the zero moment of truth
TRANSCRIPT
Google Confidential and Proprietary
Objectives
How is shopper behavior changing in a digitally powered world?
What role do new media like social & mobile in shopping?
How are shoppers’ expectations of the physical retail store changing?
How does pre-shopping change actual purchasing?
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
Methodology
Online shopper surveys with interactive game-like construct
Fielded in March 2011 in the US
Connect as close to purchase decision as possible
N=5,000 Shoppers: – 500 each in Auto, Tech, Travel, Voters,
Restaurant, OTC Health, CPG Grocery, CPG Beauty/Personal Care
– 250 each in Credit Cards, Banking, Insurance, Investments
3
A quantitative review of decision making behavior across shopping, services and voting.
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
Summary
• The length of the shopper’s purchase journey varies greatly by category. But even within a spontaneous category like restaurants, we see thoughtful behavior of several hours to several days leading up to decision.
• The number of sources used by any shopper for any average shopping occasion has almost doubled, from 5.2 to 10.4 sources used.
• 84% of all shoppers use ZMOT sources in the path to purchase (f. ZMOT is a critical part of any shopper’s purchase journey and is as important, if not more, than stimulus and FMOT.
• Searching online is at the same level or eclipsing friends and family as a source used in the purchase process, which is a first.
• While overall usage of online social and mobile sources are lower than other sources, they are on the rise. Among the group who use online social and mobile sources, they rank the mobile information as highly influential in shaping their ultimate purchase decisions.
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Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
Traditional 3-Step Mental Model of Marketing
5
First Moment of
Truth
Second Moment of
Truth
Stimulus
At shelf In-store
Experience
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
The New Mental Model of Marketing
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First Moment of
Truth
Second Moment of
Truth
Stimulus
Pre-shopping | In-store | In-home
At shelf In-store
Experience
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
We asked shoppers 4 key questions:
When? Purchase Timeline
What traditional and new media sources did shoppers use to help them decide on their purchases?
What? Source Usage
How far in advance do shoppers start thinking about their purchase?
Why did shoppers consult the internet? What information where they looking for?
Why? Information-Seeking
How much? Influence How influential were each of the sources in the ultimate decision making?
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Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
0%
5%
10%
15%
20%
25%
30%
More than a year before
7-12 months before
4-6 months before
2-3 months before
A month before
3 weeks before
2 weeks before
A week before
4-6 days before
2-3 days before
One day before
9-12 hours before
5-8 hours before
3-4 hours before
1-2 hours before
Within the hour of my purchase
A few moments before I
purchased
Restaurant Voters Travel Automotive OTC Health Tech CPG Personal Care CPG Grocery Investment Banking Credit Card Insurance
The length of a purchase cycle varies The longest purchase cycles belong to Travel, Voters, Auto & Tech while the most “spontaneous” category is Restaurants. But even within Restaurants, a majority of shoppers still take several hours to several days to make that decision.
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights
Google Confidential and Proprietary
Shoppers today use twice as many sources to arrive at a decision and use each source almost twice as heavily as in the past
5.27
10.4
2010 2011
Avg # Sources Used
Shoppers today are able to process an enormous amount of information
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
5.8 7 7.3 9.8 8.6 8.9 10.2 10.8 11.7
14.8 18.2
14.7
Res
taur
ant
CP
G H
ealth
/B
eaut
y
CP
G G
roce
ry
OTC
Hea
lth
Cre
dit C
ard
Inve
stm
ent
Trav
el
Ban
king
Insu
ranc
e
Tech
Aut
omot
ive
Vote
rs
Average # of Sources Used by Category
Shoppers can range from using an average of 5.8 sources when choosing a Restaurant to a high of 18.2 sources used by Automobile shoppers.
Shoppers use a range of sources, depending on type of decision
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
37% 31%
29% 28%
27% 24%
23% 22% 22%
21% 18%
50% 49%
38% 36%
31% 22% 22%
18% 41%
37% 33%
30% 20%
19%
Saw ads on TV Received mail at home from a brand manufacturer
Saw an ad in a newspaper Read newspaper articles
Read magazine articles Saw ads in a magazine
Read an email received from a brand Noticed ads online
Received mail at home from a retailer Watched a TVprogram that featured the product
Saw an ad on an outdoor billboard Searched online with a search engine
Talked with friends / family about the product Comparison shopped products online
Sought information from a brand/manufacturer website Read product reviews online
Sought information from a retailer website Read comments following an article online
Became a friend/follower/”liked” a brand Looked at the product package in the store
Read brochure about the product in the store Talked with a salesperson in the store
Looked at signage/display about the product in the store Talked with a customer service rep on the phone
Tried a sample in the product in a store
Searching online and word of mouth are among top ZMOT sources
Stimulus
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
ZMOT
FMOT
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
76% 84%
77%
Stimulus ZMOT FMOT
ZMOT sources are equally important, if not more important, than Stimulus and FMOT
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
69% 76% 86% 75% 84%
79% 70% 79%
63% 64% 65% 67%
99%
81%
75% 84% 97%
91% 81% 94%
89% 78%
63% 61% 72%
99% 95%
92%
70% 77% 97%
76% 47% 79%
57% 83% 95% 93%
76% 34% 77% 89%
Stimulus ZMOT FMOT
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base: N=5,003
Overall, shoppers are using more ZMOT sources in 2011 than in 2010
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
Shoppers turn to the Internet mostly for location based information. Social and mobile are at its infancy but growing
Categories of Internet Behaviors % of shoppers that
engage in the behavior
Tactical behaviors within the category
Location 41% Got maps / directions to the store Got information on a particular store (hours, parking, etc.) Read reviews on a particular store Found locations of the store
In-Store Information 30% Checked availability of the item in the store Looked for information on upcoming sales at the store
Call to Action 29% Set price alerts to be notified Added sale date information to your calendar Held or reserved an item in the store Called a store from phone number provided online
Took to Store 26% Printed out information to take to the store Looked for online coupons that you can use in the store
Additional Media 25% Looked up Rewards Programs / Points programs Looked at newspaper inserts / coupons online
Compared to Other Media 19% Compared to information found in newspapers or magazines
Compared to information found in the yellow pages
Sharing/Social 19% Read my friend’s reviews on a product or look at their likes / fan pages Saw what others who viewed the item actually purchased Sent a link to someone else for their input Recommended a site or product to my friends on a social networking site
Mobile 14% “Checked in” to a location with your mobile phone Used mobile phone to find directions Used mobile phone to find the best prices Used search engine on my mobile phone
Q8 Below are some ways that other people say they use the Internet when researching a purchase decision. Which of the following things did you do during your recent purchase? You may select as many as apply. Base N=5003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
58%
57%
54%
51%
50%
40%
37%
37%
33%
32%
30%
27%
22%
16%
Net Influence – Top Sources Above Average
Traditional media influence drops off strongly in comparison to retail, search and word-of-mouth.
Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.” You may select any number in between 1 and 10.
Looked at the product package in the store
Talked with a salesperson or associate in the store
Comparison shopped products online
Talked with friends / family about the product
Searched online with a search engine
Sought info on a brand/manufacturer website
Read brochure about the product in the store
Read product reviews or endorsements online
Looked at display about the product in the store
Read newspaper articles/reviews/information
Read magazine articles /reviews/information
Saw an ad in a newspaper / newspaper insert
Received direct mail from a brand / manufacturer
Saw advertisements on television
Comparison shopping online and searching online rank high among what influences the shopper’s ultimate decision
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
Social and mobile are growing significantly in influence compared to year ago
Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.” You may select any number in between 1 and 10.
56%
51%
39%
32%
27%
24%
Offline Social
Retail
Online General
Online Social
Mobile
Direct/Event
TV/Radio
Print/Outdoor
37%
34%
55%
60%
31%
19%
16%
24%
14%
21%
2010 Macro Study
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
50%
21%
13%
10%
6%
4%
4%
41%
Almost 1 in 4 are sharing digitally, but this is not a mainstream behavior, yet.
Q7 After buying BLANK, which of the following activities did you do to share your experience? Base: N=5,003
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Mentioned it to friends/family
Mentioned it to a co-worker
Took a survey
Wrote about it on a Facebook page
Wrote a customer review on a website
Wrote about it in a blog
Posted Tweets about it
None of the above
Q7 After buying [PRODUCT], which of the following activities did you do to share your experience? Base: N=5,003
Post Purchase Behavior
24% of shopper engage in some digital SMOT behavior
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Google Confidential and Proprietary
Summary
• The length of the shopper’s purchase journey varies greatly by category. But even within a spontaneous category like restaurants, we see thoughtful behavior of several hours to several days leading up to decision.
• The number of sources used by any shopper for any average shopping occasion has almost doubled, from 5.2 to 10.4 sources used.
• 84% of all shoppers use ZMOT sources in the path to purchase (f. ZMOT is a critical part of any shopper’s purchase journey and is as important, if not more, than stimulus and FMOT.
• Searching online is at the same level or eclipsing friends and family as a source used in the purchase process, which is a first.
• While overall usage of online social and mobile sources are lower than other sources, they are on the rise. Among the group who use online social and mobile sources, they rank the mobile information as highly influential in shaping their ultimate purchase decisions.
18 Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
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