understanding deposit account researchers, · pdf filegoogle confidential and proprietary...

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Google/Compete

U.S., 2010

The Role of Search in Deposit Account Shopping

Google Confidential and Proprietary

Table of Contents

2

1 Purpose of Study & Methodology

2 Key Takeaways

3 Deposits Industry Trends

4 Drivers for Channel and Institution Selection

5Impact of Search on Offline and Online Deposit Account

Applications

6 Use of Search in Shopping for Deposits Accounts

7 Types of Terms Used in the Shopping Process

Background, Objectives and Methodology

3


Purpose of Study & Methodology

• Purpose of Study

– Quantify how consumers use search when shopping online for deposits accounts (e.g., savings/CD/MM /checking)

– Quantify the impact of online search on online and offline deposits account applications

• Methodology

– Conducted on Compete’s proprietary U.S. consumer dataset

– Online deposit researchers are split into two mutually exclusive categories:

• Shoppers: View deposit account specific content but do not submit an application

• Applicants: Submit a deposit application during the study timeframe

• Application rate: Share of shoppers who apply for a deposit account

– For online deposit shoppers and applicants, Compete pulled a history of search query and search referral activity for the 30 days prior to last shopping/converting activity (Aug – Sep 2009)

– Online Deposits account shoppers were surveyed (Sep-Nov) to assess their (offline and online) application patterns and preferences regarding financial institutions

4


Queries and Referrals

5

Each Search generates a query

Clicking a result generates a referral


Banks Included in Study

6

Traditional banks

Bank of AmericaCapital One

ChaseCitibank

Washington MutualWells Fargo

Citizens BankSchwab Bank

US Bank

Online only

Emigrant DirectE*Trade

HSBC DirectING Direct

Key Takeaways

7


Key Takeaways

• Overall online shopper and applicant volume declined in 2009, however, share of online shoppers utilizing search, especially Google, increased

• Online shopping activity is important contributor to offline applications

– For every 10 online applicants, 6 additional online shoppers apply at a branch

– 12% of all online shoppers apply at a branch

• Deposits account shoppers who utilized search applied at a higher rate than those who did not utilize search

– Searchers were 1.44X more likely to apply than non-searchers, inclusive of all channels

• 68% of shoppers perform multiple search queries

– Shoppers performing multiple queries are upto 1.2X more likely to apply than shoppers performing a single search

• Shoppers who utilized non-branded search terms, compared to those who exclusively utilized branded search terms, were 1.4X more likely to apply

8

Deposits Industry Trends

9


Share of Search Shoppers Increased in 2009

10

Number of Online Shoppers(Online Shoppers in Jan 2008 - Sep 2009)

22%20% 20%

19% 19%20% 19%

20%22%

20% 20%

22%

24%23%

26%25% 25%

23%

24%23%

21%

0%

5%

10%

15%

20%

25%

30%

0M

1M

2M

3M

4M

5M

6M

7M

8M

9M

10M

Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09

Total Shoppers % Search Shoppers

Source:


Applicants Trended Similar to Shoppers

11

Number of Online Applicants(Online Applicants in Jan 2008 - Sep 2009)

21%

19%20%

18%

22%23%

22%

19%

24%

20%22%

23%24%

21%

23% 23%

25%

22%21%

24%

20%

0%

5%

10%

15%

20%

25%

30%

0K

100K

200K

300K

400K

500K

600K


Total applicants % Search Applicants

Source:


Share of Google Driven Shoppers and Applicants Rose

12

Share of Google Driven Search Shoppers and Applicants(Search Shoppers and Applicants in Jan 2008 - Sep 2009)

40%

45%

50%

55%

60%

65%

70%

75%

80%


% Google Shoppers/ Search Shoppers % Google Applicants/ Search Applicants

Source:


70% of Search Applicants Apply Immediately

13

Comparison of Same Session and Lagged* Search Applicants(Search Applicants in Jan 2008 - Sep 2009)

*Search applicants who applied within a month of performing a search

0%

10%

20%

30%

40%

50%

60%

70%

80%


% of same session search applicants % of lagged search applicants

Source:


Applicants are Reducing Number of Brands in their Consideration Set

14

Number of Banks at which Online Applicants Shopped(Average Bank websites Visited by Online Applicants in Jan 2008 - Sep 2009)

Average = 1.48

1.441.43

1.48

1.44

1.47

1.51

1.61

1.46

1.54 1.53 1.521.54

1.50 1.49

1.55

1.481.46

1.39

1.431.42

1.38

1.25

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65


Average number of banks shopped online

Source:

Drivers for Channel and Institution Selection

15


Many Online Shoppers Choose to Apply Offline

16

Location of Application for Shoppers(Respondents Opening a Deposit Account)

(Base: Applicants for High Yield = 150, Savings=140, CD=303, Money Market=149, Checking=364) *Other includes the Phone and other channels

85%

66%61%

55%45%

9%

31%32% 42%

52%

5% 2%8% 3% 3%

High Yield Saving

Savings CD Money Market Checking

Online At a local branch Other*

Source:


Offline Applicants Value Personal Contact…

17

Reasons for Shoppers to Apply at a Branch(Respondents Opening a Deposits Account at a Branch)

(Base=297)

43%

29%

27%

20%

19%

18%

18%

18%

7%

5%

4%

Wanted to speak in-person

Assured of accuracy

More convenient channel

Previously used channel

Get to know local branch

Not provide info online

Faster

Promotion on this channel

Unaware of online

Other

Did not find info online

Source:


…While Online Applicants Value Convenience

18

Reasons for Shoppers to Apply Online(Respondents Opening a Deposit Account Online)

(Base=410)

54%

53%

44%

41%

35%

33%

33%

30%

28%

23%

18%

10%

9%

More convenient

Faster

Could open anytime

All information available …

Easier to comparison shop

Previously used channel

No need for in-person talk

Did not want to travel

Avoid crowds and lines

Promotion on this channel

Could choose non-local

Assured of accuracy

OtherSource:


New Banks Sought for Additional Accounts

19

Reason for Applicants to Open a Deposits Account(Respondents Opening a Deposits Account)

(Base: Applicants for High Yield = 91, Money Market = 77, Checking = 231, Savings = 108, CD = 190)Note: 95% confidence denoted by capitalized letters and 90% confidence denoted by lower case letters

35% (C,d,e) 34% (C,D,E)

6%15% 14%

7% 10%

18%13% 11%

52% 47%

62% 57%

36%

7% 9% 14% 15%

39%(A,B,C,D)

High Yield Saving (A)

Money Market (B)

Checking (C ) Savings (D) CD (E)

New account Closed to move to new institution

Additional with different institution Additional with same institution

Source:


Existing Relationships Vary in Importance

20

Share of Applicants with Prior Relation with Institution(Respondents Opening Deposits Account)

Source:

Impact of Search on Offline and Online Deposit Account Applications

21


Online CD Shoppers Apply At a 39% Rate

22

Application Rate* of Deposit Shoppers(Respondents Opening a Deposit Account)

(Base: Online shoppers of specific deposit accounts)*Includes all application channels for example, online, branch, phone, etc.

39%

34%

33%

33%

27%

CD (n=642)

Checking (n=907)

High Yield (n=509)

Savings (n=798)

Money Market (n=458)

Source:


For Every Ten Online Checking Shoppers Applying Online, Eleven Apply at a Branch

23

Branch Application Amplification Due to Online Activities(Number of Branch Applicants for Every 10 Online Applicants, from Online Shoppers)

(Base: Online shoppers)

11

7

6

5

2

Checking (n=907)

CD (n=642)

Savings (n=798)

Money Market (n=458)

High Yield (n=509)

Checking account 2.1

CD 1.7

Savings account 1.6

Money market account 1.5

High yield savings account 1.2

Application Amplification Effect

Source:


Use of Search Increases Application Rate

24

Application Rate* of Deposit Shoppers(Searchers versus Non-Searchers Respondents Opening a Deposit Account)

(Base: Searchers for CD=389, Checking=591, High Yield=324, Savings=514, Money Market=292; Non-searchers for CD=254, Checking=315, High Yield=185, Savings=285, Money Market=166) *Includes all application channels for example, online, branch, phone, etc.

37%

27% 26%

20% 19%

4%

11%11%

19%

13%

40%38%

37%39%

31%

CD Checking High Yield Savings Money Market

Non Searcher Lift from Search

Source:

Use of Search in Shopping for Deposits Accounts

25


Searchers are 1.3X More Likely to Apply than Non-Searchers

26

Comparison of Online Application Rate(Online Applicants in Aug - Sep 2009)

306,817 288,881

4.7%

6.1%

0%

1%

2%

3%

4%

5%

6%

7%

0K

50K

100K

150K

200K

250K

300K

350K

Non Searchers Searchers

Applicants Application Rate

Source:


Number of Deposit Search Queries(Online Applicants in Aug - Sep 2009)

Applicants are Searching Frequently

27

Applicants Total query Volume: 1M

32%

21%

21%

16%

10%

Search Applicants

1 2 3-4 5-9 10+Source:


Frequent Searchers Apply at a Higher Rate

28

Online Application Rates by Number of Search Queries(Online Shoppers in Aug - Sep 2009)

5.5%

6.7%

6.4%6.5%

6.0%

1 2 3-4 5-9 10+

Source:


Frequent Searchers Use Combination of Terms

29

298

296

205

120

93

Branded Versus Non-Branded Search, by Number of Queries(Online Applicants in Aug - Sep 2009)

Query Volume (’000s)

71%

53%

41%

27%

19%

29%

25%

11%

12%

22%

48%

60%

81%

1

2

3-4

5-9

10+

Branded Only Non-Branded Only Both


Source:


Non-Branded Term Users More Likely to Apply

30

Share of Online Applicants by Term Type Used and Online Application Rate(Online Applicants in Aug - Sep 2009)

49%

19%

32%

5%

7% 7%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0%

10%

20%

30%

40%

50%

60%

Branded Non-Branded Both

Applicant share (left axis) Application rate (right axis)

Source:


Branded Terms Comprise Majority of Queries

31

Search Query by Term Type(Online Applicants in Aug - Sep 2009)


65%

22%

5%5%2%1%

Queries

CDs

Features

Checking

Savings

General

Branded

Term type Example query

1 month CD

CD APY

CD high interest

Secure banking

Free debit card

FDIC insured

Free checking

Best checking account

Checking online

High yield savings

Savings bank rate

Money market fund

Bank account

Bank comparison

Online banking

Citibank onoline banking

Bank of America

HSBC direct

Source:


Non-Branded, Paid Has High Application Rate

32

Comparison of Online Application Rate by Search Type(Online Shoppers in Aug - Sep 2009)

6%

3%

9% 10%

Branded, Organic Branded, Paid Non-Branded, Organic Non-Branded, Paid

Source:


“Features” Drove Highest Application Rates

33

Online Application Rates for Online Shoppers by Referral Term Type(Online Applicants in Aug - Sep 2009)

3%

66%

2%

0%

25%

2%

0%

1%

1%

0%

0%

0%

3%

6%

8%

9%

9%

9%

15%

15%

16%

16%

20%

36%

Branded Paid

Branded Organic

Generic Paid

General Paid

Generic Organic

General Organic

Savings Paid

Savings Organic

Checking Organic

Features Organic

Checking Paid

Features Paid

Application Rate Share of Referral Volume

Source:


12%11% 10%

13%

18%

5% 7% 8%

9%

7%

17% 17%19%

22%

25%

Within 4 weeks Within 3 weeks Within 2 weeks Within 1 week Within same session

Branded Non-Branded

Search is Used Throughout Shopping Process

34

Timing of Search Referrals(Total Search Referrals of Online Applicants in Aug – Sep 2009)

Source:


Key Takeaways

• Overall online shopper and applicant volume declined in 2009, however, share of online shoppers utilizing search, especially Google, increased

• Online shopping activity is important contributor to offline applications

– For every 10 online applicants, 6 additional online shoppers apply at a branch

– 12% of all online shoppers apply at a branch

• Deposits account shoppers who utilized search applied at a higher rate than those who did not utilize search

– Searchers were 1.44X more likely to apply than non-searchers, inclusive of all channels

• 68% of shoppers perform multiple search queries

– Shoppers performing multiple queries are upto 1.2X more likely to apply than shoppers performing a single search

• Shoppers who utilized non-branded search terms, compared to those who exclusively utilized branded search terms, were 1.4X more likely to apply

35Source:

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