Service Seekers Stay in the 'Hood
Research indicates that more than half of all online requests for quotes are for service-based businesses – usually right in the user's own community.
Research indicates that more than half of all online requests for quotes are for service-based businesses – usually right in the user's own community.
While the global power of the Internet is largely recognized, Respond Networks has found that many American consumers use the Web to connect with local service-based businesses.
Respond’s research indicates that approximately 60 percent of all online requests for quotes (RFQs) are for services, as opposed to hard goods. That figure is right in line with the U.S. Department of Commerce estimate that the service industry represents two-thirds (66 percent) of the total gross domestic product, totaling more than $2.5 trillion in the year 2000.
“The Internet is a great resource for consumers to research and purchase specific types of services, from insurance and mortgage brokers, to travel and real estate agents,” said Lyn Chitow Oakes, president and CEO of Respond. “Our research shows that consumers are now using the Web for more complex transactions that require a high level of personal and typically localized service. As a result, the Internet presents a great opportunity for smaller, regionalized businesses to market and sell their services. As consumers continue to turn to the Web as a primary channel for buying services, we expect that this trend will continue to grow.”
Key findings from the report include:
Consumer Requests for Quotes | |||
---|---|---|---|
Top 20 Service Categories | % of Total Requests | Cumulative % | |
1. | Hotels & Motels | 5.1 | 5.1 |
2. | Auto Insurance | 4.3 | 9.5 |
3. | Apartment / House Rentals | 3.7 | 13.2 |
4. | DSL Service Providers | 3.4 | 16.6 |
5. | Day Spas | 3.4 | 20.0 |
6. | Internet Service Providers | 2.7 | 22.7 |
7. | Airline Tickets – For U.S. Travel | 2.3 | 25.0 |
8. | Cruise Vacations | 2.1 | 27.1 |
9. | Limousine Services | 2.0 | 29.1 |
10. | Auto Glass Repair & Replacement | 1.7 | 30.8 |
11. | Health Insurance | 1.6 | 32.4 |
12. | Dance Instruction | 1.5 | 33.9 |
13. | New Cars | 1.4 | 35.3 |
14. | Catering | 1.4 | 36.7 |
15. | Caribbean Travel | 1.4 | 38.1 |
16. | Pest Control Services | 1.3 | 39.4 |
17. | Travel Consultants | 1.3 | 40.6 |
18. | Florists | 1.2 | 41.8 |
19. | Photographers | 1.2 | 43.0 |
20. | Massage Therapy | 1.2 | 44.2 |
Source: Respond Networks |
Consumer Requests for Quotes | |||
---|---|---|---|
Top Metropolitan Areas | % of Total Requests | ||
1. | Outside Any Metro Area | 15.1 | |
2. | New York | 8.5 | |
3. | Los Angeles | 6.0 | |
4. | Washington-Baltimore | 4.3 | |
5. | Boston | 3.3 | |
6. | Chicago | 3.1 | |
7. | Dallas-Fort Worth | 2.8 | |
8. | Philadelphia | 2.8 | |
9. | San Francisco Bay Area | 2.6 | |
10. | Atlanta | 1.9 | |
Source: Respond Networks |
The findings are significant as they demonstrate increased reliance on the Internet, combined with geographic centralization. Surfers seem to be using the Web as a local phone book, searching for businesses in their own general vicinity.
“The findings that consumers are increasingly using the Internet to initiate commerce for a growing variety of services is an important trend for advertisers,” commented Greg Stuart, president and CEO of the Interactive Advertising Bureau. “As the Internet continues to evolve and mature as a sales and marketing channel, advertisers will likewise be able to extend their efforts into new, valuable segments. The marketing of local services online clearly represents an immediate and compelling opportunity for advertisers.”