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Hitwise Intelligence - Sandra Hanchard - Asia Pacific

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Measuring Trust and Social Networks - Where do we put our trust online?

September 05, 2008

I read with interest this week a post by Charlene Li on identity fraud on social networks, which got me thinking again about the huge amount of trust we put into social networks with our repositories of personal data.

While 'trust' has a qualitative property, I wanted to get a measure of how much trust we invest in social networks compared to other online industries. One approach is to use our repeat user metric from our New and Returning Visitor tool, which we've applied as an indicator of loyalty in the past. Can we use repeat usage of a website as a measurement of trust? The thesis is that if a user finds the content on a website useful and trustworthy, they'll return to it more often.

The below table indicates the returning visitor average for the top 5 websites in a selection of industries including Social Networks, visited by Australian Internet users:

ReturningRatesIndustryAug08_AU.png

Some quick observations and questions raised:

* Banks and Financial Insitutions and Social Networks attracted similar returning visitor rates, with 94% and 93.8% respectively in August 2008: Are we as willing to trust social networks as we are traditional financial brands with highly personal information?

* Travel, an industry with a strong e-commerce orientation, had by comparison the lowest returning visitor rate of 64.4%. Are we less likely to trust websites where the primary content objective is to sell?

* News and Media, an information industry, had a mid-range returning visitor rate of 87.8%. Are we more likely to trust the information pushed to us from our peers on social networks than from authoritative news sources?

There are of course a number of caveats to the above comparison - high returning visitor rates don't necessarily prove website data authenticity, and in the case of social networks, could be more likely to reflect the viral nature of 'always-on' communication.

Trust, content, and personal data is however a big area for users and website owners to think about. What are your criteria for trusting a website?

Posted by Sandra Hanchard at 05:22 PM | (9) | (0)
In Categories Social Networking | Trust

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Comments

I don't believe that we can use repeat usage of a website as a measurement of trust. However, your post is right on spot. Trust is a big issue, both in social networks and in all web sites.
I think you can only get trust metrics by custom surveys. I had some interesting results. I will try to find and publish them in my blog.

Posted by Mehmet Subasi | September 5, 2008 06:50 PM

Look forward to seeing your results, Mehmet

Sandra

Posted by Sandra Hanchard | September 6, 2008 01:01 AM

Sandra - Working for an airline in the US, I can tell you the answer to your question, "Are we less likely to trust websites where the primary content objective is to sell?," is no. I believe what you are seeing and interpreting as "trust" is purely the nature of the travel industry. We look at repeat visitors on a much larger scale than 30 days. Something closer to one or two years is probably more beneficial. If you purchase a flight today, are you likely to purchase another one within 30 days? Most people travel 1-2 times a year, so visiting and searching on a website more than 3-4 times a year makes almost no sense to expect. Since this is less than 12 (assuming one per month) it isn't "trust" that is lacking, in my opinion, but rather desire for the information provided on travel sites.

Posted by Jordan | September 6, 2008 09:09 AM

Jordan - thanks for your thoughts.

You're right - the time cycle for return visitors and determining how that impacts your business varies across industries.

There is certainly a desire from consumers for "independent" information on travel websites, which has been behind the success of the Trip Advisor model, for example.

Sandra

Posted by Anonymous | September 6, 2008 11:42 AM

Hi Sandra, you are right to mention that "high returning visitor rates don't necessarily prove website data authenticity.". For example, when I use my bank's internet banking service, I do it because it is the easiest and most convenient option available.

To me, online trust = online security... digital certs, SSL, encryption and the works. It could be different for other people. Through the example cited vis-a-vis Charlene Li's post, you raised a pertinent question of whether social networks require the kind of online security that we see on secured sites. I think it's a grey area that needs to be further defined.

Posted by Stan | September 8, 2008 04:38 PM

Stan, thanks for your perspective

re: Ease and convenience of use, in addition to trust, certainly feed into high return visitation rates within a banking context.

re: Social networks and online security - as web develops into a more powerful platform for managing personal identify and lifestyle functions (finances, health, education) we'll see a greater demand by users for security standards, as per your list.

Sandra

Posted by Sandra Hanchard | September 8, 2008 04:57 PM

I'm interested in notions of trust, and doubtless Hitwise should be too (there must be a service offering from you in there somewhere), but I can't see that the number of repeat visits is a primary indicator of levels of trust. It might a contributing factor to building an overall perspective on trust but on its own doesn't tell much. Surely repeat visits are linked more strongly simply to the nature of the service or information being accessed?

Posted by Steve | September 9, 2008 09:32 PM

The thesis is that if a user finds the content on a website useful and trustworthy, they'll return to it more often.

That's all very well, but what about all the people who make masochistically schadenfreudian return visits? I mean, I go back to the websites and blogs of people with whom i vehemently disagree, merely to see what evil and perverse things they are saying now. There's no way I trust them.

Posted by Simon Pleasants | September 11, 2008 09:55 AM

hi Simon,

"schadenfreudian return visits" - perhaps we need a metric for ill-intent :)

But fair point, thanks for stopping by.

Sandra

Posted by Anonymous | September 11, 2008 10:46 AM

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Sandra Hanchard

Senior Analyst, Hitwise Asia Pacific.

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