conversion2013 - laurent de goof - gfk panel services

© GfK 2013 | How to improve the online conversion | February 2013 1

April, 2013

OWN THE FUTURE OF ONLINE CONVERSIONDutch Market Findings

Laurent de Groof


Emerging Shopper Insights Own the future of online conversion

• Drivers of online shopping

• Online conversion in Fashion.

TOPICS


Xtreme Shoppers Are Defined By Their High Shopping Engagement And Heavy Use Of Technology

Has used smartphone and/or tablet to shop* in the past 6 months

Actively using internet in shopping

− Engaged in at least 4 specific online shopping behaviors in the past 6 months (e.g. searching best price, read product reviews, purchase a product)

Definition

*By “shopped” we mean the process of browsing, comparison shopping, information gathering, or the actual purchase of items.


Xtremes Are Better Educated And Affluent

Education Household Income

“Low Educated”

14%Xtremes 35%

Non-Xtremes

“High Educated”

36%Xtremes 24%

Non-Xtremes

17% 29%

56%48%

28% 23%High income

Middle income

Low income

Base: Xtremes n=117 & Non-Xtremes n=483

>65,000 euro

<26,000 euro Xtremes Non-Xtremes


Smartphone and tablet shopping is coming up!

Shopping Through Home Computer Nearly Universal

Devices Used for Shopping in Past 6 Months(% Shoppers Using)

None

Another device

Tablet

Smartphone

Computer at work

Computer at home

2%

1%

7%

5%

13%

87%

0%

2%

66%

58%

28%

95%

Xtreme Shoppers Non-Xtremes

Base: Xtremes n=117 & Non-Xtremes n=483


For 35+ shoppers, tablet shopping is more common

18-24 25-34 35-49 50-64 65+

47% 40%

16%

9%

4%

17%

35%

21%23%

19%

Age

Smartphone Shopping Peak In The 18-34 And Tablet Shopping Peak In The 25-34 Demo

% Using Mobile Devices to Shop in Past 6 Months

Base: Smartphone n=84 & Tablet n=97


Price Comparisons Is A CommonTablet Shopping Activity and Product Picture Taking A Smartphone Shopping Activity

Smartphone/Tablet Shopping Top Activities(% Shoppers)

Compare prices Locate a store Search product info / reviews

Take a picture of a product

16%

23%

17%

22%

31%

25%23%

5%

Base: All shoppers who used a Smartphone n=188 & Tablet n=164


• Food & Beverages, Household Cleanings, OTC and Personal Care (cosmetics included) categories still predominantly shopped in-store

• Bigger ticket categories drive more online activity

Preferred Shopping Methods Vary Widely By Category

Where Shopped for Category(Last 6 Months)

Food & B

eve...

Household

Cl...

OTC

Personal C

areToys

Fashio

n

Home A

pplia...

Mobile

Phones

Consum

er Ele

c...

94% 94% 91%77%

50% 43% 40% 31%19%

1% 2% 2%4%

10%10% 25% 35%

32%

5% 4% 7%

19%40% 46%

35% 35%48%

Shop in-store only Shop online only Both

IntroductionOnline conversion in Fashion


Any idea whose website this is?


Online retailers researched in the analysis:


Media efficiency panelonline gedrag on desktops and laptops

URLS

SEARCH TERMS

SEARCH RESULTS

SPONSORED LINKS

CLICKS (ADS)

DISPLAY ADS: BANNERS

CONTENT / KEYWORDS

VIDEOS

PRE ROLLS


What are the retailers with the highest conversion?


Development in reach of websitesperiod: Q1 2011 - Q4 2012

Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q40

5

10

15

20

25

30

35

40

45

50

9 9 9 10 11 11 1011

2421

17 17

22 21 2022

average 13 retailers Zalando

%


Development in reach websitesperiod: Q1 2011 - Q4 2012

Top 3

1% → 19%

0% → 5%

0% → 5%


Affiliates (16%)*

Favorites (7%)

Search (11%)*% of the visits that is related to affiliate programmes

How consumers come to the website (Pre URL’s).


Duplication with fashionchick.nl is small

18

wehkamp.nl

msmode.nl

c-and-a.com

mexx.nl

otto.nl

wefashion.nl

scapino.nl

zalando.nl

missetam.nl

hm.com

hunkemoller.nl

esprit.nl

brandos.nl

vimodos.nl

asos.com

zappos.com

0.0% 10.0% 20.0% 30.0% 40.0%

fashionchick.nl

% that visits Fashionchick.nl

Source: GFK Media efficiency Panel Q4 2012


Average Zalando

5%

14%

21%

32%

62%

90%

Awareness

Top of MindSpontaneous AwarenessAided Awareness

Awareness Zalando on all aspects higher than average!


Zalando scores below average on image. Especially on product quality and price and promotion strategy Zalando scores below average

Gemiddelde score

retailer

Overall gemiddelde

Ruim assortiment 3.61 3.54

Producten gaan lang mee 3.28 3.47

Kwaliteit 3.25 3.37

Vormgeving/desing website 3.43 3.53

Snelle levering 3.47 3.46

Eenvoudige annulering 3.34 3.31

Ruilen- en retourservice 3.54 3.52

Duidelijkheid website 3.13 3.37

Overzichtelijkheid website 3.52 3.56

Prijs 3.32 3.53

Veiligheid website 3.43 3.59

Aanbiedingen/acties 3.38 3.53

-1 0 1


Recommendations

A significant improvement of the price and promotion strategy would improve the conversion rate of Zalando most.

All though the service level of Zalando has an average score, the conversion rate could be improved if the service levels go up on easy returning and flexible returns.

When the delivery time will be brought back to 5 day or less the conversion rates of Zalando go up significantly.

Product Quality is not often mentioned as a driver of online sales. But without the look and feel of a “real” store, quality becomes more important when products are purchased via the internet


Gemiddelde score

retailer

Overall gemiddelde

Ruim assortiment 3.70 3.54

Producten gaan lang mee 3.15 3.47

Kwaliteit 2.92 3.37

Vormgeving/desing website 3.45 3.53

Snelle levering 3.23 3.46

Eenvoudige annulering 3.39 3.31

Ruilen- en retourservice 3.69 3.52

Duidelijkheid website 3.56 3.37

Overzichtelijkheid website 3.59 3.56

Prijs 3.92 3.53

Veiligheid website 3.75 3.59

Aanbiedingen/acties 3.76 3.53

-1 0 1

H&M has the highest score Price and promotion strategy and scores wel above average on service!


Omni channel promotion strategy of H&M works wel!


Why H&M scores high on conversion?

The Omni channel promotion strategy (personal leaflet) works wonderful for H&M.

Not the highest but a higher than average score on service (easy canceling and flexible returns).

H&M has the right target group, females in the age class 20-49

It’s possible to pay afterwards with accept giro


Laurent de Groofmanaging consultant media

Tel: +31-(0)162-384 366 E-mail: [email protected]

THANK YOU FOR YOUR CONTRIBUTION


May 2013

Launch Mobile Measurement in the Netherlands

September 2013

conversion2013 - laurent de goof - gfk panel services

Technology

comparison shopping

high shopping engagement

high income

low income

product reviews

xtremes nonxtremes29

middle income56h

emerging shopper insightsown