New data released today discredits implications in recent claims by Microsoft, made in a major advertising and promotional blitz, suggesting that "50% of Quicken users say they'll switch to Money 98 Financial Suite." In reality, the overwhelming majority of Quicken users are sticking with Quicken when they buy new versions of personal finance software, according to sales data and buying behavior research from two independent research firms released today by Intuit Inc. (NASDAQ: INTU).
"The implications in Microsoft's claim are nothing more than wishful thinking and are clearly not supported by actual consumer behavior," said Mark Goines, senior vice president of consumer products for Intuit. "The reality is that Quicken users are not switching. The majority of Quicken users are very satisfied and have no reason to switch. When it comes time to vote with their pocketbooks, consumers buy Quicken in overwhelming numbers compared to the distant second choice."
According to actual sales data compiled by PC Data, Quicken remains the leader and overwhelming favorite of retail financial software buyers. Quicken 98 was the number one best selling personal financial management (PFM) software in November and December 1997 - the latest months for which data is available - a position Quicken has maintained every month since PC Data began collecting industry data in 1991. In November and December 1997, Quicken 98 outsold Microsoft Money 98 by a margin of 81.6 percent to 14.6 percent as measured in units. The Quicken superiority over Money was even more pronounced when measured by dollar sell through - Quicken outsold Money by an 87.6 percent to 9.2 percent margin, measured by share of dollars spent at retail on PFM software, according to PC Data.
In studying Microsoft's "intent to switch" claim, NFO Research of San Francisco, retained by Intuit, examined the actual buying behavior of 4,427 consumers who used a pre-1998 version of Quicken between April 1996 and October 1997. The research shows that overall, 99.4 percent of Quicken users have not switched to a Money 98 product. And of those Quicken users who have purchased a 1998 version of PFM software, 94.6 percent purchased a Quicken 98 product. The 94.6 percent upgrade to Quicken ratio stands in stark contrast to Microsoft's claim that "50% of Quicken users say they'll switch to Money 98 Financial Suite."
"PC Data's and NFO's research prove Quicken users are not switching," said Goines. "Yet Microsoft is trying to convince consumers of something not borne out by actual sales data and buying behavior."
The NFO research was conducted using 4,427 completed telephone interviews among NFO Panel Households from January 22 through January 27, 1998. The NFO Panel consists of 525,000 households and is balanced to represent the U.S. projected Census measures on major demographic criteria including age, household size, household income and market size.
The Panel is also proportional to state and top 25 Designated Market Area (DMA) populations.
