Voices: the CMB Blog

This summer, New Corp’s alleged hacking of celebrity and crime victims’ mobile phones ignited a fire storm around mobile security. Closer to home, the dark side of online convenience wasn’t news to the millions of customers who’ve had their passwords, email, social media accounts, and credit card information hacked. What has received less attention in the U.S. are the privacy issues and risks that stem from burgeoning mobile usage, particularly mobile banking. This spring CMB along with iModerate asked 1,461 Americans over the age of 18 to share their mobile banking habits; the findings reveal consumers’ concerns about mobile privacy.

Data breaches are uncomfortably common, with over 13 million customers falling victim in 2011 as of September. While having an email account compromised may be frustrating, time-consuming, and embarrassing, the thought of financial information in the hands of hackers is the stuff of nightmares.  The vast majority of major banks offer the convenience of online banking, and the growth of smartphone ownership has made mobile banking increasingly popular. According to CMB, over half (52%) of smartphone owners use their device for banking activities including checking account balances, transferring funds, or purchasing stock. Nearly 68% of those under 35 use mobile banking compared with 41% between the ages of 35 and 49, and only a quarter of those over 65. The difference in mobile phone usage by age is consistent with lower use overall by older smartphone owners, who are less likely to take advantage of the array of mobile capabilities than younger users. 

Mobile bankers and non-mobile bankers alike indicate feeling more concern (54%) over personal privacy when using smartphone “apps” for banking than when using a personal computer.  The feeling is unsurprisingly more pronounced among non-mobile banking smartphone owners. A look at motivations behind the lack of use reveals real concerns about mobile privacy and security from smartphone users across the board. As one respondent noted:  “I do not want to do any banking on my phone, at all. Too many security risks…Lose my phone and all my info is cached…phones are easy to access and mine data out of,” Female, 30-34.

Forty-seven percent of smartphone users, who did not use their phone for mobile banking, expressed concerns about privacy (having location tracked by mobile devices, or wireless carriers). Nearly the same percentage (49%) noted security concerns (identity theft, malware, viruses) as reasons not to bank with their phone. Privacy and security concerns aside, half of non-mobile bankers said they preferred to do their banking in person or online. Said one respondent, “I am comfortable with my desktop, my firewall and security system, etc. Plus, in general, I am more productive and faster on the desktop,” Female, 55-59.

The fear of security and privacy breaches is powerful, 71% of smartphone users who don’t use mobile banking say they are highly unlikely to start within the next six months, 86% say they’re unlikely to begin investing on their device. But there is a bright spot for mobile app designers: of non-smartphone owners who plan to buy a device in the next 6 months, nearly 40% said they’d be “highly likely” to use their phone for banking.

So what is the takeaway for the banking and mobile industries?  For some, concerns over security and privacy may always trump the ease and convenience of new platforms and devices; banks and mobile providers must still actively address the reasonable privacy and security concerns of their customers to establish trust among those who may be wary. Banks who can deliver new product and service bundles that satisfy these very real concerns about mobile security will gain the trust, and ensure the growth, of their mobile banking customer base.

Posted by Jim Garrity. Jim Garrity is VP of CMB's Financial Services practice, never wears blue jeans to work, and loves the convenience of banking.

Download our recent Consumer Pulse report: A Consumer Perspective on Mobile Banking. It looks at how smartphone and tablet owners are conducting mobile banking and transactions on their mobile device.

The company that walks together gives back together! And on October 13^th, thirty CMB employees walk as part of The Annual Leukemia & Lymphoma Society’s Light the Night Walk in the Boston Common.  The walk is one of a dozen held across the country by The Leukemia and Lymphoma Society (LLS) to raise money for the thousands of people affected by blood cancers each year.  LLS funds life-saving research and provides much needed services to patients and their families.

While CMB employees give their time to countless causes, Light the Night has special meaning for us. Our Director of Finance Catherine Shannon is celebrating her second year of remission, and will walk with us this year—our 4^th participating.

Since we began walking in 2008, CMB has raised over $20,000 for LLS.  This year we have both our largest team of walkers and our biggest goal yet of $12,000! Team leader Lynne Castronuovo sums up why giving back to the community in this way means so much:
“It’s been extremely gratifying to watch what started out as a very meaningful but modest effort four years ago grow into something so substantial.  This year, we are fielding a team of 30+ walkers and over 50 employees participated in our largest fundraiser.  Everyone in the office is thrilled to rally around this cause because we realize that Catherine’s cancer-free status is due in part, to ground-breaking treatments that were initially funded by LLS.”

We’d also like to give a special thanks to our partners at Decipher who have joined in to donate $10 for every “like” on their Facebook page.

We’re a small company trying to make a big difference, if you’d like to join us in the fight against cancer please donate here.

Thank you,

The CMB Light the Night Team

I recently read Mike Albo’s piece in W Magazine about beauty hotlines where operators are standing by to answer questions and deal with “emergencies,” like accidentally using an antiperspirant cream as a hand lotion.  This got me wondering , in a 24/7 online world filled with IMs and chats, are most beauty companies still relying only on 1-800 numbers to answer their customers’ questions and concerns?Curious as to whether beauty companies offered a customer service chat option, I did an impromptu investigation of 10 product websites based on products I have in my bathroom.  Most products are from well-known, deep-pocket companies (e.g. Neutrogena and L'Oreal).  A few were organic-type products produced by smaller companies (like Earth Science Naturals). I was surprised to find none of the product websites I visited offered live chat with a representative.  Not one.  If chat was available, I couldn’t find it anywhere on the sites I looked at, and I searched.  Usually, all I could find were the 1-800 hotlines from the back of the product itself. 

As a marketer I acknowledge there are some definite pluses to beauty hotlines, they are great for building customer relationships. As a market researcher I see other benefits too: the calls are recorded, and companies get the pulse of the customer, potentially driving further research on hot topics.  It's essentially free qualitative research that comes to them.  But the world has changed from a decade ago, customers expect answers now and limiting feedback to phone calls could keep companies from getting the most accurate information. Also, there are a couple of problems with limiting interactions to 1-800 numbers.

• First, these hotlines are usually available during office hours: Monday to Friday 9-5. These are the prime hours counted against cell phone minutes (800 numbers still count as minutes used).  Plus they’re closed nights and weekends, the time that most cell plans offer free calling.  With fewer and fewer people owning landlines; companies must consider that their toll free numbers aren’t free for most.  And hey, people work too!

• Second, if you can’t, or don’t want to call during hotline hours, there’s usually an email option. The rise of IM can make even email feel like a pain in the neck. And sometimes an email answer generates more questions.  Sometimes you need a little back-and-forth to get to the root of your question.  People want reassurance: a real live person to answer questions and hash it out with you until you get the information you need. 

There’s a huge opportunity here folks. I’m talking to you, Bath and Beauty Products Industry.  With the implementation of website chat functionality, just think how much easier data collection could be.  Think how you could be getting more contact with a wider variety of people with a wider variety of questions. Think of the potential increase in customer satisfaction by offering another option for contact, and the chance to drive future strategy.  Think of the “Cool Technology” factor and who might be inclined to use it. 

As both a researcher and a consumer of beauty products, this seems like a no-brainer.  What do you think?

Posted by Jessica McClelland.  Jessica is a senior associate researcher at CMB who does her best thinking and magazine reading while exercising.

Client researchers are on the frontlines, fighting to redefine and broaden their role in the corporate decision making process. The rest of us are special forces, support troops, or reinforcements –devoted to helping our clients succeed. As a vendor-side attendee, I was pleased to see that the program lineup at the AMA Research & Strategy Summit last week was geared towards helping client researchers effectively “drive transformation.”  That’s where it happens….cutting edge tools and techniques are only transformational if they reveal new insights that will give corporations a competitive advantage.

For many of the presentations, I was drawn in by the sound advice and specific approaches clients have used with success. The program was well done overall, but I have to say that Abby Mehta of Monster Insights, Tim Ruth of AT&T, Jeff Mercer of Microsoft, Dana Williams and Dorette Warms of Southwest Airlines, and Ian Lewis of Research Impact Consulting were especially helpful for those in a client-side role. Without a doubt, this information would have benefited me in my Bose and Wrangler days.

A recurring theme throughout the presentations: client researchers on the frontline need to get out of the trenches and forge ahead with business knowledge, consulting skills, research expertise, and the ability to synthesize and convey insights with great storytelling skills.  Even with these capabilities, corporate researchers often face fierce opposing forces from long-standing corporate cultures, which may exclude researchers from having a “seat at the table.”  As Jeff Mercer outlined for the audience, client researchers face continued challenges—changing the expectations of their internal partners, breaking old habits, and fitting talent into the new mission.

The focus on client researcher needs not only furthers the support troops’ appreciation of the challenges our clients are tackling, but also benefits the AMA as an organization.  IIR Conferences are known to have a higher ratio of end users.  This not only increases overall attendance, but also allows them to command a premium price.  If AMA can attract more end users and keep their conference fees reasonable, they will fill a sorely needed niche in the market research conference arena.  Budgets are tight and conferences have become a luxury for many corporate researchers – those who would benefit from the information the most. 

I applaud AMA for having a great line-up of speakers – including our clients Christopher Frank and Marilyn Franck, and our partner NetBase – and for focusing content on where ”the rubber meets the road.”

Did you attend? What did you think?

Posted by Cathy Harrison. Cathy is a client services executive at CMB and has a passion for strategic market research, social media, and music.  You can follow Cathy on Twitter at @virtualMR    

You'll also find Cathy at The Market Research Event (TMRE). Are you planning on going to TMRE? CMB is an event sponsor and presenter at the conference. Feel free to use the code: TMRE11CMB when you register  for a discounted price. We hope to see you there. Learn more about the conference here.

Last week, my family and I enjoyed a trip to Orlando.  And with two girls (age 4 and 5), of course we visited some theme parks. While there I had the good fortune of being asked to complete a customer feedback interview at not one, but TWO, of the parks. Good fortune? To be stopped at an amusement park on a hot day with tired kids? Definitly. As someone who focuses on customer feedback research, I look forward to every opportunity to learn more about how people experience the process and  how companies apply the results to improve performance.

And just as I hoped, it was very enlightening. I could write a hundred blogs on the interview experience, but the one thing I want to focus on here is the timing of the interviews. Timing is a frequently discussed and debated topic among market researchers, and I want to add a more personal twist. As I mentioned above, the folks at each park intercepted me on premises, but at Park 1, the interviewer asked me a couple qualifying questions and collected my email address: I received the email about a week later, and completed the lengthy questionnaire online. 

At Park 2, the staff member asked me to complete an online interview at a computer in an office on-site.  So, this amusement park was getting my “immediate” reactions to the questions.  Which was better?  Well, it depends.  Really, the two experiences made me think of some great research, books, and ideas occurring in the field of human emotions and behavioral economics.  Daniel Kahneman is always a great resource in this area, and a popular TED video describes the two instances very well.

 “Using examples from vacations to colonoscopies, Nobel laureate and founder of behavioral economics Daniel Kahneman reveals how our "experiencing selves" and our "remembering selves" perceive happiness differently. This new insight has profound implications for economics, public policy -- and our own self-awareness]

David McRaney gives a nice summary of the video’s theme on his blog

“The psychologist Daniel Kahneman has much to say on this topic.He says the self which makes decisions in your life is usually the remembering one. It drags your current (experiencing – sic) self around in pursuit of new memories, anticipating them based on old memories.

The current self has little control over your future. It can only control a few actions like moving your hand away from a hot stove or putting one foot in front of the other. Occasionally, it prompts you to eat cheeseburgers, or watch a horror movie, or play a video game.

The current self is happy experiencing things. It likes to be in the flow.

It is the remembering self which has made all the big decisions. It is happy when you can sit back and reflect on your life up to this point and feel content. It is happy when you tell people stories about the things you have seen and done.”

Kahneman’s delineation between the “Experiencing Self” and the “Remembering Self” really resonated in the two customer feedback studies I described.  To put it in terms of Kahneman’s theory: at Park 1 (off-site survey), when I was asked a few preliminary questions and later sent an email invitation, I evaluated the visit from my “Remembering Self.”  At Park 2 (on-site interview), when I was asked to evaluate the visit while still experiencing my park visit, I evaluated the visit from my “Experiencing Self.”

This has big implications for the data and information the parks will gain from the feedback.  The evaluation from my Remembering Self is closer to my decision frame of mind; it gives a better read on the aspects of the visit that lead to my choice to select/return to the park.  For the evaluation of Park 1, I had already viewed pictures of my girls enjoying themselves and begun concluding whether I would want to return again in the future. 

Of course, I could not recall many specific feelings or problems during the visit, yet the questionnaire (one week later) asked about a wide range of things, from cleanliness to security (which presents a big disconnect between the Experiencing and Remembering selves, as feelings of security/fear in-the-moment quickly dissipate).  Sure, we had a chatty restaurant server looking to up-sell us on every dish – a big annoyance as I work hard to remember every moment of the visit – but if Park 1 (off-site survey) is looking for problems to fix, it will not find them (beyond the glaring items). 

Therefore, we shouldn’t dismiss the timing of the interview at Park 2 (on-site interview).  In fact, Kahneman’s example of pain experienced during a colonoscopy is not that much different from what I experienced at that park.  For instance, a long wait for lunch at a restaurant was quite frustrating, especially with two hungry children, and I was very open about the frustration when completing the questionnaire onsite.  Park 2 would not have received such open comments if I hadn’t given them “in the moment.” 

On the other hand, I was also less glowing in my overall satisfaction ratings, saying I was less likely to return.  I was hot, tired, and worried about my kids melting down. The interesting thing about it is this: I would be more likely to return to Park 2, where the interview was on-site.  Now that my Remembering Self has reflected on the experiences – and had the “fog of battle” clear from my head – I realize that my family gained a lot more cherished memories from Park 2, and I would be far more likely to return compared to the other park.

Therefore, if the purpose of the interview is to understand the experiences, memories, and drivers of choice, it’s critical to time the interview for my “Remembering Self” to respond.  If the purpose is to find specific points of pain or joy (regardless of their role on choice), then it’s critical to time the interview for my “Experiencing Self” to respond.

Posted by Jeff McKenna who will be chairing the Action Planning track and leading discussions around the getting the most out of your voice of the customer program at the Total Customer Experience conference October 3-5. 

Are you planning on going to Total Customer Experience? CMB is an event sponsor. Feel free to use the code: TCEL11CMB when you register for a discounted price. We hope to see you there.