For eBusiness & Channel Strategy Professionals

September 17, 2010

The Who, When, And Why Of visits To Manufacturer Web Sites

A Joint Study With Channel Intelligence Explores Shopper-Manufacturer Relations
by sucharita mulpuru and elizabeth stark with Patti Freeman Evans, Ben Zeidler, and Beth Hoffman

ExECUT I v E S U M MA Ry
In our joint study with Channel Intelligence, Forrester surveyed manufacturer Web site visitors to gain a better understanding of the role the sites play in visitors researching and purchasing paths. Forrester found that manufacturer Web site visitors are habitual Web buyers and mainly use search engines and URLs to find manufacturer sites. While 54% of manufacturer site visitors have high purchase intent, and 17% of those actually buy direct from the manufacturer. To improve the customer experience and their online presence, manufacturers should ensure paths to purchase are efficient, build out comprehensive product descriptions with images, videos, and customer reviews, and offer comparison tools and advanced sorting features that add value for the customer. manufacturer web sites are a part Of many cOnsumers researcH patHs Forrester data shows that 9% of Web buyers report beginning their research for their most recent online purchase on a manufacturer Web site such as Nike.com or HP.com up from 6% last year.1 And if its not a Web buyers first stop, its one of the next: 24% used manufacturer sites as an additional resource when researching their most recent purchase.2 In order to better understand researching and purchasing behavior on manufacturer Web sites, we conducted a joint survey with Channel Intelligence across consumer electronics and home products manufacturer sites. manufacturer site Visitors are Highly intentional buyers In order to gain a better understanding of manufacturer site visitors demographics, research behavior, and purchase intent, Forrester surveyed more than 6,800 consumers on 15 manufacturer Web sites. We found that manufacturer site visitors:

Arent strangers to Web buying. Forty-two percent of visitors to manufacturer sites buy products

online more than a dozen times a year, and 34% purchase products online four to 12 times per year (see Figure 1). Additionally, these consumers visit manufacturer sites to research products quite often: 33% do so at least 12 times a year (see Figure 2).

Use two main resources to find manufacturer sites. Visitors predominantly find manufacturing

sites through search engines or typing in the corporate URL. Beyond these, 4% are directed to manufacturer sites by a friend, family member, or co-worker, and 3% are driven by online ads (see Figure 3). Surprisingly, 2% of these customers are now directed to manufacturer Web sites through social networking sites two years ago, this was 0%.3

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The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

Have high conversion rates. More than 50% of manufacturer site visitors intended to purchase
the product they were researching within 30 days (see Figure 4). In a follow-up online survey with Channel Intelligence conducted within five days after the initial survey to a smaller group of the same shoppers, we found that 35% actually did end up purchasing the product they were researching. Whats more, 17% bought directly from the manufacturer. Its also worth noting that these customers usually ended up buying from where they first intended (see Figure 5).

Are more focused on brand than price. Manufacturer site visitors are less price-focused and

more brand-focused than the average Web buyer. Fifty-two percent of US Web buyers agree that price is more important to them than brand names, compared with just 33% of manufacturer site visitors (see Figure 6). Since site visitors are brand-conscious, its not surprising that one in three ended up buying additional products when purchasing the product they initially began researching on the manufacturers site (see Figure 7).

figure 1 visitors To Manufacturer Web Sites Make A Habit Of Buying Online

How often do you buy online? 42% Often (more than 12 times per year)

34%

Frequently (four to 12 times per year)

19% 6%

Seldom (one to three times per year) Never

Base: 6,880 visitors to manufacturer Web sites (percentages may not total 100 because of rounding) Source: Channel Intelligence 2010 Referral Site Survey
57820 Source: Forrester Research, Inc.

September 17, 2010

2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

figure 2 The Majority Of visitors Regularly Use Manufacturer Sites To Research Products
How often do you come to a manufacturers Web site to research a product?

Seldom Often (one to three times per year) (more than 12 times per year) 25% 33% Frequently (four to 12 times per year) 42%

Base: 6,880 visitors to manufacturer Web sites (percentages may not total 100 because of rounding) Source: Channel Intelligence 2010 Referral Site Survey
57820 Source: Forrester Research, Inc.

figure 3 Consumers Find Manufacturer Sites Through Search Engines And URLs
How did you nd this site today? Through a search engine By typing the corporate URL Through an email link From a bookmark to the page Recommended by a friend, family, co-worker Through an article/Web page Through an online ad Through a social networking site Other 4% 4% 3% 2% 13% 7% 6% 22% 38%

Through a comparison shopping engine 1%

Base: 6,880 visitors to manufacturer Web sites Source: Channel Intelligence 2010 Referral Site Survey
57820 Source: Forrester Research, Inc.

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2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

figure 4 More Than Half Of Site visitors Intended On Purchasing Within 30 Days
I am going to buy this product [within the following time frame]. Immediately Within 48 hours Within one week Within the next 30 days I already bought the product I am just researching 14% 11% 13% 16% 11%

32% of manufacturer site visitors ended up buying immediately.* 35%

Base: 6,880 visitors to manufacturer Web sites *Base: 250 visitors to manufacturer Web sites who purchased a product Source: Channel Intelligence 2010 Referral Site Survey *Source: Channel Intelligence 2010 Referral Site Follow-Up Survey
57820 Source: Forrester Research, Inc.

figure 5 17% Of Site visitors Actually Buy From A Manufacturer Web Site
I am going to buy this product from . . . I bought this product from . . .* 35% 25% 28% 25% 18% 17% 11% 20% 9% 13%

Online from a listed retailer Locally from a listed retailer Direct from the manufacturer Online from a retailer not listed Locally from a retailer not listed

Base: 6,880 visitors to manufacturer Web sites *Base: 250 visitors to manufacturer Web sites who purchased a product (percentages may not total 100 because of rounding) Source: Channel Intelligence 2010 Referral Site Survey *Source: Channel Intelligence 2010 Referral Site Follow-Up Survey
57820 Source: Forrester Research, Inc.

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2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

figure 6 Brand Is More Important To Manufacturer Site visitors Than To Typical Web Buyers
Percent who agree with the following statements When I nd a brand I like, I stick with it I like to research products online and purchase them oine Price is more important to me than brand names 41% 39% 33% 52% 63% 81% All manufacturer Web site visitors All US Web buyers*

Base: 6,880 visitors to manufacturer Web sites *Base: 18,657 US Web buyers Source: Channel Intelligence 2010 Referral Site Survey *Source: North American Technographics Online Benchmark Survey, Q2 2010 (US)
57820 Source: Forrester Research, Inc.

figure 7 One In Three Site visitors Purchased Ancillary Products

Did you buy anything else in addition to the product?

Yes 32% No 68% Manufacturer site visitors spent an average of $150 on additional products.

Base: 250 visitors to manufacturer Web sites who purchased a product (percentages may not total 100 because of rounding) Source: Channel Intelligence 2010 Referral Site Follow-Up Survey
57820 Source: Forrester Research, Inc.

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2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

consumers are in search Of the fundamentals when Visiting manufacturer sites When consumers visit manufacturer sites, they usually do so to:

Find product information. No surprise here: The most common reason for visiting a

manufacturer Web site was to get more information on products (see Figure 8). This means that informing consumers on product details, including product size, weight, benefits, and directions, should be the primary focus of the site.

Purchase products, including accessories. After researching a product on a manufacturer site,

the next logical move for consumers is to actually purchase the product. And thats exactly why 12% of consumers visited manufacturer sites. Another 7% wanted to find local stores that had the product in stock, and an additional 2% were interested in buying accessories.

Find samples or trial offers. While not explicitly asked in our joint study with Channel

Intelligence, we know from historical Forrester research that free samples and coupons are extremely important to consumers. In fact, a survey of CPG site visitors in 2008 found that this was a compelling reason for visitation: 55% requested a sample and 54% downloaded a coupon.4

figure 8 Three In Five Consumers visit Manufacturing Sites To Find Product Information
Why did you come to the manufacturers site today? Get product information Buy the product Find local stores that have this product in stock Get product support or service Learn about accessories Other 12% 7% 7% 4% 7% 63%

Buy accessories 2%

Base: 6,880 visitors to manufacturer Web sites (percentages may not total 100 because of rounding) Source: Channel Intelligence 2010 Referral Site Survey
57820 Source: Forrester Research, Inc.

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2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

R E C O M M E n D AT I O n S

HOw manufacturer web sites can imprOVe tHeir Online presence

Its time for manufacturers to step up to the online retailing plate and begin competing for a larger share of eCommerce customers. Remember, for every dollar spent on your own manufacturer site, at least as much (and often multiple times more) is spent on other distributor sites. Thus, eBusiness professionals at manufacturers should:

build out comprehensive product descriptions and content. Many manufacturer sites
struggle with content. This is regrettable because it plays such an important role in selling online making it worth the time and monetary investment. Detailed product descriptions are a good start, but images, videos, and customer reviews are also important. HP.com does a good job providing consumers with additional information to help make the buying decision easier with product tours, alternate images, detailed product specs, and the ability to configure PC options based on customers needs. Haier goes one step further by giving helpful household tips on product pages, like how to clean a fresh wine stain on its 4-bottle capacity wine cellar product page.

Offer comparison tools and sorting features that add value. Tools that engage and
allow site visitors to find products and information faster are going to increase conversion. Product comparison tools and advanced product display sorting features are great places to start. Lancmes beauty profile tool takes added value one step further by highlighting the makeup products customized for a specific shopper throughout the site after she selects her skin tone, eye color, and hair color.

make it easy for consumers to find the path to purchase. For those manufacturers who
are pursuing their own direct-to-consumer eCommerce strategy and for those where that approach isnt applicable, passing leads to dealers and retailers remains essential: currently most sales still happen at these venues. This means going further than featuring a Buy now button on your site that just takes visitors to a store locator page. For example, each product on the Post-It site has a list of online retailers that carry the desired product, including inventory status and product price. This allows shoppers to quickly and efficiently find the best price at the online retailer they like best and seamlessly complete their purchase.

supplemental material methodology Channel Intelligence conducted an online survey executed through site intercepts of 15 manufacturer Web sites from April 2010 to June 2010. Surveys were gathered using pop-up surveys on manufacturers retail referral pages on 10 consumer electronics and five home products sites. A total of more than 6,800 customers responded when it was fielded. A follow-up survey of 750 consumers was conducted by Channel Intelligence five days following the initial survey to evaluate if, and where, consumers completed their transactions.
September 17, 2010 2010, Forrester Research, Inc. Reproduction Prohibited

The Who, When, And Why Of visits To Manufacturer Web Sites

For eBusiness & Channel Strategy Professionals

endnOtes
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Source: North American Technographics Retail Online Benchmark Recontact Survey, Q2 2010 (US) and North American Technographics Retail Online Survey, Q3 2009 (US). Source: North American Technographics Retail Online Benchmark Recontact Survey, Q2 2010 (US). Social networking sites werent utilized to their full potential by businesses in 2008 when we found that 0% of consumers found a manufacturer site through a social site such as Facebook or MySpace. See the July 23, 2009, How The Best Manufacturer Web Sites Drive Sales (Hint: Through Other Stores) report. In 2008, Forrester found that most CPG site visitors come for discounts just as we did in 2001 and 2005. See the May 19, 2009, Defining A CPG Web Site Strategy report.

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Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 27 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com. 57820