New potential for online shops: young people follow shopping recommendations from knowledge databases

Nine out of ten users below the age of 20 use self-learning databases
Online shops can acquire new customers using web services

A third of users follow recommendations from the Internet.

Young people are following shopping recommendations from knowledge databases such as "Last.fm"
Online shops can make it big with young people using self-learning knowledge databases such as "Last.fm" and "Pandora". That is because self-learning web services are highly popular among users under 20 years old. 37.5% of them already use this type of web service often, and are inspired by the buying tips they find there; half of the group use this service at least occasionally. These are the results produced by a trend survey entitled "Networked Customers - how Web 2.0 is changing online shopping", conducted by novomind AG in conjunction with wiwo.de and handelsblatt.com.
 
Potential recognised for online shops
Knowledge databases work in a similar way to the setting-up of profiles on Internet job and accommodation exchanges. Users simply specify their music, literature or movie taste in the database, and then receive personalised recommendations about offers that may interest them. These web services are especially attractive to online shops, who can take advantage of the high level of acceptance of knowledge databases among young buyers in order to entice potential customers to their shop sites. Personalised recommendations can give customers who use these databases an additional impetus to buy, and also increase the likelihood that they will go through with the purchase.
 
Young users form the majority, but the older generation will catch up
Up until now it has been young people who have made the most use of knowledge databases. And yet dynamic web services are becoming steadily more popular among older user groups. In terms of all age groups, a third of all Internet users already make use of knowledge databases like "Last.fm” and "Pandora” in order to find out about new trends. Around half of 21 to 30 year-olds have already tried these services out, and this percentage is even higher among over-50s. And, more than one in four of the older group do not discount the possibility of using them in the future.
 
Increased usage of knowledge databases expected among women
An especially large potential is emerging among women for the use of recommendations gleaned from dynamic web services. Almost half of female users said that although they do not yet visit this kind of site, they could well imagine doing so in the future. The use of knowledge databases is already more widespread among the men in the survey: 41% of them have already created a personal profile, and allow product recommendations to be sent to them at least occasionally.
 
Background information
The report on the trend survey "Vernetzte Kunden - Wie Web 2.0 das Online-Shopping verändert" presents the findings of an online survey conducted for novomind AG in collaboration with wiwo.de and handelsblatt.com. The survey investigated where the latest trends lie with Web 2.0 applications and how customers use them. The survey was conducted during the period from 30 January to 28 February 2007. Altogether 374 end consumers took part.
 
novomind AG: innovative software for professional customer communications
novomind is a software developer in Hamburg and the fastest-growing company in the field of electronic customer communications and mail management. As the leading provider of innovative solutions for digital customer communications, novomind AG provides software for service-oriented and personalised customer dealings. The software not only optimises efficiency in customer administration significantly, it also gives the user a faster return on investment. The portfolio of the Products division includes the novomind Self-Service Suite™. The software package contains all the communication modules necessary for a customer service centre on a central knowledge basis: e-mail management, virtual customer consulting and systems for interactive, real-time communication. The novomind AG Services division implements complex e-business applications. More than 40 major companies have already decided in favour of novomind technology, among them Citibank, Otto, Yello Strom and the German pension institution Deutsche Rentenversicherung Bund. Club Bertelsmann, EnBW and Mexx as well as public-sector users, such as the German Bundestag (parliament) and the German Department of Trade and Industry, have already successfully introduced novomind systems to optimise their customer communications, turnover and PR.

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