Do You Know Today`s Customer

Ian MacDonald,
Vice President
Autotrader, KBB
Your Customer
3
Share key insights
on consumer thoughts,
behaviors and
dealership implications
Understand operational
best practices to
better connect with
today’s shopper
Get feedback &
answer questions
Radical
efficiency
Profit taking/incremental sales
1999
2000
2001
2002
2003
2004
2005
2006
2007
Transparency
& innovation
2008
2009
Source: AutoTrader.com Site Statistics
2010
2011
2012
2013
2014
2015
Transparency
& innovation
Radical
efficiency
Profit taking/incremental sales
86%
1999
2000
2001
2002
Source: AutoTrader.com Site Statistics
2003
2004
2005
2006
2007
2008
2009
2010
* 86% in 2014 compared to 84% in 2011 – Forrester Research
2011
2012
2013
2014
2015
2014 New Auto shopper Study
• Shoppers spend an average of 14 hours online or using apps.
• 10 automotive sites are visited on average.
• 77% (up from 74% in 2013) visited the selling dealer’s website.
• 1 in 3 cited the internet as the most “significant influence” in
choosing which dealer to purchase from *.
• On average, 2.6 dealers were visited.
• 5 hours averaged shopping and purchasing at dealers.
* AutoTrader.com named as “most useful in finding dealer information.
57% 43%
April 2014 visits
Mobile Device
& Tablet
Desktop
53% 47%
April 2015 visits
Source: AutoTrader.com Site Statistics
82
25% used their tablet while
at the dealership
35
65% used their smartphone
while at the dealership
39
Source: 2015 Automotive Buyer Influence Study, R.L. Polk & Co. New & Used online buyers (n=1577).
#1
SOURCING
Sourcing Study 2010-2014: 2,500 Dealers, 162,075 Used Car Buyers, 173,960 New Car Buyers
#2
AT/KBB and Vin Solutions data – 3mm visitors to >2,500 dealer websites
#3
Nashville IDS attendee sample vs. national average
Used VDP’s/ car
Best Practice
Zone – 75 to
140 VDPs /
Car
Used VDP’s/ car for today’s attendees
National Average Used VDP’s / car
AVG Used VDP’s / car for today’s attendees
44
38
#4
VEHICLE SELECTION
ACQUISITION PROCESS
TRANSPORTATION
RECONDITIONING
PHOTOS & VIDEO
DESCRIPTIONS
PRICING
CUSTOMER HANDLING
How do real buyers shop for cars?
2.2
average number
of cars considered
5 months out
Source: J.D. Power & Associates Web Site Performance Tools Study
2.4
average number
of cars considered
3 months out
Source: J.D. Power & Associates Web Site Performance Tools Study
3.6
average number
of cars considered
Purchase Month
Source: J.D. Power & Associates Web Site Performance Tools Study
Learn
Decide
Then we ask: How do they make decisions?
Source: 2013 AutoTrader.com Consumer Needs Ethnographic Research Study
Active Evaluation:
Information gathering, shopping
Loyalty Loop
Initial
Consideration
Set
Moment of
Purchase
Trigger
Post Purchase Experience:
Ongoing exposure
What did you notice?
• Determine their priorities
• KBB values
• Financial decision maker
• Zero dealership contact
prior to purchase
• Used multiple devices
42
of car shoppers
use multiple
devices
Source: 2015 Automotive Buyer Influence Study, R.L. Polk & Co.
9%
7%
desktop
laptop
tablet
38%
44%
smartphone
Source: Automotive Buyer Influence Study, R.L. Polk & Co.
However,
are more likely
than older
generations to
use mobile
devices while
vehicle shopping
Source: 2013 Automotive Buyer Influence Study, R.L. Polk & Co.
7.2 hours consuming media content per day
2.0
1.6
hours/day
hours/day
1.5
hours/day
Source: InMobi Insights Study, February 2013
54
Millennials mainly
access the Internet
via their mobile
device
Source: InMobi Insights Study, February 2013
Advertising that creates awareness of a
brand, specific make/model, or dealership
Percentage increase in vehicle searches comparing the hour after
the commercial aired to the hour preceding Super Bowl
1131%
2069%
1820%
1242%
3107%
950%
500%
433%
294%
225%
205%
143%
48%
45%
11%
64%
52%
16%
62%
27%
Source: 2015 AutoTrader.com End Zone Report Site Statistics
The absence of a percentage indicates the advertiser did not have a measurable increase in the demonstrated period.
+25
New car searches
+31
New Vehicle Detail Page views
+56
Build & Price
+92
Dealer Trackables
Cancellations
Pre-cancellation VDPs
Post-cancellation VDPs
(on AutoTrader.com)
49
More likely to do
further research
on advertised
model when
exposed to all 3
tiers
Source: KBB.com Site Data, 2013
32
More likely to
contact the dealer
Consistent
Inconsistent
TIER 1
TIER 2
77
More likely to
contact the dealer
TIER 3
TIER 1
TIER 2
Source: AutoTrader.com
TIER 3
A trigger that causes a consumer
to begin shopping for a car
50
Start
shopping
based
Purchased
based
on
need vs.
ona need
vs.want
want
Source: 2015 ABIS
• Previous vehicle damaged
• Found irresistible car
• Previous didn’t meet needs
• Good trade-in
• Change in family/lifestyle
• Attractive promotional offer
• Gave away previous vehicle
• Paid off previous vehicle
• Change in finances
Q25. Which ONE of the following events or circumstances
prompted you to purchase your most recent vehicle?
76
StartOfshopping
based
Car Buyers
on Shop
need Online
vs. want
Source: 2015 Polk Automotive
Buyer Influence Study
All begin with a
set of
&
end with a
Source: 2013 AutoTrader.com Consumer Needs Ethnographic Research Study
OEM websites
Third-party websites
OEM websites
Third-party websites
The majority know little about what what vehicle they want
Knew Exact Vehicle (Make/Model)
30%
11%
Knew Vehicle Make
Knew Vehicle Features
10%
Knew Vehicle Class
15%
Knew Vehicle Body Style
Did Not Know
What they Want
Exact
Make
Something
59%
27%
7%
41%
Nothing
Source: 2015 Automotive Buyer Influence Study, R.L. Polk & Co.
64
of shoppers
consider
both New
& Used
Source: 2014 Vehicle Shopper Study
Ad Strategy
Merchandising & transparency
are key to standing out
Understand competitive landscape
right price experience & vehicle
PHOTOS & VIDEO
DESCRIPTIONS
PRICING
where & what
• Online/Offline
• New & Used
• Display
• Use Third-Party validation
• Consistent across tiers
CUSTOMER HANDLING
Shoppers have
different needs &
wants, the smartest
marketers help them
make sense of it all
Market for
consideration,
not just awareness
& evaluation
Know there is
a key opportunity
to influence at all
stages of the process
“
”/“
”
more decisions to be made
in order to narrow down choices
OEM websites
Third-party websites
The Internet leads
buyers to dealership
almost 3x more
than ALL non-media
sources combined
Source : 2015 Automotive Buyer Influence Study, R.L. Polk & Co.
70
76%
to
80
of Ad spending is on
Traditional media
27%
13%
Internet
Referral
TV
10%
9%
Magazine
Newspaper
6%
6%
4%
Direct
Mail
Outdoor
Ad
Radio
Source: 2015 Automotive Buyer Influence Study, R.L. Polk & Co. All Buyers (n=1,886).
2,500
dealer websites
>3mm
visitors to dealer websites
TRADE-IN &
VALUATION
SHOP
TOYOTA
CAMRY
(NEW)
HONDA
ACCORD
(NEW)
FORD FUSION
(NEW)
MERCEDES BENZ
E320 (USED)
DEALER SITES
RESEARCH &
PRICE
PURCHASE
PURCHAS
E
Researched
Researched
NEW Ford Edge USED Ford Edge
Searched
Toyota RAV 4
Searched
Honda CRV
Searched
Ford Edge
Dealer Site
Viewed
NEW
Ford Edge
Viewed NEW
Ford Edge
Purchased a
Ford Edge
Clicked on
Dealer Site link
Researched
NEW Ford Edge
68
of dealer site visitors
are car shoppers
Source : Digital Audience Analysis.
48
of monthly shoppers to dealer websites
“overlap” AutoTrader.com or KBB.com
Source : Digital Audience Analysis.
39
of shoppers visit AutoTrader.com
or KBB.com FIRST
Source : Digital Audience Analysis.
40
of shoppers who went
to AutoTrader.com or
KBB.com looked at
NEW CARS on the
dealership site
Source : Digital Audience Analysis.
72
56.6
Bookmark or direct link .. 30.1%
Google AdWords………
Bing…………….……..…
Yahoo……………….….
2.66%
2.71%
3.13%
26.5%
Google Images…………… 1.49%
Google Maps..………….… 0.58%
In-Site Referrer…………… 30.6%
Google Organic…………..
Source: Dataium Analysis of 8k Dealerships http://vimeo.com/44057073
Once a vehicle & dealership is selected
to move forward through consideration
& evaluation, they go to make a purchase
OFFLINE
Purchase
ONLINE
Shopping
•
•
•
•
It’s the most critical component for purchase
Enabled decision-making creates it
Consumers need information & the right process
It’s lost when decision-making is hindered
Source: 2013 AutoTrader.com Consumer Needs Ethnographic Research Study
“
”
- Construction company owner, Dallas, TX
Source: Can BestBuy Be Saved? Wall Street Journal, April 26, 2013
National satisfaction vs. time spent in dealership
10.0
NASHVILLE satisfaction vs. time spent in dealership
9.4
9.5
9.0
9.1
8.5
8.0
7.5
7.0
6.5
59
< 30 min
30 min - 1 hr
6.8
7.2
1 - 1.5 hr
1.5 - 2 hr
2 - 2.5 hr
2.5 - 3 hr
3 - 4 hrs.
4 - 5 hrs
5 - 6 hrs
>6 hrs
Source: KS&R Dealer Sourcing Studies. National Total (n=92,901); Nashville Base Sizes Among 23
Dealerships; * Caution: Extremely Low Sample Size; ** Caution: Sample Size Too Low To Display
Dealers who smooth
the transition
from
to
win with their customers
64%
20%
2004
67%
21%
2005
71%
68%
21%
2006
22%
2007
Online new car shoppers as % of total buyers
75%
22%
2008
76%
22%*
2009
77%
22%*
2010
Email lead requestors as % of total buyers
Source: J.D. Power and Associates 2004 - 2010 New AutoShopper.com Study *Estimate
based on previous trend, 2009 & 2010 data not available due to change in methodology.
National
21%
12%
27%
67%
New Cars
Walk-In
Email
Phone
10%
63%
Used Cars
Source: National Total (n=340,479), National New (n=175,602), National Used (n=164,877)
Nashville
DMA
19%
8%
73%
New Cars
Walk-In
Email
Phone
26%
8%
66%
Used Cars
Source: Nashville Base Sizes Among 43 Dealerships: Total (n=4905), New (n=2463), Used (n=2442);
National Total (n=340,479), National New (n=175,602), National Used (n=164,877)
Didn't want dealer to have my
contact info
46%
Believed information would
not be valuable or accurate
Believed response would not
be timely
Wanted to see what's
available
14%
9%
7%
Source: Morpace/Autotrader Dealership Experience Study
“
I don’t want
to be harassed
by a salesman
“
“
I want to
maintain control
of the negotiation
Source: Morpace/Autotrader Dealership Experience Study
“
Which shopping activity do you think
consumers are “least satisfied with”?
A. Deciding which car to purchase
B. Applying for financing
C. Trade-in offer for current vehicle
D. Negotiating the purchase price
Wednesday, June 24, 2009
76%
63%
Researching
vehicle
features &
options
Searching
dealership
inventory
62%
57%
Finding info on Finding the
incentives, best deal/price
specials &
rebates
56%
Finding the
right
dealership
52%
Negotiating a
purchase price
47%
Filling out
paperwork
43%
Applying for
financing
Source: Morpace/Autotrader Dealership Experience Study
37%
Receiving a
trade-in offer
• Buyer participates in appraisal process
• Third-Party validation used consistently
• 70% look to book
P.S. He’s a Millennial…
41%
Had the Car I Wanted
37%
Price / Deal
19%
Salesperson / Service
Prior Experience
Proximity to Home
8%
6%
Salesperson / Service
28%
Price / Deal
28%
Had the Car I Wanted
Proximity to My Home
Prior Experience
21%
18%
16%
Source: 2010-2013 AutoTrader.com New Vehicle Sourcing Studies and 2010-2013 AutoTrader.com Used
Vehicle Sourcing Studies Q9a. Why did you end up purchasing your vehicle from [DEALER NAME]?
• The dealership experience
is critical to the sale
• For Used car buyers,
customer experience is
second only to having the
right vehicle at the right price
• For New car buyers, customer
experience is most important,
trumping even vehicle/price!
VEHICLE
SELECTION
PRICING
CUSTOMER
HANDLING
1. Consumers use an
of media to shop
Mirror your shoppers’ behavior by considering:
• Aligning traditional & online advertising strategy & budget to the journey
• Re-evaluating how you attribute value to varying online advertising tactics
• Implementing a multi-tactic online advertising media mix
• Differentiating your inventory, your store, & the experience you provide shoppers
2. Focus on:
• Aligning company & organizational structures to create accountability,
and a customer-centric experience
• Giving shoppers credit for their research: Smooth the online shopping
process to the offline, in-dealership purchase process
• Considering the lifetime value of customers & reward employee
behavior that fosters long-term relationships with customers
• Measure, measure, measure
operational excellence
separates outstanding
marketers from everyone else.
Ian MacDonald
[email protected]