comScore Study: Search Engines and Retail Sites – The One-Two Punch For Shoppers

 

Retail sites emerge as critical information source for shoppers

Beverly, Mass. - July 27, 2010

Searchandise Commerce, today announced the results of an in-depth research study conducted by comScore, and co-sponsored by iProspect looking at how retail shoppers use search, and the importance of search position. The study reveals that two-thirds of consumers begin the shopping process online, and that half convert offline. The path to purchase, in most cases, starts with a combination of search engine and site search on retail websites for price, brand and feature information, with shoppers consulting an average of 4.1 information sources during the process. The study further highlights that rankings matter in site search much like they do in search engine marketing: shoppers associate relevance and quality with products on the first page of search results.

"We’ve witnessed retailers getting better at providing a robust on-site search experience. It makes sense that consumers have come to rely upon the rich information provided by retail sites and that marketers embrace this new reality," said John Federman, president and CEO of Searchandise Commerce. "We wanted to better understand how retail site search worked as a complement to search engines, and we’ve now quantified our assumptions about the value and the ways retail on-site search mirrors search engine marketing. In both, attaining top position in search results is key to winning a higher share of clicks and sales."

The research examined general purchase habits, a consumer’s path to purchase including the information resources and locations visited, online and offline shopping motivations, and site search position perceptions and behavior. The study was conducted in two phases, including over 1,100 respondents, who had recently researched, browsed or purchased computers or consumer electronics (CE).

Key findings include:

Site Search:
The study participants were asked a series of questions about their impressions of various retail sites. The findings drawn about retail sites from their responses are clear; they want less clutter and ease of use:

• Pop-ups or advertising should not be displayed
• Pricing and product information should be clearly listed
• Product comparison tools should be provided

One of the key goals of this research is to track how shoppers are using retail websites with an eye toward defining premium position within the site search results and its relative value. In both the qualitative and quantitative phases of this study, shoppers identified their penchant for clicking on the first results page. Ninety-four percent of the shoppers click between one and 10 products, and from there, they look for price, product features and preferred brands as key differentiators.

Products appearing in the top section of a site search results page, or within the first 10 – 15 results after using the site search box, carry additional weight for shoppers. Those products were identified by shoppers as best meeting their needs, of highest quality, and most relevant to their search.

Path to Purchase:
The study confirms the relationship between online and offline, and demonstrates the need for Internet retailers to work cohesively across channels. Two-thirds of shoppers begin their process online; with one in five starting at a retail site (the most frequent starting point among all retail shoppers); one in 10 starting at a physical store. Close behind retail websites as a starting point for shoppers are search engines, a significant driver of shoppers to retail websites (as are manufacturer websites). Surprisingly, only a negligible percentage (3%) starts their search by consulting a blog or a social networking site.

Shoppers who begin their search on retail sites (19%) either purchase directly on the retail site or navigate to a manufacturer site for further details, then either visit a search engine or physical store. Of this group, nearly half buy in the physical store, while 40% transact online.

Similarly, when the process begins by visiting a search engine (18%), 37% move on to a retail site as their next step. Nearly half of the CE shoppers end up purchasing on the retail site, as do one-third of the computer buyers.

“This study makes one thing clear: Search engines and retail websites are the first places consumers turn to when they are ready to shop, whether they are looking for a new laptop, a toaster, or a camera. And they are tapping into search engines to find more than just a retailer’s product page from their website; they are searching for customer and expert reviews, competitive pricing, and third party product recommendations,” said Robert Murray, CEO of iProspect. “Given that, marketers simply cannot afford to have their offerings fail to show up in the search results. To remain competitive, they must have a holistic search strategy that understands and addresses a variety of information for all of the products they sell, including specific brands, prices, makes, models, features, and functionalities. In other words, marketers need to ensure that all of this information is represented in a compelling way in the organic and paid search results.”

The complete report, including charts and marketing recommendations, can be downloaded here.

The research will also be discussed during a free webinar on August 3 called “How to Market Where Online Consumers are Shopping.”  Sign up now: http://bit.ly/9vbjjR.

About Searchandise Commerce
Searchandise Commerce provides the first online media network for product manufacturers and their retail channel partners. The company offers an innovative service combining paid online search tactics with in-store merchandising practices for eCommerce. CommerceNet, the company's network of retail and comparison shopping sites, offers manufacturers the opportunity to use CPC bids to heighten their position within search results and product listings across the network, and provides retailers the opportunity to merchandise and monetize their online retail efforts through HitList. At both ends of the spectrum, Searchandise Commerce's services are designed to engage prospects at the point of purchase to increase revenue and sales. For more information on the company and its services, please visit us online at searchandise.net, on Twitter @searchandise, on our blog or call 978.712.4554.

About iProspect
iProspect is the Original Search Engine Marketing Firm. The company helps many of the world's most successful brands maximize their online marketing ROI through natural search engine optimization, paid search advertising management, online display advertising management, shopping feed management, global search engine marketing, Web analytics/attribution modeling, reputation management, and other related services. By dramatically increasing business results for clients, iProspect helps to create search marketing heroes every day. With U.S. offices in Boston, San Francisco, Chicago and Dallas-Ft. Worth, as well as global search engine marketing offices, iProspect can be contacted at 1-800-522-1152, interest@iprospect.com, or by visiting www.iprospect.com .

About comScore
comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital marketing intelligence. comScore helps its clients better understand, leverage and profit from the rapidly evolving digital marketing landscape by providing solutions in the measurement and evaluation of online audiences, advertising effectiveness, social media, search, video, mobile, e-commerce , and a broad variety of other emerging forms of digital behavior. comScore's capabilities are based on a global panel of approximately 2 million Internet users who have given comScore explicit permission to confidentially capture their browsing and purchase behavior. These data can also be combined with census-level Web site or telecom carrier data to provide the most comprehensive and unified measurement of digital activity. comScore’s recent acquisition of ARSgroup adds one of the industry’s most validated measurement of the persuasive power of advertising in TV and multi-media campaigns. comScore services are used by more than 1,300 clients around the world. For more information, please visit www.comScore.com.