The Consumer Path to Purchase
John Thekanady
Client Services Director
Kantar Media Compete

Digital Insights are in our DNA
Strategic partnerships
The industry’s largest
consumer-centric panel
Connecting the dots
Founded in 2000, • Most granular data
joined Kantar in 2008 Fastest-growing digital • Industry experts
insights company
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Data Data Everywhere...
The Consumer Path to Purchase

Data Data Everywhere…
The Consumer Path to Purchase

How Can We Turn…
Data complexity Business advantage
The Consumer Path to Purchase 5

Online Advertising Alone has Hundreds of Data Points…
Title of the presentation 6

This Challenge Involves 3 Familiar Steps…
Insight Strategy Execute
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Distilling Insights From a Large Amount of Data Points…
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For Example…
We would like to engage you to
conduct an audience profiling
study which will be combined with
our sub-conscious brand
perception research and the social
favourability research to create a
complete picture of the x car
buyer
Title of the presentation 9

Background Context...
Global Ecommerce is
expected to rise from
$630bn this year to $930bn
in 2013
Retail space has increased
over 200% from 40m sqm in
2002 – 130m sqm today
Source: WPP consumer insights
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Nearly a Third Prefer to Shop Online rather than Instore
Sales
27% 29%
I shop more online than I
do in the shops
I shop more instore than I
do online
44% I shop online & in store
equally
Kantar Media Compete Shopper Intelligence Report Q3 2010
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Case Study
The Consumer Path to Purchase

The Business Question…
Should client invest more into
upgrading & enhancing their website
experience or should they explore
deeper partnerships with retailer
sites in order to increase sales?
The Consumer Path to Purchase

Every Purchase Starts with a Journey…
Title of the presentation 14

The Framework Applied: A Sportswear Case Study
Understand the influence of the internet on
how the training shoe shopper makes
purchase decisions online and in-store
Clickstream Survey
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About 1 in 3 Online Athletic Footwear Shoppers Favour
Online Purchasing Versus the Traditional Store
Why do you prefer to purchase athletic footwear online/in-store? (G4)
Prefer Online Purchasing (n=398) Prefer In-Store Purchasing (n=693)
Better prices 60%
Prefer to try out the product in person 88%
Easier to shop on a computer 60%
Product shipped directly to me 60% Cost of shipping is too high 33%
Easier to compare prices 59%
Prefer to get items immediately rather
32%
Better selection
than waiting for shipment
54%
Free shipping 53% Better prices 16%
Faster shopping experience 45%
Access to a salesperson 12%
I can find out more about he product online 37%
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Purchasers Approach the Online Space Differently if They
Intend to Use it for a Purchase
Q13: What types of research did you perform prior to making this purchase? (n=436)
I visited a store to see or try on the 71%
footwear 20%
59%
I looked for information online
55%
I saw an advertisement for the 21%
footwear 14%
I spoke with friends or family I fisited 20%
a store 15%
In-store Purchasers
I read an article or professional review 13%
in a magazine or other publication
Online Purchasers
8%
4%
I didn't perform any research
24%
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While Both Online and In-Store Purchasers Gravitate
Toward Manufacturer and Retailer Websites…
Which of the following online resources How INFLUENTIAL was each of the
did you use/visit to shop for this athletic following on your decision-making
footwear? (Q14: n=436) process?
(Q 15: Top 2 Box Score, 5 point scale, n=60-255)
61% 75%
59% 57% 68%
61% 63%
42% 54%
50%
42% 44%
15% 16%
13% 15%
3% 1% 3% 3%
Brand Retail Fitness Consumer Video Social
websites websites websites generated websites Network Brand websites Retail websites Fitness websites Consumer-generated
reviews websites reviews
Online Purchasers Instore Purchasers
Online Purchasers Instore Purchasers
18
The Consumer Path to Purchase

…The Timing and Purpose for Visiting these Sites Varies
Based on Where Consumers Ultimately Purchase
Thinking about your most recent athletic footwear purchase, when did you use each of the
sources when deciding WHAT to buy? (Q16: n=163-190)
Manufacturer/Brand Websites Retail Websites
41% 48%
39%
31% 31%
30% 30%
23% 27%
24%
15% 20%
14%
14%
6% 8%
When I started to When I was When I was When I was When I started to When I was When I was When I was
shop for athletic exploring products making product making the final shop for athletic exploring products making product making the final
footwear I might buy comparisons decision about the footwear I might buy comparisons decision about the
purchase purchase
Online Purchasers Instore Purchasers
Online Purchasers Instore Purchasers
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After the First Visit to the Client Site, Most Purchases are
Seen on Retailer or Pure Plays
Purchase Path Share After First Client Site Visit
Share of paths leading to conversion one week after initial visit to Client site
37%
35%
6%
6%
4%
- Department Stores - Manufacturers - Pure Plays - Retailers
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Consumers Purchasing on the Retailer Channel Seek More
Product Information than Other Buyers
Product Visits One Week Prior to Purchase
Timeline of product visits as a share of all product visits one week
before channel conversion,
52%
50%
45%
37%
23% 24%
21% 23% 21%
19%
15% 16%
13% 14% 14% 14%
4-7 Days Before 2-3 Days Before Day Before Same Day
Department Stores Manufacturers Pure Plays Retailers
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A Snippet of our Recommendations…
Shoppers Brand.com Retailer/PP site Instore
Instore Inspiration: incentivise to purchase Volume footfall, price Purchase: POS info on how to
on site, ensure easy comparison: increase share research/purchase next purchase on
return/exchange process of shelf, depth of content brand site, investigate click to store
options
Online Use them but generally have an idea Volume footfall, price One fifth try on in store and purchase
of what they want: incentivise to comparison: increase share at an online retail site: make returns
purchase on site of shelf, depth of content and exchange process easier online
Title of the presentation 22

In Summary…
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Thanks…
John Thekanady – Client Services Director
kantarmedia.compete.com/
twitter.com/CompeteUK
Please visit our site to access our Shopper Intelligence Report:
kantarmedia.compete.com/news
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