While many iPhone users may pay for apps, and download them directly to their phones, there is some reluctance to make other purchases via a mobile device. Concerns about security are an issue for many, however functional barriers also contribute to lack of mobile transacting. Apps which are purpose built for transacting are readily used by some people, but they are few and far between.

iPhone users essentially fall into three groups when it comes to shopping via their smartphones:

Security concerns mainly relate to sending data over public or unsecured WiFi networks, which iPhone users avoid (when transacting) online by using their own WiFi, or sticking with 3G. However, if they’re going to transact at home, then a computer is usually accessible, so the concept of mobile purchasing is somewhat irrelevant. Purchasing via a computer also offers the benefit of being able to easily print receipts for proof of purchase.

Interestingly, security is not just related to a fear of having their details stolen, but also user error when it comes to entering data on a mobile device. The small screen and touch keyboard are seen as being more likely to result in typing errors – especially if attempting to purchase from a classic site, rather than a mobile-friendly site, or via an app.

“I am a bit reluctant to make purchases from my iPhone due to security concerns and just in case I incorrectly type in my payment details – e.g. a $20 donation becomes a $200!”

Fit for purchase

iPhone users were more likely to make purchases from their devices via purpose built apps, like eBay or Dominos Pizza, than to attempt to purchase via the internet on their smartphone. These apps not only make it easier to undertake a transaction because of their design and features, they also, importantly, communicate that the app is fit for purpose.

It’s critical that apps which are used for transactions are branded and deliver a positive customer experience. In a virtual environment, the trust markers will predominantly be the brand, and the quality of the app design and functionality – without these elements, doubts about security and authenticity are elevated. Branded apps are also more convincing than mobile sites, when it comes to transactions, again because of a sense that they are designed specifically with the user context in mind (versus merely scaling down a web experience). A clear example of this can be found with banking apps versus purely mobile internet banking.

People who are already comfortable purchasing through the iPhone are looking for more opportunities to use their device in this way. Particularly for items such as tickets for movies or events, or for books or small items where the desire to purchase might be triggered spontaneously, rather than being planned. Apps provide the user with a chance to do it ‘here and now’, thus reducing the time between consideration and purchase if they’re on the the move.

“I feel totally secure making purchases with my phone: I’ve bought apps, music, eBay items, from Amazon, done banking, concert tickets, movie tickets…It’s especially good if, say I’m out with friends, we’re talking about a concert and we can look it up and purchase right there…no more ‘note to self’ to look into it later”

While some nervousness will prevail amongst cautious consumers, the iPhone operating system is perceived to offer some inherent protection against cyber fraud and the like. There’s an belief that, being a Mac product, the iPhone is not yet a target for viruses, malware or internet scammers. Again, belief in the brand provides a sense of security.

It’s early days when it comes to mobile purchasing, but when estimates are that by 2011 85% of handsets shipped globally will have some sort of browser, and given the ever-increasing reach of 3G networks, smartphones will become a huge opportunity as a distribution channel. The challenge is for companies to invest early in creating great app and mobile sites that deliver trusted customer experiences, where we won’t think twice about tapping ‘buy now’.

Apple’s iTunes App Store has in excess of 100,000 apps across a multitude of categories. There’s apps for fun, for making your life easier, for saving time, for sleeping better, for unleashing your creativity. Basically, there’s an app for just about anything you can think of doing via your iPhone (and for many things you’ve never thought of doing).

The problem is, how do we find these apps when there’s so many of them in there? It’s like being in the biggest shop in the world, but all products fit into 20 simple categories. For new apps, whether free or paid, branded or unbranded, the real challenge is being found in the first place. In a digital shop where browsing is very linear, from one click to the next, it’s difficult for apps to rise to the surface so that they are found before ‘shoppers’ move on.

Latitude Insights conducted an online research community amongst iPhone users from March to April 2010, in which finding apps was an interesting topic of discussion. The main method used to find apps were the Top 25 lists, and word of mouth recommendations from other iPhone users.

App downloading can be either planned or spontaneous. Sometimes people will specifically look for an app they know the name of, or a type of app (but do not know its name) by using a key word, or category search. Other times, browsing the app store may be like window shopping – purposeless, but sometimes resulting in a new acquisition.

iPhone users recognise the inherent problem in relying on the Top 25 list to find new apps. Following the ‘crowd’ when it comes to apps means that the most downloaded apps, continue to be the most downloaded. There’s a certain level of ‘cred’ associated with having a more unique or rare app.

“I would imagine that there are a lot of great apps that never make it into the Top 25. Especially, considering that most of the apps in the most popular list are so amazingly stupid”

Branded or commercial apps need to utilise other communication channels to promote their apps, to facilitate uptake/downloading. Ironically, it may be that non-mobile media, particularly websites and print in the form of both advertising and reviews, are the best way to tell the target market you have an app for them. And then a good app can begin to rely on recommendation to build its fan base.

Ultimately, a good recommendation or a positive experience with an app on someone else’s iPhone is the strongest driver of app selection. That’s why ‘what apps have you got?’ could be the universal catch-cry for iPhone users.

Our presentation of insights from our iPhone online research community.
Stay tuned for a few more insights over the coming days.

The last couple of days, all we have heard is iPad, iPad, iPad.  While I’m not sure iPad will be as revolutionary as the iPod or iPhone, what I do know is that Apple will make a lot of revenue from their iTunes store.  Did you know that in 2009, Apple accounted for 99.4% of all mobile app sales?

According to the Gartner report that’s a big chunk of the $4.2 billion in mobile app revenue that Apple scored in 2009 alone.  Apps are growing by the minute with the market estimated to almost double in the next year, to 4.5 billion apps.

For marketers this creates a number of interesting questions and opportunities:
- What makes a good App?
- What are consumers willing to pay for?
- How does the market learn about Apps?
- How do I make sure I get my Apps noticed ?

Over the coming months Latitude hopes to answer some of these questions with their iPhone user research community.  Not only will we ask members to ’show us your Apps’ we want to drill down to understand how they find, choose and interact with their Apps.  Which ones can’t they live without and most importantly, which ones add to their brand experience.

So what Apps can’t you live without?

Matt and Ben at PluggedIn have made a few predications about the year ahead, many of which I agree with.  For us at Latitude it’s been a big year and it’s always good to take time to reflect on what has happened when looking to the future.

It was only a couple of weeks ago I was reminded of an article I wrote early last year in Research News about online qual and looking back on it highlights how much things have changed in the last 18 months.  At that time, it seemed I was the only one in Australia talking about online communities.  Fast forward 18 months and the buzz words at this year’s AMSRS conference was online communities.  So if you didn’t know what they were, you do now and if you weren’t thinking about them, you have started to.  The latest prediction is no surprise to us –  MROCs will be big news next year.

Today it seems everyone has a different definition for what these are but over the next year I’m sure clearer definitions will emerge and we will stop comparing apples and oranges.  We’ve seen some people talk about MROC’s, others use the term online research communities and then there are those who talk about online community panels but as time and experience emerge it will become clearer what the differences are.

We’ve seen a couple of big players enter the Australian market and the global players scrambling to get on board, but over the year we at Latitude have been working with a fantastic set of clients who are ahead of the curve.  From FMCG icon brands to banks, well know Australian drama series, luxury cars and retailers we’ve covered the spectrum of diverse conversations with equally diverse audiences.

The beauty of our real time 24/7 connection to consumer conversations emerges as brands goes through a product recalls, competitors experience PR nightmares, social media trials go haywire and through it all we are getting immediate responses from consumers as they see it.  The timeliness of the feedback procees is one of the biggest benefits for our clients.  So there is no doubt in my mind that more clients (big and small) will see the benefits of online research communities and it will fundamentally change how research is integrated into their business .

And I take this opportunity to thank the fanatastic team of researchers, clients and community members I get to work with everyday.  Without you, this would be no fun!  And here’s to continuing the ride in the year ahead.

The latest edition of Research News features an in-depth article on the rise of MROCs in the Australian research industry. Latitude Insights has been highlighted as a leading boutique agency who specialises in online qualitative research, and there’s a number of quotes from Dianne Gardiner, Latitude Insight’s CEO, included. You can read the article online by clicking here. Our client, Zoe Aitken from Cadbury, was also interviewed for the article, in which she talks about the benefits of immediacy and the depth of insights generated from this methodology.

There’s an interesting discussion about community size and response rates with Vision Critical talking about communities of 6000, and Communispace having 300-500. But then later on in the article, Kris Hartvigsen talks about participation rates of 40-50%. This is where we differ – with smaller, more engaged communities. If we had a 50% participation in a discussion we’d start to look into why members were not as responsive as expected. We don’t want to have conversations with only half the people in the ‘room’.

The good news for all of the agencies who are leading in this area, that there is a strong expectation that online communities will take off in 2010, and will be driven by clients looking for new ways to talk to their customers. And we’re ready to get the conversations going.