The Apparel Purchasing Process in the UK Online Retail Market
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1 The Apparel Purchasing Process in the UK Online Retail Market A Clickstream Analysis of Online Purchases in the UK Retail Market Google/Nielsen UK, January 2010
2 Agenda 1 Methodology 2 Analysis for Apparel 3 Summary 2
3 Retail: Methodology
4 Methodology Custom analysis of Nielsen's NetView metered panel Period of analysis: 16 th October 15 th January 2010 Analysis based on: The pre-defined NetView Category: Retail (Apparel & Televisions) Recoded to Google classification criteria Approx 28 sites for Apparel and approx 43 sites for Televisions included A start event is determined as the first apparel or television related activity in the period of analysis Data checked for outliers and for Apparel, the data that was extraordinary has been removed Analysis restricted to Adults ,750 unique search terms categorised according to Google s classification structures (Brand Term Only, Brand with Other, Generic) Referrals to data set are also included to identify non-search clickthroughs 4
5 Methodology: Key UK Retail Period: Mid October Mid January 2010 Group Designations Usage of each type of website user Retail Sample Size: 12,831 Mutually exclusive & Exhaustive Purchase Those that make a purchase Sample Size: 2,779 Quotation Viewed items in basket Sample Size: 1,976 Research Those that visit sites for research Sample Size: 8,076 Note: The Quote or Purchase has to occur within 15 minutes of researching the item in question. Also, within that 15 minutes, that particular item has to be the most researched item based on page duration 5
6 Methodology: Key UK Retail Period: Mid October Mid January 2010 Category: Site Designations Retail Price Comparison Retailer Televisions Price Comparison Retailer Reviews Manufacturer 6
7 Retail: Apparel
8 Apparel: Overview Journeys contained an average of 4 sites, visited 9 times, over 9 web sessions Visited the category 22.7m Average length of time Number of sites visited per person Number of times sites visited Web sessions per person 37 days Average time spent on sites 2hr 41 mins Base: All in the Apparel market Note: Activity of audience in the Apparel market 8
9 Apparel: Audience 18% made a purchase and 14% got a quote, i.e., viewed the contents of their basket Apparel: 22,693,655 Research 68% Quotation 14% Purchase 18% Base: All in the Apparel market Note: Type of activity of audience in the Apparel market 9
10 Apparel: Activity of Those that made a purchase visited more sites, more times, over more sessions and spent more time within the category 4.0m made a purchase 61 active days in the category on average (index: 166), containing: an average of 6.5 sites (index: 167) visited 25.5 times (index: 236) over 19.9 sessions (index: 224) spending 7hrs 21mins (index: 274) Base: in the Apparel market Note: Activity of those in the Apparel market Index versus All Apparel Category Users in the analysis Period 10
11 Apparel: Profile of Those that made a purchase are more likely to be women and aged Gender Age Base: in the Apparel market Note: Profile of in the Apparel market; All figures are Based on Index v Active Internet Population 11
12 Apparel: Sites Visited Retailers: Top 10 Sites 1,058, m of those that made a purchase visited ebay. Next is the most visited high street online store. 709, , , , , , , , ,232 ebay Next Marks & Spencer MandM Direct Very Littlewoods ASOS.com Amazon Debenhams ASDA Base: in the Apparel market Note: Website usage by category. 12
13 Apparel: Number of Purchases Audience (%) 4 purchases 4% 5+ purchases 4% 35% of purchasers made two or more apparel related purchases 3 purchases 8% 2 purchases 19% 1 purchase 65% Base: in the Apparel Market Note: Distribution of purchase events. Only one event can be performed on a particular site within each web session 13
14 Apparel: Look or Quote > Purchase Retailers Look 17.6% Purchase Quote Purchase 55.5% Base: All in the Apparel market Note: The % of People who look for a product on a site who go on to purchase on the site 14
15 Apparel: Activity Up To and After Purchase 61 days First Purchase Before 25 days in the apparel market before making the first purchase 10 visits to apparel sites before making the first purchase 2.5 visits via search engines before making the first purchase After 36 days in the apparel market after making the first purchase 15 visits to apparel sites after making the first purchase 3.7 visits via search engines after making the first purchase 35% made an additional purchase Base: in the Apparel market Note: Length of journey and visits UP TO and AFTER the first purchase event 15
16 Apparel: Time Taken to Make the First Purchase 100% 90% 80% 70% 48% purchase within 19 days 60% 50% 71% purchase within 39 days 40% 30% 20% 10% 23% purchase within 24 hours 0% less than 24 hours 1-5 days 6-9 days days days days days days days days days days days Base: in the Apparel market Note: % of those that get a Purchase and the length of time UP TO the point of the event occurring. Based on first event in the category. 16
17 Apparel: Search Use search at any point in the journey 76% Those that purchase are more likely to use search and sponsored searches Start their journey with search 26% Of searchers who use sponsored searches 61% Average number of searches 12.6 Base: in the Apparel market Note: Activity of Audience in the Apparel Market. Searches are defined as only those that lead to a Retail content site. 17
18 Apparel: Brand v Generic Searches 26% of searches conducted by purchasers used Generic terms % of Searches Generic 26% Brand Only Terms 60% Brand with Other 14% Base: in the Apparel market Note: % of searches that were Generic, Brand Only Terms & Brand with Other; Searches are defined as only those that lead to a Retail content site 18
19 Apparel: Brand v Generic Searchers 62% of searchers that purchased used Generic terms % of Audience 78% 62% 47% Brand Only Terms Brand with Other Generic Base: in the Apparel market Note: % of searchers that were Generic, Brand Only Terms & Brand with Other; Searches are defined as only those that lead to a Retail content site 19
20 Apparel: Brand v Generic Overlap 50% of searchers used both brand and generic terms Brand Search Only Generic Search Only Both 38.2% 50.4% 11.4% Base: in the Apparel market Note: The figures shown are the number of people who have made both or only one type of search which lead to a Retail site; Searches are defined as only those that lead to a Retail content site 20
21 Apparel: Brand Only Terms Brand Only Terms: 60% of searches Number of searches (000s) 22,648 Retailer wwwwwwwwwwwwwwwwwwwwwwwwwwwwww 94 Manufacturer/ Designer 41 Affiliate/ Redirects Product Non-Retail Discount/ Coupon Base: in the Apparel Market Note: Brand Only Terms searches by sub group; A search is defined as one that results in a clickthrough to a Retail content website. The Search Term subcategories are entirely overlapping and will not add up to the Total. Affiliate/Redirects are e.g. price comparison and review websites 21
22 Apparel: Generic Terms Generic: 26% of searches Number of searches (000s) 9, Product Non-Retail Discount/ Coupon Manufacturer/ Designer Affiliate/ Redirects Retailer Base: in the Apparel Market Note: Generic searches by sub group; A search is defined as one that results in a clickthrough to a Retail content website. The Search Term subcategories are entirely overlapping and will not add up to the Total. Affiliate/Redirects are e.g. price comparison and review websites 22
23 Apparel: Brand With Other Terms Brand With Other: 14% of searches Number of searches (000s) 4,670 2, Retailer Product Manufacturer/ Designer Discount/ Coupon Affiliate/ Redirects Base: in the Apparel Market Note: Brand with Other searches by sub group; A search is defined as one that results in a clickthrough to a Retail content website. The Search Term subcategories are entirely overlapping and will not add up to the Total. Affiliate/Redirects are e.g. price comparison and review websites 23
24 Apparel: Search Paths B = Brand, G= Generic, N = No further searches Audience 1st Search 3.0m Search Brand Generic 71% 29% 2nd Search 2.5m B 69% G 14% N 17% B 27% G 53% N 20% 3rd Search 2.1m B 73% G 11% N 16% B 37% G 56% N 8% B 69% G 19% N 11% B 21% G 60% N 19% Base: in the Apparel Market Note: Each of the first three Apparel searches performed by the audience. Figures Tree: % of Audience, Funnel: Actual Audience; A search is defined as one that results in a clickthrough to a Retail content website. 24
25 Apparel: Conversion Rates All Searches % of Purchase based on the number of searches a user does 47% 35% 20% 13% 1 search 2-5 searches 6-9 searches 10+ searches Base: in the Apparel market Note: Conversion Rates. Searches are defined as only those that lead to a Retail content site. Correlation not cause. 25
26 Apparel: Value of Sponsored Links 1.7 times more likely to purchase apparel 29% 25% 18% Total Clicked on Sponsored Links Clicked on Natual Search Base: in the Apparel Market Note: % of those who clicked on the type of search and purchased; Searches are defined as only those that lead to a Retail content site; A sponsored search/link is one that requires a Search Engine redirect to point it to the website. 26
27 Apparel: Conversion Rates Sponsored Searches % of Purchase based on the number of sponsored searches a user does 66% 55% 32% 13% 1 sponsored links 2-5 sponsored links 6-9 sponsored links 10+ sponsored links Base: in the Apparel market Note: Conversion Rates. A sponsored search/link is one that requires a Search Engine redirect to point it to the website. Correlation not cause. 27
28 Apparel: First Entry Point Top 10 47% For 24% of purchasers, the first entry point into the apparel Market is via Google Search 24% 3% 3% 3% 2% 1% 1% 1% 1% Retailer Google Search Non-Retail: Classifieds/ Auctions Non-Retail: E- mail Other Search Retail: Other Non-Retail: Search Non-Retail: Apparel/ Beauty Non-Retail: General Interest Portals & Communities Non-Retail: Coupons/ Rewards Base: in the Apparel market Note: The first Entry Point of purchasers; An Entry Point is defined as the first Retail content page visited, however if this is referred from another web page the referring page is used. The most likely Entry Retail Category is shown for both the very first Retail content page and for the web session when the Group event occurs.. 28
29 Apparel: Event Session Top 10 53% For 21% of purchasers, the first page visited in their purchase session is Google Search 21% 4% 3% 3% 3% 2% 2% 2% 2% Retailer Google Search Non-Retail: Other Retail: Other Other Search Non-Retail: Multi-category Home & Fashion Non-Retail: Classifieds/ Auctions Non-Retail: E- mail Non-Retail: Apparel/ Beauty Non-Retail: Coupons/ Rewards Base: in the Apparel market Note: The Event session of purchasers; An Entry Point is defined as the first Retail content page visited, however if this is referred from another web page the referring page is used. Based on the session where the purchase was made 29
30 Apparel: Route to Making a Purchase *Accounts for 58% of purchases 1st route to site Purchase route to site Direct = 59% 1,370,062 Referral = 19% 436,703 Natural Search = 18% 411,400 Sponsored Search = 5% 115,653 Total = 100% 2,333,817 Direct = 58% Referral = 21% Natural Search = 17% Sponsored Search = 4% Base: in the Apparel market Note: Routes taken to reach a website when making a purchase plus the route taken the first time the website was visited. This analysis only includes routes where the website was visited at least one other time before the event took place. 30
31 Apparel: Final Arrival Route Route to site Direct = 52% 2,081,682 Retail Referral = 9% 377,070 Non Retail Referral = 13% 514,393 Purchase 3,993,670 Natural Search = 19% 778,092 Sponsored Search = 6% 242,432 Base: in the Apparel market Note: All the routes taken to reach a website when making a purchase. 31
32 Retail: Summary
33 Summary There are over 22.7m people in the Apparel Market 12.9m N Search is an important part of the customer journey. 12.9m or 57% use search at anytime throughout their journey, increasing to 76% of those that purchase Based on those that search, those that purchased searched an average of 12.6 times. 6.6 searches per person up to the first purchase event GENERIC 62% of searchers that purchased used Generic terms 1.7 People who click on sponsored links are 1.7 times more likely to make a purchase 33
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