Online Shopper Intelligence - UK

8/3/2019 Online Shopper Intelligence - UK

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ONLINE SHOPPER INTELLIGENCE - UK

Q3 2011

What Youll Gainfrom this White Paper.

This white paper aims to provide an overview of

online shopping in the UK based on research

completed during Q3 2011. We hope to provide you

with a clear sense of what is going on in the online

retail landscape by examining key metrics derived

from Kantar Media Compete behavioural data and

our Online Shopper Intelligence survey of 1,500

respondents to provide a snapshot of UK online

shoppers, their behaviours and motivations.


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3/12www.kantarmedia.compete.com

ONLINE AND OFFLINE INTERACTIONIN THE PURCHASE PROCESS

A consumer ultimately chooses to purchase a product from a single channel, but the path to

purchase may involve multiple touch points that inform and influence what, how much, where and

when they buy. Kantar Media Competes Online Shopper Intelligence survey shows that the

majority of shoppers are likely to research certain product purchases online and/or offline prior to

buying, regardless of where the final purchase takes place. Todays marketers must carefully

nurture an integrated offline and online strategy to establish relevancy and presence throughout

the consumer journey.

69% of online shoppers indicate that they may research a particular product in a

store before making the purchase online.

The primary drivers of this behaviour are price and the ability to shop whenever is mostconvenient. Online shoppers believe that they can get better pricing online, either through

comparison shopping or online price incentives, than they can when purchasing at the physical

store. And as e-retailers are open for business 24 hours a day, they provide consumers with the

flexibility to evaluate their purchase decision after an in-store visit and make the purchase

whenever they are ready.

Better prices online

I can shop anytime day or night, when it is convenient for me

I dont have to carry items home from the shop

I can avoid crowds and queues of people

Better selection online

Its faster to shop online

It saves me extra driving time

I dont have to talk to any sales people

I use online-only coupons

These purchases are typically gifts and I can have them delivered directly

67%

56%

42%

38%

38%

36%

24%

18%

18%

15%

WHY ARE YOU LIKELY TO RESEARCH PRODUCTS IN A SHOP BUT PURCHASE THEM ONLINE?(N = 1,306)

Source:Kantar Media Compete UK Shopper Intelligence Survey (Q3, 2011)



Just as there are benefits to making purchases online after researching a product in store, for 89%

of shoppers interviewed, there are distinct advantages of making a purchase in the physical store

after conducting online research. The most important reason being the ability to evaluate the

tangible product prior to the final act of purchase. Purchasing a product in store is also attractive

when the purchase is time-sensitive or the consumer desires immediate gratification. In many

cases, the decision to make the purchase offline is driven by the desire to avoid delivery costs

associated with the online purchase.

I like to try on, touch, or feel the product before buying it

I dont want to have to pay for delivery

I want to get the product immediately rather than waiting for it to be delivered to me

I like to compare products in person

Easier/cheaper to return products purchased in a store

I want to be able to ask a salesperson questions about the product

I use in-store only coupons

Shops have better customer service

Better price in store

I am concerned about sharing personal information online

Shops have a better selection

61%

47%

45%

34%

28%

27%

14%

11%

9%

5%

5%

WHY ARE YOU LIKELY TO RESEARCH PRODUCTS ONLINE BUT PURCHASE THEM IN A STORE?(N = 1,334)




VALUE OF THE HEAVY ONLINE SHOPPER

TO BOTH BRICKS & CLICKS

40% of online shoppers in the UK make an online purchase at least once a week.

Their high frequency of online purchase behaviour makes them important targets for e-retailers,

but our research reveals that they are valuable consumers to offline retailers as well. While half of

Heavy Online Shoppers prefer to shop online, the other half are just as likely to make their

purchases in-store. In fact, 20% indicate that they shop more in-store than they do online.

*Indexed to All Online Shoppers (100). Index of 150 means that Heavy Online Shoppers are 50% more likely than the average

online shopper to....

WHICH ONE OF THE FOLLOWING BEST DESCRIBES YOUR TYPICAL SHOPPING HABITS?(N = 578)

HEAVY ONLINE SHOPPERS

I shop more online than I do in shops

I shop more in store than I do online

I shop online and in store equally

49%Index: 169

32%Index: 116

20%Index: 45

Heavy Online Shoppers behave similarly to other online consumers in the product categories they

choose to purchase from brick and mortar stores and in their average in-store spend on those

categories, with a few exceptions. They are slightly less likely to purchase groceries and

household essentials from a shop, choosing to allocate more of their everyday goods purchases

to the online channel. Interestingly, the value of their in-store spend on clothes, shoes and

health/beauty products is higher than that among shoppers overall.




A/B: Statistically different at the 95% significance level. XB

means that Online Shoppers (A) are statistically more likely thanOnline Heavy Shoppers (B) to purchase in a store in the past 3 months.

91% B

87%

87% B

82%

71%

69%

68%68%

47%

49%

40%

44%

39%

43%

38%

40%

37%41%

35%

37%

28%

31%

28%

32%

28%

33%A

25%27%

23%

27%

21%

28%A


Groceries

Furniture and home furnishings

Electronics

Clothing

Baby, children, & toys

Household essentials

(e.g. toilet paper, razors, deodorant, toothpaste, etc.)

DIY products & tools

Shoes

Kitchenware & household appliances

Sporting goods

Garden supplies

Jewellery & accessories

Health & beauty products

Films, music, and video games(e.g. CDs, DVDs, and Blue-Ray DVDs only)

Office & school supplies

Books

(hardback and paperback books only)

456 B

172

128

79

57

55

54

45

44

42

41

40

38

29

24

18

421

143

123

91 A

56

58

54

51 A

45

43

43

49

43 A

29

27

19

Online Shoppers (A) Heavy Online Shoppers (B)

WHICH OF THE FOLLOWINGPRODUCTS, IF ANY, HAVEYOU PURCHASED IN A SHOP INTHE PAST 3 MONTHS?

APPROXIMATELY HOW MUCHMONEY HAVE YOU SPENT ON THE

FOLLOWING RETAIL PRODUCTS IN ASHOP IN THE PAST 3 MONTHS?




Groceries

Furniture and home furnishings

Electronics

Clothing

Baby, children, & toys

Household essentials

(e.g. toilet paper, razors, deodorant, toothpaste, etc.)

DIY products & tools

Shoes

Kitchenware & household appliances

Sporting goods

Garden supplies

Jewellery & accessories

Health & beauty products

Films, music, and video games(e.g. CDs, DVDs, and Blue-Ray DVDs only)

Office & school supplies

Books

(hardback and paperback books only)

329

254

169

104

75

59

76

55

101

60

57

79

42

43

36

35

399 A

252

187

118 A

83

71 A

76

55

96

68

62

87

47

50 A

38

39

Online Shoppers (A) Heavy Online Shoppers (B)

WHICH OF THE FOLLOWINGPRODUCTS, IF ANY, HAVE YOUPURCHASED ONLINEIN THE PAST 3 MONTHS?

APPROXIMATELY HOW MUCHMONEY HAVE YOU SPENT ON THE

FOLLOWING RETAIL PRODUCTSONLINE IN THE PAST 3 MONTHS?

31%

48% A

21%

36% A

44%

55% A

22%34%A

23%

32%A

12%

20% A

8%

13% A

17%

26% A

9%16 % A

43%

51% A

55%

67 % A

17%

25% A

12%

33 % A

12%19% A

28%

41% A

12%

28%A

A/B: Statistically different at the 95% significance level. XB

means that Online Shoppers (A) are statistically more likely thanOnline Heavy Shoppers (B) to purchase in a store in the past 3 months.



When passing a Heavy Online Shopper on the street, it might be quite difficult to pinpoint them from the

average consumer based on their demographics. Heavy Online Shoppers tend to be under the age of 55

and have children under 18 living in their household, but otherwise look demographically similar to others of

the same gender and age group.

Marketers can target the Heavy Online Shopper more accurately by understanding their online behaviours and

engaging them where they most spend their time.

OVERALL TIME SPENT ONLINE(AVERAGE MONTHLY)

TIME SPENT ON SHOPPING SITES(AVERAGE MONTHLY)

Men

55%Women

45%

Men

51%Women

49%

18-24

25-34

35-44

45-54

55+

15%

21%

23%

19%

22%

18-24

25-34

35-44

45-54

55+

17%

22%

26%

20%

14%

Children



CHRISTMAS SHOPPING

Early Christmas shoppers plan to conduct the bulk of their seasonal purchases in October, a good

time for marketers to begin priming the majority of consumers who will make their purchases in

November and the weeks leading up to Christmas.

While a quarter of Christmas shoppers do not intend to invest time in pre-researching their gift

purchases, half indicate that they will rely on retailer websites to inform their purchase decisions.

This underscores the importance for retailers to implement sound strategies to drive gift

purchasers to their websites during the Christmas shopping window, and to ensure visitors have

a positive experience once they arrive on the site.

WHEN DO YOU PLAN TO DO MOST OF YOUR CHRISTMAS SHOPPING THIS YEAR? (N=1,500)

3%

21%

49%

21%

2% 4

%

1%

September October November A couple

weeks before

Christmas

A week before

Christmas

On Christmas

Eve

I wont be

doing any

Christmas

shopping this

year



In the current economic environment, retailers can expect Christmas shoppers to be spending the

same or less than last year only 20% of those surveyed indicated that they intend to spend more

in the coming season. On average, holiday shoppers anticipate a total spend of approximately 360

on presents this Christmas.

HOW DOES YOUR SHOPPING BUDGET FORCHRISTMAS 2011 COMPARE TO YOUR SHOPPING

BUDGET FROM CHRISTMAS 2010?

HOW MUCH DO YOU EXPECT TO SPENDIN TOTAL, INCLUDING DELIVERY,

THIS CHRISTMAS?

WHAT INFORMATION SOURCESWILL YOU USE TO RESEARCHPRE-CHRISTMAS DEALS?

(N=1,446)

Retail websites

Friends/Family

Online store leaflets

TV ads

Print copies of shop leaflets

Online social media networks

Radio ads

I will not conduct any research prior to shopping

54%

36%

28%

24%

17%

8%

4%

26%

Spend more than last year

Spend less thanlast year

Spend aboutthe same as last year

22%301 - 500

19%201 - 300

26%101 - 200

19%


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Kantar Media Compete helps the worlds top brands, agencies andpublishers improve their performance based on in-depth insights

into consumers online behaviour.

Clients in the Retail, FMCG, Telecoms, Travel and Media markets

rely on Kantar Media Compete's products and services to create

engaging online experiences and highly effective advertising

campaigns. Our products cover the entire digital marketing

spectrum, including solutions for audience segmentation,

competitive intelligence, market sizing and marketing and online

channel effectiveness. Kantar Media Compete combines these

products with industry expertise to deliver custom solutions that

match the exact needs of our clients.

Only with our granular data is it possible to uncover new metrics and

insights that chart the entire path to purchase, monitor how key

metrics change over time and attribute ROI to marketing campaigns.


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@competeuk

LEARN MORE

For more information about Kantar Media Competes role in advancingthe marketing effectiveness of online retailers, please contact:

Jeremy Radcliffe

Business Development [email protected]

Documents

Online Shopper Intelligence - UK