day1 research stream_1545_microsoft_shoppers_microsoft_advertising

New Shopper Journeys The Important New Role of Digital Media

Study Highlights

Implications for agencies

Questions & Answers

Beth Uyenco Global Research Director

Microsoft Advertising

Caroline Vogt Head of Global Insights

Aegis Media

The study: research overview

Qualitative:

• Interviews and shopper observations across six countries (including UK

and France)

Quantitative:

• Online surveys in 17 countries

• Covering the ‘Big five’ in Europe

• 19,000 shoppers

• 5,365 in Europe

• Italy , Germany, Spain, UK, France

• Sectors: groceries and personal care, home electronics, fast food,

clothes, shoes and accessories

More Information

More complex decisions

More opportunities to influence

Greater expectations

Insights 1 The shopping journey is far more complex than ever before

Purchase decisions are no longer linear, they’re

more dynamic than ever

‘Pre-tailing’ Retailing ‘Post-tailing’

WOM feedback loop

In-store research

Research Purchase Post

Purchase

Need

State

9

Three core shopping journeys emerge

Research journey

The shopper did some research prior to buying

Habitual journey

An item the shopper normally buys

Impulse journey

A spontaneous, unplanned purchase

Research purchase

Longer path to purchase Greater

effort

Habitual purchase

Shorter path to purchase

Minor effort

Impulse purchase

Short path to purchase

Little or no effort

1 2 3

Source: New Shopper Journeys Europe 2010

10

Three core shopping journeys emerge


Eff

ort

High

Low

Fast Food Groceries &

Personal Care

Clothes, Shoes

& Accessories

68%

14%

18%

40%

39%

21%

22%

66%

12%

42%

52%

6% Research purchase

Longer path to purchase Greater

effort

Habitual purchase

Shorter path to purchase Minor effort

Impulse purchase

Short path to purchase

Little or no effort

"Thinking about the last time you bought, which statement best describes your actions?"

Home

Electronics

Insights 2 More reliance on different forms of digital media

Internet means consumers are able to get more

information in the same amount of time

In Home Electronics category:

66% of research-led shoppers used the internet for information-- more

than twice television and nearly twice the recommendation of family

and friends.

Digital a vital source for product research

Mobile phone 59%

Mobile phone 40%

Home phone 40%

Mobile phone 44%

Mobile phone 54%

Home phone 48%

Email 46%

Email 39%

Email 42%

Text 36%

IM 29%

IM 21%

Text 21%

Home phone 36%

Text 36%

IM 30%

Social network 27%

Social network 16%

Social network 24%

Text 35%

Social network 31%

More important than posts on social networks for Research Journeys

Q: Which of the following did you use to discuss (with family/friends)?

Base: Researchers

Home phone 59%

Email 54%

IM 36%


Q: B1b Which of the following online sources did you use whilst researching or shopping? Base: internet research buyers Home Electronics (n=1148), Fast Food (n=40), CSA (n=214), Grocery (n=114)

% of researchers who have researched online

Retailer Website (28%)

Online coupons (26%)

Search Engine (25%)

Brand website (25%)

Online circular (23%)

6%

Search Engine (47%)

Price Comparison (44%)

Brand Website (37%)


68%

Search Engine (46%)



Brand website (31%)

Online shopping website (22%)

12%


Brand website (36%)




21%

15

Search Engine (33%)

OWNED MEDIA BOUGHT MEDIA

For people researching online, retailer-owned digital

assets are top sources


Insights 3 Post-purchase behavior is significant to influencing shoppers!

Post-tailing Purchase Pre-tailing

In all home electronic journeys

21% Search engines

20% Price comparison sites

17% Brand websites

16% Customer reviews

16% Online shopping sites

14% Expert reviews

6% Blogs/forums

these digital channels were

consulted

38% Discussed

purchase

31% Recommended

product

17% Recommended

the retailer

14% Talked about the

shopping

experience

4% Posted a review

online

3% Blogged about

the experience

2% Posted

experience on

social networks

Your mission no longer ends at the sale


Insights 4 Marketer opportunity to leverage Paid, Owned and Earned media

Paid media drives consideration and preference

In Home Electronics Category:

% of people who changed their mind about a Brand after research

Source B1c., B4 Home electronics. Those who changed their mind after research 1) about the brand

Paid: 58%

Owned 54%

Earned: 34%

41%

44%

48%

56%

59%

Finds local restaurant in your areas

and allows you to make reservations

Locates certain products or brands

in your local area

Finds in-store promotions in your

local area

Allows you to compare prices at

stores in your local area

Sends discount coupons to your

mobile phone that can be

redeemed in store

Most appealing features sites can offer?

Those that help them make smarter decisions

ITALY

71%

65%

59%

52%


Source: QE6 Please tell us how appealing you find each of the following services? Top two boxes (net) from 5 point scale Base: All respondents (n=5000)

Post-purchase behavior is significant to influencing shoppers!

Marketer opportunity to maximize owned, bought and earned media

More reliance on different digital media

1

2

3

4

Carat’s Five Applications

#1: Beyond Carat and into Aegis brands

- Multiple client groups, multiple markets

The overall understanding of the new shopper journey and the insights itself are

giving us the tools to define and propose complete

convergence communication strategies targeting the shopper,

focus on converting brand image into real sales. Basically, this is allowing us to

speak to the brands about performance marketing on a holistic strategic

approach, based on the shopper knowledge, combining on line and

off line.

• Head of Planning, Spain

“The insight and analysis has helped us create the strategic framework for a Home Electronics client and identify opportunities currently being

overlooked by their existing communications strategy”

• Deputy MD, UK Carat

#2: New digitally centric strategic

communications frameworks

#3: Digital experiences heavily contribute to

purchasing decisions

Consumer

review/expert

opinion 5.8

Website

experience 6.1

How important would you say each of the

following were in your final decision:

#4: Paid media still counts!

A good source of

information/inspiration? Online sources used

#5: The Research Effect opens up new

branding opportunities

Brands

considered

Buy

in-store

or online

What changed as a result of research

questions?