How to Market Where Online Consumers are Shopping


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How to Market Where Online Consumers are Shopping

  1. 1. How to Market Where Online Consumers are SearchingResults of a new research study<br />Tuesday, August 3, 2010 - 1 PM EDT <br />Speakers: Kim Rome, comScore<br />Rob Murray, iProspect<br />John Federman, Searchandise Commerce<br />
  2. 2. SearchandiseCommerce:<br />Simple, next-generation search solution that empowers-<br />Retailersto transform on-site search into a profit center<br />Manufacturers to assert greater control over product placement across their online retail channel <br />$1.00 CPC Bid<br />
  3. 3. Kim Rome, Senior Director of Research, comScore<br />Kim Rome is Senior Director of Research at comScore, heading the custom survey team for the Retail and Travel division.  <br />15 years of experience in consulting and market research design<br />Specializes in brand and competitive strategic assessment, customer satisfaction, advertising effectiveness and multi-channel & website optimization. <br />
  4. 4. Rob Murray, CEO, iProspect<br />Robert J. Murray is Chief Executive Officer of iProspect. He is responsible for formulating the firm's corporate strategy as well as managing the company's operations. <br /> 20 years of strategic consulting and financial analysis expertise, <br />He has served as the President of iProspect from 2000 to 2006 and CEO since 2007<br />In the past two years, iProspect has opened offices worldwide<br />
  5. 5. John Federman, President and CEO, Searchandise Commerce<br /><ul><li>As president and chief executive officer, John Federman is responsible for Searchandise Commerce's strategic direction, growth and corporate vision. Mr. Federman brings more than 20 years of experience with innovative information technology and media companies to Searchandise Commerce.</li></li></ul><li>How to Market Where Online Consumers are SearchingResults of a new research study<br />Tuesday, August 3, 2010 - 1 PM EDT <br />Speakers: Kim Rome, comScore<br />Rob Murray, iProspect<br />John Federman, Searchandise Commerce<br />
  6. 6. A Study On The Role of Retail Site Search<br />BACKGROUND: comScore collaborated with Searchandise and iProspect to conduct research on the current usage of retail website search and the perceptions of products within the search results pages<br />Identify the step-by-step purchase path and information sought<br />Determine key drivers for shopping online versus offline<br />Provide retail websites with tools to optimize their placement and communications strategies for the purpose of increasing satisfaction and conversion<br />METHODOLOGY: Two-part research approach conducted in May, 2010:<br />Online FocusSite Groups: 2 Groups with 25 participants each<br />Email Survey: 1,167 comScore panelists<br />CRITERIA: Have researched, shopped or purchased the following in the past 6 months:<br />Computer and/or related products<br />Consumer electronics<br />
  7. 7. Online Research Is A Critical Step In The Purchase Process<br />Consumer Electronics<br />Overall<br />Computers<br />comScore Survey, May 2010. Base=have researched, browsed and/or purchased computers or consumer electronics in the past 6 months (N=1,167). Q: Please select the steps you have taken to research or browse the category. <br />
  8. 8. Retail Website Research Leads To Both Offline And Online Sales<br />Search <br />Engine<br />21%<br />Retail Websites<br />19%<br />Manufacturer <br />Websites<br />27%<br />Physical <br />Stores<br />21%<br />
  9. 9. Consumer Electronics Shoppers Who Begin With Search, End at Retail Websites<br />Retail Website<br />37%<br />Search <br />Engine<br />18%<br />Manufacturer <br />Website<br />27%<br />
  10. 10. Computer Shoppers Are More Likely To Be Influenced On A Manufacturer Site<br />Search <br />Engine<br />19%<br />Retail<br />Website<br />39%<br />Manufacturer <br />Website<br />13%<br />Physical <br />Store<br />25%<br />
  11. 11. Offline Shoppers Turn To Their Friends & Family For Advice<br />Friends & Family<br />25%<br />Physical Store<br />10%<br />Retail Website<br />22%<br />
  12. 12. Information Sought at Each Source is Unique<br />
  13. 13. Three in Four Shoppers Use The Retail Website Search Box<br />5 Clicks <br />= <br />75% of the Shoppers<br />Retail Website Activity<br />
  14. 14. Premium Listing = First Results Page! Other Success Factors Include…<br />Top Section<br />Information Click Drivers<br />No Clutter<br /><ul><li>39% See Items As Popular
  15. 15. 37% Feel Items Are Most Relevant
  16. 16. 37% Cite Items as High Quality
  17. 17. Willing to Scroll
  18. 18. Brand
  19. 19. Features
  20. 20. Image
  21. 21. Price
  22. 22. 10 to 15 Products On A Page
  23. 23. Option To Show More
  24. 24. Comparison Feature to View More Details</li></li></ul><li>Polling Question 1<br />If you are an Internet retailer, are search engine users delivered to landing pages on your website containing the specific brands and models of the products they seek?<br />No, never<br />Only sometimes, it’s usually a more generic page<br />Typically yes, it’s usually brand and model-specific<br />Yes, always<br />Question doesn’t apply to me<br />
  25. 25. Shopping Continuum Length<br />Findings: Majority of sales cycles are >1 week and average 4.1 shopping resources<br />Implications/Recommendations: Marketers must engage shoppers everywhere they research<br />SEO<br />PPC<br />Display Ads<br />Re-Targeting/Re-Messaging<br />Listening and responding via social media<br />
  26. 26. Shopping Online – Buying Offline<br />Findings: Two-thirds of shoppers start online, but nearly half buy in-store<br />Implications/Recommendations: Marketers are under-valuing the contribution of online channels to offline purchases<br />Develop an attribution modeling process to measure impact of various channels on each other<br />Put processing in place to track influence of online research to offline purchases<br />Electronic Coupons/Discount Codes<br />Point-of-Sale Surveys<br />Post-Sale Surveys<br />Click to Call Tracking<br />
  27. 27. Barriers to Online Purchasing<br />Findings: “Pricing Factors” are most frequent barrier to online purchase. “Convenience” most common advantage for online purchase<br />Implications/Recommendations: Marketers must lower pricing as barrier enough that “convenience” outweighs “price” as a factor<br />More Competitive Online Pricing<br />Free Shipping<br />Buy Online With In-Store Pick-Up<br />Enhanced Online Research Tools to Answer “Tough Questions”<br />Enhanced Product Images/Videos<br />More Detailed Product Descriptions<br />Product Comparison Tools<br />Buyer/Expert Product Reviews<br />
  28. 28. Use of Site Search vs. Browsing<br />Findings: Twice as many shoppers use site search than browse the website from the landing page<br />Implications/Recommendations: Marketers must craft landing pages that better match the specificity of the shopper’s search<br />Specific Brands<br />Specified Models<br />Specific Features<br />And provide most relevant/specific products at top of site search results as well<br />Specific Brands<br />Specified Models<br />Specific Features<br />
  29. 29. Search Engines & Site Search: 1-2 Punch<br />Findings: Search engines and retailer websites are the 1st or 2nd stop in the shopping process for more shoppers than any other resources. <br />Search engines are #1 driver of traffic to retailer sites<br />Search engines #1 tool for product reviews and recommendations<br />Implications/Recommendations: Marketers must ensure products, brands, models, product reviews, comparisons, images & videos appear<br />Top of search engine results (Universal Search)<br />Top of site search results<br />
  30. 30. Polling Question 2<br />If you are a product marketer, who allocates the budget earmarked for increasing visibility with your retail channel partners ? <br />We don’t run any programs with our retailers.<br />Product marketing.<br />Corporate marketing.<br />Digital/interactive marketing.<br />Our ad/search/branding agency.<br />Our internal co-op or MDF group.<br />Question doesn’t apply to me<br />
  31. 31. Retailers are Trusted Advisors<br />Select the steps you have taken to research or browse; and in the order in which you have completed them.<br />The Value of Retail Search and Position, comScore, July 2010<br />
  32. 32. Retailers are Trusted Advisors<br />Select the steps you have taken to research or browse; and in the order in which you have completed them.<br />The Value of Retail Search and Position, comScore, July 2010<br />
  33. 33. Shopper Preferences<br />Findings: Shoppers using retail websites for brand details, price options, promotions/sales, customer reviews <br />Implications/Recommendations for retailers: <br />Present most relevant search results within the top 3 – 5 products listed<br />Offer product comparison tool or feature<br />Include pictures of every item<br />Include relevant warranty details<br />Present pricing information clearly<br />
  34. 34. Shopper Preferences<br />Findings: Majority of shoppers go online for ease of comparison (61%), breadth of information (47%) and convenience (51%). <br />Implications/Recommendations for retailers: As such, shoppers are clear on what they find less than desirable or disruptive on retail websites:<br />Sites should be free of pop-ups and advertising<br />Searches should return 10 – 15 listings<br />Search landing pages/product detail pages must be relevant to the search<br />
  35. 35. Premium Position<br />Findings: Shoppers value the products they see within the first page of site search listings. <br />Implications/Recommendations: Whether paid search or on site, shoppers attribute more value with products in premium position. <br />Perceive top products as being most relevant to search.<br />Associate top products with higher quality and value.<br />Attribute top products as being better fit with needs.<br />Confirms earlier findings that 70% of clicks happen in premium positions.<br />
  36. 36. Implications for Product Marketers<br />Findings: Over two-thirds of shoppers start out online where the challenge is getting your product seen by the most engaged shoppers.<br />Implications/Recommendations: Marketers should evaluate new solutions that make premium position on retail sites available. <br />Combine the strategy of in-store marketing with the tactics of search marketing<br />Build brand and boost visibility leveraging premium position<br />
  37. 37. Attaining Premium Position<br />Campaign<br />Digital Cameras + Camcorders Landing Page<br />Pre-Campaign<br />Digital Cameras + Camcorders Landing Page<br />
  38. 38. Attaining Premium Position<br />Pre-Campaign <br />Electronics Landing Page<br />Campaign <br />Electronics Landing Page<br />
  39. 39. Attaining Premium Position<br />Pre-Campaign Position<br />Campaign Position<br />
  40. 40. Search Engines and Retail Sites<br />Lessons Learned:<br />Position matters<br />One-two punch for reaching the most engaged buyers<br />
  41. 41. Questions?<br /><br /> <br /><br /><br />Upcoming SMN webcast: <br /> June TBD <br />