Wireless Shoppers
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Transcript of Wireless Shoppers
Google Confidential and Proprietary 1
Wireless ShoppersHow Consumers Shop for Phones and Wireless Service
October 2008
Google Confidential and Proprietary 22
Objectives
• What is the decision making process for wireless shoppers?
• What is the role of Search in the research process?
• Are all mobile phone buyers the same?
Understand the consumer buying process forwireless carriers and mobile phones
Source: Wireless Shoppers Study, Google & Compete
Google Confidential and Proprietary 33
Methodology
Survey of Wireless Phone Buyers
Sample • P3M wireless phone buyers
Sample source • Compete’s 2MM US proprietary panel
Data• Self-reported attitudes and behavior• Overlay of the respondent’s observed
online shopping and searching behavior• N = 1,276• May 2008
Source: Wireless Shoppers Study, Google & Compete
Deep Dive into Search Behavior
Sample • Wireless shoppers who reach the
shopping cart of a Big-4 wireless carrier site (Verizon Wireless, AT&T, T-Mobile, Sprint) after using search
Sample source • Compete’s 2MM US proprietary panel
Data• Observed searching behavior used to
arrive at any type of wireless web site including Carrier, OEM, Online Agent and Research or Blog Sites
• Q1 2008
Google Confidential and Proprietary 44
Summary Findings
1 Shoppers Can Be Influenced In the Research Process
2 Search Brings Buyers to Your Site
3 In-Store Buyers Use Search, Just Like Online Buyers
4 Searchers are More Valuable Customers
Source: Wireless Shoppers Study, Google & Compete
What is the decision making process for wireless shoppers?
Google Confidential and Proprietary 66
Wireless Carrier Handset OEM
Consumer Uncertainty Exists Prior to Purchase
There is an opportunity to influence what brands consumers purchase, as a big portion of the market starts out undecided
38%didn’t know
exactly 62% knew
exactly79%
didn’t knowexactly
21%knew
exactly
Source: Wireless Shoppers Study, Google & CompeteQ: When you first considered your recent purchase, which statement best describes your mindset about the wireless service provider and handset OEM you would use? Asked of Recent Wireless Buyers, N=1,257, May 2008
Certainty of What Brand Will Be Purchased
Google Confidential and Proprietary 77
Nearly half of wireless buyers base their purchase decision primarily on the service carrier
28%24%
48% Based on carrier
Based equally on phone and carrier
Based on phone
Purchase Decision Driven More by Carrier
Source: Wireless Shoppers Study, Google & CompeteQ: How much of your recent purchase was based on the specific phone vs. the specific carrier? Asked of Recent Wireless Buyers, N=1,257, May 2008
Basis of Purchase Decision
Google Confidential and Proprietary 88
75% of buyers spend less than one week researching, leaving a short window to influence uncertain shoppers
Purchase Decisions are Made Quickly
Time Spent Researching Cell Phone Purchase
Source: Wireless Shoppers Study, Google & Compete Q: How much time did you spend researching your recent cell phone purchase? Asked of Recent Wireless Buyers, N=1,257, May 2008
Less than one day
One to two days
More than twodays, but lessthan one week
1 to 2 weeks
3 to 4weeks
Longer thanone month
35%
21%19%
15%
5% 5%
0%
10%
20%
30%
40% 75%
Google Confidential and Proprietary 99
Cell Phone Buyers Conduct Online Research
78% of all wireless buyers go online to research, with almost half researching exclusively online
Online ResearchOnly
Both Online &Offline Research
Offline ResearchOnly
49% 29% 22%
Source: Wireless Shoppers Study, Google & Compete Wireless Resources Used. Asked of Recent Wireless Buyers using either online or offline research, N=1,044, May 2008
Type of Research Resources Used
Google Confidential and Proprietary 1010
More people research on the carrier web sites than in the store. Sites should provide comprehensive phone and plan information.
Source: Wireless Shoppers Study, Google & CompeteQ: Which of the following sources did you use to research? Asked of Recent Wireless Buyers, N=1,257 Q: How much influence did each resource used have on your purchase? (Top 2 Box of 5 Points) Asked of Recent Wireless Buyers Who Used Resource, N=variable, May 2008
Usage and Influence of Research Sources
Wireless Buyers Research on Carrier Sites
% Resource Influence% Using Resource
0%
10%
20%
30%
40%
50%
0%
20%
40%
60%
80%
100%Online Resources Offline Resources
Carrierweb site
40%
57%
OEM web site
16%
60%
Retail website
9%
35%
Consumer reviews
(blogs, etc)
8%
62%
Carrier storesalesperson
22%
55%
Friend orfamily
17%
70%
Carrier storedisplay
16%
67%
Big Boxdisplay
8%
66%
Professionalreviews
(cnet.com, etc)
6%
79%
What is the role of Search in the research process?
Google Confidential and Proprietary 1212
Buyers Searched Throughout the Research Process
27% Beginning Only
14% Middle Only
7% End Only
Research Process
Source: Wireless Shoppers Study, Google & CompeteQ: When did you use each resource during your research process? Responses from those who used search. Asked of Recent Wireless Buyers N=1,257, May 2008Note: 2% Didn’t Know or Could Not Recall
When Search is Used During the Research Process
24% of wireless buyers used search, finding it valuable at the top of the funnel and throughout their research
50%Throughout entire process
Google Confidential and Proprietary 1313
25% of prospects enter Carrier and OEM sites via a search referral
Search Drives Traffic to Your Site
25%from
Search
Source: Wireless Shoppers Study, Google & CompeteSearch Entry Share of Online Wireless Prospects – Session Based. Quarterly Average Prospect Sessions entering each site via a search referral, Q1 2006- Q1 2008
Google Confidential and Proprietary 14
Shoppers Search For Branded and General Terms
Wireless shoppers search most heavily for specific OEM terms, while almost one quarter of shoppers search on general telecom terms
Search Queries
43%OEM
23%Non-Branded
28%Carrier
Source: Wireless Shoppers Study, Google & CompeteTerm Category Distribution of Search Queries at Google.com – % of Queries at Google.com by Term Category Among Wireless Searchers who reach the Shopping Cart page at a Big-4 Carrier site, Q1 2008 Broad Match
Google Confidential and Proprietary 1515
Non-Branded Searchers are Less Decided
Source: Wireless Shoppers Study, Google & CompeteAverage Volume of Sessions and Pageviews among Searchers by Term Category Among Wireless Searchers who reach a shopping cart at a Big-4 site , Q1 2008. Sessions and Pageviews occurred on Wireless Carrier, Agent, OEM and Research web sites.
Wireless shoppers who search on non-branded terms seek more information, likely still undecided on brand.
Non-BrandedSearchers
BrandedSearchers
28 430
19 276
Research Sessions Pageviews
1.5x 1.6xDifference
Google Confidential and Proprietary 16
Many Shoppers Click Only Once or Twice
43% of qualified searchers click only once or twice on wireless sites, while over one third click 5 or more times.
Wireless Shoppers Search Behavior
19%
9%
24%
13%
7% 5% 4%3% 3%
13%
0%
10%
20%
30%
1 2 3 4 5
Number of Search Referrals to Wireless Sites6 7 8 9 10+
43%
Source: Wireless Shoppers Study, Google & CompeteDistribution of Search Referrals – Number of Search Referrals Wireless Shoppers Conduct in the 30 Days prior to reaching Shopping Cart at Big 4 Carrier Site, Q1 2008
Are all mobile phone buyers the same?- Online and In-Store Buyers- Searchers and Non-Searchers
Google Confidential and Proprietary 1818
Channel Choice Mirrors Customer Need
Reasons for Buying Online or In-Store
Online
0% 20% 40% 60%
51%Easier
45%Shipped to me
45%Special deal online
43%Better price
36%Faster
25%Avoid salesperson
20%Better selection
In-Store
0% 20% 40%
42%Needed phone now
41%Talk to salesperson
36%Needed to hold phone
29%Faster
29%Easier
21%No shipping cost
19%Special deal in store
19%Was in store already
60%
Source: Wireless Shoppers Study, Google & CompeteQ1: Why did you buy offline rather than online? Please select all that apply. Asked of Offline Wireless Buyers N=819 Q2: Why did you buy online rather than offline? Please select all that apply. Asked of Online Wireless Buyers N=438, May 2008
Wireless buyers purchase online for convenience, while immediacy of usage and customer service drive in-store sales.
Online and In-Store Buyers
Google Confidential and Proprietary
…But 74% of in-store buyers conduct their research online.
Source: Wireless Shoppers Study, Google & CompeteWireless resources used. Asked of recent Wireless Buyers using either online or offline research, N=1,044, Offline Buyers N=633, Online Buyers N=411, May 2008Source: 6% of Wireless gross add orders are made online. Calculated by dividing Compete’s observed quarterly Big-4 online gross add order total by total reported Big-4 gross add orders
Only 6% of Wireless Sales Are Made Online…Online and In-Store Buyers
19
Google Confidential and Proprietary 2020
In-Store Buyers Search Like Online Buyers
In-Store buyers use search in their wireless research process with the same frequency as online buyers
Online Buyers26%
In-Store Buyers22%
Source: Wireless Shoppers Study, Google & CompeteWireless resources used. Asked of recent Wireless Buyers using either online or offline research, N=1,044, Offline Buyers N=633, Online Buyers N=411, May 2008Note: Online Buyers 19 sessions In-Store Buyers 20 sessions, Online Buyers 309 pageviews In-Store Buyers 341 pageviews
Percent Who Search During Their Online Research
Online and In-Store Buyers
Google Confidential and Proprietary 2121
Searchers are high-end customers. They seek more functionality, are specific about the handset and spend more money on their phones.
Source: Wireless Shoppers Study, Google & CompeteQ1: How much of your recent purchase was based on the specific phone vs. the specific carrier? Asked of Recent Wireless Buyers N=1,257 Q2: Why did you set out to make a cell phone purchase? Select all that apply. Asked of Recent Wireless Buyers not purchasing their first phone N=1,217, Q3: How much did you pay (after any rebates) for your current cell phone (not including the cost of your monthly plan)? Asked of Recent Wireless Buyers N=1,257 May 2008 Note: ** indicates Statistical Significance at the 95% level
Searchers Want More Sophisticated Handsets
Spent over $100on Phone
**33%
Bought a New Phone to Get More Functionality
22%
Purchase Decision Was Based on Phone
Over Service Carrier
SearchersNon-Searchers
**27% 20%
**28% 23%
Searchers and Non-Searchers
Google Confidential and Proprietary 2222
Searchers Non-Searchers
*38%
*38%
*24%
**23%
*16%
31%
29%
16%
13%
9%
Use the internet
Send email
Download and purchase digital media
Download and purchase applications
Watch Mobile TV
Source: Wireless Shoppers Study, Google & CompeteQ: On average, how often do you do each of the following on your cell phone? Asked of Recent Wireless Buyers N=1,257, Searchers N=297, Non Searchers N=960, May 2008Note: * indicates statistical significance at the 90% level, ** indicates statistical significance at the 95% level
Activities Performed on Cell Phone
Wireless buyers who use Search in the research process use more value-added services on their phone
Searchers Are More Valuable CustomersSearchers and Non-Searchers
Google Confidential and Proprietary 2323
One or two days More than two days, but less than a week
More than a week
Searchers give more consideration to the wireless purchase, making them more open to influence.
Source: Wireless Shoppers Study, Google & CompeteQ: How much time did you spend researching your recent cell phone purchase? Asked of Wireless Buyers N=1,257, Searchers N=297, Non Searchers N=960, May 2008
Amount of Time Spent Researching Purchase
Searchers and Non-Searchers
43%59%
29%16%
28%
Searchers Spend More Time Researching
28% 25%
Searcher Non-Searchers
Google Confidential and Proprietary
Searchers Seek More Information from Your Sites
Searchers are more engaged visitors to your site, consuming morewireless content than non-searchers.
Source: Wireless Shoppers Study, Google & CompeteAverage Volume of Sessions among Searchers by category, Q1 2008. Average Volume of Pageviews among Searchers by category, Q1 2008. Sessions and Pageviews occurred on Wireless Carrier, Agent, OEM and Research sites.
Searchers
Non-Searchers
23 405
16 237
Research Sessions Pageviews
1.4x 1.7xDifference
Searchers and Non-Searchers
Google Confidential and Proprietary 2525
Summary Findings
1. Shoppers Can Be Influenced In the Research Process• Shoppers are uncertain at the onset and are open to influence• Be omnipresent in the marketplace, as purchase decisions are made quickly
2. Search Drives Prospects to Your Site• Ensure enough Share of Voice to capture those that only click 1 or 2 times• Develop a strategy to reach undecided buyers who search on non-brand terms
3. In-Store Buyers Use Search, Just Like Online Buyers• Use Search to target online buyers and in-store buyers• Consider how in-store sales factor into the ROI of your Search investment
4. Searchers are More Valuable Customers• Use Search to attract high spenders and heavy data users• Tailor key words and messaging to meet interest in high-end phones
Source: Wireless Shoppers Study, Google & Compete
Q&ASara Kleinberg, GoogleHead of Marketing, Technology
Karen Parker, Compete, Inc.Managing Director, Telecom & Media
Appendix
Google Confidential and Proprietary 2828
Glossary of Key Terms
Wireless Prospect: an in-market wireless consumer at a Big-4 carrier site who exhibits shopping and researching behavior, but does not log in or do anycustomer-centric activities.
Wireless Gross Adds: a metric reported by Big-4 wireless service carriers as well as smaller wireless service carriers that denotes the number of new lines of serviceadded each time period. Gross add volumes do not include upgrade or replacement purchases made by existing customers.
Search Referral: Occurs when a wireless shopper enters a query at a major searchengine and subsequently reaches a wireless web site as a direct result of that query. Wireless web sites include:
• Wireless Service Carrier web site• OEM web site• Agent web site• Research web site (i.e., blog, forum, etc.)
Search Query: Occurs when a wireless shopper enters a query at a major search engine but does not necessarily click on it to reach a wireless-specific site
Search Term Buckets: Compete and Google separated search terms into two buckets, branded (Verizon cell phone, Motorola enV, etc.) and non-branded (wireless phone, 3G handset, etc.)