Mobile Path to Purchase Study. Understanding Mobile s Role in the Retail Path to Purchase

Transcription

1 2013 Mobile Path to Purchase Study Understanding Mobile s Role in the Retail Path to Purchase

2 THE MOBILE INSURANCE USER Mobile and PC are companion tools for insurance complementing each other in different stages of the path to purchase. Mobile is often used to kick off the long consideration process toward an insurance purchase and users are looking for a streamlined mobile experience to make it easy to collect details on account information and pricing. When it comes time to make a purchase, the decision is heavily supplemented by PC research, and actual conversion is split between online (PC and mobile) and offline (phone and in person). 1/2 mobile insurance shoppers use their device at the start of the decision process to research the options 50% of users will take longer than a month to consider their purchase 60% of conversions happen offline - the majority over the phone 2/3 of insurance-related mobile behavior happens at home 2

3 TOPICS COVERED» Mobile Reach and Usage» Profile of the Mobile Insurance Shopper» Subcategory Profile: Auto, Home, Health» Research and Decision» Conversion» Mobile Advertising: Awareness and Impact 3

4 STUDY METHODOLOGY xad, and long-time partner Telmetrics, have collaborated with Nielsen to develop this first-to-market mobile behavior study that helps track the mobile consumer from initial purchase intent to conversion, while exploring ad effectiveness and examining the various profiles of mobile Insurance users. This study combines online survey data from 2,000 U.S. Tablet and Smartphone users, as well as actual observed behaviors from Nielsen s Smartphone Analytics Panel of 6,000 Apple and Android users each group reporting they had engaged in activity related to Insurance information, products and services in the past 30 days. Respondent totals are as follows (none of which are mutually exclusive): Smartphone owners: 1,765 Tablet owners: 1,526 Insurance users: 994 4

5 INSURANCE MOBILE REACH AND USAGE 5

6 A SIGNIFICANT AMOUNT OF INSURANCE ACTIVITY HAPPENS IN THE DIGITAL SPACE BOTH ON DESKTOP AND MOBILE Number of Users (millions) Total Insurance Automobile Health Home PC Smartphone Tablet* Source: Nielsen Online panel, Nielsen Mobile panel, Nielsen ipad panel March 2013 *Tablet estimates are directional 6

7 40% OF TOTAL TIME SPENT WITH INSURANCE CONTENT IS ON MOBILE Percent of Time Spent by Device (Includes consumers who do not have all three devices) Tablet 3% Smartphone 38% PC 59% Source: Nielsen Online panel, Nielsen Mobile panel, Nielsen ipad panel March 2013 *Tablet estimates are directional 7

8 ANDROID HAS HIGHER REACH BUT SHORTER SESSIONS THAN ios UNIQUE AUDIENCE AND REACH INSURANCE US, ANDROID AND iphone, MARCH 2013 MONTHLY TIME PER PERSON (HH:MM:SS) INSURANCE US, ANDROID AND iphone, MARCH M 62% 11M 38% 6M 57% 00:14:36 43% 00:11:14 Combined Insurance Android/iOS Time per Person 00:12:32 TOTAL MOBILE ANDROID ios Source: Nielsen March 2013 Mobile Database *Reach % calculated based on consumers with Smartphone devices, 17MM ios Android 8

9 MOBILE INSURANCE APPS HAVE SIGNIFICANTLY HIGHER ENGAGEMENT THAN BROWSER UNIQUE AUDIENCE AND REACH INSURANCE US, ANDROID AND iphone, MARCH 2013 MONTHLY TIME PER PERSON (HH:MM:SS) INSURANCE US, ANDROID AND iphone, MARCH M 47% 8M 65% 11M 66% 00:21:14 34% 00:04:04 Combined Insurance App/Web Time per Person 00:12:32 TOTAL MOBILE APPS BROWSER Users can use both apps and browsers Source: Nielsen March 2013 Mobile Database *Reach % calculated based on consumers with Smartphone devices, 17MM Browser Apps 9

10 MOBILE FOLLOWS SIMILAR USAGE PATTERNS TO PC, PEAKING MID-DAY INDEX OF ONLINE MOBILE INSURANCE USAGE ACTIVITY BY HOUR (100 = AVERAGE AMOUNT OF SHOPPERS FOR THAT CHANNEL) :00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM Mobile PC Source: Nielsen Online panel, Nielsen Mobile panel March

11 CONSISTENT WITH OTHER CATEGORIES, MOBILE SESSIONS ARE SHORTER THAN PC AVERAGE VISIT LENGTH (MINUTES) PC 4.4 Smartphone 2.9 Tablet* 1.7 Shorter sessions reflect goal-oriented behavior on mobile versus more general browsing on PC Source: Nielsen Online panel, Nielsen Mobile panel, Nielsen ipad panel March 2013 *Tablet estimates are directional 11

12 PROFILE OF THE MOBILE INSURANCE SHOPPER 12

13 MORE MALES USE APPS WHILE BROWSERS SKEW FEMALE GENDER COMPOSITION US, Android and iphone, March 2013 AGE COMPOSITION US, Android and iphone, March 2013 Total US Mobile 50% 50% Total US Mobile 17% 23% 20% 18% 22% Total Insurance 52% 48% Total Insurance 14% 26% 23% 14% 23% Applications 46% 54% Applications 10% 25% 29% 15% 21% 4% 4% Browser Female 57% Male 43% Browser 15% 27% 21% 13% 24% % Source: March 2013 Mobile Database 13

14 MOBILE INSURANCE USERS ARE PRIMARILY CAUCASIAN, MAKING LESS THAN $100K HOUSEHOLD INCOME COMPOSITION US, Android and iphone, March 2013 RACE COMPOSITION US, Android and iphone, March 2013 Total US Mobile 15% 22% 34% 18% 12% Total US Mobile 72% 13% 6% 4% Total Insurance 13% 24% 32% 20% 12% Total Insurance 75% 15% 4% 3% Applications 9% 23% 35% 20% 13% Applications 75% 16% 4% 3% Browser 15% 25% 32% 18% 10% Browser 73% 15% 5% 4% <$25K $25-50K $50-100K White Black or African-American $ K $150K+ Asian or Pacific Islander Mixed Racial Background Other Race Source: March 2013 Mobile Database 14

15 SUBCATEGORY USAGE AUTO HOME HEALTH 15

16 AUTOMOTIVE IS BY FAR THE MOST ACTIVE MOBILE INSURANCE CATEGORY INSURANCE PRODUCTS/SERVICES RESEARCHED SMARTPHONE USERS INSURANCE PRODUCTS/SERVICES RESEARCHED TABLET USERS AUTOMOTIVE 83% AUTOMOTIVE 77% HOME 35% HOME 41% HEALTH 18% HEALTH 26% RENTER 13% LIFE 14% LIFE 9% RENTER 9% Questions used: CQ8J: When accessing information about Insurance stores on your <<DEVICE>, what type of insurance related products/services were you looking for? Total Insurance Smartphone owners (n=279), Total Insurance Tablet owners (n=406) 16

17 INSURANCE SUBCATEGORY USER PROFILES OR 55+ MALE & FEMALE MALE FEMALE INSURANCE SUBCATEGORY DEMOGRAPHICS: INDEXED AGAINST TOTAL INSURANCE AUTO HOME HEALTH Male Female

18 INSURANCE RESEARCH ON MOBILE IS MORE LIKELY THAN OTHER VERTICALS TO HAPPEN AT HOME LOCATION DURING USE OF APP/WEBSITE BY DEVICE 68% 50% 20% 16% 32% 51% 80% 83% TOTAL SMARTPHONE INSURANCE TOTAL TABLET INSURANCE HOME ON-THE-GO Question Used:CQ16D Where were you when accessing the website/app on your smartphone/tablet? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 18

19 ACROSS ALL SUB-CATEGORIES, MORE THAN HALF OF MOBILE RESEARCH HAPPENS AT HOME PERCENT SEARCHING FROM HOME BY INSURANCE TYPE 100% 90% 80% 83% 90% 83% 70% 60% 50% 40% 49% 56% 51% 30% 20% 10% 0 AUTO HOME HEALTH AUTO HOME HEALTH SMARTPHONE TABLET Question Used:CQ16D Where were you when accessing the website/app on your smartphone/tablet? Used a Website/App on Smartphone for Insurance: Auto (n=227), Home (n=96), Health (n=49), Used a Website/App on Tablet for Insurance: Auto (n= 236), Home (n=123), Health (n=82) 19

20 A THIRD OF INSURANCE USERS ARE STILL CONSIDERING OPTIONS HEALTH INSURANCE SHOPPERS ARE THE MOST OPEN TO INFLUENCE STAGE IN DECISION WHEN FIRST ACCESSING APP/WEBSITE BY DEVICE 1% 2% 5% 2% 2% 3% 5% 6% 49% 49% 47% 52% 48% 41% 15% 13% 14% 24% 30% 27% 4% 4% 12% AUTO HOME HEALTH SMARTPHONE 17% 17% 15% 27% 31% 35% 1% 1% AUTO HOME HEALTH TABLET I HAD NO IDEA WHAT I WAS LOOKING FOR I HAD NARROWED DOWN WHAT I WAS LOOKING FOR I WASN T REALLY LOOKING, JUST BROWSING I HAD A GENERAL IDEA OF WHAT I WAS LOOKING FOR I KNEW EXACTLY WHAT I WAS LOOKING FOR NOT SURE/DON T REMEMBER Questions used: CQ17D Upon accessing the app/website on your <<INSERT DEVICE>>, which of the following best describes you? Used a Website/App on Smartphone for Insurance: Auto (n=227), Home (n=96), Health (n=49), Used a Website/App on Tablet for Insurance: Auto (n= 236), Home (n=123), Health (n=82 20

21 RESEARCH AND DECISION! 21

22 MOBILE DEVICES ARE USED TO KICK OFF THE INSURANCE RESEARCH PROCESS STAGE OF INSURANCE RESEARCH IN WHICH DEVICE WAS USED SMARTPHONE 23% 9% 17% TABLET 29% 2% 16% 50% 53% Start: Researching all the Options Middle: Considering Businesses for Your Needs End: Contacting a Specific Business Questions used: CQ39D: When visiting the <CATEGORY>, at what part of the research process did you use your <DEVICE>? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/ App on Tablet for Insurance (n= 307) AT THE START AT THE END IN THE MIDDLE ALL THE WAY THROUGH 22

23 ON THE INSURANCE PATH TO PURCHASE, MOBILE IS A TOOL FOR INFORMATION GATHERING WAYS INSURANCE APP/WEBSITE USED BY DEVICE LOOK UP CURRENT ACCOUNT INFO 41% 47% LOOK UP/COMPARING PRICES 31% 39% LOOK FOR NEW PLOICY INFO 22% 28% LOOK FOR CONTACT 21% 21% LOOK FOR COMPANY LOOK UP REVIEWS 12% 16% 9% 15% SMARTPHONE TABLET SMARTPHONES ARE USED PRIMARILY FOR ACCOUNT INFO; TABLETS FOR BOTH ACCOUNT INFO AND PRICING Question Used:CQ15D: During this visit, what are some of the ways you used the app/website on your smartphone/tablet? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 23

24 INSURANCE SHOPPERS ARE LOOKING FOR A SIMPLE AND SEAMLESS MOBILE EXPERIENCE MOST IMPORTANT INSURANCE APP/WEBSITE FEATURES (TOP RANK) SMARTPHONE TABLET Mobile Optimized Site 30% 23% Easy to Find Contact Info 22% 25% Good Online Reviews 17% 19% AN OPTIMIZED SITE IS MOST IMPORTANT FOR SMARTPHONES, WHILE TABLET USERS WANT EASY ACCESS TO CONTACT INFO Questions used: CQ40B: When thinking about your visit to the <CATEGORY>, on your <DEVICE>, what information/features did you find most important? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 24

25 WHILE PC IS AN IMPORTANT RESEARCH TOOL, A THIRD OF INSURANCE USERS CONSIDER MOBILE TO BE THE MOST IMPORTANT MEDIA OUTLET MOST IMPORTANT MEDIA OUTLET (TOP RANK) TOTAL INSURANCE TOTAL INSURANCE 4% 4% 2% 6% 3% 3% 2% 4% 9% 7% 35% 19% 37% 9% 33% 6% ONLINE/PC SMARTPHONE TABLET TELEVISION 65% 48% 49% 53% PRINT SMARTPHONE TABLET Questions used: CQ8G: When thinking of all the media outlets available when searching for <CATEGORY>-related information, which is most important? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 25

26 INSURANCE IS A LONGER CONSIDERATION PURCHASE - EVEN ON MOBILE HOW QUICKLY RESPONDENT LOOKING TO MAKE DECISION BY DEVICE 36% 15% 32% 21% UNLIKE OTHER CATEGORIES STUDIED, MOBILE IS USED MORE FOR CONVENIENCE THAN URGENCY 24% IMMEDIATELY 7% 6% 12% SMARTPHONE 29% 9% 2% 8% TABLET WITHIN HOUR WITHIN DAY WITHIN MONTH LONGER THAN WITHIN THE MONTH WASN T LOOKING TO MAKE A DECISION Questions used: CQ18D Still thinking of this most recent visit, how quickly were you looking to make a purchase/transaction? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 26

27 MANY MOBILE USERS ARE LOOKING FOR LOCAL AGENTS WITHIN WALKING OR DRIVING DISTANCE EXPECTATION OF LOCATION WHEN LOOKING FOR INFORMATION SMARTPHONE 3% Within walking distance (within 1 mi.) TABLET 1% 47% 41% Within local driving distance (within 5 mi.) Within a farther driving distance (more than 5 mi.) No expectation of distance 60% 24% 15% 9% NEARLY ½ OF SMARTPHONE AND ¼ OF TABLET USERS EXPECT INSURANCE LOCATIONS TO BE WITHIN 5 MILES Questions used CQ28D: When looking up information related to <CATEGORY> on your <DEVICE>, which of the following do you expect regarding the location of the business? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 27

28 CONVER $ ION 28

29 1 OUT OF 4 INSURANCE USERS WENT ON TO COMPLETE A PURCHASE MADE A PURCHASE RELATED TO VISIT ON APP/WEBSITE 75% 72% THE LONG CONSIDERATION CYCLE MEANS THAT ADDITIONAL CONVERSIONS ARE LIKELY OUTSIDE OF THE STUDY PERIOD 25% 28% INSURANCE SMARTPHONE INSURANCE TABLET YES NO Questions used: CQ19D: Did you ultimately visit a store/make a purchase or transaction related to your visit to the App/Site on your <<INSERT DEVICE>>?? Used a Website/App on Smartphone for Insurance (n=274) Used a Website/App on Tablet for Insurance (n= 307) 29

30 HOME INSURANCE MOBILE SHOPPERS ARE THE MOST LIKELY TO CONVERT MADE A PURCHASE RELATED TO WEBSITE/APP VISIT BY TYPE 35% 30% 25% 20% 28% 30% 24% 15% 10% 5% 0% AUTO HOME HEALTH Questions used: CQ19D: Did you ultimately visit a store/make a purchase or transaction related to your visit to the App/Site on your <<INSERT DEVICE>>?? Auto Insurance (n= 463), Home Insurance (n= 219), Health Insurance (n=131) 30

31 STATE FARM IS THE MOST RESEARCHED BRAND, BUT GEICO IS MOST COMMONLY PURCHASED INSURANCE BRANDS CONSIDERED/PURCHASED 29% 27% 22% 24% 23% 15% 13% 8% 11% 6% 8% 3% STATE FARM GEICO PROGRESSIVE INSURANCE ALLSTATE LIBERTY FARMERS INSURANCE GROUP CONSIDERED PURCHASED Question Used: CQ26D: Which did you access or consider during the visit to the <CATEGORY> on your <DEVICE>? CQ37D: And which brand(s) did you end up making a purchase with, following your visit to the <CATEGORY> on your <DEVICE>? Considered an Insurance Purchase on a Smartphone or Tablet (n= 581), Made an insurance purchase using a Smartphone or Tablet (n= 155) 31

32 FIT AND PRICE DRIVE CONVERSION REASONS FOR INSURANCE PURCHASE CHOICE AFTER VISITING APP/WEBSITE (TOP RANK) FIT WHAT I WAS LOOKING FOR RIGHT PRICE RECOMMENDED TO ME 10% 9% 28% 35% 38% 35% DEAL NEEDED IMMEDIATE ACTION 9% 5% SMARTPHONE CLOSE TO MY LOCATION 3% 7% TABLET GOOD REVIEWS 4% 6% Questions used: CQ20D: Why did you go to the location/make a purchase that you did following your visit to the <CATEGORY> on your <DEVICE>? Purchased Insurance after Using a Insurance Website/App on: Smartphone (n=69), Tablet (n=86) 32

33 PURCHASE DECISIONS ARE COMMONLY SUPPLEMENTED BY PC MEDIA USED TO AID IN INSURANCE PURCHASE DECISION BY DEVICE ONLINE/PC 62 % 57% TELEVISION 16% 14% TABLET 13% 16% MAIL 7% 7% YELLOW PAGES NEWSPAPER 2% 2% 7% 6% SMARTPHONE TABLET OTHER NO OTHER MEDIA OUTLETS WERE USED 6% 5% 20% 28% Questions used: CQ36D: Other than on your mobile device, what other media did you use to aid in your purchase decision? Purchased Insurance after Using a Insurance Website/App on: Smartphone (n=69), Tablet (n=86) 33

34 THE MAJORITY OF CONVERSION ACTIVITY IS STILL HAPPENING OFFLINE OVER 40% OF CONVERSIONS HAPPEN VIA PHONE 5% HOW PURCHASE COMPLETED BY DEVICE 3% 4% 1% 2% 25% 2% 1% 20% 68% 19% 38% 23% 16% 13% 28% 14% 15% ONLINE VIA PC ONLINE VIA MOBILE DEVICE IN PERSON 16% 9% 25% 26% 27% CALLED 800# CALLED LOCAL AGENT OTHER TOTAL INSURANCE TOTAL INSURANCE SMARTPHONE TABLET Question Used:CQ41D: When visiting the <CATEGORY> on your <DEVICE>, how was the actual purchase completed? Purchased Insurance after Using a Insurance Website/App on: Smartphone (n=69), Tablet (n=86) 34

35 OFFLINE CONVERSIONS ARE FAVORED ACROSS ALL SUBCATEGORIES HOW PURCHASE COMPLETED BY DEVICE AUTO 40% 58% HOME 32% 67% HEALTH 35% 61% OFFLINE (PHONE & IN PERSON) ONLINE (PC & MOBILE) Question Used: CQ16D Where were you when accessing the website/app on your smartphone/tablet? Made an Insurance Purchase for: Auto (n=129), Home (n=66), Health (n=31) 35

36 FEMALES PREFER OFFLINE CONVERSIONS WHILE MALES PREFER ONLINE MOBILE INSURANCE PURCHASER DEMOGRAPHICS Indexed Against Total Mobile Purchasers Online Purchaser (PC or Mobile) Offline Purchaser (Phone or In Person) Male Female FEMALES AND OLDER MOBILE USERS ARE MORE LIKELY TO MAKE PURCHASES IN PERSON OR VIA PHONE 36

37 MOBILE ADVERTISING: AWARENESS & IMPACT 37

38 INSURANCE USERS ARE MORE LIKELY TO NOTICE MOBILE ADS % OF INSURANCE USERS THAT HAVE SEEN AN AD IN THE PAST 30 DAYS 81% 74% +16% +12% 70% 66% TOTAL INSURANCE TOTAL INSURANCE SMARTPHONE TABLET C22/22A. Have you encountered any of the following types/categories of advertisements on your device(s) in the past 30 days? Smartphone Owner for Insurance (n=274), Tablet Owner for Insurance (n=307) 38

39 PROMOTIONS AND LOCAL RELEVANCE DRIVE CLICKS FOR BOTH SMARTPHONE AND TABLET USERS INSURANCE ADVERTISING MOST LIKELY TO CLICK ON TOP RANK BY DEVICE 30% 33% 22% 22% 22% 16% 15% 12% Ad that offers a promotion Ad that is locally relevant Ad that features a brand I know Ad that does not take me out of my experience SMARTPHONE TABLET CQ27. When it comes to mobile advertising on your <<INSERT DEVICE>>, what kind of ads are you most likely to click on? Smartphone Owner for Insurance (n=274), Tablet Owner for Insurance (n=307) 39

40 RELEVANT TARGETING AND PROMOTIONS ALSO LEAD TO FURTHER ACTION INSURANCE ADVERTISING MOST LIKELY TO LEAD TO ACTION TOP RANK BY DEVICE 47% THOUGH SMARTPHONE USERS ARE MORE LIKELY TO CLICK ON A PROMOTION AD, TABLET USERS ARE MORE LIKELY TO TAKE ACTION ON THOSE PROMOTIONS 33% 26% 31% 23% 21% SMARTPHONE TABLET Ad that is targeted Ad with a promotion Ad with a familiar brand CQ29. When it comes to a mobile ad on your <<INSERT DEVICE>>, which of the following would most likely motivate you to take action (such as purchasing a product/service, visiting a location, etc.)? Smartphone Owner for Insurance (n=274), Tablet Owner for Insurance (n=307) 40

41 CONCLUSIONS For the insurance category, PC and mobile go hand-in-hand, complementing each other at various stages of the path to purchase. Mobile is used as a research tool to kick off the purchase consideration with account information and pricing research. Improve this experience through mobile optimized sites and pricing tools to create opportunity. The insurance category has a long consideration process with mobile involved in every stage. The extended nature of these decisions and use of mobile as a research tool means that users can be reached at various touch points to raise brand awareness and ultimately influence purchase decisions. Nearly half of insurance purchases are made online, either via PC or mobile, while the other half are completed by phone or in person. Tailor campaigns to meet the wide range of preferred conversion methods for this category. Encourage transactions by making it easier for consumers to purchase both online and offline. 41

42 FOR MORE INFORMATION: Additional study details and findings can be found at MobilePathtoPurchase.com. For questions or to provide feedback, please contact us at or ABOUT XAD Since 2009, xad has grown to become one of the largest mobile-local advertising platforms in the U.S. and the only one offering the ability to target mobile audiences using a combination of location signal and search context, leading to performance that is 3 to 5 times above the industry average. Across its network, xad aggregates and manages the largest network of location verified mobile inventory in the industry, resulting in billions of location-specific ad impressions per month and over one million national and local advertisers. xad is based in New York City with several satellite offices across the U.S. and internationally. For more information, visit xad.com. ABOUT TELMETRICS For more than 20 years, Telmetrics has been the call measurement industry leader. Telmetrics call tracking solutions, which are available in North America and across Europe, track the lead generation quality of local search advertising and pay per call programs for the leading brands in local search. This includes both publishers and agencies that serve millions of SMBs and national franchise locations across North America and Europe. With greater visibility into advertising performance across all media channels digital, mobile, print and more media publishers, agencies and advertisers can optimize the media mix for higher quality lead generation, resulting in increased revenues and a more complete picture of ROI across converging media. For more information, visit Telmetrics.com ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. 42

43 TERMINOLOGY Insurance Mobile Shopper: Smartphone or Tablet user who reported using their mobile device to aid in an insurance transaction in the past 30 days. Mobile Application/App: mobile content portal which does not require access via a mobile browser, though does still require internet access to reach. Mobile Website/WAP: mobile content source accessible via a mobile browser such as Google or Safari, which requires internet access to reach. Desktop-accessible websites visited with a smartphone are then called mobile websites. 43