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National Study Shows Consumers Abandon Brands Online Out of Frustration With Mistargeting

Study Also Shows Mainstream Consumer Adoption of Tools Such as Social Login Necessary for Brands to Personalize Communication

PORTLAND, OR -- (Marketwired) -- 01/14/14 -- Janrain, the leading provider of user management solutions for the social web, today announced the results of their 4th annual consumer survey, a Social Login and Personalization study that reveals 96% of consumers acknowledge having received mistargeted promotional information. While mistargeting may not be new, the alarming finding is that as a result, 94% have taken steps to break off communication, including automatically deleting emails, unsubscribing from lists and never visiting the site again. Simultaneously, 88% of consumers have encountered social login -- the use of an existing ID from a social network such as Facebook, Google, Twitter, etc. for registration -- with more than half (51%) using it to register and login to other sites. Yet while the vast majority of online consumers (91%) are satisfied with social login, and most report a preference for personalized communication, brands have yet to seize the opportunity to improve online marketing as a result of the data they can collect in the social login process.

The study conducted by Blue Research, an independent research consultancy, which surveyed a nationally representative sample of nearly 600 social media consumers in October 2013, confirms that marketers are wasting money providing content to consumers-ads, offers, promotions, etc., that has nothing to do with their interests. People are fed up and taking action. "In the four years that we have conducted this study, what is interesting to note is the evolution of consumers that are now no longer willing to accept mistargeted communications," said Paul Abel, Ph.D., Managing Partner, Blue Research. "Today, of those who receive mistargeted communications, almost 7 out of 10 report automatically deleting the email without even looking at them. This should be of interest to marketers determining best practices related to personal customer communications."

Another key finding is the fact that among non-users of social login, the number one barrier is lack of trust. Almost half (49%) reported that they don't trust a company to use their information appropriately. Just over one third (33%) are concerned the company will post to their social network feeds. "This year's study confirms that it's paramount for marketers to establish trust and transparency about how personal information will be used," said Larry Drebes, CEO, Janrain. "The good news is that once trust is no longer an issue, consumers are willing to be identified and recognized as customers across multiple devices to receive personalized content."

Other Key Findings:

  • 64% of consumers using social login are more likely to return to a website that remembers them without a username and password.
  • 60% find suggested products/promotions based on their social login profile information useful.
  • 49% of respondents who use social login would allow mobile phone apps to offer special in-store offers.
  • Social login users are 78% more likely versus non-users to download a mobile app from a site that is personalized.

Webinar:
Paul Abel, Ph. D., Managing Partner, Blue Research, will provide insights regarding the full report during a live webinar titled, "2014 Consumer Research: Social Login and Personalization" to be held Wednesday, January 29 at 11am PST/ 2pm EST. Click here to register.

About Janrain
The Janrain User Management Platform (JUMP) helps organizations succeed on the social web with leading technology that leverages the popularity of social networks and identities for new user acquisition, engagement, and enhanced customer intelligence. Our solutions, including social login, social sharing, social profile data collection and storage, access to the social graph, and digital strategy services, improve the effectiveness of online marketing initiatives for leading brands like Fox, Universal Music Group, Whole Foods, Mattel, Purina, Samsung, Macy's and Dr Pepper. Founded in 2005, Janrain is based in Portland, Oregon. For more information, please call 1-888-563-3082 or visit www.janrain.com and follow @janrain.

About Blue Research
Blue Research provides proprietary information businesses use to better understand their markets, develop compelling products and services as well as capture and maintain market share. Blue uses state-of-the-art market research techniques to create reports that drive action throughout the organization. Blue Research specializes in technology markets worldwide and is a preferred market research consultancy for some of the largest technology brands and upcoming innovators. For more information, to review testimonials or case studies, please visit blue-research.com. Paul Abel, Ph.D. can be contacted at [email protected] or 1-888-780-BLUE.

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