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Not the internet.
Traffic may be up but most still antsy about buying
By Toni Fitzgerald
If trust only arises from understanding, it must follow that most Americans don’t really understand the internet.
Because they sure as heck don’t trust it.
Although internet trust is at record levels, it’s still not very high, according to a new report this week from the Consumer Internet Barometer.
The CIB survey, conducted jointly by the NFO WorldGroup, Forrester Research and the Conference Board, found that only 33 percent of U.S. consumers think their online financial transactions are safe, versus 27.5 percent last year.
And while trust may be creeping up, overall satisfaction levels regarding the internet remain stagnant.
“I think what we’re seeing here is a steady improvement being made in specific activities,” says Lynn Franco, director of the Consumer Research Center of the Conference Board.
"Perception, of course, is a factor at play here as well. We expect that as more people go online, and their duration of usage increases as well, their likelihood of making a transaction increases as well.”
The highest levels of trust are found among users who have been online longer and have a better understanding of how the internet works.
Franco says that younger users, the ones who grew up with computers and communicated in college via email, are far more likely to make online purchases.
The older, less comprehending internet users worry more about hackers stealing their personal information.
They may not be aware of the security measures that are in place, for example the “secure” lock in the bottom corner of Internet Explorer to designate a protected site.
“There are still some age barriers and differences in internet usage,” Franco says.
The CIB found 37.4 percent of U.S. consumer go online every day but that only 25 percent of all internet users think the information they submit is safe, up from 22 percent.
Considering the number of daily users, that's not a very high level of trust.
More disturbing, although more people are using the internet more frequently, fewer of them are buying.
Ignore what you’ve heard about the record-breaking holiday retail season. CIB found that of the users who log on every day, 60.5 percent have made an online purchase in the past three months, down nearly 2 percent from last year.
Online merchants must assume responsibility for improving trust levels, says Franco.
“Companies need to communicate as to what security measures they have at hand,” she says.
“Ease of use helps as well. The less steps the better. If there are too many steps to complete a transaction, the likelihood of losing one customer along each step increases.
“And there is the perception of what happens to the information in the transmittal process. Companies have to do something to address these issues, as well as making it a simple process for consumers.”
Merchants also need to improve their overall service. A recent survey by ForeSee Results found that customer service ratings dipped for online retailers this holiday season compared to last.
Franco says that customers are more likely to buy from a well-established name, such as Amazon, rather than a small, specialized site. Familiarity breeds trust.
That’s why it’s apparently going to take a few more years for the internet to gain it.
“I think what we’re just seeing here is that internet usage continues to increase, and penetration will go up over time,” Franco says. “Trust will increase as it goes up.
“There is progress being made in terms of usage and trust.”
January 9, 2003© 2003 Media Life
-Toni Fitzgerald is a staff writer for Media Life.
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