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reverse engineering the automotive purchase
REVERSE ENGINEERING THE AUTOMOTIVE PURCHASE FUNNEL KEN INSANA SENIOR MANAGER, CONSUMER RESEARCH COMMON ASSUMPTIONS NONE OF THESE ARE TRUE 6 MONTHS LINEAR Length of Purchase Process Shape of Purchase Process Certain Actions Predict Sales Provide Comprehensive Measurement KPI’s OEM SITES PAST OPTIONS NOT ENOUGH IMBB BROAD CLOSED LOOP ROI NARROW LEAD GENERATION SMALL PANELIST RECALL UNRELIABLE WHAT IF WE GO BACKWARD? PANEL BLOG BROCHURE REQUEST BUILD YOUR OWN CALCULATE PAYMENTS CAR FINDER COMPARE VEHICLES SALES PAYMENT ESTIMATOR LOCATE DEALER MODEL INFORMATION OFFERS PHOTO GALLERY REQUEST A QUOTE REVIEWS SEARCH INVENTORY SELL YOUR CAR TRADE IN KEY INSIGHTS WHAT WE LEARNED – PURCHASE CYCLE IS SHORTER OLD ASSUMPTION… 6 MONTHS 28 DAYS NEW ASSUMPTION… 28 DAYS “Active” In-market period before purchase 37 9 DAYS PRIOR DAYS PRIOR FIRST KPI LAST KPI WHAT WE LEARNED – THERE IS NO LINEAR PURCHASE PATTERN # OF KPI ACTIVITIES VARIES WIDELY FIRST & LAST KPI LOOKS SIMILAR PURCHASER PATHS SHOW WIDE VARIETY A FRENZY OF ACTIVITY 3.5 25% 80 SITES VISITED VISIT 5+ SITES KPI s PERFORMED KPI % OF SALES # OF TIMES Search Inventory 54.9% 84 Build Your Own 39.3% 41 Model Information 33.8% 10 Request a Quote 32.2% 6 Trade In 30.5% 9 Locate Dealer 28.4% 10 Offers 26.3% 6 Reviews 16.8% 12 Compare 14.8% 16 Payment Estimator 13.0% 8 Photo Gallery 9.7% 4 Brochure 4.2% 3 Blog 2.7% 4 % OF BUYERS WHO PERFORMED WHAT BUYERS DID FIRST KPI LAST KPI % OF SALES % OF SALES Search Inventory 22.2% Search Inventory 24.6% CPO 17.8% CPO 14.8% 13.0% Build Your Own 11.3% Build Your Own Trade In 10.2% Model Information 9.4% Model Information 8.4% Trade In 7.9% Request a Quote 7.7% Locate Dealer 6.3% Locate Dealer 5.5% Request a Quote 6.2% Offers 5.1% Offers 4.9% WHERE BUYERS FINISHED 59% 41% OEM SITES 3RD PARTY SITES 121 KPI’s THE STANDARD PURCHASER 5/28 5/31 5/31 6/1 UNIQUE KPI’s PERFORMED 6/1 6/1 6/1 IN MARKET FOR 10 DAYS Build Your Own Estimator Locate a Dealer Model Information Offers Photogallery Request a Quote Reviews NISSAN MURANO 6/3 6/3 6/4 6/3 6/3 6/4 6/4 6/5 6/5 6/6 6/6 6/7 30 5 4 41 5 1 3 32 57 KPI’s ALL FOR NOTHING 11/8 11/8 12/15 UNIQUE KPI’s PERFORMED 12/22 12/23 12/23 ClearnignLots.comDealer 12/23 IN MARKET FOR 78 DAYS 1/5 1/5 1/2 12/29 12/27 Build Your Own Brochure Locate a Dealer Model Information Trade In Photogallery Request a Quote Reviews VOLVO XC 90 1/7 1/7 1/15 1/23 1/25 4 1 30 2 1 1 4 14 115 KPI’s THIRD PARTY GURU 1/1 1/1 1/13 UNIQUE KPI’s PERFORMED 1/15 1/17 Build Your Own Car Finder Compare Vehicles Model Information Financial Reviews 1/28 1/29 IN MARKET FOR 88 DAYS 2/5 2/3 1/31 1/30 1/29 TOYOTA PRIUS 2/6 2/7, 2/15, 2/16, 2/20, 2/21, 2/22, 2/23, 2/24, 2/26, 2/28, 3/10, 3/14, 3/19 3/29 10 82 5 3 2 32 12 KPI’s THE REASSURED UNIQUE KPI’s PERFORMED 4/29 4/30 1 REQUEST A QUOTE CarPriceSecrets.com 1 BUILD YOUR OWN Build Your Own Locate a Dealer Request a Quote Reviews 4 3 1 4 4/30 IN MARKET FOR 7 DAYS 4 REVIEWS HYUNDAI ELANTRA 4/30 2 BUILD YOUR OWN 5/1 3 LOCATE A DEALER 5/5 1 BUILD YOUR OWN 5/5 WHAT WE LEARNED – 3RD PARTY SITES ARE GROWING IN IMPORTANCE VOLUME HIGHER IN 2011 THAN OEM SITES OEM NOT ALWAYS PRESENT IN RESEARCH PATH IMPORTANCE OF 3RD PARTY RESEARCH SITES GROWING 80% 70% 60% 50% OEM 40% 3rdParty 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec KPI defined as: Blog, Brochure, Build Your Own, Calculate Payments, Car Finder, Compare, Payment Estimator, Locate Dealer, Model Information, Offers, Photo Gallery, Request a Quote, Reviews, Search Inventory, Sell Your Car, Trade In BUYERS USE MULTIPLE SITES TO INFORM THEIR DECISIONS 100% 37% 90% 80% 70% NEVER VISITED OEM SITE 60% 50% 40% 30% 20% Both OEM & 3rd Party OEM Only 3rd Party Only 10% 0% 1 2 3 # of sites used 4 5 WHAT WE LEARNED – 3RD PARTY SITES ARE USED DIFFERENTLY PORTALS USED BEFORE AUTO SPECIALTY SITES AOL AUTOS: REVIEWS & MODEL INFO MOST IMPORTANT Endemics Portals OEMs MSN Autos 23 Days 15 Days 18 Days 22 Days 12 Days OEM 14 Days 25 DAYS 9 Days PURCHASE MEASURED BY LAST KPI PERFORMED ON RESPECTIVE SITES 94% KPI’s ARE NOT INVENTORY SEARCHES FIRST KPI LAST KPI AOL Autos MSN Autos KBB Yahoo Autos Edmunds Autotrader Cars.com Model Information Model Information Model Information Model Information Model Information Model Information Model Information 56.9% 56.7% 19.3% 18.1% 16.6% 8.8% 1.8% AOL Autos MSN Autos KBB Yahoo Autos Edmunds Cars.com Autotrader Model Information Model Information Model Information Model Information Model Information Model Information Model Information 44.8% 26.9% 21.6% 15.3% 12.3% 2.7% 2.4% AOL Autos Edmunds Yahoo Autos MSN Autos Cars.com KBB Autotrader Reviews Reviews Reviews Reviews Reviews Reviews Reviews 13.8% 12.7% 9.7% 6.0% 5.9% 2.3% 0.8% AOL Autos MSN Autos Yahoo Autos Edmunds Cars.com KBB Autotrader Reviews Reviews Reviews Reviews Reviews Reviews Reviews 27.6% 16.4% 11.1% 9.1% 5.9% 2.6% 2.4% % OF BUYERS WHO VISITED THAT SITE AND PERFORMED AT LEAST 2 KPI’S APPENDIX METHODOLOGY 2011 BUYERS 90 DAYS OF KPI ACTIVITY PRIOR TO PURCHASE ASSUMED 5 DAY LAG BETWEEN PURCHASE AND DMV REGISTRATION NOT ALL KPI ACTIVITY IS CONSISTENT ACROSS SITES DIFFERENT URL STRINGS VARYING LEVELS OF DEPTH – PAGES INCONSISTENCY DUE TO SITE REDESIGNS PASSIVE VS ACTIVE KPI (VIDEOS, ETC) KPI DEFINED AS: BLOG BROCHURE REQUEST BUILD YOUR OWN CALCULATE PAYMENTS CAR FINDER COMPARE VEHICLES PAYMENT ESTIMATOR LOCATE DEALER MODEL INFORMATION OFFERS PHOTO GALLERY REQUEST A QUOTE REVIEWS SEARCH INVENTORY SELL YOUR CAR TRADE IN PROCESS IS NOT LINEAR: ORDER AND COMBINATION OF KPI’s DOES NOT MATTER NO KPI ORDER IS DOMINANT… Search Inventory++Build Your Own Build Your Own++Search Inventory Model Information++Search Inventory Search Inventory++Model Information Search Inventory++Locate Dealer Locate Dealer++Search Inventory Search Inventory++CPO CPO++Search Inventory Request a Quote++Search Inventory CPO++Build Your Own 28.9% 28.3% 27.3% 26.7% 24.1% 23.7% 23.4% 22.9% 22.0% 21.7% NO KPI COMBO IS DOMINANT… Build Your Own++Search Inventory Model Information++Search Inventory Locate Dealer++Search Inventory CPO++Search Inventory Request a Quote++Search Inventory Search Inventory++Trade In CPO++Build Your Own Build Your Own++Model Information Offers++Search Inventory Build Your Own++Request a Quote 33.8% 31.8% 28.5% 28.0% 27.4% 25.2% 24.9% 24.5% 24.2% 23.8% QUESTIONS & NEXT STEPS