Fresh insight into consumer behaviour shows that the least affluent are among the most frequent users of social media and the most affluent have become the biggest bargain hunters. The study, from global information services company, Experian, also reveals that a third of consumers view advertising unfavourably . . . but, online, brand loyalty is increasing.

Entitled, HD:UK the emergence of the High Definition society, the report challenges traditional marketing thinking and says viewing customers in High Definition can benefit today’s brands. 

The HD:UK report identifies a number of new trends, illustrating how brands should create a highly-defined picture of their customers . . . and warns of the dangers facing those that don’t when they find themselves ‘switched to standby’ by today’s HD-ready consumer. 

The true ‘Web 2.0 generation’?  

While younger, well-educated professionals were the early adopters of social networking sites and forums, analysis from Experian Hitwise reveals that people from disadvantaged groups in the UK are now the most common social network users. 

The Mosaic consumer group, Claimant Cultures – a group that includes the most disadvantaged people in the UK – are some of the most frequent users of social networking sites and forums. Ex-Council Community and Upper Floor Living – people on limited incomes living in small flats – are two further Mosaic groups that use social networking sites and forums. 

In contrast, the well-off professional and managerial class, Professional Rewards, is a group that significantly under-uses such sites. 

Discount doesn’t equal downmarket 

Searching for a discount and holding out for a special offer or bargain are now examples of behaviour most likely to be associated with the better-off, rather than less well-off consumer groups.

Some of the most affluent groups in the UK are among the most likely to visit discount voucher, rewards and comparison websites in search of money-off coupons and the best bargains. Active Retirement and Professional Rewards, two affluent Mosaic groups, tend to be more frequent visitors to such sites than less affluent groups, including Upper Floor Living, Terraced Melting Post and Claimant Cultures, along with Liberal Opinions. 

Experian’s report also highlights that more than half of all consumers (55 per cent) claim to be ‘likely to delay buying something until it’s on special offer’, a figure that rises to 68 per cent for Professional Rewards, the UK’s professional and managerial class (see note 1 below).

In addition to the need to develop accurate consumer insight, the report highlights how increasingly complex lives and a fragmented media landscape are seeing consumers increasingly resist ‘push’ communications. Almost 30 per cent of consumers now view advertising unfavourably (2) and consumers have developed an ability to carefully tune in to and tune out from the ever-growing wave of marketing and advertising campaigns vying for their attention.

As a result, today’s HD-ready consumer only allows brand information, communications and messaging containing high levels of relevancy to get through. 

Online search trends underline the fact that consumers are increasingly seeking out information which is relevant only to them. 

Experian Hitwise found that the number of searches involving just one word decreased from 24.5 per cent in 2007 to 20.4 per cent in 2009 and more than 45 per cent of the searches tracked so far in 2009 have consisted of three, four or five-word searches. Meanwhile, nine out of ten of the most popular online searches now contain a reference to a brand, compared to two-thirds of the most popular searches in 2005.

Jim Hodgkins, managing director of Experian’s Marketing Services division in the UK and Ireland, said: “Appealing to today’s consumers means taking a one-to-one approach to marketing. It is all about developing a deep understanding of people and their preferences and communicating in a way that is far more transparent, engaging and, above all, relevant, in order to build an effective and lasting relationship with them.

“People are increasingly resistant to a ‘one size fits all’ approach to marketing. They will block communications they don’t wish to receive or they perceive to be untargeted and will trawl social networks and review sites to create their own image of a brand and its products or services. Nothing will be taken at face value and, as consumers only really have room in their hearts for one or two iconic brands, the rest must work exceptionally hard using targeted marketing data and analytics to attract and retain consumers’ attention.

“There’s no doubt that the HD-ready consumer is an altogether tougher prospect to engage, motivate and do business with. In fact, consumers are ready and willing to put brands on stand-by if they are not communicating with them on their precise terms.”

(1) Future Foundation nVision research
(2) Future Foundation nVision research