Data Tracker: Consumers want speed and simplicity from digital transactions

Consumers want speed and simplicity from their digital transactions. Many abandon their purchase journeys at the slightest discomfort, this consumer drop-off is referred to as 'friction'.  The Zero Friction Future Report 2018 by KPMG and Nielsen commissioned by Facebook is a collection of white papers on the subject and looks at some of the big reasons for ‘friction’ and at ways to tackle the problem. Sandeep Bhushan, director, Facebook India and South Asia, said “Consumers journeys are quite complex today. Mobile plays a key role at every step in their customer's purchase cycle while researching for information and buying. But we have seen not all businesses are prepared to meet consumer expectations, which leads to consumers dropping at different stages of the purchase, deemed as friction, which often result in abandonment of purchase journey, implying loss of revenues for them.” Overall friction accounts for 66 per cent of consumer dropouts, while 34 per cent of consumer dropouts are attributed to media friction, leading to a loss of nearly $22 billion in revenues.

Friction points can occur at any of the three stages along the consumer’s purchase journey: at the ‘awareness’, ‘consideration’ or ‘intent’ stage

Media friction is another hurdle, it occurs because there is not adequate/appropriate information at various media touch points

Nearly half of the consumers use mobile in their smartphone purchase journey. Currently, mobile influences 58 per cent of smartphone purchase decisions, amounting to $8.5 billion worth of sales and it is expected to grow by about 1.8X to reach 73 per cent and influence $15.6 billion worth of sales by 2022

Currently, Facebook influences 33 per cent of purchase decisions amounting to $4.8 billion worth of sales and it is expected to grow 2X to reach 44 per cent and influence $9.5 billion worth of sales by 2022.

Some key insights into consumer friction points include:

Women seek more explicit communication, while men demand more relevant information. Storytelling, FAQs, and sequential advertisements are ways that brands can keep consumers on the path

Consumers above 35 years are more likely to abandon purchase, as sensitivity to friction increases with age. Brands should build more trust with seniors by targeting products most suited to their needs

SEC B faces more friction compared to SEC A and consumers drop out due to lack of offers and information. Brands  can reduce friction by proactively communicating bundled deals, price drops and exchange offers, motivating consumers to make a purchase.