Firms must tailor web sites to digital "tribes", says KPMG

And revenue models must be adapted according to "tribe" characteristics

Young users are more likely to download items such as ringtones

Firms must view their customers as members of "digital tribes" and tailor online services to them if they are to be successful, according to a white paper from KPMG published today.

Revenue models also need to be adapted to these tribes, otherwise firms risk driving traffic away from their site, the report says.

Typical "tribes" are followers of a sports team, computer game enthusiasts, or fans of a band.

Allowing these fans to talk to each other and tailoring services to their needs is as important as having good content on a site, according to Tudor Aw, convergence partner at KPMG and author of the report.

“It is true that people are more likely to pay for compelling content, but content is unlikely to be the only element of a successful digital enterprise. Incorporating other elements that consumers value will give that enterprise longevity," he said.

Other elements include how well a site allows users to connect with each other, how easy it is to find information, and how much a payment process interferes with the user experience.

Sites that tailor their service to the user will be more successful than those that do not. For example, a digital music site that tracks all new releases of a favourite music genre, or a news site that provides news tailored to a user's interests are more likely to keep users engaged.

Identifying the characteristics of any particular tribe is key to generating revenue from them, according to KPMG.

For example, younger users are more likely to download small-value items such as ringtones while online gaming enthusiasts are likely to have more disposable income.

Advertising is normally the best way to generate revenue from a site, the report says, stating that: "A pay model is only possible if the digital offering is truly unique or compelling."