2011 ZMOT Macro Study

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Google/Shopper Sciences U.S., April 2011 The Zero Moment of Truth Macro Study

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ZMOT

Transcript of 2011 ZMOT Macro Study

Page 1: 2011 ZMOT Macro Study

Google/Shopper Sciences U.S., April 2011

The Zero Moment of Truth Macro Study

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Google Confidential and Proprietary

Objectives

How is shopper behavior changing in a digitally powered world?

What role do new media like social & mobile in shopping?

How are shoppers’ expectations of the physical retail store changing?

How does pre-shopping change actual purchasing?

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

Methodology

Online shopper surveys with interactive game-like construct

Fielded in March 2011 in the US

Connect as close to purchase decision as possible

N=5,000 Shoppers: –  500 each in Auto, Tech, Travel, Voters,

Restaurant, OTC Health, CPG Grocery, CPG Beauty/Personal Care

–  250 each in Credit Cards, Banking, Insurance, Investments

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A quantitative review of decision making behavior across shopping, services and voting.

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

Summary

•  The length of the shopper’s purchase journey varies greatly by category. But even within a spontaneous category like restaurants, we see thoughtful behavior of several hours to several days leading up to decision.

•  The number of sources used by any shopper for any average shopping occasion has almost doubled, from 5.2 to 10.4 sources used.

•  84% of all shoppers use ZMOT sources in the path to purchase (f. ZMOT is a critical part of any shopper’s purchase journey and is as important, if not more, than stimulus and FMOT.

•  Searching online is at the same level or eclipsing friends and family as a source used in the purchase process, which is a first.

•  While overall usage of online social and mobile sources are lower than other sources, they are on the rise. Among the group who use online social and mobile sources, they rank the mobile information as highly influential in shaping their ultimate purchase decisions.

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Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

Traditional 3-Step Mental Model of Marketing

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First Moment of

Truth

Second Moment of

Truth

Stimulus

At shelf In-store

Experience

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

The New Mental Model of Marketing

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First Moment of

Truth

Second Moment of

Truth

Stimulus

Pre-shopping | In-store | In-home

At shelf In-store

Experience

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

We asked shoppers 4 key questions:

When? Purchase Timeline

What traditional and new media sources did shoppers use to help them decide on their purchases?

What? Source Usage

How far in advance do shoppers start thinking about their purchase?

Why did shoppers consult the internet? What information where they looking for?

Why? Information-Seeking

How much? Influence How influential were each of the sources in the ultimate decision making?

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Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

0%

5%

10%

15%

20%

25%

30%

More than a year before

7-12 months before

4-6 months before

2-3 months before

A month before

3 weeks before

2 weeks before

A week before

4-6 days before

2-3 days before

One day before

9-12 hours before

5-8 hours before

3-4 hours before

1-2 hours before

Within the hour of my purchase

A few moments before I

purchased

Restaurant Voters Travel Automotive OTC Health Tech CPG Personal Care CPG Grocery Investment Banking Credit Card Insurance

The length of a purchase cycle varies The longest purchase cycles belong to Travel, Voters, Auto & Tech while the most “spontaneous” category is Restaurants. But even within Restaurants, a majority of shoppers still take several hours to several days to make that decision.

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 N = 5,000 www.google.com/think/insights

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Google Confidential and Proprietary

Shoppers today use twice as many sources to arrive at a decision and use each source almost twice as heavily as in the past

5.27

10.4

2010 2011

Avg # Sources Used

Shoppers today are able to process an enormous amount of information

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

5.8 7 7.3 9.8 8.6 8.9 10.2 10.8 11.7

14.8 18.2

14.7

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Hea

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Cre

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Ban

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Insu

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Tech

Aut

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Vote

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Average # of Sources Used by Category

Shoppers can range from using an average of 5.8 sources when choosing a Restaurant to a high of 18.2 sources used by Automobile shoppers.

Shoppers use a range of sources, depending on type of decision

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

37% 31%

29% 28%

27% 24%

23% 22% 22%

21% 18%

50% 49%

38% 36%

31% 22% 22%

18% 41%

37% 33%

30% 20%

19%

Saw ads on TV Received mail at home from a brand manufacturer

Saw an ad in a newspaper Read newspaper articles

Read magazine articles Saw ads in a magazine

Read an email received from a brand Noticed ads online

Received mail at home from a retailer Watched a TVprogram that featured the product

Saw an ad on an outdoor billboard Searched online with a search engine

Talked with friends / family about the product Comparison shopped products online

Sought information from a brand/manufacturer website Read product reviews online

Sought information from a retailer website Read comments following an article online

Became a friend/follower/”liked” a brand Looked at the product package in the store

Read brochure about the product in the store Talked with a salesperson in the store

Looked at signage/display about the product in the store Talked with a customer service rep on the phone

Tried a sample in the product in a store

Searching online and word of mouth are among top ZMOT sources

Stimulus

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003

ZMOT

FMOT

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

76% 84%

77%

Stimulus ZMOT FMOT

ZMOT sources are equally important, if not more important, than Stimulus and FMOT

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

69% 76% 86% 75% 84%

79% 70% 79%

63% 64% 65% 67%

99%

81%

75% 84% 97%

91% 81% 94%

89% 78%

63% 61% 72%

99% 95%

92%

70% 77% 97%

76% 47% 79%

57% 83% 95% 93%

76% 34% 77% 89%

Stimulus ZMOT FMOT

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base: N=5,003

Overall, shoppers are using more ZMOT sources in 2011 than in 2010

Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

Shoppers turn to the Internet mostly for location based information. Social and mobile are at its infancy but growing

Categories of Internet Behaviors % of shoppers that

engage in the behavior

Tactical behaviors within the category

Location 41% Got maps / directions to the store Got information on a particular store (hours, parking, etc.) Read reviews on a particular store Found locations of the store

In-Store Information 30% Checked availability of the item in the store Looked for information on upcoming sales at the store

Call to Action 29% Set price alerts to be notified Added sale date information to your calendar Held or reserved an item in the store Called a store from phone number provided online

Took to Store 26% Printed out information to take to the store Looked for online coupons that you can use in the store

Additional Media 25% Looked up Rewards Programs / Points programs Looked at newspaper inserts / coupons online

Compared to Other Media 19% Compared to information found in newspapers or magazines

Compared to information found in the yellow pages

Sharing/Social 19% Read my friend’s reviews on a product or look at their likes / fan pages Saw what others who viewed the item actually purchased Sent a link to someone else for their input Recommended a site or product to my friends on a social networking site

Mobile 14% “Checked in” to a location with your mobile phone Used mobile phone to find directions Used mobile phone to find the best prices Used search engine on my mobile phone

Q8 Below are some ways that other people say they use the Internet when researching a purchase decision. Which of the following things did you do during your recent purchase? You may select as many as apply. Base N=5003

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

58%

57%

54%

51%

50%

40%

37%

37%

33%

32%

30%

27%

22%

16%

Net Influence – Top Sources Above Average

Traditional media influence drops off strongly in comparison to retail, search and word-of-mouth.

Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.” You may select any number in between 1 and 10.

Looked at the product package in the store

Talked with a salesperson or associate in the store

Comparison shopped products online

Talked with friends / family about the product

Searched online with a search engine

Sought info on a brand/manufacturer website

Read brochure about the product in the store

Read product reviews or endorsements online

Looked at display about the product in the store

Read newspaper articles/reviews/information

Read magazine articles /reviews/information

Saw an ad in a newspaper / newspaper insert

Received direct mail from a brand / manufacturer

Saw advertisements on television

Comparison shopping online and searching online rank high among what influences the shopper’s ultimate decision

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Social and mobile are growing significantly in influence compared to year ago

Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.” You may select any number in between 1 and 10.

56%

51%

39%

32%

27%

24%

Offline Social

Retail

Online General

Online Social

Mobile

Direct/Event

TV/Radio

Print/Outdoor

37%

34%

55%

60%

31%

19%

16%

24%

14%

21%

2010 Macro Study

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

50%

21%

13%

10%

6%

4%

4%

41%

Almost 1 in 4 are sharing digitally, but this is not a mainstream behavior, yet.

Q7 After buying BLANK, which of the following activities did you do to share your experience? Base: N=5,003

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Mentioned it to friends/family

Mentioned it to a co-worker

Took a survey

Wrote about it on a Facebook page

Wrote a customer review on a website

Wrote about it in a blog

Posted Tweets about it

None of the above

Q7 After buying [PRODUCT], which of the following activities did you do to share your experience? Base: N=5,003

Post Purchase Behavior

24% of shopper engage in some digital SMOT behavior

Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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Google Confidential and Proprietary

Summary

•  The length of the shopper’s purchase journey varies greatly by category. But even within a spontaneous category like restaurants, we see thoughtful behavior of several hours to several days leading up to decision.

•  The number of sources used by any shopper for any average shopping occasion has almost doubled, from 5.2 to 10.4 sources used.

•  84% of all shoppers use ZMOT sources in the path to purchase (f. ZMOT is a critical part of any shopper’s purchase journey and is as important, if not more, than stimulus and FMOT.

•  Searching online is at the same level or eclipsing friends and family as a source used in the purchase process, which is a first.

•  While overall usage of online social and mobile sources are lower than other sources, they are on the rise. Among the group who use online social and mobile sources, they rank the mobile information as highly influential in shaping their ultimate purchase decisions.

18 Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights

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