GOMEZ: 16.28 Million Investors Waiting for Right Offering to Begin Online Trading
biz.yahoo.com
Monday August 16, 8:01 am Eastern Time -- Company Press Release
Gomez Advisors & Harris Interactive Find ``The State of Online Investing' is 16.28 Million Investors Waiting for Right Offering to Begin Online Trading
New Investors Are Expected to Increase Industry Assets by More Than $1.1 Trillion
LINCOLN, Mass.--(BUSINESS WIRE)--Aug. 16, 1999-- In a groundbreaking look into the minds of both active and potential online investors, Gomez Advisors Inc., the leading e-commerce authority and distributor of the Internet Broker Scorecard and Harris Interactive, the nation's leading Internet market research company, found that a potential 16.28 million investors -- 3.2 times the number of current online investors -- are poised to begin trading online.
This new potential market, according to the authors of the benchmark ``The State of Online Investing' survey, could increase the value of assets held in online investment accounts by more than $1.1 trillion. This figure is based by multiplying the 16.28 million base of potential online investors by 2.2 online accounts (calculated as matching the current average of online accounts per investor), each holding at an average of $35,000 (the average asset size of people currently online.)
The survey tracking the attitudes and activities of online investors further isolates these potential investors into three distinct pools with indicators suggesting that they are waiting for the right offering to begin trading online. The three groups are:
1. 2.85 million investors with offline brokerage accounts, who
indicate that they are "likely" or "extremely likely" to "open an
online brokerage account in the next 6 months."
2. 660,000 offline investors with no brokerage account (mutual
funds, etc.), who indicate that they are "likely" or "extremely
likely" to "open an online brokerage account in the next 6
months."
3. 12.77 million offline investors at the frontier of online
investing, who are defined as those who demonstrate behavioral
and demographic patterns similar to investors who currently trade
online (e.g., research investing online, purchasing patterns,
income, education.)
According to the online survey of 20,119 adults, Gomez Advisors and Harris Interactive estimate that 5.1 million online investors have traded at least once during the past six months.
``Our analysis shows online investing has the opportunity to explode with a pool of investors waiting in the wings that is almost four times the current number,' said Alex Stein, Ph.D. and co-founder of Gomez Advisors. ``The spoils will go to those brokers who really listen to the customer and answer their wants and needs. It's clear those customers haven't heard what they want to hear from the online brokers yet.'
`` `The State of Online Investing' empowers the financial marketplace by providing the first insight into `who's on' and `who's next' in online investing,' said Gordon S. Black, Ph.D., chairman and chief executive officer of Harris Interactive. ``This study focuses on the behavior and attitudes showcasing how this online community is evolving and what opportunities are developing for businesses interested in tapping this ever-changing market.'
Stein characterized the potential online investors looking to enter the market as ``life-goal planners' who are seeking a more interactive experience with their broker and desire online advice with higher service levels.
``The challenge for the would-be leaders in the expanding online brokerage community will be to transfer some of the customer satisfaction levels they are enjoying to a new set of customers while at the same time developing new service options,' explained Stein. ``Listen, adapt and react will be the watchwords at online brokerage corporate boardrooms around the country.'
Complete company rankings and commitment ratios are available in the report, as are analyses for customer satisfaction and overall value for online brokerage firms. ``Satisfaction' was measured in a variety of ways, and across a number of features available in the marketplace. In addition, individual brokers are compared across the industry average, or vis-a-vis other brokers.
``With Internet stocks trading at historic highs with respect to market cap per account, investors need to consider the strength of the hold each broker has on its customers,' noted Stein. ``The State of Online Investing' measures customer commitment levels, which will enable brokers to better understand the strength of their tie to each broker's customer base.
The study was conducted in June 1999, and is being released through GomezPro, a subscriber-based e-commerce intelligence platform and a product of Gomez Advisors. Information about this study is available by calling toll free to 877/372-6732, ext. 2054.
About Gomez Advisors
GomezPro is the professional services division of Gomez Advisors and features foremost industry experts offering detailed, proprietary research, tools and analysis for specific e-commerce industries. GomezPro provides analysis and projections of e-commerce trends, competitive analysis, and information on consumer behavior for companies that want to attract and retain Internet customers.
Gomez.com, at www.gomez.com, is the online leader in providing consumers with the latest e-commerce information and tools that promote informed online purchasing decisions. The Gomez.com site has grown into a premier online hub where consumers can evaluate online service and product providers through nationally recognized Internet Scorecards. These Scorecards rank the performance and quality of online service offerings for selected industries including auctions, autos, banks, booksellers, brokers, music, travel and videos.
About Harris Interactive
Harris Interactive (www.harrisinteractive.com) is the unquestioned leader in methodologically sound market research over the Internet. With the world's largest cooperative panel of more than 5 million online consumers and proprietary, leading-edge technologies, the firm conducts political, business-to-business and business-to-consumer research for Fortune 500 companies, foundations and educational institutions worldwide.
Harris Interactive's family of syndicated research products includes ecommercePulse(sm) (www.ecommercepulse.com), an innovative research service tracking brand awareness, site traffic, hit rates, conversion rates, online and offline revenue share, customer satisfaction and loyalty at more than 180 Web sites across eleven vertical markets.
Harris Interactive is built on a distinguished 40-year tradition spanning six operating companies -- including Louis Harris & Associates, responsible for the renowned ``Harris Poll.' Formerly known as Harris Black International, the company was ranked the second fastest growing market research firm in the nation by Inside Report in 1998.
Note to Editors: Gomez.com, Gomez Advisors, Internet Scorecard, and GomezPro are trademarks of Gomez Advisors Inc. All other products and brand names are trademarks or registered trademarks of their owners. |
