Valuable Connections: Reaching the Right Customer Segment, Experiment, and Optimize November 10, 2011
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Zero Moment of Truth November 10, 2011 John Ross
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The Traditional Mental Model of Marketing
Stimulus
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First Moment of Truth
Second Moment of Truth
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Historical “Interrupters” of Three Moment Model
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Google Confidential
The New “Four Moments” Mental Model
Stimulus
First Moment of Truth
Second Moment of Truth
Which becomes the next person’s ZMOT
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Google confidential
We asked shoppers 4 key questions: When? Purchase timeline How far in advance do shoppers start thinking about their purchase?
What? Source usage What traditional and new media sources did shoppers use to help them decide on their purchases?
How? Influence How influential were each of the sources in the ultimate decision making?
Why? Information-seeking Why did shoppers consult the internet? What information where they looking for?
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Google confidential
Methodology A quantitative review of decision making behavior across shopping, services and voting. • Online shopper surveys with interactive gamelike 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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Google Confidential
The purchase timeline varies by category Average length of purchase cycle Tech, Voters, Automotive, Finance OTC Health, CPGs 5% 5% 8% 12%
Restaurant, CPGs 10%
More than a 7-12 months year before before 4-6 months before 2-3 months A month before before
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3% 3 weeks before
5% 2 weeks before
7% A week before
4% 4-6 days before
8% 2-3 days before
7% 1% One day before
9-12 hours before
1% 5-8 hours before
2% 3-4 hours before
6% 1-2 hours before
8% Within the hour of my purchase
8% A few moments before I purchased
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Shoppers today are able to process an enormous amount of information Shoppers today use twice as many sources to arrive at a decision Avg # Sources Used 10.4
5.27
2010
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2011
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Shoppers use a range of sources, depending on type of decision From an average of 5.8 sources when choosing a Restaurant to a high of 18.2 sources used by Automobile shoppers.
Average # of Sources Used by Category
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Voters
14.7
Automotive
Travel
11.7 11.7
14.8
Tech
Investment
10.8 10.8
Insurance
10.2
Banking
8.6 8.6
8.9 8.9
Credit Card
7.3
CPG Grocery
Restaurant
5.8
CPG Health/Beauty
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9.8
OTC Health
18.2
Google Confidential
Analyzed 50+ Drivers Across 11 Categories 37%
Saw advertisements on television
31%
Received mail at home from a brand / manufacturer
29%
Saw an ad in a new spaper / new spaper insert
28%
Read new spaper articles / review s / information
27%
Read magazine articles / review s / information
Stimulus
24%
Looked at / read magazine advertisements Read information in an email received from a brand/manufacturer
23%
Noticed advertising w hile brow sing online
22%
Received mail at home from a store / retailer
22%
Searched online, used search engine Searched online, used search engine
50% 50% 49%
Talked w ith friends / family about the product
38%
Comparison shopped products online
36%
Sought information from a product brand / manufacturer w ebsite
Sought information from a retailer / store w ebsite
22%
Read comments follow ing an article / opinion piece online
22%
Became a friend/follow er/”liked” a brand
ZMOT
31%
Read product review s or endorsements online
18% 41%
Looked at the product package in the store
37%
Read brochure / pamphlet about the product in the store
33%
Talked w ith a salesperson or associate in the store
30%
Looked at signage / display about the product in the store Talked w ith a customer service representative on the phone Tried a sample / experienced the product in a store
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FMOT
20% 19%
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Across All categories, shoppers are using stimulus, ZMOT and FMOT roughly equally
76%
Stimulus
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84%
ZMOT
77%
FMOT
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Influence of Leading Sources Net Influence – Top Sources Above Average 58%
Looked at the product package in the store
57%
Talked with a salesperson or associate in the store
54%
Comparison shopped products online
51%
Talked with friends / family about the product Searched online, used search engine
50%
Sought information from a product brand / manufacturer website
40%
Read brochure / pamphlet about the product in the store
37%
Read product reviews or endorsements online
37% 33%
Looked at signage / display about the product in the store
32%
Read newspaper articles / reviews / information
30%
Read magazine articles / reviews / information
27%
Saw an ad in a newspaper / newspaper insert
Received mail at home from a brand / manufacturer (e.g., catalogue, brochure) Saw advertisements on television 13
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Traditional media is high on usage, but influence drops off strongly in comparison to retail, search and word-of-mouth.
22% 16% Google Confidential
Top Influential Sources by Type 2011 v. 2010 2010 Macro Study
56%
Offline Social
51%
Retail
60%
Online General
39%
31%
Online Social
37%
19%
34%
Mobile
Direct/Event TV/Radio Print/Outdoor
14
55%
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32% 27% 24%
16% 24% 14%
21%
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Finance Categories Banking, Credit Cards, Insurance, Investments
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Google Confidential
Purchase Timelines Finance Categories 25%
20%
15%
10% Banking 5%
Credit Insurance
0%
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Investment
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Top Sources Used Finance Categories Received direct mail
44%
Read an email
35%
Saw TV advertisements
31%
Read newspaper articles
29%
Read magazine articles
29%
Noticed online advertising
29%
Looked at magazine ads Saw newspaper ads
Stimulus
22% 21%
Searchedused online, used a search engine Searched online, search engine
63% 63%
Sought info from brand websites
54%
Talked with friends & family
53%
Comparison shopped products online
47%
Read product reviews online
38%
Chatted online with customer service rep Read online articles / opinion pieces
27%
25%
Talked with a salesperson in the store
46%
Talked with customer service rep on the phone
40%
Read brochure / pamphlet in the store Looked at signage / display in the store
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ZMOT
FMOT
31% 23%
Google Confidential
Across all Finance categories, shoppers are relying on ZMOT more heavily
77%
Stimulus
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89%
ZMOT
66%
FMOT
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Net Influence of Top Sources Finance Categories Talked with a salesperson in person
65%
Comparison shopped online
60%
Talked to customer service rep on phone
58%
Talked with friends & family
56%
Searched online
54%
Chatted online w/ customer service rep
45%
Sought information from brand websites
44%
Read product reviews online
38%
Read magazine articles
36%
Read online articles
36%
Searched online, used a search engine
35%
Read brochure / pamphlet at store
34%
Received an email
33%
Saw TV advertisements Received direct mail
Read newspaper articles 19
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31% 29% 25% Google Confidential
Searched online Credit Cards Fewest People
58%
Most People
Usage
Repeat Usage
88%
10 21%
8 7 6 5 4 3
Degree of Influence
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35%
48%
38%
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Time From Purchase
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A few moments before
Within an hour
1-24 hours before
2-6 days before
1 week before
2-3 weeks before
1 month before
2-3 mos before
4-6 mos before
7-12+ mos before
1
61%
Convenience/Customer Service Preferences
Online Access to Account Information Awards & Benefits of Different Cards Reputation of the Credit Card Company Rates/Costs 20 Google Confidential
Talked with friends & family Credit Cards Fewest People
39%
Most People
Usage
47%
Repeat Usage
10 14%
8 7 6 5 4 3
Degree of Influence
9 9%
36%
47%
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Time From Purchase
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A few moments before
Within an hour
1-24 hours before
2-6 days before
1 week before
2-3 weeks before
1 month before
2-3 mos before
4-6 mos before
7-12+ mos before
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31%
Convenience/Customer Service Preferences
Online Access to Account Information Awards & Benefits of Different Cards Reputation of the Credit Card Company Rates/Costs 21 Google Confidential
Saw TV advertisements Credit Cards Fewest People
23%
Most People
38%
Usage
Repeat Usage
10 19%
8 7 6 5 4 3
Degree of Influence
9 12%
31%
36%
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Time From Purchase
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A few moments before
Within an hour
1-24 hours before
2-6 days before
1 week before
2-3 weeks before
1 month before
2-3 mos before
4-6 mos before
7-12+ mos before
1
22%
Convenience/Customer Service Preferences
Online Access to Account Information Awards & Benefits of Different Cards Reputation of the Credit Card Company Rates/Costs 22 Google Confidential
Heat Mapping Influence Online Search Fewest People
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Credit Cards
Banking
Investments
Insurance
Most People
Google Confidential
Insurance Fewest People
Searched online
Talked with friends & family
Saw newspaper ad
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Most People
Saw TV advertisements
Read brochure/pamphlet
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Investments Fewest People
Searched online
Talked with friends & family
Saw newspaper ad
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Most People
Saw TV advertisements
Read brochure/pamphlet
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Banking Fewest People
Searched online
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Saw TV advertisements
Talked with friends & family
Saw newspaper ad
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Most People
Read brochure/pamphlet
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Credit Cards Fewest People
Searched online
Talked with friends & family
Saw newspaper ad
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Most People
Saw TV advertisements
Read brochure/pamphlet
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Applied 28
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Shopper-lead creative strategies
Online account access Connect with your account 24 / 7 from any PC or tablet – even your smart phone
Wanted: Online access to account information
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Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
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ZMOT APPLIED 21% 35%
48%
48% 38% 61%
of those in market for investment products say they consult search engines for: Online Access to Account Information
Convenience/Customer Service Preferences Online Access to Account Information Awards & Benefits of Different Cards Reputation of the Credit Card Company Rates/Costs
Online Access to Account information Features/Benefits, Account Options
Fees/Costs/Pricing Associated with Product/Service
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Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
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Conclusions
• Online and Personal Sales Interactions get high usage and high influence • Younger, emerging target are highly ZMOT enabled • Search key to winning the shopper early, middle and late • ZMOT plus traditional efforts (like direct mail) have strongest opportunities for conversion
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Best in class yet to be defined Google Confidential
Winning ZMOT How tothe Win at ZMOT: 1
Put someone in charge
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Find your Zero Moments
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Answer the questions people are asking
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Optimize for ZMOT
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Be fast
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Don't forget video
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Jump in!
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Put PutSomeone Someone inInCharge Charge
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Google Confidential and Proprietary 33 Google Confidential
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Find Your Zero Moments
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[Your Brand]
Search
[Your Brand] Review
Search
Best [Your Category]
Search
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Answer the Questions People are Asking
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Google Confidential
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Answer the Questions People are Asking
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Google Confidential
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Optimize for ZMOT
91M Mobile Internet users in the U.S…
…only 21% of our top advertisers have a mobile-optimized website
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Source: eMarketer 2011; Google Internal Data
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Optimize for ZMOT
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Google Confidential
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Be Fast
Be So Mayo Search Don't Ad Colbert can't handle Miracle Whip's great taste. Which side are you on? www.Facebook.com/MiracleWhip
Search Ad 39
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Google Confidential
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Don't Forget Video
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Jump in!
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Thank you Q&A John Ross
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