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With over 450 mobile devices in North America and an average of 10 new phone launches each week, how do shoppers decide which phone is right for them? How do marketers influence these purchase decisions? We're excited to announce that Google and Compete recently completed their latest research study, Wireless Shopper 2.0, which covers the shifting cell phone marketplace, the rise of the smartphone and the role search plays in the purchase process.
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Google Confidential and Proprietary
Wireless Shopper 2.0April 20, 2010
Google Confidential and Proprietary
450+phones in
North America
with
10launches a week
1 Source: Gartner Group (2009)
2
Google Confidential and Proprietary
Methodology• The initial study was based on understanding the attitudes of online users who identified
themselves as wireless purchasers and analyzing behavioral clickstream activity of those observedadding a wireless product to their shopping cart. A follow up study was completed, performing anattitudinal and behavioral study based on a major phone launch in Q2 2009
• Tracked online search and research activity using Compete’s 2MM US opt-in panelists from Nov2008 to Dec 2009, including carrier, OEM, 3rd party reseller and research sites
• Includes both paid and natural Search
• Sites and Search terms used were provided by Google
We tracked consumers onlineshopping activity to understandshopping and searchingpatterns.
We analyzed those who addedthe product to cart, tracing theirbehavior backward from the pointof purchase.
Surveyed searchers tounderstand their purchasebehavior.
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.3
Google Confidential and Proprietary
searchsmartphones
shiftingmarketplace
4
Google Confidential and Proprietary
shiftingmarketplace
5
Google Confidential and Proprietary
Device Focused Consumers
Online Regardless of Purchase Location
General Retailers Stepping it Up
6
Google Confidential and Proprietary
Shoppers Open to Switching
Q - When you first considered your most recent cell phone purchase, which statement best describes your mindset about thewireless service provider? (Total Respondents=2961)Q - Which statement best describes your mindset about the brand of cell phone? (Total Respondents=2961)Source: Google/Compete Wireless Shopper Study, January 2010.
Service Provider
42%did not know exactly which
Carrier they would purchase from
78%did not know exactly which OEM
they would purchase from
Device
7
Google Confidential and Proprietary
Hot Phones and Features Trump Upgrades
-11% +20% +17%
“I was eligible for afree or discountedupgrade with my
provider”
“I saw a newcell phone that I
had to have”
“I wanted a phonewith morefeatures”
Q. Why did you decide to make this cell phone purchase? (n=2881, among those not purchasing first cell phone)Source: Google/Compete Wireless Shopper Study, January 2010.Q. Why did you decide to make this cell phone purchase? Please select all that apply. (n=1217, not first phone)Source: Wireless Shoppers Study, Google & Compete May 2008
Google Confidential and Proprietary
Device Interest Reflected through SearchQueries
9Source: Google.com, US
Google Confidential and Proprietary
Consumers Increasingly Research Online
10Q - Which of the following sources did you use to research your recent cell phone purchase? (Total Respondents=2961)+ As recalled by survey respondents in 2009 vs as recalled by 2008 survey respondentsSource: Google/Compete Wireless Shopper Study, January 2010.
of people who bought phones in stores researched their purchase online
63%
increase in the number of onlineresources used in research+
29%
Google Confidential and Proprietary11
Same Online Research to Buy Online or In-store
Type of Information Researched Online
Q - Which of the following activities did you conduct online during your most recent cell phone purchase research process?Please select all that apply. (n=2057; based = shoppers that used online sources)Source: Google/Compete Wireless Shopper Study, January 2010.
**
11
Google Confidential and Proprietary
Buyers Spending More Time Researching
12
56%
19%
20%
5%
25%
9%
45%
20%
0% 10% 20% 30% 40% 50% 60%
2 days or less
More than two days, but
less than one week
1 week but less than 4
weeks
4 weeks or more
Total 2008 (n=1257)
Total 2009 (N=2961)
Time Spent Researching Phone Purchase
Q - How much time did you spend researching your most recent cell phone purchase? (Total Respondents=2916).Source: Google/Compete Wireless Shopper Study, January 2010.Source: Wireless Shoppers Study, Google & CompeteQ: How much time did you spend researching your recent cell phone purchase? (N=1257, asked of recent wireless buyers, May 2008)
**
**
**
Google Confidential and Proprietary
Retailer Sites Increasing Share of Voice
Website Traffic Growth Dec 2008 vs Dec 2009
178% Amazon 107% Target
160% RadioShack 44% Aggregate ofOEM sites
26% Walmart 3% Aggregate ofCarrier sites
Source: Compete.com 13
Google Confidential and Proprietary
24%
18%
9%
40%
16%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Wireless Carrier
Site
OEM Site Retailer Site
Increasingly Influential as a Resource
14
40.09%
24.00%
18.10%
9.00%
40.00%
16.00%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Wireless Carrier Site OEM Site Retailer Site
2008 2009
Used During Research Process(2008 vs 2009)
Influential to Purchase Decision(2008 vs 2009)
Q - Which of the following sources did you use to research your recent cell phone purchase? (Total Respondents=2961) Not all answer choices includedon chartQ - On a scale from 1 to 5, where 1 means no influence at all and 5 means significant influence, how much influence did each of the following have onyour most recent cell phone purchase? Top 2 Box (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010.Q: Which of the following sources did you use to research? Asked of Recent Wireless Buyers, (N=1257)Q: How much influence did each resource used have on your purchase? (Top 2 Box) Asked of Recent Wireless Buyers Who Used Resource,N=variable, May 2008. Source: Wireless Shoppers Study, Google & Compete 2008.
45%
35%
57%60%
51%
55%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
Wireless Carrier
Site
OEM Site Retailer Site
**
**
****
Google Confidential and Proprietary
Retailers Have Captured Wireless Customers
15
Purchase Channel for Phone Purchase
Q – Where did you purchase your most recent cell phone? (Total Respondents=2961).Online share of purchases was higher than actual due to online survey fielding. Actual online share is typically ~6% of carrier gross addordersSource: Google/Compete Wireless Shopper Study, January 2010.Note: Traqline reports 17% of wireless phone sales through general retail stores in Q4 2009.
23%
Google Confidential and Proprietary
Device Focused Consumers
Online Regardless of Purchase Location
General Retailers Stepping it Up
16
Google Confidential and Proprietary
smartphones
17
Google Confidential and Proprietary
Open to Switching Carriers
Reeled in by Features
Investing More Money, More Research
18
Google Confidential and Proprietary
New Segment of Customers
19
Wireless Device Owned Prior to Current Smartphone
Compete Smartphone Intelligence data. G1: Which of the following best describes the wireless device you primarily used before purchasingyour current smartphone? (n=1959, smartphone owners)
65%new smartphoneowners
Google Confidential and Proprietary
Smartphone Purchase Drives Carrier Switching
20Q: How long have you been with your current wireless service provider.Source: Compete Gen Pop Wireless Survey, August 2009.
Been with currentservice provider 2+years
75%67%
Cell phone buyers
versus
Smart-phone buyers**
Google Confidential and Proprietary
60%
70%
80%
66%
66%
71%
78%
88%
29%
42%
50%
60%
63%
69%
77%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Applications available for download
Operating System
Specific phone model
Online account management
Wireless provider my family and friends use
Wireless provider customer service
Wireless provider
Coverage area
Smartphone Ow ner (n=704) Cell Phone Ow ner (n=1542)
All Attributes Valued by Smartphone Buyers
21
Importance of Attributes(Smartphone vs Cell phone)
Q - On a scale of 1 to 5, how important were each of the following attributes when making your most recent cell phonepurchase? (Top 2 Box)(Total Respondents=2961)Source: Google/Compete Wireless Shopper Study, January 2010.
Carrier
Device**
**
**
Google Confidential and Proprietary22
43%
21%
28%
7%
25%
17%
38%
20%
0% 10% 20% 30% 40% 50% 60%
2 days or less
More than two days, but
less than one week
1 week but less than 4
weeks
4 weeks or more
Cell Phone Owner
(n=1542)
Smartphone Owner
(n=704)
Smartphone Owners Do More Research
Time Spent Researching Phone Purchase(Smartphone Owner vs. Cell Phone Owner)
**
**
Q - How much time did you spend researching your most recent cell phone purchase? (Total Respondents=2961)Source: Google/Compete Wireless Shopper Study, January 2010.
22
Google Confidential and Proprietary
Not All Wireless Shoppers On Board Yet
23Q - Why did you decide to make this cell phone purchase? (Total Respondents=2961) Source: Google/Compete WirelessShopper Study, January 2010.SC4: Why haven't you purchased a smartphone? Source: Smartphone Intelligence Study, Q32009. (n=1959)
I wanted a phonewith more features
45%
22% I saw a new phoneI had to have
Smartphone plans aretoo expensive53%
28% I don’t need the featureson a smartphone
Why I Bought a Smartphone Why I Didn’t Buy a Smartphone
Google Confidential and Proprietary
Open to Switching Carriers
Reeled in by Features
Investing More Money, More Research
24
Google Confidential and Proprietary
search
25
Google Confidential and ProprietarySource: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.White-labeled case study based on the launch of a mobile in Q2 2009. Survey Data.
of consumers who searched for a newlylaunched mobile device purchased one.
62%26
Google Confidential and Proprietary
Search is a Compass
Increase Acquisition & Loyalty
Bridge the Gap from Queries to Sales
27
Google Confidential and Proprietary28
Wireless buyers conduct an average of
searches during their shopping process
Source: Google/Compete Wireless Shopper Study, January 2010. Clickstream Data.28
Google Confidential and Proprietary
Ann
ounc
emen
t
Pre
-Lau
nch
Laun
ch
Cap
ture
, Lea
rn,
and
Opt
imiz
e
Average Mobile Phone Launch
Source: Google internal data.
Time
Sea
rch
Que
ries
Search Encompasses Mobile Device Launch
29
Google Confidential and Proprietary
Search Directs Traffic to New Phone Sites
Search Share of Total Site Visits to New Device Product Pages(Share of search referrals among total referrals to Carrier and OEM sites)
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March2010.White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
30
Google Confidential and Proprietary
Search Introduces New Customers
Announcement &Pre-Launch Launch Post-Launch
62%Prospects
38%Current
Customers
46%
54%
47%Prospects
53%Current
Customers
56%Prospects
44%Current
Customers
39%
61%
Searchers
Percent of Searchers and Buyers(Device term searchers and search referred buyers who were current customers or prospects of the launch carrier)
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
Searchers SearchersBuyers Buyers
31
Google Confidential and Proprietary
Visits Initiated by New Device Searches
Percent of Search Referrals from Specific Device Keywords(Search referrals to OEM and Carrier pages, Compared to generic keywords)
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
32
Google Confidential and Proprietary
49% of Buyers Searched on Non-Brand Terms
33
Top 10Non-Branded Terms
that drove to shopping cart
cell phones
prepaid cell phones
cell phone plans
cell phone
cell phone companies
prepaid phones
cell phone deals
prepaid cell phone plans
prepaid phone
cell phones providers
Google Confidential andProprietary
33
hot cell phones
Source: Google/Compete Wireless Shopper Study, January 2010. Clickstream Data.
Google Confidential and Proprietary
Non-Brand Terms Convert to Sales
34
30%of search-driven conversionsto Tier 1 carriers
Non-Brandedterms drove 67%
of search-driven visits tostore locator pages
Source: Compete Custom Dashboards. Q3 2009.
Google Confidential and Proprietary
Search Drives Sales, Overall
Purchases made in-store bysearchers of new phone launches.
67%
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.White-labeled case study based on the launch of a mobile in Q2 2009. Survey Data.
35
Google Confidential and Proprietary
Search is a Compass
Increase Acquisition & Loyalty
Bridge the Gap from Queries to Sales
36
Google Confidential and Proprietary
Thank you
37