92 per cent of connected consumers research and browse purchases on Performance Marketing sites, shows Tradedoubler Survey
Smartphone penetration and consumers’ quest for value driving new purchasing patterns
Consumer loyalty to Performance Marketing sites is strongly challenging brand loyalty
London, 23 April 2013 - The combination of growing smartphone penetration and widespread economic pressure is having a profound effect on consumer shopping behaviour across Europe.
From price comparison sites through to loyalty and reward schemes, coupon, voucher code and cashback sites, connected consumers(1) are making these Performance Marketing websites and apps their first port of call (92 per cent) when researching what to buy.
This knocks retailer-owned websites into second place (87 per cent) and seriously threatens high-street stores’ top spot when it comes to browsing potential purchases in categories such as fashion (47 per cent), according to Tradedoubler Insight Unit’s latest study(2) - Performance Marketing: from first impression to last click. www.tradedoubler.com/performance-marketing
Consumers surveyed are also now almost as likely to complete their purchase using a Performance Marketing site (82 per cent) as on a retailer-owned website (83 per cent).
Performance Marketing channels, which are typically associated with Cost Per Action (CPA) payment models were traditionally thought to influence only the final phase of a sale – the last click. This latest research shows that brands without a Performance Marketing presence risk being side-lined as irrelevant at this first impression stage.
“This is a wake-up call for marketers and high street retailers,” said Dan Cohen, Regional Director, Tradedoubler. “Mobile and the rise of performance marketing sites are massively disrupting shopping patterns. Consumers’ quest for value is driving them to research and browse the best possible offers on performance marketing sites at the very beginning of their purchase journey.
“Brands without a performance marketing presence risk being locked out of a consumer’s consideration set at the very first hurdle,” continued Cohen.
The impact of showrooming
The rapid growth of ‘showrooming’(3). means that even brands and retailers which successfully entice consumers into stores are not guaranteed a sale.
60 per cent of connected consumers use their smartphones whilst out shopping. Of those, three quarters use their mobile to look-up information on a product they see in a store, with 70 per cent checking for a better price elsewhere and 60 per cent going home to buy the product online after checking the price on their phone.
“Retailers’ traditional metric - footfall – is no longer a guarantee of success and they need to embrace performance marketing strategies now that 51 per cent of mobile shoppers are searching for vouchers or discounts for products they have seen in-store and 44 per cent are using vouchers sent to their mobile.
“Marketers need defensive and offensive strategies to protect and grow their revenues and indeed, to even remain relevant in this intense multichannel world,” suggested Cohen.
New consumer loyalty to Peformance Marketing channels
Once Performance Marketing channels become a feature of shopper behaviour, the research shows that they command their own loyalty, driving repeat purchases with as much claim on that loyalty as brands themselves. Over a quarter of customers make additional purchases every month as a result of receiving emails from Performance Marketing sites – almost as many as a result of an email from a brand.
Tradedoubler creates multi-channel performance marketing programs for clients on a payment by results basis. More information can be found on www.tradedoubler.com
1. Connected consumers: consumers who own a smartphone and shop online at least once per month.
2. Tradedoubler Insight Unit, carried out the research amongst 2,500 smartphone users who shop at least once a month online - in the UK, France, Germany, Italy, Netherland, Spain, Sweden and Poland. The countries covered by the research account for 89 per cent of the retail e-commerce market in Europe.
3. Showrooming is the practice of examining merchandise in a traditional bricks and mortar retail store without purchasing it, but then shopping online to find a lower price for the same item.
For further information, please contact:
Liam Sherry/Joe Hawke
Tel: +44 118 909 0909