How to Market Where Online Consumers are Shopping

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How to Market Where Online Consumers are Searching

Results of a new research study

Tuesday, August 3, 2010 - 1 PM EDT Speakers: Kim Rome, comScore

Rob Murray, iProspectJohn Federman, Searchandise Commerce


Searchandise Commerce:Simple, next-generation search solution that empowers -

Retailers to transform on-site search into a profit center

Manufacturers to assert greater control over product placement across their online retail channel

$1.00 CPC Bid


Kim Rome, Senior Director of Research, comScore

• Kim Rome is Senior Director of Research at comScore, heading the custom survey team for the Retail and Travel division.

• 15 years of experience in consulting and market research design• Specializes in brand and competitive strategic assessment,

customer satisfaction, advertising effectiveness and multi-channel & website optimization.


Rob Murray, CEO, iProspect

• 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.

• 20 years of strategic consulting and financial analysis expertise, • He has served as the President of iProspect from 2000 to 2006

and CEO since 2007• In the past two years, iProspect has opened offices worldwide


John Federman, President and CEO, Searchandise Commerce

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.


How to Market Where Online Consumers are Searching

Results of a new research study

Tuesday, August 3, 2010 - 1 PM EDT Speakers: Kim Rome, comScore

Rob Murray, iProspectJohn Federman, Searchandise Commerce


A Study On The Role of Retail Site Search

• 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– Identify the step-by-step purchase path and information sought– Determine key drivers for shopping online versus offline– Provide retail websites with tools to optimize their placement and

communications strategies for the purpose of increasing satisfaction and conversion

• METHODOLOGY: Two-part research approach conducted in May, 2010:– Online FocusSite Groups: 2 Groups with 25 participants each– Email Survey: 1,167 comScore panelists

• CRITERIA: Have researched, shopped or purchased the following in the past 6 months:– Computer and/or related products– Consumer electronics


Visited Retail Websites 75% 71% 79%

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.

Discussed with Friend/Family/Colleague 45% 43% 47%

Visited Physical Retail Stores 57% 53% 60%

Searched Using a Search Engine 57% 52% 62%

Visited Manufacturer Websites 63% 66% 59%

OverallConsumer ElectronicsComputers

Online Research Is A Critical Step In The Purchase Process


Retail Website Research Leads To Both Offline And Online Sales

Manufacturer Websites

27%

Retail Websites

19%

Physical Stores21%

Search Engine

21%

Purchased at…

Computer (a)

Consumer Electronics

(b)

Physical retail stores 52% 44%

Retailwebsites 38% 45%

Manufacturer websites 13% 8%


Consumer Electronics Shoppers Who Begin With Search, End at Retail Websites

Purchased at…

Computer (a)


(b)Physical retail stores 45 49

Retailwebsites 34 48 a

Manufacturer websites 18 20

Retail Website

37%

Search Engine

18%

Manufacturer Website

27%


Computer Shoppers Are More Likely To Be Influenced On A Manufacturer Site

RetailWebsite

39%

Manufacturer Website

13%

Physical Store25%

Search Engine

19%

Purchased at…

Computer (a)


(b)

Manufacturer websites 43 b 25

Physical retail stores 41 49

Retail websites 20 49 a


Offline Shoppers Turn To Their Friends & Family For Advice

Retail Website22%

Physical Store10%

Friends & Family25%

Purchased at…

Computer (a)


(b)

Physical retail stores 55 60

Retail Websites 34 26

Manufacturer websites 20 9


•Promotions/Coupons/Sales

•Brands Offered

•Customer Reviews

Retail Websites•Co

mparing Products

•Customer Reviews

•Expert Reviews

Search Engines

•Product Specifications

•Guarantees/Warranties

•Customer/Technical Support

Manufacturer Websites

•Brands Offered

•Comparing Products

•Promotions/Coupons/Sales

PhysicalStores

Information Sought at Each Source is Unique


Retail Website ActivityRetail Website Activity

Compared product information and/or prices

Read product descriptions

Read customer or expert reviews

Used the search box to find a product category, brand or model

Used zoom function to examine merchandise

Used sort or browse functions to narrow the search

Browsed on the initial landing pages before narrowing my search

Looked at recommended items based on shopping history

None of these

68%

63%

48%

40%

31%

25%

21%

14%

4%

Three in Four Shoppers Use The Retail Website Search Box

5 Clicks =

75% of the Shoppers


Premium Listing = First Results Page! Other Success Factors Include…

Top Section

• 39% See Items As Popular

• 37% Feel Items Are Most Relevant

• 37% Cite Items as High Quality

• Willing to Scroll

Information Click Drivers

• Brand • Features• Image• Price

No Clutter

• 10 to 15 Products On A Page

• Option To Show More

• Comparison Feature to View More Details


Polling Question 1

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?

• No, never• Only sometimes, it’s usually a more generic page• Typically yes, it’s usually brand and model-specific• Yes, always• Question doesn’t apply to me


Shopping Continuum Length

• Findings: Majority of sales cycles are >1 week and average 4.1 shopping resources

• Implications/Recommendations: Marketers must engage shoppers everywhere they research– SEO– PPC– Display Ads– Re-Targeting/Re-Messaging

• Listening and responding via social media


Shopping Online – Buying Offline• Findings: Two-thirds of shoppers start online, but nearly

half buy in-store• Implications/Recommendations: Marketers are under-

valuing the contribution of online channels to offline purchases

• Develop an attribution modeling process to measure impact of various channels on each other

• Put processing in place to track influence of online research to offline purchases– Electronic Coupons/Discount Codes– Point-of-Sale Surveys– Post-Sale Surveys– Click to Call Tracking


Barriers to Online Purchasing

• Findings: “Pricing Factors” are most frequent barrier to online purchase. “Convenience” most common advantage for online purchase

• Implications/Recommendations: Marketers must lower pricing as barrier enough that “convenience” outweighs “price” as a factor– More Competitive Online Pricing– Free Shipping– Buy Online With In-Store Pick-Up– Enhanced Online Research Tools to Answer “Tough Questions”

• Enhanced Product Images/Videos• More Detailed Product Descriptions• Product Comparison Tools• Buyer/Expert Product Reviews


Use of Site Search vs. Browsing

• Findings: Twice as many shoppers use site search than browse the website from the landing page

• Implications/Recommendations: Marketers must craft landing pages that better match the specificity of the shopper’s search– Specific Brands– Specified Models– Specific Features

• And provide most relevant/specific products at top of site search results as well– Specific Brands– Specified Models– Specific Features


Search Engines & Site Search: 1-2 Punch

• Findings: Search engines and retailer websites are the 1st or 2nd stop in the shopping process for more shoppers than any other resources.

• Search engines are #1 driver of traffic to retailer sites• Search engines #1 tool for product reviews and

recommendations• Implications/Recommendations: Marketers must ensure

products, brands, models, product reviews, comparisons, images & videos appear– Top of search engine results (Universal Search)– Top of site search results


Polling Question 2

If you are a product marketer, who allocates the budget earmarked for increasing visibility with your retail channel partners ?

• We don’t run any programs with our retailers.• Product marketing.• Corporate marketing.• Digital/interactive marketing.• Our ad/search/branding agency.• Our internal co-op or MDF group.• Question doesn’t apply to me


Retailers are Trusted Advisors

Select the steps you have taken to research or browse; and in the order in which you have completed them.

Visited Social Networking Sites

Visited Comparison Shopping Sites

Read Consumer Reviews Online

Visited Physical Retail Stores

Searched Using a Search Engine

Visited Retail Website

0 2 4 6 8 10 12 14 16 18 20

2

3

5

10

18

19

1st Step Taken in Shopping Process

The Value of Retail Search and Position, comScore, July 2010


Retailers are Trusted Advisors

The Value of Retail Search and Position, comScore, July 2010

Select the steps you have taken to research or browse; and in the order in which you have completed them.

Visited Social Networking Sites

Visited Comparison Shopping Sites

Visited Physical Retail Stores

Searched Using a Search Engine

Visited Retail Website

0 10 20 30 40 50 60

2

3

10

18

19

2

6

7

11

22

1

8

7

11

14

1st Step Taken in Shopping Process

2nd Step Taken in Shopping Process

3rd Step Taken in Shopping Process


Shopper Preferences

• Findings: Shoppers using retail websites for brand details, price options, promotions/sales, customer reviews

• Implications/Recommendations for retailers: • Present most relevant search results within the top 3 – 5

products listed• Offer product comparison tool or feature• Include pictures of every item• Include relevant warranty details• Present pricing information clearly


Shopper Preferences

• Findings: Majority of shoppers go online for ease of comparison (61%), breadth of information (47%) and convenience (51%).

• Implications/Recommendations for retailers: As such, shoppers are clear on what they find less than desirable or disruptive on retail websites:

• Sites should be free of pop-ups and advertising• Searches should return 10 – 15 listings• Search landing pages/product detail pages must be

relevant to the search


Premium Position• Findings: Shoppers value the products they see within

the first page of site search listings. • Implications/Recommendations: Whether paid search or

on site, shoppers attribute more value with products in premium position.

• Perceive top products as being most relevant to search.• Associate top products with higher quality and value.• Attribute top products as being better fit with needs.• Confirms earlier findings that 70% of clicks happen in

premium positions.


Implications for Product Marketers

• Findings: Over two-thirds of shoppers start out online where the challenge is getting your product seen by the most engaged shoppers.

• Implications/Recommendations: Marketers should evaluate new solutions that make premium position on retail sites available.

• Combine the strategy of in-store marketing with the tactics of search marketing

• Build brand and boost visibility leveraging premium position


Attaining Premium PositionCampaign

Digital Cameras + Camcorders Landing Page

Pre-CampaignDigital Cameras + Camcorders

Landing Page


Attaining Premium Position

Pre-Campaign Electronics Landing Page

Campaign Electronics Landing Page


Attaining Premium PositionPre-Campaign Position Campaign Position


Search Engines and Retail Sites

• Lessons Learned:– Position matters– One-two punch for reaching the most engaged

buyers


Questions?

Upcoming SMN webcast: June TBD

http://searchmarketingnow.com [email protected]://twitter.com/SMNow

http://www.searchandise.net

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How to Market Where Online Consumers are Shopping