ROPO effect - Online2Store Vodafone Google - ENGLISH version

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ROPO effect - Online2Store Vodafone Google - ENGLISH version

  1. 1. Research Online, PurchaseOffline…because search is more than a clickAugust 2012 Google Confidential and Proprietary 1
  2. 2. Google Confidential and Proprietary 2
  3. 3. Agenda1  Online purchasing in Czech Republic2  What does it mean “ROPO effect”3  Why this research4  Objectives, methodology and products included5  ROPO effect for Vodafone Google Confidential and Proprietary 3
  4. 4. CZ leads in CEE with the highest % of online retail and with sales of Czech e-shops of ~ 37 bn CZK 1 2 3 4 5 Online retail as a percentage of total retail Sales growth of e-shops in CZ [in %, 2010] [in bn. CZK] Czech e-shops [billion CZK] UK 8% DEN 5% Leaders +20% SWE 4% 37 27 33 DE 4% CZ 3% Region CEE SK 1% 2009 2010 2011 PL 2% HU 1%Source: Euromonitor International 2010, Czech Association for Electronic Commerce CZ (APEK) 2011,Slovak Association for Electronic Commerce (SAEC) 2011 Google Confidential and Proprietary 4
  5. 5. 2.6 million Czechs purchased online last year and this number is growing fast over the years 1 2 3 4 5 Individuals* purchasing online as a percentage Total number of orders via e-shops of online population aged 16-74 [in thousands orders] As a % online population Total number of ordersCzech Republic +10% +23% 26% 37% 41% 9,785 11,425 7,609 2006 2009 2011 2009 2010 2011 Abs. [mil.] 1.1 2.1 2.6 ** cetelem.sk, hej.sk, hop.sk, mall.sk, martinus.sk, obchodny-dom.sk a pelikan.skSource: Eurostat, ČSÚ (Czech Statistic office), Netmonitor.cz, Aim monitor, APEK, SAEC, Alza.cz, estimates* Individuals that purchased or booked online in last 12 months any item or service for their personal purpose Google Confidential and Proprietary 5
  6. 6. Despite the growing popularity of online shopping, ~8 out of 10 people purchased offline 1 2 3 4 5 Purchase offline Purchase onlineSource: Consumer Commerce Barometer – available at: http://www.consumerbarometer.eu/ Google Confidential and Proprietary 6
  7. 7. However, ~4 out of 10 offline sales in Czech Republic are influenced by online 1 2 3 4 5 % of consumers that did research online and purchased the product offline [in % of respondents] 51 % 47 % 48 % 44 % 30 % CZ UK HU PL SKSource: Consumer Commerce Barometer – available at: http://www.consumerbarometer.eu/Note: CCB research on online population Google Confidential and Proprietary 7
  8. 8. It is not easy to understand each step in consumer path to purchase… 1 2 3 4 5 Video ads Display ads Web Website Visit to Dealer visit* Purchase traffic visits dealer (*) Search Offline media(*) Dealer visit = Person who visited the store of the dealer Direct impact In-Direct impactSource: Google Google Confidential and Proprietary 8
  9. 9. ROPO effect... or what does it mean for yourbusiness1 2 3 4 5 Researched online Purchased offline Google Confidential and Proprietary 9
  10. 10. First study on Czech market thanks to MB and Vodafone about internet impact on offline sales 1 2 3 4 5 •  What is the percentage of total sales influenced by online? Objective •  Usage and importance of online / offline sources on the path to purchase •  Better understanding of consumer`s usage of online sources Products Methodology •  CATI (phone interviews) from Vodafone database •  Base, N = 2 000 •  Database consisted of Vodafone customers (updated on weekly basis) New Vodafone tariff Mobile phone sales •  Criteria was the customer, who bought Post Paid SIM card or Handset in Vodafone store last weekSource: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000) Google Confidential and Proprietary 10
  11. 11. More than 30 % of total sales in Vodafone stores are influenced by online 1 2 3 4 5 Vodafone Sales by sales channel (in %) New Vodafone tariff Mobile phone sales Online shop 4% Online shop 5% Influenced 27% Influenced by online 40% by onlineVodafone Store 56% Vodafone Store 50% 73%* 60%* Call Centrum Call Centrum 40% and others 45% and othersSource: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000)*Note: Purchase influenced by other than online sources (e.g. by information obtained in Vodafone Stores, among friends, Google Confidential and Proprietary 11in newspaper or magazines etc.)
  12. 12. 27 % of customers used internet while doing research before purchasing a new tariff 1 2 3 4 5 New Vodafone tariff 27% used online sources 73% used offline sources Used sources Vodafone Website 26% Vodafone Store 38% Friends and Search Engine 5% acquaintances 17% Price comparison Other carrier websites 2% provider stores 5% What kind of information they were looking for? Type of info Parameters of tariffs 40 % Comparison of price offers  38 % Other users‘ experience 17 % Base: Tariff purchasers (905)Source: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000) Google Confidential and Proprietary 12
  13. 13. 40 % of customers used internet while doing research before purchasing mobile phone 1 2 3 4 5 Mobile phone sales 40% used online sources 60% used offline sources Used sources Vodafone Website 32% Vodafone store 39% Friends and Search Engine 15% acquaintances 15% Websites interested in handsets 12% Catalogue / magazine 7% What kind of information they were looking for? Type of info Comparison of price offers  40 % Parameters of handsets 36 % Other users‘ experience 14 % Base: Handset purchasers (1069)Source: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000) Google Confidential and Proprietary 13
  14. 14. Internet plays a crucial role in driving sales in Vodafone stores For one customer which purchased online, there are ~4 customers which researched online and then purchased in Vodafone store For 1 purchase in e-shop there are…  ~4 purchases in Vodafone stores, which are influenced by onlineSource: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000) Google Confidential and Proprietary 14
  15. 15. Key take-aways1  Internet has a significant impact on driving offline sales2  To be able to evaluate the right ROI of your online marketing campaigns, it is important to know the value of ROPO effect in your industry3  In case of Vodafone, for 1 purchase in e-shop there are ~4 purchases in Vodafone stores, which are influenced by online Google Confidential and Proprietary 15
  16. 16. Thank youResearch Online, Purchase Offline...because search is more than a click Google Confidential and Proprietary 16
  17. 17. Appendix Google Confidential and Proprietary 17
  18. 18. ROPO efekt in different categories 1 2 3 4 5 % of consumers that purchased % of consumers that did research online and purchased the product online the product offline In specific category within last 12 months In specific category within last 12 months [in % of respondents] [in % of respondents] CZ 30 % CZ 48 %Půjčky UK 46 % UK 24 %Bílé elektro CZ 30 % CZ 51 % UK 41 % UK 32 %Zdroj: Consumer Commerce Barometer – dostupný na: http://www.consumerbarometer.eu/ Google Confidential and Proprietary 18
  19. 19. Reasons for not searching onlineMany people still prefer the traditional way of gathering information before the purchase. Half of those whodid not search online just asked someone else for advice (who might have searched online) For others evengetting handset or tariff is a spontaneous decision and they don’t have time or don’t feel need to search forinformation. Reasons for not searching online (%) One of the reasons Main ReasonI like being able to talk to someone directly 47 53It never crossed my mind 10 19 Had enoughI don’t have easy internet access 6 12 information (11%) Didn’t have time (7%)I don’t use internet at all 5 9 Didn’t care – spontaneous decision (3%)I don’t trust the information on the internet Doesn’t like/can’t search the web (4%) 1 6 Prefers personal contact (2%)I don’t know where on the internet I should look for the info 1 4Other reason 25 27Doesn’t know 3Base: Those who did not search online (674) C13. You stated that you didn’t use the internet to search for the information before the purchase, why did you Google Confidential and Proprietary 19 not use this option? C14. Which of these reasons was the main one?

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