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Comparison Shopping Is a Way of Life Onsite Comparative Pricing (OCP) Paves the Way for Convenient and Confident Shopping. Webinar Presented by the e-tailing group & WinBuyer October 14, 2009. - Welcome - Win Consumer Confidence with OCP. Disconnected? Dial :773-945-1011
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Comparison ShoppingIs a Way of LifeOnsite Comparative Pricing (OCP) Paves the Wayfor Convenient and Confident Shopping Webinar Presented by the e-tailing group & WinBuyer October 14, 2009
- Welcome - Win Consumer Confidence with OCP • Disconnected? Dial :773-945-1011 Access Code: 616-115-012 Webinar ID: 320-775-889 • Questions? Ask us through chat. • Get the study. “Comparison Shopping Is a Way of Life” 2
Speakers Eyal Keren VP Marketing WinBuyer Inc. eyal@winbuyer.com (408)-849-4763 www.winbuyercorp.com Lauren Freedman President the e-tailing group LF@e-tailing.com (773)-975-7280 www.e-tailing.com 3
About WinBuyer • The leading provider of Onsite Comparative Pricing (OCP) solutions that accelerate consumer purchasing behavior at the point of sale. • Serving the US, Canada and the UK Markets • Currently over 200 retailers live are reaping the benefits of Increased lift in sales, improved site stickiness, and an incremental revenue stream. 4
About the e-tailing group • 15 years e-commerce consulting • Author, It’s Just Shopping • 50+ years traditional retail and catalog experience • Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging for both b2c and b2b clients • Proprietary research studies on mystery shopping and merchandising, egeg Index, marketing and multi-channel customer mindset, In-Store Pickup and Gift Registry • E-commerce expert and frequent speakerat industry events, trade associations 5
Agenda • “Comparison Shopping Is a Way of Life” Research Findings • The Evolution of Comparison Shopping • Q/A To Size Up Comparison Shopping Needs 6
Survey IntroductionThis webinar highlights results of an e-tailing group/WinBuyer study Comparison Shopping Is a Way of Life, completed in August ’09it examines three critical components of comparison shopping: 1) how invested consumers are in shopping around prior to purchase, including time spent and sites visited as part of their typical online shopping behavior 2) how valuable an Onsite Comparative Pricing tool would be and its impact on merchant selection 3) loyalty based on making such an application part of one’s everyday shopping behavior 7
1,025 adults (51% female/49% male) who shopped online4 or more times during the past year; spending over $400 completed this online survey per these demographics: 8
Topline Findings • Consumers are invested in finding the lowest price • Shoppers invest time to find the lowest price for commodity products • Efficiency of price comparison and the ability to merely Google it, check Amazon’s prices or visit a few competitors is core to current consumer shopping behavior Time and money-savings drive consumer interest inOnsite Comparative Pricing • The convenience of having the comparative pricing information on the product page is powerful • Expectations for most consumers is that all retailers of commodity products would incorporate this kind of tool into their shopping experience Merchant credibility and loyalty grows with Onsite Comparative Pricing usage • Shoppers are more likely to return to a retailer that shows competitors’ prices on their website • Consumers find competitive prices on a retailer's site to be credible and no longer feel compelled to comparison shop elsewhere 9
Consumers are conditioned to check Google, Amazon, and top competitors before choosing a retailer Q6
36% of online shoppers spend more than½ hour comparison shoppingto find the best price on commodity items65% spend 16+ minutes 11
95% of those shopping for commodities online typically visit at least two websites before finalizing a purchase51% check out at least 4 or more sites 12
TCO and product price are the two most important influencersfor online purchase decisions 13
63% rate comparing competitive prices without leavinga retailer’s website 8+ out of 10 on the consumer value scale1 in 3 shoppers give this capability a “10” – Very Valuable 14
Convenience, confidence, and money/time-savingsare core to the consumer value propositionfor on-site competitive price comparison tools 15
Shoppers positively perceive a retailer that shows competitors’ prices on their website - as convenience, complete information, and time savings are important to their online experience 16
Over ½ would be less compelled to comparison shop elsewhere if they could access competitors’ pricingfrom a retailer’s site 17
Even when competitive prices shown are lower, 39% further trust and are motivated to buy from that retailer again4 in 10 shoppers would weigh other intrinsic elements beyond price 18
Factoring variables beyond price into their final decision,84% would check out other sitesand then consider returning to the original retailerJust 9% would abandon a site that showed lower competitive prices 19
52% would find competitive pricingon an individual site credible41% remained neutral and only 7% doubt credibility 20
78% would be more likely to return to a retailer that shows competitors’ prices on their website36% are much more likely to be loyal to that retailer 21
58% would expect all retailers of commodity productsto incorporate this kind of competitive comparison tool into their shopping experience 22
The findings speak for themselves - consumer inclination is to compare products and prices in hopes of finding the right item at the right price. The Web’s valued role, as a time and money-saving tool, can now be extended even further with WinBuyer’s Onsite Comparative Pricing (OCP). Such comparison capabilities are ripe for many retailers that areembracing consumer demands for comprehensive informationin support of a confident buying decision. 23
The Evolution of Comparison Shopping Merchant Showcase The following showcase will help visualize the continuum of options for comparison shopping. Examples range from portal-based comparison shopping engines to both build and buy models, plus their corresponding onsite locations as shown via product page execution. 24
Customers Want to Pay the Right Price • Customers have haggled in marketplaces since the beginning of time • The Internet put price comparison in the hands of the consumers with the click of a mouse • Initially consumers embraced comparison shopping engines (CSEs) • The barrier to entry has shifted once again as a result of Google now offering comparison functionality through Google Products where merchants send product feeds making it more difficult for CSE’s to compete in today’s comparison climate and cost per clicks are higher for them as well • Industry leaders including Amazon and Buy.com are providing this customer convenience on their product pages • Technology solutions companies like WinBuyer are enabling Onsite Comparative Pricing (OCP) so that other e-commerce sites to also experience the benefits through their own proprietary technology engine; offering a cost-effective alternative to building one’s own solution 25
Shopping.com Digital Camera Comparison and Sort ResultsShoppers utilize a comparison shopping engine (CSE) to find product offsite, taking advantage of filtering and sort functionality 26
Buy.com Viewsonic Monitor Product PageShoppers can immediately compare prices of any given product at a series of competitors directly from the product page. 27
GameQuestDirect Spiderman Video Product PageShoppers can immediately compare prices of any given product at a series of competitors directly from the product page. Of note, although in the example shown the comparative pricing was all lower than GameQuest’s featured price, this merchant gained customer trust and experienced a lift in sales from shoppers who appreciated seeing the options yet preferred to shop here. 28
Boatersworld.com Garmin Product PageWhen product is out of stock or a search returns null results, retailer suggests merchants with availability - providing a service to shoppers and in return the sending merchant receives an affiliate fee. 29
Q/A to Size Up Comparison Shopping Needs • Do you compete mainly on price or do you have other values that are important to the customer such as brand, service, and warranty that customers evaluate when comparing your site to others? • Are the products you sell frequently price shopped by consumers? • Do you have significant competitors for the products that you sell? • Do your customers research your products/categories prior to making purchase decisions? • Would your customers benefit from seeing competitor pricing on your website? • Are you looking to avoid customers leaving your site because they’re hunting around for better prices? • Are your customers abandoning your site because you don’t offer Onsite Comparative Pricing? 30
WinBuyer OCP ApplicationInspire Confidence, Drive Sales • Boosts conversion rates and cart size • Extends length of visits on your product pages • Maximizes brand influence with price discriminating shoppers • Monetizes unconverted traffic through referral revenues
WinBuyer OCP Application:Increase Revenue Lift, Conversion and Average Order Size • Merchants impact study • A/B test • Multiple customers & stores • Range of categories • Full pricing transparency Study reveals • Evidence for correlation between product coverage and revenue, average order size as well as conversion. • Full openness of pricing generates lift
Winbuyer OCP Application • Comprehensive product coverage • Sophisticated yield optimization technology • Highly accurate matching technology • Very quick & easy integration • Customizable to fit the merchant needs • Revenue model with no-out-of-pocket costs for basic implementation.
Over 200 Retailers are Reaping the Benefits www.winbuyercorp.com 34
Q & A Eyal Keren VP Marketing WinBuyer Inc. eyal@winbuyer.com (408)-849-4763 www.winbuyercorp.com Lauren Freedman President the e-tailing group LF@e-tailing.com (773)-975-7280 www.e-tailing.com 35