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Tealeaf Announces New Mobile Transaction Research Conducted by Harris Interactive, Shows Low Consumer Tolerance for Issues, Significant Business Impact


March 29, 2011 - SAN FRANCISCO, CA


Key Message Points:

  • Regardless of the platform shift from traditional desktop or laptop computer to mobile device, consumers are still having challenging experiences and encountering struggles when conducting transactions online.
  • More than four in five U.S. adults who have conducted an online transaction via a mobile device in the last year report experiencing a problem (84 percent).
  • Businesses may be losing customers due to poor mobile experiences: 63 percent of all online adults said they would be less likely to buy from the same company via other purchase channels if they experienced a problem conducting a mobile transaction.
  • To see a presentation that highlights key results from the mobile transaction survey and its methodology, please visit: http://portal.sliderocket.com/AHJJM/Tealeaf-Mobile-Transactions-Survey

Tealeaf®, the leader in online Customer Experience Management (CEM) software, today announced the results of a commissioned survey of mobile transactions, conducted online by Harris Interactive®. The survey found that more than four in five (84 percent) consumers -- that is, online adults in the U.S. who have conducted a mobile transaction via smartphone or other mobile device in the past year -- have experienced problems. Despite the hyper growth of the mobile Internet, one fundamental truth remains: regardless of whether the platform is a mobile device, tablet or computer, online customer experience is still fraught with issues. How successful companies are with their mobile channels will depend largely on their customers' ability to complete transactions and their willingness to return.

Mobile devices are set to become the medium for digital commerce. According to ABI Research, U.S. mobile commerce sales will reach $4.9 billion this year, and will account for $163 billion in sales worldwide by 2015. Mobile consumers are trying to conduct transactions -- from shopping to travel to banking and insurance -- and time after time they are frustrated by poor website experiences, leading to site abandonment and brand damage. Beyond basic connectivity, the mobile experience is fraught with issues that prevent users from accomplishing their goals struggle-free.

Forrester Research, Inc.'s July 2010 independent report, Making The Case For The Mobile Internet, asserts, "The era of the mobile Internet isn't around the bend but already here. Businesses looking to develop destinations for their smart phone users need to approach the space with high utility, good design, and frequency of use in mind. Retailers, financial services, and hoteliers are successfully driving revenue and increasing consumer engagement through well-designed and highly functional mobile web sites."

According to the new mobile consumer behavior survey commissioned by Tealeaf, of those who struggled while conducting a transaction via their mobile devices:

  • 34 percent received an error message
  • 29 percent said the app/website was difficult to navigate
  • 25 percent were unable to complete a transaction due to an endless loop
  • 23 percent had trouble logging in
  • 16 percent said they encountered insufficient, incorrect, or confusing information

Previous online consumer behavior surveys conducted by Harris Interactive show similar customer struggles. Between 2005 and 2009, Harris Interactive conducted five online consumer transaction surveys on behalf of Tealeaf. On average, 86% of online consumers surveyed during that period experienced similar problems when conducting online transactions from traditional desktop or laptop computers. The new mobile survey highlights that, while the platform for conducting transactions is shifting, consumer struggles continue.

Expectations for the Mobile Shopping Experience are Very High

Almost half (47 percent) of consumers who have conducted a mobile transaction in the past year expect the experience on their phones to be better than the experience in-store. 80 percent expect the experience to be better than or equal to in-store and 85 percent expect the experience to be better than or equal to online using a laptop or desktop computer.

"Doing mobile, and doing it well, is no longer a 'nice-to-have' offering," said Mike Brown, vice president of Optimization at VEGAS.com. "It's now absolutely critical to focus on optimizing the mobile user experience. To do that, one needs to really grok the realities of your mobile customer experience, as well as have the ability to test and refine it on an ongoing basis."

Mobile Struggles: Business Beware
If they experienced problems attempting to conduct mobile transactions, many consumers would abandon their transactions and take their business elsewhere:

  • 43 percent would abandon the mobile transaction and try later on a computer
  • 16 percent would become more likely to buy from a competitor
  • 14 percent would email or log a complaint with customer service
  • 12 percent would abandon the transaction at the app/site and try a competitor's app/site

Most importantly, customer struggles on a mobile device would drive consumers away from doing business with a company entirely. 63 percent of all online adults said they would be less likely to buy from the same company via other purchase channels if they experienced a problem conducting a transaction on their mobile phones.

"Everyone talks about the momentum in the mobile channel and customers continue to show an increasing appetite for moving transactions to these devices," said Rebecca Ward, CEO of Tealeaf. "However, mobile consumers find the convenience of transacting anywhere is often offset by unsatisfying and unproductive experiences. Just because we can pay our bills from our smart phones while riding the subway doesn't mean our expectations are reduced. Mobile consumers are no more willing to tolerate poor experiences than customers accessing websites from their desktops."

Customer Struggles Lead to Frustration, Disappointment and Anger

Just how frustrating are customer struggles on a mobile device? The survey found that more adults would be extremely or very frustrated by experiencing a transaction problem on a mobile device (58 percent) than by going to the DMV (50 percent) or being stuck in traffic (56 percent). The survey also found that mobile consumers often resort to unpleasant ways of venting their frustration -- among those who experience problems conducting mobile transactions:

  • 23 percent have cursed at their phones
  • 11 percent have screamed at their mobile devices
  • 4 percent have thrown their mobile devices

To see a report and analysis of key results from the mobile transactions survey, please visit:

http://www.tealeaf.com/customer-experience-management/resource-center/register.php?doc=mobile-cem

About Harris Interactive

Harris Interactive is one of the world's leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for The Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us -- and our clients -- stay ahead of what's next. For more information, please visit www.harrisinteractive.com.

Survey Methodology

This survey was conducted online within the United States by Harris Interactive on behalf of Tealeaf Technology from February 9-11, 2011, among 2,469 online U.S. adults ages 18 and older, of whom 410 have conducted a mobile transaction in the past year ("consumers"). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Lara Sasken at lsasken@tealeaf.com.

About Tealeaf

Tealeaf provides online customer experience management solutions and is the leader in customer behavior analysis. Tealeaf's CEM solutions include both a customer behavior analysis suite and customer service optimization suite. For organizations that are making customer experience a top priority, these solutions provide unprecedented enterprise-wide visibility into every visitor's unique online interactions for ongoing analysis and web site optimization. Online executive stakeholders from ebusiness and IT to customer service and compliance are leveraging Tealeaf to build a customer experience management competency across their organizations. Founded in 1999, Tealeaf is headquartered in San Francisco, California, and is privately held. For more information, visit www.tealeaf.com.

© Copyright 2011 TeaLeaf Technology, Inc. All rights reserved. Tealeaf, the Tealeaf word and design mark, VIA and Visibility.Insight.Answers are registered trademarks of TeaLeaf Technology, Inc. in the United States and other countries. Tealeaf CX, Tealeaf cxView, Tealeaf cxImpact, Tealeaf cxReveal, Tealeaf cxVerify, Tealeaf cxConnect and Tealeaf's CX Customer Behavior Analysis Suite are all trademarks of TeaLeaf Technology, Inc. All other trademarks or service marks are the property of their respective holders and are hereby acknowledged.

Press Contact:
Lara Sasken
415.932.5009
Email Contact

MarketWire

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