CUSTOMERS OF THE FUTURE BACKGROUNDER – KEY FINDINGS Trust me, it’ll be there tomorrow The lack of secure and reliable delivery of goods purchased online was a major source of criticism levelled by the Customers of the Future. Initial fears about security, trust and privacy diminished over time as the participants purchased CDs, books and gifts from a variety of Internet sites. Positive purchasing experiences gradually reduced their anxiety. In general, participants were likely to purchase from sites that provided meaningful and accurate communication, especially regarding delivery. Participants wanted to know at the time of ordering whether the product was immediately available and when it would be delivered. Participants became annoyed and frustrated when sites cancelled orders or delayed delivery without notification – they wanted to be able to understand and control their orders. Poor purchasing experience meant participants were unlikely to purchase from a particular site again. Buy Australian Participants were favourably disposed to purchasing from Australian sites such as dstore or wishlist. Australian sites provide competitive price and delivery compared to their United States competitors. Opportunity exists for Australian Internet sites to promote their ‘Australianess’ in terms of delivery logistics. Earn Permission Participants resent the overuse of junk e-mail, sought ways to block it and were actively critical of companies who used this type of advertising. Junk email was unceremoniously deleted without being read. Effective ‘permission marketing’, where the consumer chooses to be marketed to and a relationship is built, would seem to be more effective. The Power of Branding Branding was found to be important to encourage trust, especially where participants were concerned about security and trust issues. Participants trusted a known brand, for example dstore.com, irrespective of the physical presence of a store. Participants were more likely to look for well-known sites based on past purchasing, for example Sanity. When the brand name was unknown the site design became important in making purchasing decisions. November 2000 Page 1 of 2 Don’t loose them on the way to the cash register? All participants expected easy navigation. Site design should be obvious, easy to move through and fast. Slabs of text were criticised by participants as ‘boring’ Irrelevant, repetitive, fast-moving advertising animations were considered distracting and annoying. Oversimplified sites were considered unprofessional. Participants applauded sites that were well categorised, had relevant and intuitive imagery and a robust search function. Search or browse? Participants used search functions where specific products were sought and used browsing when looking for ideas or when unsure of their goal. Specific searches were used in book and CD searches whereas browsing was the primary means of navigation for gift shopping. How much product information? Reviews and product samples (in the case of a CD) were considered useful and important in influencing the participants purchasing decision. Participants expected at least as much information on the web-site as they would find on the physical product – for example, dimensions, pictures and instructions. A perfect online retailer according to the Customers of the Future: is a well known brand is colourful and provides information but is not boring is easy to find and easy to navigate provides good search functionality provides good product descriptions and reviews delivers on time provides advice of new products that are of interest is Australian The Internet sites that were researched in Customers of the Future: Amazon.com (Amazon) barnesandnoble.com (Barnes & Noble) bookworld.com.au (Angus & Robertson) cdnow.com (CDNOW) chaosmusic.com.au (Chaos) dstore.com.au (dstore) gaslight.com.au (Gaslight Music) noizenet.com.au (NoizeNet) sanity.com.au (Sanity) shoppersworld.com.au (Shoppers World) wishlist.com.au (wishlist) telstra.com.au (Telstra) ninemsn.com.au (Ninemsn) yahoo.com.au (Yahoo) November 2000 Page 2 of 2