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Connected

convenience
How people are finding and fostering
togetherness online
Connected convenience

COVID-19 has rapidly transformed how people connect with


their friends and family, colleagues and communities. In spite
of physical distancing measures, people have found a sense
of togetherness through digital tools and online touchpoints.
These new connections are changing the nature of relationships
and long-held payment habits, and in order to stay relevant,
businesses are having to adapt.

Connected convenience examines how the innate human need


for connection is increasingly being expressed online with a
focus on two key areas: the ways in which people socialise and
how consumers interact with businesses. We'll take a closer
look at what this shift to connected convenience means for
consumer behaviour and how brands can leverage new modes of
communication to strengthen their relationship with consumers.
Connected convenience

Methodology Meet the experts


This report is based on a cross-industry analysis conducted
during the COVID-19 pandemic. We looked for global patterns
and utilised commissioned and third-party research to inform Jonathan Freeman
and validate our findings.
Jonathan Freeman is a professor of psychology at
Goldsmiths University, London. His research focuses on
We've blended insights from new commissioned research
media psychology and human factors of digital media. He
from Facebook IQ, conducted by Kantar Profiles from May
has researched user experience, including how to create
2020 onwards, with interviews with two experts in consumer
better digital media products and services. His expertise
behaviour and digital payments to better understand how
covers the user experience of digital media, social media,
online connections are evolving during this time.
gaming, and usability and accessibility.
Our analysis, conducted over the course of six months, focuses
on identifying potentially lasting trends and showing businesses
how they can respond to new consumer behaviours.

David Birch
David Birch is one of the foremost experts on digital

Contents identity and digital money issues. He was ranked one of


the top three most influential people in London's fintech
community by City A.M. His book The Currency Cold War
Connected convenience examines the effects of the global move towards digital
Redefined social experience money.

Cash(less) is king
From socially distanced supermarket queues to the

Introduction
temporary closure of coffee shops and cancellation
of live events, COVID-19 has changed the social
landscape. However, the innate human need for
connection has remained the same, so many
people have sought to connect online while being
kept physically apart.

In a pandemic, connection looks very different


and involves reimagining life as we once knew it:
conducting meetings from kitchen tables, checking
in on grandparents via video and celebrating
weddings virtually. As the ways in which people
connect and communicate rapidly evolve, a new
normal is emerging for human interactions.
Connected convenience

"Humans' basic need for interaction


has not changed at all. It's still there
and it will always be there. When
the outbreak of the COVID-19
pandemic pressed pause on
normality, replacement channels for
human communication were quickly
found."
–Jonathan Freeman,
MD of i2 media research limited and professor of psychology at Goldsmiths University of London
Whether for work, school or play, digital channels have been
a vital source for connection during the pandemic – 53% of

Redefined
Americans say that the Internet has been essential to them
during the COVID-19 pandemic. Technology has helped to
1

ease the challenges caused by the loss of in-person social


interactions, with over one in five (23%) people globally saying
they've turned to online communities for stress management. 2

social Business conferencing apps were

experience
downloaded 62 million times in
the third week of March (14-21), Share of people who currently turn to online
communities for stress management: 5

up 90% year-on-year. 3

23%

US
Over one in five people (23%) across 17% 17% 17%
JP
the world turn to online communities
As digital becomes integral in everyday for stress management. 4 BR
UK
interactions, people are seeking
meaningful connections online
1 “Survey of US Adults”, Pew Research Center, 7-12 Apr 2020, https://www.pewresearch.org/internet/2020/04/30/53-of-americans-say-the-internet-has-been-essential-during-the-covid-19-outbreak/
2 Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave
3, US, UK, BR, AU, SK), base: Those who ever participated in an online community in the past four weeks, what do you currently turn to online communities for? Q216
3 “The Rise of Online Communities”, Global Web Index, Jan 2020, https://blog.globalwebindex.com/chart-of-the-week/online-communities/
4 Lexi Sydow, “Video Conferencing Apps Surge from Coronavirus Impact”, App Annie, Mar 2020, https://www.appannie.com/en/insights/market-data/video-conferencing-apps-surge-coronavirus/
5 Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave
3, AUS, BR, CA, FR, DE, IN, INDO, JP, MX, SK, UK, US, SP, IT, HK, TW), global weighted base: (7,692), What do you currently turn to online communities for? Q216
Connected convenience: Redefined social experience

Most industries have had to rapidly adapt technologies to meet


consumer needs for online connection. From group exercise
classes to shared entertainment viewing, people have turned to
apps to find replacements for social moments. Many consumers
are likely to maintain their new tech habits in the long term.
Even prior to the COVID-19 pandemic, 76% of global Internet
users participated in online communities, with users describing
them as places for meaningful connections and where they feel
respected by others. 6

Whether via group chats or social media, digital channels are


also playing important roles in how people look after themselves
and help their communities during the pandemic. For example,
in Brazil, a coalition of activists developed an app that has
facilitated the distribution of $26 million in food deliveries and
emergency income to more than 1.1 million families across the
country. And online communities have been a source of mental
7

relief. Over one third of US consumers say that gaming has


helped them "get through a difficult time" during the pandemic, 8

and 53% of people worldwide say they've downloaded a new


game for free just to participate in multiplayer mode.
9

6
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave 3, US, UK, JP, BR), global weighted base: (7,692), base: Those who ever participated in an online community in the past four weeks, what do you currently turn to online communities for? Q216
7
Daniel Avelar, "This app is helping mothers in the Brazilian favelas survive the pandemic," Open Democracy, 26 Aug 2020 https://www.opendemocracy.net/en/democraciaabierta/app-mothers-favelas-brazil-survive-pandemic/
8
Digital Media Trends Survey 13th Edition, Deloitte, Jun 2020 https://www2.deloitte.com/uk/en/insights/industry/technology/digital-media-trends-consumption-habits-survey/summary.html
9
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of 12,355 online respondents who have played video games in the past month per wave), aged 18+, May-Jul 2020, (wave 3, US (840), UK (776), BR (779), JP (440)); Approximately how many times in the past four weeks have you… Downloaded a free new game just to participate in a multi-
player mode Q320_03
Connected convenience: Redefined social experience

Whether it's a hug or a handshake (or, in today's age, an elbow


bump), the lack of physical contact as a result of social distancing
Share of people who played board or card games
measures has left people craving intimacy – 40% of Americans with other residents in their household for the first
say they miss physical intimacy more than emotional, spiritual
or mental intimacy. So, they've been turning to activities that
10
time since the COVID-19 pandemic started in their
foster this sense of connection with others, such as discovering a
newfound joy in board games with members of their household.
country and said it's something they could see
themselves continuing to do for years to come:
11
While brands might not be able to provide spaces for safe
physical connection, they can help ease loneliness and create
a sense of community by connecting people across digital
touchpoints and sharing stories of togetherness.

As digital interactions become increasingly essential to people's BR 70%


lives, some industries are fulfilling needs particularly well. Two of
these include gaming and health.
US 53%

UK 51%

JP 50%

10
"Intimacy and sex through the great touch deprivation", TRIPTK COVID-19 Consumer Tracker, https://mcusercontent.com/61c38501fcca68b9d85402a19/files/ee585fa0-8633-4d9c-8b17-e454ae6bc8c6/COVID_19_Consumer_Tracker_S2E1__Intimacy_1_.pdf
11
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave 3, weighted bases: US (110), UK (75), BR (121), JP (22)), Recent experiences with the following? Q317X_02
Connected convenience: Redefined social experience

" Physical interaction with people is


important. People's perfumes, people's
pheromones, all those cues when you're
socialising give you a sense of who
you're interacting with and how closely
connected you are."
–Jonathan Freeman,
MD of i2 media research limited and professor of psychology at Goldsmiths University of London
Connected convenience: Redefined social experience

People are seeking


solace in gaming
communities
For some people, the outside world feels volatile and
unpredictable, but virtual worlds are offering a sanctuary.
Globally, 82% of people played video games and watched video
game content during the COVID-19 pandemic.
12 Share of people who have downloaded a game for free just to
participate in a multiplayer mode:
14

In addition to fulfilling people's need for escapism, these virtual


worlds have become exciting arenas for new social interactions,
with live in-game concerts attracting millions of viewers. As
people continue seeking shared digital experiences, they'll be
looking to brands that are able to ensure that front-row viewing 66%
captivates as much as it connects. 61%
57%
49%
18-34-year-olds
37%
33%
53% of people worldwide said they've All ages
22%
downloaded a new game for free just 14%
to participate in a multiplayer mode,
with 72% of 18-24-year-olds doing so. 13

BR US UK JP

12
"3, 2, 1 Go! Video Gaming Is At An All-time High During Covid-19" by Nielsen, 3 Jun 2020 https://www.nielsen.com/us/en/insights/article/2020/3-2-1-go-video-gaming-is-at-an-all-time-high-during-covid-19/
13
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave 3, weighted bases: US (840), UK (776), BR (779), JP (440)), Base: those who have played video games in the past month; Approximately how many times in the past
four weeks have you… Downloaded a free new game just to participate in a multiplayer mode Q320_03
14
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave 3, weighted bases: US (840), UK (776), BR (779), JP (440)), Base: those who have played video games in the past month; Approximately how many times in the past
four weeks have you… Downloaded a free new game just to participate in a multiplayer mode Q320_03
Connected convenience: Redefined social experience

" Research is showing that what people


are missing massively is being part of a
live audience. In the absence of those
interactions, game platforms in which
you can socialise and interact with other
incidental audience members have had a
big appeal."
–Jonathan Freeman,
MD of i2 media research limited and professor of psychology at Goldsmiths University of London
Connected convenience: Redefined social experience

People are embracing


digital connections
for health
At a time when physical contact is a potential hazard,
remote consultations in healthcare settings are a
welcome solution. The share of people who accessed
telehealth services in the US increased from 11% in 2019
to 46% in 2020. As attitudes continue to shift, we're
15

likely to see a wider demographic of people harnessing


technology to broaden their access to care.

46% of people in the US accessed


telehealth services in April 2020,
compared to 11% in 2019. 16

15
McKinsey COVID-19 Consumer Survey, 27 Apr 2020 https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/telehealth-a-quarter-trillion-dollar-post-covid-19-reality#
16
McKinsey COVID-19 Consumer Survey, 27 Apr 2020 https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/telehealth-a-quarter-trillion-dollar-post-covid-19-reality#
Connected convenience: Redefined social experience

" The COVID-19 pandemic has sparked a


revolution in terms of digital healthcare.
People have realised that they don't
necessarily need to go to the doctor for a
consultation. However, the question remains:
What is the safety of digital healthcare? This
is, in some senses, a deregulated area."

–Diana Verde Nieto,


Co-founder of Positive Luxury
Connected convenience: Redefined social experience

Marketer
takeaways
The COVID-19 pandemic could have a lasting imprint on how
people socialise and interact, with digital remaining central
to everyday connections – both for work and play. Digital
platforms that succeed in the long term may be those that
most closely mirror real-world interrelations, from enabling
real-time, two-way dialogue through chat to providing private
spaces for communities to connect safely.
Digital convenience isn't just affecting how people
engage with one another, but it's also fundamentally
transforming how they interact with businesses.
A key example of this is payments. The COVID-19
pandemic is pushing brands to revisit long-held
approaches for conducting transactions.

The use of cash to pay has been steadily declining


for a number of years. In 2017, cards overtook cash
as the most common payment method in the UK,
and it's predicted that half of Swedish retailers will

Cash(less)
stop accepting cash before 2025. The COVID-19 17

pandemic has rapidly accelerated this transition to a


cashless society for two key reasons: concerns about
virus transmission through coins and notes and the
widespread uptake of e-commerce.

is king 82% of global consumers surveyed


consider contactless payments to
be cleaner than cash. 18

In April 2020, 79% of people


worldwide used contactless
As digital becomes integral in everyday payments. 19

interactions, people are seeking


meaningful connections online

17
Lis Alderman, "Sweden's Push To Get Rid Of Cash Has Some Saying, 'Not So Fast,'" Nov 2018 https://www.nytimes.com/2018/11/21/business/sweden-cashless-society.html
18
"Mastercard study shows consumers moving to contactless payments for everyday purchases as they seek cleaner, touch-free options", Mastercard, Apr 2020, https://newsroom.
mastercard.com/asia-pacific/press-releases/mastercard-study-shows-consumers-moving-to-contactless-payments-for-everyday-purchases-as-they-seek-cleaner-touch-free-options/
19
"Mastercard study shows consumers moving to contactless payments for everyday purchases as they seek cleaner, touch-free options", Mastercard, Apr 2020, https://newsroom.
mastercard.com/asia-pacific/press-releases/mastercard-study-shows-consumers-moving-to-contactless-payments-for-everyday-purchases-as-they-seek-cleaner-touch-free-options/
Connected convenience: Cash(less) is king

With some brick-and-mortar shops closed and with many people


concerned about the risks of in-person shopping, consumers have
been cultivating stronger digital relationships with brands. The
adoption of e-commerce has been rapid and widespread. Global
retail e-commerce sales were 209% higher in April 2020 than in
April 2019. This shift may shape long-term consumer habits and
20

how brands approach customer service.

One lasting change may be contactless payments. With hygiene


top of mind during the COVID-19 pandemic, many brands have
added low-touch or even no-touch payment options. Now that this
infrastructure is in place, the shift from checking out to checking in
on mobile may become the norm.

20
"Global eCommerce Retail Sales Up 209 Percent in April", ACI Worldwide, 12 May 2020 https://www.axa-im.com.sg/content/-/asset_publisher/FehknnI2EsIG/content/what-is-the-future-of-a-cashless-society-in-a-post-covid-19-world-/26520
Connected convenience: Cash(less) is king

" Two key shifts that are


occurring in the payment space
are the transition from cash to
cashless, which is already well
underway in lots of places, and
the transition from contactless
to contact-free payments."
–David Birch,
Author, adviser and commentator on digital financial services
Connected convenience: Cash(less) is king

How people send money to one another is changing as well.


Digital channels, such as messaging apps, are becoming
Share of consumers who have completed a purchase
increasingly popular for payments as consumers seek safer transaction with a business through a messaging service
and simpler ways to make transfers. For example, 64% of US
consumers say they've completed a purchase with a business (e.g. Facebook Messenger, Twitter, WhatsApp) for the
through a messaging service for the first time since the
COVID-19 pandemic started in their country.
21 first time since the COVID-19 pandemic started in their
country:
23

As payments shift to digital, not everyone is making the


move at the same pace. In designing solutions and support
approaches, brands should consider the needs of these
groups, such as older consumers and those in cash-dependent
83%
populations.
66%
64%
18-34-year-olds 60%
57% 56% 55% 54%
All ages

40% of US 18-34-year-old consumers


have completed a purchase transaction
JP US UK BR
with a business through a digital voice
assistant in the past four weeks (up
from 28% in May 2020). 22

21
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May­-Jul 2020, (wave 3, weighted base US (320), UK, BR, JP), Q203B: Which, if any, of the following have you done for the first time since the COVID-19 pandemic started in your country?
22
"Industry Micro-Shifts" tracker study on excel. Q203B: Which, if any, of the following have you done for the first time since the COVID-19 pandemic started in your country?
23
Industry Micro-Shifts monthly tracker study by Kantar Profiles (Facebook-commissioned online survey of approx. 2,000 online general population respondents per wave), aged 18+, May-Jul 2020, (wave 3) Q203B: Which, if any, of the following have you done for the first time since the COVID-19 pandemic started in your country?
Connected convenience: Cash(less) is king

Consumers aged 65+


are embracing digital
payments more than
ever before
COVID-19 has driven many to turn to digital platforms for their daily
needs, including older adults who have sometimes been hesitant
to adopt these services. In May 2019, only 16% of people aged 65+
shopped online more than once a week, a figure that has risen to
43% as a result of the COVID-19 pandemic. By adopting age-inclusive 24

design, brands can help senior consumers more efficiently navigate


these online platforms and engage this audience in the long term.

24
"Signed, sealed and delivered: UK courier and express delivery services set to record fastest annual growth for five years", Mintel, Jul 2020, https://www.mintel.com/press-centre/retail-press-centre/signed-sealed-and-delivered-uk-courier-and-express-delivery-services-set-to-record-fastest-annual-growth-for-five-years
Connected convenience: Cash(less) is king

" The COVID-19 pandemic has driven older


generations to get online out of necessity,
where they may have considered it too
complicated before. Now that they're going
online to shop or make digital payments,
they've realised how convenient it is."
–David Birch,
Author, adviser and commentator on digital financial services
Connected convenience: Cash(less) is king

Cash-dependent
populations risk
being left behind by
digital payments

While a cashless society may well be in sight for some parts of


the world, the shift is not universal. Cash payments continue
to reign in large economies, such as Brazil and Japan, while as
many as 1.7 billion adults globally are without a bank account. 25

As more payments take place digitally, brands will have to think


carefully about how to promote financial inclusion or otherwise
risk marginalising cash-dependent populations. Mobile-first
fintech solutions could work to close this gap in regions that
lack widespread digital payment infrastructure.

25
"The global unbanked shoppers", FinTech Futures, Mar 2020, https://www.fintechfutures.com/2020/03/the-global-unbanked-shoppers/
Connected convenience: Cash(less) is king

Marketer
takeaways
Consumers have experienced the ease of digital
payments and are likely to expect convenience as
standard. Simple, quick and contact-free payment
options are likely to sway purchasing decisions.
Brands could consider optimising their payment
processes with safety, security and seamlessness
as priorities.

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