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Research Insights Automotive Internet Users111507
 

Research Insights Automotive Internet Users111507

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  • The ADM Professional Community is a living example of the compelling value proposition for online communities that serve the automotive industry. ADM serves as proof that the impact of Social Media on the automotive vertical is more significant than widely understood. Be sure to visit the ADM Professional Community at http://www.AutomotiveDigitalMarketing.com or the acronym URL at http://www.ADMPC.com or the Twitter URL at http://ADM.fm today, and don’t just be a Lurker... Join!
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    Research Insights Automotive Internet Users111507 Research Insights Automotive Internet Users111507 Presentation Transcript

    • DE A LIX Automobile Shopping Behavior 2007 Research Insights for Dealix Customers
    • DE Highlights of 5 Major Industry Studies in 2007 A LIX > 2007 New and Used Autoshopper Studies > 1 million leads from 1,140 dealerships representing 35 brands matched with DMV data to assess sales rates and time to close > Two consumer surveys: - 550 vehicle shoppers and purchasers - 1000 vehicle purchasers|| > 2100 dealerships in eMystery shop campaigns [20 brands] > 20 onsite visits to top performing dealers
    • DE Key Insights for Your Dealership A LIX > All customers are “internet customers” > 3rd party leads are essential to reach 20-25% of shoppers > Many shoppers have a different timeline than your sales team > You only have one shot to win over a shopper > Excellent lead management practices increase close rates 2-3X
    • DE Consumer Shopping Process 1. - - - A Should I be in market? LIX Resale value/condition of current vehicle Change in vehicle needs “Gotta have” new model 2. Which models meet my needs? - Price, styling, reliability, size - Previous experience - Advice from friends 3. Where should I purchase? - Price - Convenient location - Service
    • DE Metrics Through the Funnel A Awareness LIX Measures of Success → Change in awareness → Improvement in familiarity Familiarity → Improvement of opinion → Click on ad Consideration → Click to site → Build a vehicle Visit Dealer → Search inventory → Search for dealer info Purchase → Request a quote
    • DE All customers are Internet customers A Car shoppers are qualifying dealers LIX by researching online & using search for vehicle dealership research Base: Total Respondents (550) Q4 When researching auto dealerships, which of these online search engines did you use to obtain information? (Please select all that apply.) QS10Which of the following resources ‘did you use to gather information while shopping for your new vehicle?’ OR ‘are you using to gather information while shopping for your new vehicle?’ Q0You mentioned that you used the resources shown below to research and shop for new vehicles. How did you reach each of these websites? Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Requests for online quotes are steady 60% 50% A Percent of New-Vehicle Buyers LIX Submitting a Request for Online Dealer Referral Visited Dealer 40% Found Online % of All Buyers 30% 39% 20% 10% 20% 21% 21% 22% 0% 2004 2005 2006 2007 Based to new-vehicle buyers Source: J.D. Power and Associates 2004-2007 New Autoshopper.com Studies
    • DE 23% of used vehicles sold are sourced online 30% 25% A Method that Led to Used Vehicle Purchased Newspaper Classifieds LIXClassified Ad Magazines Online Classifieds % of All Buyers 20% 15% 23% 10% 16% 14% 11% 11% 12% 5% 10% 9% 5% 5% 0% 2003 2004 2005 2006 2007^ Based to late model used-vehicle buyers Source: J.D. Power and Associates 2003-2007 Used Autoshopper.com Studies
    • DE Key Insights for Your Dealership A LIX > All customers are “internet customers” > 3rd party leads are essential to reach 20-25% of shoppers > Many shoppers have a different timeline than your sales team > You only have one shot to win over a shopper > Excellent lead management practices increase close rates 2-3X
    • DE The new-vehicle shopping process takes about 3 months for the average shopper A Decide it was time to purchase Purchase Milestones of New-Vehicle AIU's Shop vehicles on the Internet LIX Decide on model Purchase new vehicle 11.7 10.4 6.3 14.7 11.0 7.6 0 Decide on type Start visiting of vehicle dealers Start actively researching vehicles 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Weeks Before Purchase (Mean) Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
    • DE One-third of new-vehicle buyers purchase within 1 month of deciding they need a new vehicle 25% 20% A Shopping Timeline of AIU's 22% LIX 18% 34% Shopping Process One Month or less 15% 15% 13% 13% 10% 10% 8% 5% 2% 27% Shopping Process Decide time to buy Over Six Months 0% 53 or 25 to 52 21 to 24 9 to 20 5 to 8 4 3 to 2 1 week more Weeks Before Purchase Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
    • DE The process is not much different for late-model used vehicle buyers A Decide it was time to purchase Purchase Milestones of Used-Vehicle AIU's Shop vehicles on the Internet LIX Decide on model Purchase new vehicle 13.8 9.9 6.9 14.9 10.9 10.1 0 Decide on type Start visiting of vehicle dealers Start actively researching vehicles 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Weeks Before Purchase (Mean) Source: 2007 J.D. Power and Associates Used Autoshopper.com Study. Based to AIUs. Preliminary Data
    • DE Over one-third of new-vehicle buyers seriously consider only one model 40% 35% 30% A 34% Number of Vehicles Considered LIX 30% 25% 20% 20% 16% 15% Loyal 10% 5% 0% One Two Three Four or More
    • DE Consumers consider multiple brands A Consumers visit an average of 6 LIX dealerships, but they visit only one dealership per brand Base: Total Respondents (550); Those Responding QS6 Please select the statement that best describes your consideration of each make listed below. QS7 How many dealerships did you visit for each make? Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Geographic area of consideration grows A A third of consumers will drive more LIX than 20 miles from home 68% of consumers are not willing to travel more than 20 miles 32% of consumers are willing to travel farther than 20 miles Base: Total Respondents (546)* * Don’t know responses removed QS8 Again thinking about the dealerships you visited, think about how far each dealership was from your home. In miles, please tell us the distance between your home and the farthest dealership you visited for each make. Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Key Insights for Your Dealership A LIX > All customers are “internet customers” > 3rd party leads are essential to reach 20-25% of shoppers > Many shoppers have a different timeline than your sales team > You only have one shot to win over a shopper > Excellent lead management practices increase close rates 2-3X
    • DE Overall conversion is steady A One Million New Car Leads LIX 45% of leads did not convert 55% of leads converted Based on registration information supplied by R. L. Polk & Co. Sales/leases have been adjusted for matching efficiency by a factor of 1.36, which represents a 73% historical match rate The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Lost opportunity is still high A LIX Sold at “intended” dealership 90% closed at a dealer other than the one the lead was sent to – “lost opportunity” Based on registration information supplied by R. L. Polk & Co. Sales/leases have been adjusted for matching efficiency by a factor of 1.36, which represents a 73% historical match rate The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE All “missed” sales A LIX Sold at “intended” dealership Based on registration information supplied by R. L. Polk & Co. Sales/leases have been adjusted for matching efficiency by a factor of 1.36, which represents a 73% historical match rate The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Too many leads go unanswered A Overall responsiveness LIX 2007 68.6% Response time average (hrs) 7.1 More than 30% of leads going unanswered. Quality of responses: Answered the shoppers questions 28.6% Use brand or product highlight 25.5% 2007 Cobalt National eMystery Shop, Base: 2,111 The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Lead response time is slow A Overall responsiveness LIX 2007 68.6% Response time average (hrs) 5.4 20% of consumers Quality of responses: want a response within 4 hours or they’ll go someplace else.* Answered the shoppers questions 28.6% Use brand or product highlight 25.5% 2007 Cobalt National eMystery Shop, Base: 2,111 * “Cars Online 06/07: Understanding the Dynamics of Consumer Buying Behavior and Customer Loyalty” CapGamini The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Poor lead handling contributes to brand defection A Why did you purchase a different brand than you submitted an online inquiry about? LIX Of those that switched brands, 23% did so because of poor dealer interaction Poor or no Bad dealer response experience QV5 - Those who said they purchased a different make/brand than submitted an inquiry about (301) Which of the following reasons describe why you purchased another make/brand than you submitted an online inquiry about? The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE Quality of lead response is poor A Overall responsiveness LIX 2007 68.6% Response time average (hrs) 5.4 Quality of responses: Answered the shoppers questions 25.0% Use brand or product highlight 25.5% 2007 Cobalt National eMystery Shop, Base: 2,111 The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE eMystery National Shop 2005 vs. 2007 A Overall responsiveness LIX 2005 69.7% 2007 68.6% Response time average (hrs) 6.5 5.4 Quality of responses: Answered the shoppers questions 25.9% 25.0% Used brand or product highlights 30.4% 19.5% 2007 Cobalt National eMystery Shop, Base: 2,111 2005 Cobalt National eMystery shop, Base: 3,576 The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.
    • DE The Impact of Dealer Lead Execution Cumulative Close Rates vs. Lead-to-Close Time 18% 16% 14% A LIX 12% 3X 10% 8% 6% 2X 4% 2% 0% 0-30 days 31-60 days 61-90 days 91+ days High Performering Dealers Low to Avg Performing Dealers
    • DE Key Insights for Your Dealership A LIX > All customers are “internet customers” > 3rd party leads are essential to reach 20-25% of shoppers > Many shoppers have a different timeline than your sales team > You only have one shot to win over a shopper > Excellent lead management practices increase close rates 2-3X