Kantar Compete - the consumer path to purchase

The Consumer Path to Purchase

John Thekanady

Client Services Director

Kantar Media Compete

2

The industry’s largest

consumer-centric panel

Strategic partnerships

Fastest-growing digital

insights company

Founded in 2000,

joined Kantar in 2008

Connecting the dots

Digital Insights are in our DNA

• Most granular data

• Industry experts


Data Data Everywhere...


Data Data Everywhere…


http://www.youtube.com/watch?v=Vf9798iS3Ts

How Can We Turn…

5

Data complexity Business advantage


Online Advertising Alone has Hundreds of Data Points…

6 Title of the presentation

This Challenge Involves 3 Familiar Steps…

7

Insight Strategy Execute


Distilling Insights From a Large Amount of Data Points…

8 The Consumer Path to Purchase 8

For Example…


We would like to engage you to

conduct an audience profiling

study which will be combined with

our sub-conscious brand

perception research and the social

favourability research to create a

complete picture of the x car

buyer

Background Context...

10

Global Ecommerce is

expected to rise from

$630bn this year to $930bn

in 2013

Retail space has increased

over 200% from 40m sqm in

2002 – 130m sqm today

Source: WPP consumer insights


Nearly a Third Prefer to Shop Online rather than Instore

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29%

44%

27%

Sales

I shop more online than Ido in the shops

I shop more instore than Ido online

I shop online & in storeequally

Kantar Media Compete Shopper Intelligence Report Q3 2010


http://www.kantarmedia.compete.com/news

Case Study


The Business Question…

Should client invest more into

upgrading & enhancing their website

experience or should they explore

deeper partnerships with retailer

sites in order to increase sales?


Every Purchase Starts with a Journey…


The Framework Applied: A Sportswear Case Study

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Understand the influence of the internet on

how the training shoe shopper makes

purchase decisions online and in-store

Clickstream Survey


About 1 in 3 Online Athletic Footwear Shoppers Favour Online Purchasing Versus the Traditional Store

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Why do you prefer to purchase athletic footwear online/in-store? (G4)

60%

60%

60%

59%

54%

53%

45%

37%

Better prices

Easier to shop on a computer

Product shipped directly to me

Easier to compare prices

Better selection

Free shipping

Faster shopping experience

I can find out more about he product online

88%

33%

32%

16%

12%

Prefer to try out the product in person

Cost of shipping is too high

Prefer to get items immediately rather than waiting for shipment

Better prices

Access to a salesperson

Prefer Online Purchasing (n=398) Prefer In-Store Purchasing (n=693)


Purchasers Approach the Online Space Differently if They Intend to Use it for a Purchase

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Q13: What types of research did you perform prior to making this purchase? (n=436)

24%

8%

15%

14%

55%

20%

4%

13%

20%

21%

59%

71%

I didn't perform any research

I read an article or professional review in a magazine or other publication

I spoke with friends or family I fisited a store

I saw an advertisement for the

footwear

I looked for information online

I visited a store to see or try on the

footwear

In-store Purchasers

Online Purchasers


While Both Online and In-Store Purchasers Gravitate Toward Manufacturer and Retailer Websites…

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Which of the following online resources

did you use/visit to shop for this athletic

footwear? (Q14: n=436)

42%

57%

13%15%

3% 3%

59% 61%

15% 16%

1% 3%

Brandwebsites

Retailwebsites

Fitnesswebsites

Consumer generated

reviews

Video websites

Social Network websites

Online Purchasers Instore Purchasers

61%

54%

68%

75%

42% 44%

50%

63%

Brand websites Retail websites Fitness websites Consumer-generated reviews


How INFLUENTIAL was each of the

following on your decision-making

process?

(Q 15: Top 2 Box Score, 5 point scale, n=60-255)


30%27%

24%20%

30%

48%

14%

8%

When I started to shop for athletic

footwear

When I was exploring products

I might buy

When I was making product

comparisons

When I was making the final

decision about the purchase


…The Timing and Purpose for Visiting these Sites Varies Based on Where Consumers Ultimately Purchase

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Thinking about your most recent athletic footwear purchase, when did you use each of the

sources when deciding WHAT to buy? (Q16: n=163-190)

Manufacturer/Brand Websites Retail Websites

31% 31%

23%

14%

41%39%

15%

6%

When I started to shop for athletic

footwear

When I was exploring products

I might buy

When I was making product

comparisons

When I was making the final

decision about the purchase



37%

35%

6%

6%

4%

After the First Visit to the Client Site, Most Purchases are

Seen on Retailer or Pure Plays

Purchase Path Share After First Client Site Visit Share of paths leading to conversion one week after initial visit to Client site

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- Department Stores - Manufacturers - Pure Plays - Retailers


Consumers Purchasing on the Retailer Channel Seek More Product Information than Other Buyers

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Product Visits One Week Prior to Purchase

Timeline of product visits as a share of all product visits one week

before channel conversion,

21%

15% 14%

50%

23%19%

14%

45%

21%

13% 14%

52%

37%

23%

16%

24%

4-7 Days Before 2-3 Days Before Day Before Same Day

Department Stores Manufacturers Pure Plays Retailers


A Snippet of our Recommendations…


Shoppers Brand.com Retailer/PP site Instore Instore Inspiration: incentivise to purchase

on site, ensure easy return/exchange process

Volume footfall, price comparison: increase share of shelf, depth of content

Purchase: POS info on how to research/purchase next purchase on brand site, investigate click to store options

Online Use them but generally have an idea of what they want: incentivise to purchase on site

Volume footfall, price comparison: increase share of shelf, depth of content

One fifth try on in store and purchase at an online retail site: make returns and exchange process easier online

In Summary…

23 The Consumer Path to Purchase

Thanks…

John Thekanady – Client Services Director

kantarmedia.compete.com/

Please visit our site to access our Shopper Intelligence Report:

24

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Kantar Compete - the consumer path to purchase

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