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Seven Out of Ten Consumers Who Abandon Online Financial Applications Could be Persuaded to Complete Them Online
$6 - 7 billion in abandoned online financial applications up for grabs each year
BOSTON— September 12, 2006 — Compete, Inc. today announced the findings from its latest Spark! research advisory, "Financial Services Providers: Creating New Relationships Online." While 14.2 million consumers start an online application each month, only 4.2 million complete the application online. Compete’s findings reveal an enormous opportunity for financial services providers and marketers among consumers that are initiating applications at leading auto insurance, credit card, deposit account or home loan websites.
“When financial services consumers begin the online application process, they are making the initial commitment to start a new financial relationship,” said Mike Bailey, managing director at Compete. “Consumers’ expectations are reasonable, and if marketers can offer a clear, safe and well-designed online application process, it will allow them to tap into the nearly $7 billion in revenue available in abandoned applications.”
The focus of the Compete study was to understand why consumers who are sufficiently motivated to start online applications abandon them and how to encourage more of these consumers to complete the process. Of the 81 million consumers who abandon the application process, many still believe an online application is more convenient than applying either by phone or in person. Moreover, the majority say they can be converted to use the online channel if marketers take the right approach.
Financial services providers have a tremendous opportunity to persuade and influence those consumers most engaged in the buying process, but not yet sold – those who start and then abandon the online application. Less than a third of all abandoners outright reject the online path, meaning that savvy marketers still have an opportunity to persuade 70% of abandoners to complete the application online.
Online applicants who abandoned the process identified a lack of transparency in the application process, concerns over security and privacy protection and a poorly designed online experience as the top three reasons for online application abandonment.
Additional key findings include:
- Planning ahead: Compete found that the 60% of consumers who go on to complete the online application begin the process with the specific intent of opening a new account.
- Snap decision: 36% of consumers who complete the online applications, started with the intent to learn more about the product, but decided along the way that the time or offer was right.
Download this latest Spark! online at http://www.compete.com/research/spark/
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About Compete, Inc.
Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry's largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Teva Neuroscience, and Upromise®, among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com/.
Contact:
| Cynthia Stephens | Meghan Journey |
| Compete, Inc. | Racepoint Group, Inc. |
| 617.933.5651 | 781.487.4629 |
| cstephens@compete.com | mjourney@racepointgroup.com |