How people conduct retail research, then purchase online and off-.
I attended an interesting presentation recently as part of the Yahoo Summit Series. The presentation covered research Yahoo and OMD conducted about the purchase process across a number of categories. The study examined how people conduct their own research, then make a purchase, online and off-. Though a majority of purchases still take place offline, the research shows online plays a critical role in the process.
The study incorporates 4,301 online surveys and 13 in-depth and in-home ethnographies. OMD and Yahoo specifically looked at people with broadband access who intended to purchase within one of the following categories:
Though consumers take varying paths to the cash register, the study shows patterns can be observed in the way people research and buy across those categories. The researchers drew some conclusions from those patterns, particularly from statements people make about their values and personality traits when they choose those patterns. The patterns and personality traits they defined and observed are:
The researchers went on to associate purchase patterns with the categories they observed. Across each category, they looked at most common, moderately common, and least common paths. Some findings were predictable: consumers of packaged goods typically take short paths, while car buyers take long and winding paths.
What was interesting was an analysis of brand loyalty across the different paths. In the winding and long and winding paths, there is little brand loyalty, which means there is a great opportunity to influence the consumer throughout these patterns. The research shows 30 to 63 percent of shoppers were undecided about the brand prior to shopping.
The research also suggests technology and evolving shopping patterns have changed the purchase funnel into a "tumbler," meaning people now get lower in the funnel, then widen their consideration set as they get closer to a purchase decision. Technology has given consumers access to more information, so they've become an ever-shifting target. Media planners must work ever-harder to understand these patterns and broaden their approaches.
Consider this research (PDF download) next time you're developing a media plan. Think about the paths your consumers might take, what those paths say about their personalities, and all the environments into which your consumers will enter. It will likely result in a much more diverse media plan, including things like blogs, mobile platforms, podcasts, shopping engines, instant messaging platforms, and who knows what else.
If you've implemented a media plan that takes these sorts of consumer patterns into account or are considering doing so, let me know how it goes.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
Wednesday, July 23, 2014