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New age of openness - UK shares more than ever before

14 Oct 2009

  • Almost 80 per cent of Brits are regularly active online
  • Number of people contributing to the web doubles
  • More people sharing information online
  • Brits turn to social media for purchasing decisions
  • Consumers urge businesses to be more open and honest 

2009 sees the emergence of the age of openness according to new research released today by first direct .  The latest research into online behaviour shows that Brits are now catching up with their American counterparts[i] when it comes to using the web - 79 per cent of the population are now regularly active online.  

More Brits sharing online

Almost 80 per cent are now using social media at least once per month[ii] and over half the UK's population (53 per cent) are now creating and actively sharing content online, heralding a wave of openness that utilises blogs, video, audio, forums, reviews and comment.  This creation and consumption of user generated content is no longer just the reserve of the 'Google generation' (those born after 1993) but is spread consistently across each age group - social media is mainstream![iii] 

Graham Jones, an internet psychologist who specialises in the way people use the internet, explains:  "The new-found enthusiasm for sharing details of our lives is actually nothing new; we have been doing it all our lives with family, friends, colleagues and neighbours. The difference is that before the advent of social networking sites we could only share our ideas and thoughts with a handful of people. 

"Now, thanks to the latest internet technology (forums, blogs, social networking platforms and websites) we can share with hundreds of people in seconds and the difference today is the majority of us are doing this.  Almost 80 per cent of us are active online[iv], a third use it to let people know what they are up to[v] and it's become acceptable to share an unprecedented amount of information about our lives, what we do, who we see and what we buy.  The age of openness is here." 

The first direct research showed the number of people contributing to the web has doubled in the past two years[vi]

  • 79 per cent of people are active online each month, using social media
  • One third maintain a profile on social networking sites
  • Almost a fifth (18 per cent) contribute to online forums through comments and a third read online forums
  • 14 per cent pass on reviews and articles via the internet
  • 41 per cent of over 55s publish, upload and contribute online 

The survey also unveiled the reasons why people are increasingly becoming open online.  36 per cent believed it was a sense of helping others and, surprisingly, just three per cent comment and contribute because they feel they are experts[vii]

The trust consumers place on social media

first direct 's research also showed that we're placing more trust in strangers online in making decisions in our daily lives.  While family and friends remain important in helping to inform purchase decisions (67% of people stated they consulted family or friends regarding purchasing a product or service), more people use comparison websites and online reviews (56%) compared to recommendations from sales assistants (just 25 per cent). 

Impact on businesses

The research revealed that, as consumer openness increases, so do our expectations of businesses.  More than three quarters of people (78 per cent) claim they would be more likely to buy from brands that are open and honest[viii].  

But businesses so far don't appear to be hitting the mark when it comes to transparency.  When asked which companies are considered open, the online giants, such as Google (37 per cent) and Amazon (35 per cent), scored most highly, followed by British institutions such as M&S (34 per cent).  The banking sector had the worst scores for openness[ix] but that's something first direct is starting to change. 

Graham Jones continues:  "As we become more open, so our expectations change towards the way we communicate with businesses.  This new age of openness demands an honest and transparent approach and the rules of engagement are changing.  The research clearly showed that one of the major drivers for people sharing their opinions online was a feeling of power, of having a voice both to promote good and lambast bad customer experiences.  Businesses need to understand this and adapt accordingly." 

Why first direct commissioned the research

first direct commissioned the research to understand the value consumers place on openness, and the expectations of consumers towards businesses in this new age of openness.  

It coincides with first direct 's latest campaign, which sees the UK's number one bank for customer satisfaction make a brave new move to showcase all consumer opinions online on a new microsite: firstdirect.com/live.  The first time that a bank has made such a move, the site aggregates live comments from eight million social media sites.

Lisa Wood, head of marketing at first direct , said:  "The research shows that the banking sector does not score well when it comes to openness and transparency, but this is something that we are keen to change at first direct .  

"Our customers are writing about us all over the web and we want to embrace this, so we're showing customer comments, good and bad, from websites, blogs and forums for everyone to see.  We're also encouraging uncensored feedback on a range of issues and we're inviting everyone to participate in the conversation at www.firstdirect.com/live

"It's a move not many brands, let alone banks, would be able to do but this research clearly shows that customers expect openness and honesty in the businesses they trust and recommend." 

-Ends- 

For further information or interviews with Graham Jones and/or first direct , please contact Jessica Davenport (j.davenport@brahm.com) on 0113 220 0505 or Charlotte Brophy (c.brophy@brahm.com) on 0113 220 0538. 

Note to editors:

first direct undertook research with 2,095 adults between 16-18 September 2009.  This survey was carried out by YouGov plc among GB adults aged 18+.  Data is weighted to be representative of the GB population. 

Key statistics: 

[i]  More than four in five US online adults now participate socially, North American Technographics interactive marketing online survey, 2009,

[ii] 79 per cent are active online at least once per month

[iii] Percent of Brits using the main social media websites regularly (once per month)

18-24 year olds              95 per cent

25-34 year olds              86 per cent

35- 44 year olds             73 per cent

45- 54 year olds             65 per cent

55 +                              42 per cent 

[iv] 21 per cent of people are inactive online 

[v] 30 per cent of people share information online to let people know what they are up to 

[vi] Forrester Technographics survey, 2007 versus first direct survey, 2009

 

2007 (Technographics survey)

2009 (first direct survey)

Read blogs

10%

17%

Comment on blogs

4%

8%

Write a blog

3%

3%

Watch user-generated video

17%

39%

Upload user-generated video

4%

2%

Listen to podcasts

7%

9%

Visit social networking sites

21%

45%

Read ratings and reviews

20%

40%

Post ratings and reviews

5%

10%

[vii] Reasons why people share online

  • A sense of helping others (36 per cent)
  • Influence over business (28 per cent)
  • Social bonding and being part of a community (27 per cent)

[viii] The impact of openness on businesses:

  • 72 per cent of those asked are more likely to trust a company if they share customer feedback online
  • More than three quarters (78 per cent) are more likely to buy from brands that are open and honest online
  • 77 per cent are more likely to recommend brands to friends and family that are open and honest 

[ix] Companies that are viewed as being most open and honest

1. Google                      37 per cent

2. Amazon                     35 per cent

3. Marks and Spencer     34 per cent

4. Co-op                        33 per cent

5. BBC                           32 per cent

6. Tesco                        25 per cent

7. Apple                        18 per cent

8. Innocent                    17 per cent

9. Sky                           17 per cent

10. Dell                         15 per cent

11.HSBC                        12 per cent

12. Natwest                   11 per cent

13. Lloyds                     10 per cent

14. first direct                  8 per cent

15. Northern Rock            6 per cent

Graham Jones

Graham Jones is a qualified psychologist, an associate lecturer in psychology at the Open University and visiting lecturer in ECommerce at Buckingham_University. He specialises in writing about the psychology of the internet and has an active interest in Cyberpsychology.

Related video:

http://www.newsroom.firstdirect.com/videos/first_direct_openness_video

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