The digital path to purchase

The digital
path to purchase
Based on TNS Digital Life, Mobile Life and Mobile 360
Martin Warmelink
©TNS 2012
The Dutch digital market
Some backgrounds
Digital Life
© TNS 2011
©TNS 2012
2
Digital is the most consumed media among
Internet users, having overtaken traditional media
Daily users (%)
69
51
36
25
22
8
Internet for
leisure
TV
Radio
Internet for work
Newspapers
Magazines
Question: M1; Media use Base: All respondents; Size 1001
Digital Life
©TNS 2012
3
Digital consumption is high across all Internet users,
although younger users consume more
Mean hrs spent online per
week for leisure purposes
“I worry that I spend too much
time on the Internet” (%)
Total
Male
Female
15
13
15
15
14
11
16-20
19
21-24*
15
25-34
13
16
13
16
35-44
12
15
45-54
12
16
55-65
12
12
Question: S7, A2; Time spent online, Internet attitudes Base: All respondents, top 2 box; 1001,505,496,99,73,186,235,222,186
*base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only
Digital Life
©TNS 2012
4
Dutch involve themselves in many activities when
online, primarily communication and entertainment
Share of time for
online activities
in average
week
Communication
Social networking & connecting
Email
Entertainment
Multi-media & entertainment
Online gaming
13 hrs
per week
15 mins
per day
Personal interest
Shopping
Information
Pre-purchase & browsing
Knowledge & education
News, sport & weather
Management
Personal admin
Planning and organising
Digital Life
©TNS 2012
5
A side step to
Mobile
Get ready for Mobile
6
©TNS 2012
Netherlands end of
2012
Smartphone ownership
55%
60%
50%
Tablet in household
30%
60%
50%
40%
40%
Mid 2012 sales
Smartphone %: 67%
OS:
- Android
60-65%
- IOS
20-25%
- Blackberry 5-10%
30%
20%
10%
0%
end
2009
2010
2011
end
2012
30%
2-2,2 mln
20%
10%
0%
end
2009
2010
2011
end
2012
7
©TNS 2012
Mobile applications dominate the usage of
content on smartphones.
Total market time spent on
applications
Applications and
online websites
account for an
average of
versus
websites
Excluded Voice, SMS and System applications
web
4%
42
minutes
of market face
time per day for
smartphone users
48
41
36*
33
app|web
apps
96%
*Excluded e-mail for BlackBerry
Base: All smartphone users (1107), Android H|L, BlackBerry, iPhone (432|337, 99, 242)
95%|5%
95%|5%
97%|3%
96%|4%
Base: All smartphone users app|web (1104|1063), Android H|L
(432|416,337|317), BlackBerry (99|96), iPhone (239|236)
8
©TNS 2012
Social and IM alone account for 45% of total online
time; gaming for roughly 25%.
Share of daily market face time – split by category
(# minutes per user/day/category)
1
Social networking & connecting
2
Communication
Email*
3
Multi-media & entertainment
1
1
0
Online gaming
Total/Day
19
Personal interest
42
Shopping
Knowledge & education
10
Entertainment
Information
News, sport & weather
1
4
mins.
Personal admin
Planning and organising
Base: All smartphone users – Admin (1044), E-mail (948), Gaming (790), Interest (587), Knowledge (1020), Multimedia (916), News (987),
Organise (1050), Shopping (1080), Social (1083)
©TNS 2012
Management
*E-mail for BlackBerry excluded
9
Apps dominate mobile browsing in almost all
activities. Websites are bigger in the knowledge
category (including search engines).
Distribution in daily application time - applications versus websites
(% of total usage per category)
Reach (% of total users):
94%
8
94%
71%
53%
92%
3
83%
6
89%
19
95%
9
97%
18
98%
2
39
63
92
100
97
94
81
91
82
98
61
37
*
applications
mobile websites
Base: All smartphone users (1107) apps|web – Admin (1005|643), E-mail (934|170), Gaming (780|71), Interest (389|391), Knowledge
(638|967), Multimedia (839|520), News (842|678), Organise (1039|354), Shopping (1062|758), Social (1074|745)
©TNS 2012
*E-mail for BlackBerry excluded
10
Digital in the
path to purchase
Digital Life
© TNS 2011
©TNS 2012
11
The Global Digital Growth Index
High Penetration, Low Index –
Utilise large reach, engage
outliers
High Internet
Penetration
High Penetration, High Index–
Major opportunity, invest
heavily
South Korea
Netherlands
Low Growth
Index
High Growth
Index
China
Ghana
Low Penetration, Low Index–
Tap into latent demand,
plan for future opportunity
Low Internet
Penetration
Low Penetration, High Index –
Drive growth through engaged
early adopters
Digital Life
©TNS 2012
12
The quadrant of the map that each market sits in
has very real implications for how to best utilise
digital in that market
Reach
Engage
Activate
Convert
Plan for
Growth
1
Mid hours/wk
High penetration
Brand resistant
Highly social
Not writing
about brands
Reading about
brands
Online browsing
is routine
Heavy online
researchers
Prioritise the
Path to
Purchase
2
High hours/wk
High penetration
Brand friendly
Highly social
Writing about
brands
Reading about
brands
Online browsing
is routine
Heavy online
researchers
Social media
outreach is a
priority
3
High hours/wk
Low penetration
Brand friendly
Highly social
Writing about
brands
Reading about
brands
Online browsing
when possible
Emerging online
researchers
Offer
opportunities
to co-create
content
4
Low hours/wk
Low penetration
Mobiles driving up
usage
Brand friendly
Social growing
rapidly
Not yet writing
about brands
Not yet reading
about brands
Offline browsing
dominates
Heavy offline
researchers
Deliver on
mobile and
on Social
Top Left
Top Right
Bottom Right
Bottom Left
Digital Life
©TNS 2012
13
Social networks and advocacy present only a small
opportunity for brands to grow through digital
Global
Internet
Penetration
30%
88%
% of internet
users that:
% of internet
users that:
Go online
daily
Are brand
fans on SN
Write about
brands online
Research
brands online
Netherlands
68%
33%
69%
19%
47%
19%
81%
83%
Digital Life
©TNS 2012
14
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Thailand
Nigeria
Philippines
Peru
Vietnam
Mexico
Ukraine
Romania
China
Brazil
Colombia
Morocco
Russia
Saudi Arabia
Turkey
Argentina
Greece
Portugal
Italy
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Czech Republic
Hong Kong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
Switzerland
South Korea
UK
New Zealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
Online users read comments far more than they
write them
% reading about brands
% writing about brands
Internet Penetration
Digital Life
©TNS 2012
15
Advocacy can impact on some categories more than
others, depending on how involved the category is
Mobile Phone
Most read
about
High impact, low quantity –
engage the influencers
PC
Travel
Most advocated –
Join the conversation
ISP
Camera
clothes
Music
Least written
about
Most written
about
Tobacco
Low online chatter –
drive engagement through
creative execution
Lots of noise, little interest –
Track & respond to key
messages
Least read
about
Digital Life
©TNS 2012
16
Who is the real Samsung??!!?
Digital Life
©TNS 2012
17
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Thailand
Nigeria
Philippines
Peru
Vietnam
Mexico
Ukraine
Romania
China
Brazil
Colombia
Morocco
Russia
Saudi Arabia
Turkey
Argentina
Greece
Portugal
Italy
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Czech Republic
Hong Kong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
Switzerland
South Korea
UK
New Zealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
In mature markets like the Netherlands researching
products and purchasing products on line is huge!
% using Digital to research products or services
% using Digital to purchase products or services
Internet Penetration
Digital Life
©TNS 2012
18
People do more research for highly involved (and
higher priced) purchases, and a greater percentage
of this research takes place online
% researching
online
89
87
87
73
73
TV
Travel
68
80
31
22
20
25
19
9
10
10
9
Cleaning
products
Food
Personal
hygiene
Alcohol
45
20
Prescription
Medicine
Credit cards
New Car
Question: E9; Researched on or offline Base: All Purchasers 366,427,430,401,296,74,103,262,588
Digital Life
©TNS 2012
19
Influencing purchase behaviour used to be so
simple...
Digital Life
©TNS 2012
20
...until the Internet came along
Digital Life
©TNS 2012
21
Various sources come into play at different stages in
the path to purchase
Drive
awareness
Help explore
and select
Become
aware of new
products /
brands that
are available
Decide where
to buy
Receive
Customer
Service
Stay in touch,
and keep up-todate, with a
brand
Decide where to
buy the product
for the best
overall deal
Explore different
products or brands
and select the
best one for my
needs
Use the product /
service better and
have questions
answered about it
Digital Life
©TNS 2012
Keep in touch
with the brand
22
Earned media plays a large role in all stages of
the purchasing process
Average number of sources used
Bought
Drive
awareness
Help explore
and select
Owned
Decide where
to buy
Earned
Receive
Customer
Service
Keep in touch
with the brand
Question: P1-P3; Sources of information important to stage ACROSS ALL CATEGORIES Base: All Purchaser 935
Digital Life
©TNS 2012
23
Bought media has a large role in driving awareness
and maintaining the relationship
Average number of sources used
Bought
Drive
awareness
Help explore
and select
Owned
Decide where
to buy
Earned
Receive
Customer
Service
Keep in touch
with the brand
Question: P1-P3; Sources of information important to stage ACROSS ALL CATEGORIES Base: All Purchasers 935
Digital Life
©TNS 2012
24
Word of mouth and other earned media play a
strong role for consumers researching products
online
% using touchpoint to research
69%
56%
35%
6%
Banner Ad
12%
Online
video ad
12%
13%
14%
38%
Bought media:
Utilised by 67%
50%
28%
31%
23%
17%
Email Ad
Newspaper
Ad
57%
TV Ad
Brand page
on SN
25%
12%
Online
retailer
website
Product
sample
Sales
assistant
Owned media:
Utilised by 84%
Brand
website
Online
Consumer Consumer
consumer views on
views on
video
microblogs
SN
Digital Life
©TNS 2012
52%
41%
21%
Search Ad Social Net. Online viral Direct mail
Ad
ad
60%
Expert
review
Consumer
Price
review Comparison
site
Word of
mouth
Earned media:
Utilised by 85%
25
Zoom in: owned and earned media
Brand websites still hugely important!!
% using touchpoint to research
Price Comparison site
57%
Consumer review
52%
Expert review
50%
Consumer views on SN
25%
Consumer views on microblogs
Online consumer video
23%
Earned media:
Utilised by 85%
12%
Brand website
Online retailer website
60%
28%
Owned media:
Utilised by 84%
Digital Life
©TNS 2012
26
Differing levels of research and buzz across
categories, means different opportunities to
engage consumers
Highly researched but rarely
talked about – ensure
information hungry
consumers are kept up-todate with info
Highly
Researched
car
pc
Mobile
tv
Highly engaged and talkative
consumers – engage via
multiple channels and
Travel
touchpoints
bank
Low Levels of
Category
WoM
clothes
Credit Cards
Baby
food
Cosmetics
Low levels of engagement –
tobacco
buy media or produce a
campaign that’s engaging in
its own right
Buzz heavy but important
sources of information are
offline – earn media and
invest in offline
Personal Hygiene
Lightly
Researched
Digital Life
©TNS 2012
High Levels of
Category
WoM
27
And define the optimal mix of media across
product categories
Highly
Researched
OWNED
EARNED & OWNED
Ensure information-hungry
consumers are kept up-to-date
with information
Engage customers through
multiple channels and
touchpoints
Low Levels of
Category WoM
High Levels of
Category WoM
BOUGHT
EARNED
Buy media or produce a
campaign that is engaging in its
own right
Earn media and invest in offline
communication
Lightly
Researched
Digital Life
©TNS 2012
28
Earned and owned media BOTH important
Baby care products
Food
Credit cards
Personal care products
Over-the-counter
medicines
Holiday/travel
Banking products
A PC/Laptop/Tablet
Insurance policy
Cameras
Mobile phones
TV
New cars
0%
10%
20%
30%
40%
Manufacturer's/service provider websites
50%
60%
80%
90%
Consumer product review sites
Digital Life
©TNS 2012
70%
29
Searching, searching, searching
21.49: Google: Samsung tv
21.50: Plasma discounter.nl
Samsung UE40D6500
Specs
22.04: Google: UE40D6500
22.04: Tweakers
Expert review
Specs
Afbeeldingen
22.08: Google: UE40D6500
22.09: Beste product.nl
video
22.15: Google: Samsung
22.15: Samsung
Specs
What is smarttv
22.30: Kieskeurig
Lees reviews
22.39: Google: UE40D7000
22.39: Kieskeurig
Lees reviews
22.57: Plasmadiscounter
youtube filmpje
23.02: Google: Philips 40PFL8608
The searching continues!!!
©TNS 2012
Session: 70 minutes
Visited:
1 e-tailer
5 times back to google
1 time you tube
2 cons/prof. review / price comp.
2 prof. review / price comp.
2 manufacturer sites
Source: TNS NIPO clicks
Shoppers go to price comparison sites, review
sites and manufacturer sites
All in one session
We all know this!!
Manufacturers:
Can you combine them?
Should you combine them?
Digital Life
©TNS 2012
31
What should brands do?
The facts
- Brand websites are important
- Shoppers are looking for reviews anyway
- Many brand sites are static and specs driven
- Reviews can give a personal touch to your brand
- You are open to criticism (Everyone makes
mistakes) and you can show what you do with it
- You can keep them on your site
Questions
- Do people trust it?
- Can you colaborate with (r)e-tailers?
- Can you colaborate with review sites?
- Is it building trust and image and
does it help in the conversion as well?
Earn your owned Media!!
Digital Life
©TNS 2012
32
X
One size fits all?
Digital Life
© TNS 2011
©TNS 2012
33
6 Digital Lifestyles
INFLUENCERS
Het internet is een integraal deel van mijn leven
COMMUNICATORS
Ik houd er gewoon van om te praten en mezelf uit te
drukken
KNOWLEDGE-SEEKERS
Ik gebruik internet om kennis op te doen, informatie op te
zoeken en mezelf te ontwikkelen.
NETWORKERS
Internet is belangrijk voor mij om relaties aan te gaan en te
onderhouden
ASPIRERS
Ik zoek online naar een persoonlijke plek
FUNCTIONALS
Het internet is een functioneel hulpmiddel
Digital Life
©TNS 2012
34
On the digital consumer engagement map, the
relationship between behaviour and attitude
towards digital is not linear
Internet is commoditised
HIGH
CONSUMPTION
Is the centre of my life
Makes my life more efficient
LOW
INVOLVEMENT
HIGH
INVOLVEMENT
Internet is aspirational
Internet is irrelevant
Helps me achieve my goals
Not a big part of my life
LOW
CONSUMPTION
©TNS 2012
Internet is pivotal
Digital Life Netherlands Report
© TNS 2011
There is really high involvement with the internet in the emerging
markets
HIGH
CONSUMPTION
Internet is pivotal
Internet is commoditised
Is the centre of my life
Makes my life more efficient
LOW
HIGH
INVOLVEMENT
INVOLVEMENT
Internet is functional
It helps me to be productive
LOW
CONSUMPTION
Internet is aspirational
Helps me achieve my goals
Digital Life Netherlands Report
© TNS 2011
©TNS 2012
41%
5%
18%
5%
16%
15%
Digital Life Netherlands Report
© TNS 2011
©TNS 2012
All segments shop online
Users
Consumers
% daily internet
users
Functional
Knowledge Seeker
60
66
% with brand
connections in
social media
% writes online
about brands
16
11
22
Communicator
84
Influencer
85
Networker
85
Advocates
35
31
64
30
66
30
65
20
Digital Life
©TNS 2012
% research online
64
23
41
Customers
67
38
relevant
• A
very large group
• On average they are
• They
online consumers are hardly ‘social’
older
and have
more to spend
shop online
Digital Life
©TNS 2012
39
1.
Help them finding practical
information and be present at price
comparison sites
Digital Life
©TNS 2012
40
2.
Help them to go right on target
Digital Life
©TNS 2012
41
3.
They need reassurance and do read
reviews!
Digital Life
©TNS 2012
42
4.
Online is one of their sources
high
Other
(mass)
medium
low
low
high
online
Digital Life
©TNS 2012
43
The digital path to purchase
”The principles of shopping will
remain the same, and success for
brands and retailers along the path
to purchase will only be achieved if
they can find ways to
save shoppers time, money and
angst. “
Barry Lemmon; global Head retail & shopper TNS
Digital Life
©TNS 2012
44
Digital in
the path to
purchase
Based on TNS Digital Life /
Mobile Life and Mobile 360
©TNS 2012
Martin Warmelink
TNS NIPO
06 53720496
martin.warmelink@tns-nipo.com