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This study is brought to you courtesy of
www.google.com/think/insights
Google Confidential and Proprietary
Table of Contents
2
1 Purpose of Study & Methodology
2 Key Takeaways
3 Deposits Industry Trends
4 Drivers for Channel and Institution Selection
5Impact of Search on Offline and Online Deposit Account
Applications
6 Use of Search in Shopping for Deposits Accounts
7 Types of Terms Used in the Shopping Process
Google Confidential and Proprietary
Purpose of Study & Methodology
• Purpose of Study
– Quantify how consumers use search when shopping online for deposits accounts (e.g., savings/CD/MM /checking)
– Quantify the impact of online search on online and offline deposits account applications
• Methodology
– Conducted on Compete’s proprietary U.S. consumer dataset
– Online deposit researchers are split into two mutually exclusive categories:
• Shoppers: View deposit account specific content but do not submit an application
• Applicants: Submit a deposit application during the study timeframe
• Application rate: Share of shoppers who apply for a deposit account
– For online deposit shoppers and applicants, Compete pulled a history of search query and search referral activity for the 30 days prior to last shopping/converting activity (Aug – Sep 2009)
– Online Deposits account shoppers were surveyed (Sep-Nov) to assess their (offline and online) application patterns and preferences regarding financial institutions
4
Google Confidential and Proprietary
Queries and Referrals
5
Each Search generates a query
Clicking a result generates a referral
Google Confidential and Proprietary
Banks Included in Study
6
Traditional banks
Bank of AmericaCapital One
ChaseCitibank
Washington MutualWells Fargo
Citizens BankSchwab Bank
US Bank
Online only
Emigrant DirectE*Trade
HSBC DirectING Direct
Google Confidential and Proprietary
Key Takeaways
• Overall online shopper and applicant volume declined in 2009, however, share of online shoppers utilizing search, especially Google, increased
• Online shopping activity is important contributor to offline applications
– For every 10 online applicants, 6 additional online shoppers apply at a branch
– 12% of all online shoppers apply at a branch
• Deposits account shoppers who utilized search applied at a higher rate than those who did not utilize search
– Searchers were 1.44X more likely to apply than non-searchers, inclusive of all channels
• 68% of shoppers perform multiple search queries
– Shoppers performing multiple queries are upto 1.2X more likely to apply than shoppers performing a single search
• Shoppers who utilized non-branded search terms, compared to those who exclusively utilized branded search terms, were 1.4X more likely to apply
8
Google Confidential and Proprietary
Share of Search Shoppers Increased in 2009
10
Number of Online Shoppers(Online Shoppers in Jan 2008 - Sep 2009)
22%20% 20%
19% 19%20% 19%
20%22%
20% 20%
22%
24%23%
26%25% 25%
23%
24%23%
21%
0%
5%
10%
15%
20%
25%
30%
0M
1M
2M
3M
4M
5M
6M
7M
8M
9M
10M
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09
Total Shoppers % Search Shoppers
Source:
Google Confidential and Proprietary
Applicants Trended Similar to Shoppers
11
Number of Online Applicants(Online Applicants in Jan 2008 - Sep 2009)
21%
19%20%
18%
22%23%
22%
19%
24%
20%22%
23%24%
21%
23% 23%
25%
22%21%
24%
20%
0%
5%
10%
15%
20%
25%
30%
0K
100K
200K
300K
400K
500K
600K
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09
Total applicants % Search Applicants
Source:
Google Confidential and Proprietary
Share of Google Driven Shoppers and Applicants Rose
12
Share of Google Driven Search Shoppers and Applicants(Search Shoppers and Applicants in Jan 2008 - Sep 2009)
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09
% Google Shoppers/ Search Shoppers % Google Applicants/ Search Applicants
Source:
Google Confidential and Proprietary
70% of Search Applicants Apply Immediately
13
Comparison of Same Session and Lagged* Search Applicants(Search Applicants in Jan 2008 - Sep 2009)
*Search applicants who applied within a month of performing a search
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09
% of same session search applicants % of lagged search applicants
Source:
Google Confidential and Proprietary
Applicants are Reducing Number of Brands in their Consideration Set
14
Number of Banks at which Online Applicants Shopped(Average Bank websites Visited by Online Applicants in Jan 2008 - Sep 2009)
Average = 1.48
1.441.43
1.48
1.44
1.47
1.51
1.61
1.46
1.54 1.53 1.521.54
1.50 1.49
1.55
1.481.46
1.39
1.431.42
1.38
1.25
1.30
1.35
1.40
1.45
1.50
1.55
1.60
1.65
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09
Average number of banks shopped online
Source:
Google Confidential and Proprietary
Many Online Shoppers Choose to Apply Offline
16
Location of Application for Shoppers(Respondents Opening a Deposit Account)
(Base: Applicants for High Yield = 150, Savings=140, CD=303, Money Market=149, Checking=364) *Other includes the Phone and other channels
85%
66%61%
55%45%
9%
31%32% 42%
52%
5% 2%8% 3% 3%
High Yield Saving
Savings CD Money Market Checking
Online At a local branch Other*
Source:
Google Confidential and Proprietary
Offline Applicants Value Personal Contact…
17
Reasons for Shoppers to Apply at a Branch(Respondents Opening a Deposits Account at a Branch)
(Base=297)
43%
29%
27%
20%
19%
18%
18%
18%
7%
5%
4%
Wanted to speak in-person
Assured of accuracy
More convenient channel
Previously used channel
Get to know local branch
Not provide info online
Faster
Promotion on this channel
Unaware of online
Other
Did not find info online
Source:
Google Confidential and Proprietary
…While Online Applicants Value Convenience
18
Reasons for Shoppers to Apply Online(Respondents Opening a Deposit Account Online)
(Base=410)
54%
53%
44%
41%
35%
33%
33%
30%
28%
23%
18%
10%
9%
More convenient
Faster
Could open anytime
All information available …
Easier to comparison shop
Previously used channel
No need for in-person talk
Did not want to travel
Avoid crowds and lines
Promotion on this channel
Could choose non-local
Assured of accuracy
OtherSource:
Google Confidential and Proprietary
New Banks Sought for Additional Accounts
19
Reason for Applicants to Open a Deposits Account(Respondents Opening a Deposits Account)
(Base: Applicants for High Yield = 91, Money Market = 77, Checking = 231, Savings = 108, CD = 190)Note: 95% confidence denoted by capitalized letters and 90% confidence denoted by lower case letters
35% (C,d,e) 34% (C,D,E)
6%15% 14%
7% 10%
18%13% 11%
52% 47%
62% 57%
36%
7% 9% 14% 15%
39%(A,B,C,D)
High Yield Saving (A)
Money Market (B)
Checking (C ) Savings (D) CD (E)
New account Closed to move to new institution
Additional with different institution Additional with same institution
Source:
Google Confidential and Proprietary
Existing Relationships Vary in Importance
20
Share of Applicants with Prior Relation with Institution(Respondents Opening Deposits Account)
Source:
Google Confidential and Proprietary
Online CD Shoppers Apply At a 39% Rate
22
Application Rate* of Deposit Shoppers(Respondents Opening a Deposit Account)
(Base: Online shoppers of specific deposit accounts)*Includes all application channels for example, online, branch, phone, etc.
39%
34%
33%
33%
27%
CD (n=642)
Checking (n=907)
High Yield (n=509)
Savings (n=798)
Money Market (n=458)
Source:
Google Confidential and Proprietary
For Every Ten Online Checking Shoppers Applying Online, Eleven Apply at a Branch
23
Branch Application Amplification Due to Online Activities(Number of Branch Applicants for Every 10 Online Applicants, from Online Shoppers)
(Base: Online shoppers)
11
7
6
5
2
Checking (n=907)
CD (n=642)
Savings (n=798)
Money Market (n=458)
High Yield (n=509)
Checking account 2.1
CD 1.7
Savings account 1.6
Money market account 1.5
High yield savings account 1.2
Application Amplification Effect
Source:
Google Confidential and Proprietary
Use of Search Increases Application Rate
24
Application Rate* of Deposit Shoppers(Searchers versus Non-Searchers Respondents Opening a Deposit Account)
(Base: Searchers for CD=389, Checking=591, High Yield=324, Savings=514, Money Market=292; Non-searchers for CD=254, Checking=315, High Yield=185, Savings=285, Money Market=166) *Includes all application channels for example, online, branch, phone, etc.
37%
27% 26%
20% 19%
4%
11%11%
19%
13%
40%38%
37%39%
31%
CD Checking High Yield Savings Money Market
Non Searcher Lift from Search
Source:
Google Confidential and Proprietary
Searchers are 1.3X More Likely to Apply than Non-Searchers
26
Comparison of Online Application Rate(Online Applicants in Aug - Sep 2009)
306,817 288,881
4.7%
6.1%
0%
1%
2%
3%
4%
5%
6%
7%
0K
50K
100K
150K
200K
250K
300K
350K
Non Searchers Searchers
Applicants Application Rate
Source:
Google Confidential and Proprietary
Number of Deposit Search Queries(Online Applicants in Aug - Sep 2009)
Applicants are Searching Frequently
27
Applicants Total query Volume: 1M
32%
21%
21%
16%
10%
Search Applicants
1 2 3-4 5-9 10+Source:
Google Confidential and Proprietary
Frequent Searchers Apply at a Higher Rate
28
Online Application Rates by Number of Search Queries(Online Shoppers in Aug - Sep 2009)
5.5%
6.7%
6.4%6.5%
6.0%
1 2 3-4 5-9 10+
Source:
Google Confidential and Proprietary
Frequent Searchers Use Combination of Terms
29
298
296
205
120
93
Branded Versus Non-Branded Search, by Number of Queries(Online Applicants in Aug - Sep 2009)
Query Volume (’000s)
71%
53%
41%
27%
19%
29%
25%
11%
12%
22%
48%
60%
81%
1
2
3-4
5-9
10+
Branded Only Non-Branded Only Both
Applicants Total query Volume: 1M
Source:
Google Confidential and Proprietary
Non-Branded Term Users More Likely to Apply
30
Share of Online Applicants by Term Type Used and Online Application Rate(Online Applicants in Aug - Sep 2009)
49%
19%
32%
5%
7% 7%
0%
1%
2%
3%
4%
5%
6%
7%
8%
0%
10%
20%
30%
40%
50%
60%
Branded Non-Branded Both
Applicant share (left axis) Application rate (right axis)
Source:
Google Confidential and Proprietary
Branded Terms Comprise Majority of Queries
31
Search Query by Term Type(Online Applicants in Aug - Sep 2009)
Applicants Total query Volume: 1M
65%
22%
5%5%2%1%
Queries
CDs
Features
Checking
Savings
General
Branded
Term type Example query
1 month CD
CD APY
CD high interest
Secure banking
Free debit card
FDIC insured
Free checking
Best checking account
Checking online
High yield savings
Savings bank rate
Money market fund
Bank account
Bank comparison
Online banking
Citibank onoline banking
Bank of America
HSBC direct
Source:
Google Confidential and Proprietary
Non-Branded, Paid Has High Application Rate
32
Comparison of Online Application Rate by Search Type(Online Shoppers in Aug - Sep 2009)
6%
3%
9% 10%
Branded, Organic Branded, Paid Non-Branded, Organic Non-Branded, Paid
Source:
Google Confidential and Proprietary
“Features” Drove Highest Application Rates
33
Online Application Rates for Online Shoppers by Referral Term Type(Online Applicants in Aug - Sep 2009)
3%
66%
2%
0%
25%
2%
0%
1%
1%
0%
0%
0%
3%
6%
8%
9%
9%
9%
15%
15%
16%
16%
20%
36%
Branded Paid
Branded Organic
Generic Paid
General Paid
Generic Organic
General Organic
Savings Paid
Savings Organic
Checking Organic
Features Organic
Checking Paid
Features Paid
Application Rate Share of Referral Volume
Source:
Google Confidential and Proprietary
12%11% 10%
13%
18%
5% 7% 8%
9%
7%
17% 17%19%
22%
25%
Within 4 weeks Within 3 weeks Within 2 weeks Within 1 week Within same session
Branded Non-Branded
Search is Used Throughout Shopping Process
34
Timing of Search Referrals(Total Search Referrals of Online Applicants in Aug – Sep 2009)
Source:
Google Confidential and Proprietary
Key Takeaways
• Overall online shopper and applicant volume declined in 2009, however, share of online shoppers utilizing search, especially Google, increased
• Online shopping activity is important contributor to offline applications
– For every 10 online applicants, 6 additional online shoppers apply at a branch
– 12% of all online shoppers apply at a branch
• Deposits account shoppers who utilized search applied at a higher rate than those who did not utilize search
– Searchers were 1.44X more likely to apply than non-searchers, inclusive of all channels
• 68% of shoppers perform multiple search queries
– Shoppers performing multiple queries are upto 1.2X more likely to apply than shoppers performing a single search
• Shoppers who utilized non-branded search terms, compared to those who exclusively utilized branded search terms, were 1.4X more likely to apply
35Source:
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