ROPO effect - Online2Store Vodafone Google - ENGLISH version

Google Confidential and Proprietary 1 Google Confidential and Proprietary 1

Research Online, Purchase Offline …because search is more than a click

August 2012


Agenda

 Online purchasing in Czech Republic

 What does it mean “ROPO effect”

 Why this research

 Objectives, methodology and products included

 ROPO effect for Vodafone

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CZ leads in CEE with the highest % of online retail and with sales of Czech e-shops of ~ 37 bn CZK

Source: Euromonitor International 2010, Czech Association for Electronic Commerce CZ (APEK) 2011, Slovak Association for Electronic Commerce (SAEC) 2011

Online retail as a percentage of total retail [in %, 2010]

5%

UK 8%

1%

PL 2%

SK 1%

CZ 3%

DE 4%

SWE 4%

DEN

HU

Regi

on C

EE

Lead

ers

33 27

+20%

2011

37

2010 2009

Sales growth of e-shops in CZ [in bn. CZK]

Czech e-shops [billion CZK]

1 2 3 4 5


2.6 million Czechs purchased online last year and this number is growing fast over the years

Source: Eurostat, ČSÚ (Czech Statistic office), Netmonitor.cz, Aim monitor, APEK, SAEC, Alza.cz, estimates * Individuals that purchased or booked online in last 12 months any item or service for their personal purpose

41%37%26%

+10%

2011 2009 2006

Individuals* purchasing online as a percentage of online population aged 16-74

Czec

h Re

publ

ic

Total number of orders via e-shops [in thousands orders]

As a % online population

Abs. [mil.] 1.1 2.1 2.6

+23%

2011

11,425

2010

9,785

2009

7,609

** cetelem.sk, hej.sk, hop.sk, mall.sk, martinus.sk, obchodny-dom.sk a pelikan.sk

Total number of orders

1 2 3 4 5


Despite the growing popularity of online shopping, ~8 out of 10 people purchased offline

Source: Consumer Commerce Barometer – available at: http://www.consumerbarometer.eu/

Purchase offline Purchase online

1 2 3 4 5


However, ~4 out of 10 offline sales in Czech Republic are influenced by online

Source: Consumer Commerce Barometer – available at: http://www.consumerbarometer.eu/ Note: CCB research on online population

% of consumers that did research online and purchased the product offline

[in % of respondents]

48 %47 %

30 %

44 %51 %

UK CZ HU PL SK

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It is not easy to understand each step in consumer path to purchase…

Source: Google

Visit to dealer (*) Dealer visit* Web

traffic Website

visits

Search

Purchase

(*) Dealer visit = Person who visited the store of the dealer Direct impact In-Direct impact

Display ads

Offline media

Video ads

1 2 3 4 5


ROPO effect... or what does it mean for your business

Researched online Purchased offline

1 2 3 4 5


First study on Czech market thanks to MB and Vodafone about internet impact on offline sales

•  What is the percentage of total sales influenced by online?

•  Usage and importance of online / offline sources on the path to purchase

•  Better understanding of consumer`s usage of online sources

Source: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000)

Products

Obj

ectiv

e

Methodology

New Vodafone tariff Mobile phone sales

•  CATI (phone interviews) from Vodafone database

•  Base, N = 2 000

•  Database consisted of Vodafone customers (updated on weekly basis)

•  Criteria was the customer, who bought Post Paid SIM card or Handset in Vodafone store last week

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More than 30 % of total sales in Vodafone stores are influenced by online

Source: Online to store research with Millward Brown, Vodafone and Google (April 2012, n = 2000) *Note: Purchase influenced by other than online sources (e.g. by information obtained in Vodafone Stores, among friends, in newspaper or magazines etc.)

Call Centrum and others

Vodafone Store

Online shop

40%

56%

4% Influenced by online

73%*

27% Online shop

Call Centrum and others

Vodafone Store

45%

50%

5%

60%*

40% Influenced by online

New Vodafone tariff Mobile phone sales

1 2 3 4 5

Vodafone Sales by sales channel (in %)


27 % of customers used internet while doing research before purchasing a new tariff


New Vodafone tariff

Base: Tariff purchasers (905)

2%

5%

26%

used online sources

Price comparison websites

Search Engine

Vodafone Website

5%

17%

38%

used offline sources

Other carrier provider stores

Friends and acquaintances

Vodafone Store

Type

of i

nfo

Use

d so

urce

s

27% 73%

1 2 3 4 5

What kind of information they were looking for?

Other users‘ experience 17 %

Comparison of price offers 38 %

Parameters of tariffs 40 %


40 % of customers used internet while doing research before purchasing mobile phone


Base: Handset purchasers (1069)

used online sources

Websites interested in handsets 12%

Search Engine 15%

Vodafone Website 32%

7%

used offline sources

Catalogue / magazine

Friends and acquaintances 15%

Vodafone store 39%

40% 60%

Mobile phone sales 1 2 3 4 5

What kind of information they were looking for?

Other users‘ experience 14 %

Parameters of handsets 36 %

Comparison of price offers 40 %

Type

of i

nfo

Use

d so

urce

s


For one customer which purchased online, there are ~4 customers which researched online and then purchased in Vodafone store

Internet plays a crucial role in driving sales in Vodafone stores


For 1 purchase in e-shop there are…

~4 purchases in Vodafone stores, which are influenced by online


Key take-aways

 Internet has a significant impact on driving offline sales

 To be able to evaluate the right ROI of your online marketing campaigns, it is important to know the value of ROPO effect in your industry

 In case of Vodafone, for 1 purchase in e-shop there are ~4 purchases in Vodafone stores, which are influenced by online

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Thank you

Research Online, Purchase Offline ...because search is more than a click


Appendix


ROPO efekt in different categories

Zdroj: Consumer Commerce Barometer – dostupný na: http://www.consumerbarometer.eu/

30 %

46 %

CZ

UK

Půjč

ky

Bílé

ele

ktro

% of consumers that purchased the product online

In specific category within last 12 months [in % of respondents]

% of consumers that did research online and purchased the product offline

In specific category within last 12 months [in % of respondents]

24 % UK

48 % CZ

CZ 30 %

41 % UK UK 32 %

CZ 51 %

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I like being able to talk to someone directly

It never crossed my mind

I don’t have easy internet access

I don’t use internet at all

I don’t trust the information on the internet

I don’t know where on the internet I should look for the info

Other reason

Doesn’t know

Reasons for not searching online

C13. You stated that you didn’t use the internet to search for the information before the purchase, why did you not use this option? C14. Which of these reasons was the main one?

Many people still prefer the traditional way of gathering information before the purchase. Half of those who did not search online just asked someone else for advice (who might have searched online) For others even getting handset or tariff is a spontaneous decision and they don’t have time or don’t feel need to search for information.

Reasons for not searching online (%)

Base: Those who did not search online (674)

53

19

12

9

6

4

27

3

47

10

6

5

1

1

25

One of the reasons Main Reason

Had enough information (11%)

Doesn’t like/can’t search the web (4%)

Didn’t have time (7%)

Prefers personal contact (2%)

Didn’t care – spontaneous decision (3%)

ROPO effect - Online2Store Vodafone Google - ENGLISH version

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Transcript of ROPO effect - Online2Store Vodafone Google - ENGLISH version