At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled New Shopper Journeys: The Influence of Digital Touchpoints. The presentation explores how digital has an effect on shopper’s behaviors. Presentation is given by Alex Charlton- Director at essential research, Mike Hess- EVP of Research at Carat N.A., & Beth Uyenco- Global Research Director at Microsoft.
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New Shopper Journeys: The Influence of Digital Touchpoints
2. New Shopper Journeys
The Influence of Digital Touchpoints
Alex Charlton Mike Hess Beth Uyenco
Director EVP, Research Global Research
essential research Carat N.A. Director
Microsoft
3. Digital media has changed consumer behavior
More information
More complex decisions
More opportunities to influence
Greater expectations
6. How We Did the Study
Research overview
• Qualitative
– Interviews and shopper observations across six countries
• Quantitative
– Online surveys in 17 countries
– 19,000 shoppers
– Key retail categories:
• Apparel
• QSR
• Grocery
• Home Electronics
• Home Improvement (US only)
7. Hierarchy of Shoppers’ New Behaviors
• Discount coupons used more often
• Price more important than brand/quality
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8. Old models no longer
adequately describe
Awareness
Consideration
what’s happening
Purchase
9. It’s not linear. It’s a dynamic process.
Constant Iterations Prior to Purchase
10. From Paths to Journeys:
The New Shopper Paradigm
WOM feedback loop
Research
Need Post
State Purchase
Purchase
In-store
research
‘Pre-tailing’ Retailing ‘Post-tailing’
11. From Paths to Journeys:
3 Core Shopping Patterns
• Impulse: An unplanned purchase or the shopper did not
have enough time to research product or shop around
before purchasing
• Habitual: An item the shopper normally buys
• Research: The shopper did some research prior to buying
12. From Paths to Journeys:
Journeys Vary by Category
17%
37% 43%
20% 66% 60%
28%
40%
63%
22% 34%
35%
17% 12% 6%
Home Home Clothes, Shoes, Grocery Fast Food
Electronics Improvement Accessories
Habitual Impulse Research
14. Segmentation is Critical
Home electronic shopper journeys by tech psychographic
Cutting Edge Early Adopter Judicious Laggards
Timer
All category
shoppers (%) 19% 23% 32% 25%
Q: Thinking about the last time you bought home electronics, which statement best describe
your actions?
Impulse 28% 16% 18% 22%
Research 49% 64% 69% 63%
Habitual 23% 20% 13% 15%
Source: Shopper journeys USA 2010 Home Electronics n=1072
15. Media Receptivity –
Touch Points by Segment
Judicious
Segment Cutting Edge Early Adopter Laggards
Timer
% of total 19% 23% 32% 25%
Usage Index
Advertising 145 119 83 68
Word of Mouth 100 132 100 71
Something seen while shopping 151 99 90 75
Newsletter/Email 162 108 97 49
TV ads 182 111 65 72
Internet ads 150 131 70 70
Newspaper ads 144 130 96 43
Expert reviews online 108 149 114 30
Seeing someone with item 157 156 60 55
Past Experience 129 122 78 85
Promotion seen while shopping 165 94 96 61
Something read/seen online 125 105 113 60
Source: Shopper journeys USA 2010 Home Electronics n=1072
16. Consumer Purchase Path in
Home Electronics
Research &
Pre-Purchase Shopping Around Purchase Post-Purchase
Pre-determined Source Mobilization Good INFORMATION
source online
Factors on Final
Decision
After-
Factors
How much to spend 72%
Internet 68% purchase
Which brand to buy 45%
WOM 43%
Advice fr. friends/
Retailer websites 42%
Customer reviews 36%
Price 86%
Avail. of product/
Behaviors
Where to buy 35% family 32% brand 72%
Brand websites 35%
Model/Specs 33% Something seen while
Shopping websites 34% Brands 62% Discussed
Products 32% shopping 28%
Ads & sponsorship 28% Search engines 30%
Technical specs 61% purchase with
Style/Design/Color 57%
Initial friends/family
Touchpoints Good INSPIRATION
36%
Ads 32% source online
Something seen Discussed retail
while shopping Customer reviews 28%
23% Online shopping sites
experience with
WOM 22% 23% Price comparison friends/family
Something sites 23% 13%
read/seen 22% Retailer websites 23%
Speaking to Brand websites 17%
friends/family 19%
Source: Shopper Journeys USA 2010 Home Electronics n=1072
17. Post Purchase Fuels Future Journeys:
Digital is Enabler
Need States Purchase Post-Purchase
Advertising: Used mobile Recommended:
Online: 17% phone: 54% Brand: 48%
TV: 17% Retailer: 30%
Newspaper: 24% Compared
Magazine: 17% Prices: 30% WoM online
Newsletter: 19% Blogged Online: 11%
Searched Posted on
In-Store for info: 20% Social Network: 11%
Flyers: 13% Posted a review: 11%
News Story on TV: 11%
WoM
Expert Reviews
Online: 7%
From Friends: 15%
19. Habit as Major Driver in Category Purchase
Purchase in personal care is fueled largely by repetition and
replacement: nearly 70% of respondents described their last
personal care purchase as regular/habitual replacement
12%
Researched
before purchase 20%
Bought on
Impulse
68%
Regular replacement/
habitual purchase
Q. Thinking about the last purchase in personal care category, which type of action best describes your purchase?
20. Openness & Communication as
Segmentation Criterion
Distribution of factor ‘openness & communication’* &
categorization of shoppers into low vs. high receptivity segments
LOW HIGH
Receptivity Receptivity
*Segmentation based on two dimensions:
‘When shopping for groceries I often buy and/or try new products & brands’
‘I like to talk to my friends/family about the purchases I make in this category’
Data Source: Project Red 2010 USA, Personal Care, N=591
21. Segments Snapshot
Segments notably differ from each other on category
spending, income, shopping behaviors and attitudes
PROFILE LOW HIGH
Avg. monthly spending on personal
care, home care, and groceries $307 $382
% Household Income 70K+ 24% 35%
% last purchase was Impulse 14% 28%
% last purchase was Habitual 81% 52%
% last purchase was Research-driven 6% 20%
Opinion Leadership: % agree
My friends & family often ask me for advice 6% 65%
before buying products in this category
22. Factors on choice of retail store
Q. Thinking about where you purchased from, which of
the following influenced your decision to purchase there?
Total Low High
69.5 69.7 69.4
Price of products
100 100
60.4 56.6 64.7
Proximity of the store
94 107
44.5 43.7 45.5
Familiarity with the store
98 102
43.3 36.6 51.1
Quality of products
84 118
38.0 35.4 41.1
Range of products available
93 108
37.3 34.9 40.0
Positive previous experience at the store
94 107
35.4 28.3 43.6
Deals and promotions at the store
80 123
30.6 27.5 34.2
Discount coupons I had for the store
90 112
17.0 13.8 20.7
Store loyalty card
81 122
23. Sources – Impulse Buyers
14% of 28% of
% last purchase = impulse 20% Total
Low High
30.5 26.9 32.6
coupon/money off voucher I received
coupon 88 107
25.7 29.0 23.8
newspaper ads
113 93
25.6 18.3 29.7
ads TV ads
72 116
24.5 16.9 29.0
promotion I saw when shopping
69 118
23.7 16.4 27.9
In-store coupons The segment is
69 118 especially more
In-store sign, display or other information seen 23.6 16.3 27.9 attuned to in-
when shopping 69 118 store offers
21.1 18.8 22.4
Speaking to friends, family or colleagues
89 106
14.8 6.6 19.6
magazine ads
44 132
14.1 11.4 15.7
Samples or product demonstrations
81 111
13.2 9.6 15.3
Flyers distributed in store
73 116
Q. Thinking about times you have purchased in this category, which of the following inspired you to make a purchase?
24. Sources – Research Buyers
Internet is the most handy tool for research and planning –
especially for high receptivity segment
20% of High
58.4
INTERNET
120
35.6
In-store coupons
77
41.1
In-store Store circulars distributed through newspapers
103
31.9
In-store promotions/displays
92
26.6
Adverts in newspaper
81
24.9
Television ads
89
Ads 29.7
WORD OF MOUTH
107
22.8
Advertising I saw in store
101
22.4
Advice from friends, colleagues and family
101
19.6
Flyers distributed in store
94
20.7
Brochures, newsletters or leaflets I received in mail
111
Q. Thinking about the last time you bought personal care item, which of the following sources did you use while researching or shopping?
25. Trigger Touchpoints for
New Product Purchase
Cost-saving coupons, in-store environment, and WOM are the most
frequently mentioned channels for invoking new product trial
% bought new or different item
26% of Low 59% of High
coupon/money off voucher 115 128
promotion seen while shopping 72 153
In-store In-store coupons 111 121
sign, display or other info seen while shopping 72 119
Speaking to friends, family or colleagues 68 153
An advert on television 96 153
past experience or memory 25 135
An advert in newspaper 130 105
In-store Flyers distributed in the store 67 127
Brochures, catalogues, newsletters or leaflets 116 105
An advert on the internet 39 172
Store circulars distributed through newspapers 80 127
In-store Samples or product demonstrations 110 119
Q. Which sources influenced your decision to purchase an item which is new or different from what you normally buy?
26. After Purchase Behaviors
Total Low High
Recommended brand/product to friend/ 27.0 17.7 37.8
colleague/family 66 140
25.6 14.9 37.9
Discussed purchase with friend/colleague/family
58 148
12.2 6.4 18.9
Recommended retailer to friend/colleague/family
53 155
Discussed retail experience with 11.1 3.6 19.9
friend/colleague/family 32 179
2.3 0.6 4.3
Blogged about purchase or retail experience
26 186
3.6 1.1 6.5
Posted customer review online
31 180
Q. After you made the purchase did you do any of the following?
27. Digital is Core to the Research Journey
Reach within last Home Apparel Fast Food Groceries
Purchase Occasion
Electronics
USA The Internet The Internet The Internet Discount
65% 50% 43% coupons 51%
AMERICAS The Internet Advice from Advice from TV Ads
58% friends 37% friends 45% 38%
ASIA The Internet The Internet TV ads TV Ads
61% 49% 52% 57%
EUROPE The Internet The Internet Advice from The Internet
64% 43% friends 37% 37%
28. Digital is Core to the Research Journey:
Mobile is Especially Influential
US Market: Grocery Shoppers
Bought new items Didn't buy any new items
50%
45%
40% 45%
35%
30%
25% 31% 30%
20%
15%
10%
14%
5%
7% 6%
0%
Used a cell phone Used Web during research Saw Online ads during
research
30. Conclusions
• Need to breakdown the shopping journey into its essential
parts to understand the role touchpoints play
• Channel planning approaches can build a clear framework
for establishing the optimal media mix
– Segmentation can drive this process
• Learned that Bought Media required to generate
Earned Media
• The retailer/manufacturer website is still a vital channel
• Mobile can influence close-to, or at, point of purchase…
offering an alternative to retailer-controlled
POP communications