gen Z want to have an impact on the world (compare this to 39% of Gen Y). 1 in 4 of those aged 16 or over currently volunteer. Globally, teens and their families, are changing their purchasing behaviour towards choosing environmentally responsible products and companies.

Not brand loyal

The products themselves and their quality are more important to Generation Z than brand names. Expect these consumers to switch to competitors much more quickly.

Obese

By 2027 most of the grown up Gen Zers will be obese (77.9% of males and 61.8% of females). 66% of kids aged 6-11 say online gaming is their main source of entertainment, so obesity comes as little surprise.

generation_z_interests

Some of the above slides are courtesy of Sparks and Honey. If you would like to read more about Generation Z we would recommend reading their full report: Sparks and Honey on Slideshare.