Turbocharging Your New Car Sales

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Nick Hummer presents "Turbocharging Your New Car Sales" at the Innovative Dealer Summit in Denver, CO. …

Nick Hummer presents "Turbocharging Your New Car Sales" at the Innovative Dealer Summit in Denver, CO.

In his presentation Nick discussed the promising outlook for new car sales, as well as ways to differentiate your store's brand through online reviews. With insights related to social, local and mobile shopping behavior, this deck is intended to help you craft your marketing efforts to align with the needs of today's consumers.

More in: Automotive
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  • New car sales are up and advertisers are poised to be in the market in a big way, but it’s important to consider that shoppers are different than they were pre-recession
  • Total number of make, model and trim combinations today compared to three years ago has increased has increased to 1,408 in 2012 vs. 1,367 in 2009Brand loyalty is down 15% over the last decade and the trend is expected to continue1New vehicle owners exhibit less brand loyalty as they retain their vehicle longer2New car shoppers are considering more makes on Cars.com –three makes in 2008 vs. five in 20113
  • Total number of make, model and trim combinations today compared to three years ago has increased has increased to 1,408 in 2012 vs. 1,367 in 2009Brand loyalty is down 15% over the last decade and the trend is expected to continue1New vehicle owners exhibit less brand loyalty as they retain their vehicle longer2New car shoppers are considering more makes on Cars.com –three makes in 2008 vs. five in 20113
  • So what does all that mean in terms of car shopping? So-Lo-MoMore engagedOver-index on reviews (they read more reviews – use stat about reviews?)Over-index on MobilePrice matters – but it’s not a race to the bottom. Your dealership brand matters, and meeting their needs matters.
  • So what does all that mean in terms of car shopping? So-Lo-MoMore engagedOver-index on reviews (they read more reviews – use stat about reviews?)Over-index on MobilePrice matters – but it’s not a race to the bottom. Your dealership brand matters, and meeting their needs matters.
  • So what does all that mean in terms of car shopping? So-Lo-MoMore engagedOver-index on reviews (they read more reviews – use stat about reviews?)Over-index on MobilePrice matters – but it’s not a race to the bottom. Your dealership brand matters, and meeting their needs matters.
  • Facebook stat - http://www.shop.org/press/20110527Reviews stat – brightlocal (see reviews infographic) Mobile stat – cars.com/nielsen
  • Here’s how Cars.com’s wired site, on the left, looks compared to our mobile site. Both look pretty, of course, but the one on the right has been optimized for the mobile consumer.Wired site: difficult to read on a small screen, “click” areas are too small for fingers, etc.Mobile site: very easy to read on a small screen, “click” areas big enough to tap on, menu options correspond with how we’ve learned mobile consumers want to shop for a carGoMo: GoMo was launched by Google in November to help businesses optimize their website for mobile.  Take a look at how your site looks currently on a mobile device using the GoMoMeter, get recommendations for improving it and check out great examples from other businesses.Service application:Some dealers offer an app giving customers the ability to schedule an appointment, then drop the car off at the designated time, avoiding a wait in the service lanes.When the shop wants to share the repair-order estimate with the customer, the app pushes a notification to the customer’s home screen. If OK with the quote, the customer pings back approval.Customers can often pay their bill through the app as well – all they have to do is pick up their keys.Apps can also notify a customer of recalls and expiring factory warranties, offer service and sales specials and display full vehicle inventories
  • New Car shoppers who view dealer review pages consume over 2.5X more page views per visitSpend 2.5x more time on siteConsumers are 5x more likely to contact a dealer with reviews (can we cut this by New Car?)XX% of new-car shoppers found their dealer online – higher than “previous purchase” and “recommendation from a friend or family member”On Cars.com…New-car shoppers are 2.5x more likely to select “Group By Dealer” in inventory search resultsThose who grouped by dealer were 3x more likely to contact a dealerNew-car shoppers are nearly 2x more likely than used-car shoppers to filter by Dealer Reviews.
  • Consistently? (is the way you’re showing up consistent with your promise? i.e. e-mail addresses that go nowhere, incorrect info on business directory pages, etc.)Sound familiar? These are some of the most widely recognized brand promises. What do your customers want?What are you saying that makes them believe you can deliver on it? do you meet their needs better than your competitors? (saying that you do isn’t good enough)handising, make your website easy to navigate. optimized presence for mobile)Opportunity for audience participation: what do you tell customers they can expect from you?
  • Tie this back to the first formula in the worksheet – this is contributing to the increase in sales due to reviews.
  • Bottom line: reviews drive more conversion, more engagement and are what consumers want.
  • You may leave this slide up on the screen while the participants do the activity.
  • Set (realistic) goals and develop a strategy to attain them.  Automotive retail is among most ROI-focused industries out there, so it’s important to understand this point from the start – social media will help you sell and service more cars, but it’s unlikely you will be able to quantify its true impact upon your bottom line immediately.  Set your goals accordingly.  Social media can promote better brand awareness, foster customer loyalty and generate word-of-mouth advertising, among other perks.  Determine what you want to accomplish, and then put a plan in place that assigns accountability within your staff, sets guidelines for developing content and establishes how the success of your social media program will be measured. Set guidelines. Put into place policies and best practices for your staff – check out the work of Charlene Li, a social media expert with experience helping corporate leaders foster an enterprise that supports social media. “controlled openness” – creating the structure, policies and procedures to create an environment that supports social media while maintain brand integrity and other considerations.Have a plan to build your audience.  Creating a Facebook page or Twitter feed won’t do your dealership much good without an audience of fans and followers.  Include links to your social media pages in your e-mail campaigns, and invite visitors to your web site to “like” or “follow” you.  Facebook, Twitter, Google+ and most other social media platforms provide widgets that can be placed on your web site to make this process easy.  Also consider running a promotion to build your audience, such as offering a free oil change or entering new followers for a chance to win a prize (be sure to check your state’s legal requirements for such promotions beforehand).   Content is King!  Chances are you’re already using social media on a personal level – take what engages you as a user into account as you develop content for your dealership.  Communicating with your customers through social media should be more than marketing copy.  Engage them with news, promotions, maintenance tips, new product information and news about what you’re doing for your community, and make them feel valued by posting service coupons and other “perks” just for Facebook friends or Twitter followers. Tip: Don’t recreate the wheel. Repurpose information published on the social media pages of your OEMs, automotive enthusiast publications like Cars.com’s Kicking Tires and other consumer content providers.Participate in your own conversation!  Social media isn’t just another way to push information out to your customers – they expect the experience to be interactive.  Respond to wall posts, comments and tweets to drive the conversation and open it up to others.  If you see a customer post something positive about you on their own page, thank them!  And on the off chance they have something negative to say, reach out to them privately to make it right – they’re likely to share the story’s happy ending as well, putting you in a good light.

Transcript

  • 1. Turbocharging Your New Car Sales
  • 2. About MeNick Hummer • Director of New Car Strategy • Nearly10 years of online automotive industry experienceConnect with Me: dealers.cars.com/facebook dealers.cars.com/twitter Nick Hummer on LinkedIn nhummer@cars.com
  • 3. Objectives New Car Building Measuring to New Car Drive Shopper YourLandscape Performance Needs Brand
  • 4. New Car Sales on the Rise Pre-recessionSources: Reuters, NADA , J.D. Power & Associates, Polk
  • 5. Shoppers Have More Choices Vehicle Make & Model Combinations on Cars.com 1408 1367 2009 2012Cars.com Internal Reporting 2012
  • 6. They’re Less Brand-Loyal Brand 3 brands in 2008 Loyalty down 15% 5 brands in 2011Source: Cars.com Internal Reporting;Sources: AT Kearney 2012
  • 7. They Use More Sources 18 25 If younger on average than 34Source: Google
  • 8. Objectives New Car Building Measuring to New Car Drive Shopper YourLandscape Performance Needs Brand
  • 9. New Car Shopper Needs The information they want… Delivered the way they want it… From a dealer they can trust to deliver a great experience 9
  • 10. What New Car Shoppers Want New car shoppers view more pages and spend more time on site than used car shoppers by 40%Source: Cars.com Internal Reporting
  • 11. What New Car Shoppers Want Cars.com new car shoppers cross shop an average of 5 makesSource: Cars.com Internal Reporting
  • 12. What New Car Shoppers Want 80% of Cars.com new car shoppers access dealer-specific information – not just inventory. They’re 2x as likely to filter results by Dealer Reviews
  • 13. Your Web site• Are you giving shoppers what they need to make a New Car Decision?• How are you standing out from their other options?• Are you giving them the tools they need to make an informed vehicle, brand and dealer decision? 13
  • 14. Today’s Shopper is SoLoMo • Nearly half of U.S. online adults follow a retailer via Facebook, Twitter or a blog • 83% of mobile car shoppers own a smartphone, and 28% own a tablet. • Consumers want to read as many as 10 reviews before choosing a local businessSources: Shop.org Social Commerce Study, BrightLocalAnnual Consumer Review Study, Cars.com: Mobile Web& App Usage for Automotive Shoppers, Nielsen
  • 15. Reach Shoppers Where They Are Nearly 40% of Cars.com’s total new-vehicle searches comes from mobile devices.Source: Cars.com Internal Reporting;Cars.com/Synovate, 2010
  • 16. A Better Mobile ExperienceProvide the infomobile users wantMake sure it can beseen on all devicesDon’t forget service!Tip - Visit howtogomo.comto see how your dealership’swebsite looks on a mobiledevice Wired Site Mobile Site
  • 17. Tip: Confirm with a Quick Text
  • 18. Objectives New Car Building Measuring to New Car Drive Shopper YourLandscape Performance Needs Brand
  • 19. Your Brand Matters Building Visibility 80% of new-car shoppers access dealership-specific information – not just inventory. Building Trust Cars.com users searching for a new vehicle are 7x more likely to contact a dealer with reviews.
  • 20. Do You Have a Brand Strategy? Brand (n. ˈbrand The set of ): expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. – Seth Godin, entrepreneur and marketing guru
  • 21. Does Your Brand Mean Something?
  • 22. Is Your Brand Consistent? You only get one chance to make a first impression, and a shopper’s first encounter with you isn’t when they walk into your store – it’s an online review they read, a vehicle listing they clicked on or an ad they saw… Overall, we make sure our branding and promotional strategies are consistent across our advertising. Ryan Esler George Matick Chevrolet
  • 23. Claim What’s Yours Other places to claim your listings: • Facebook Places • Foursquare • Google+ • DealerRater.com • Angie’s List
  • 24. Managing Your Reputation is Good For You! 7x New-car shoppers on Cars.com who read reviews are 7x more likely to contact a dealer. Consumers who read reviews on Cars.com are 2x more engaged: they spend twice as much time on site and view twice as many pages. Think beyond sales – 91 percent of new-car shoppers want 91% to read service reviews when considering a dealership.Source: Cars.com Internal Reporting,DriverSide/Kelton Research Study, April 2011
  • 25. Four Steps to Five Stars Gather feedback Share feedback with Monitor from all sources, Web and beyond your entire dealership Correct any Reply to ALL Respond feedback potential issues at the store Every team member to deliver a great Every customer for Ask customer their feedback experience Share all reviews Reward your team Promote with prospects and past customers for their progress and success
  • 26. Address All Reviews...This is still totally a mans dealership. …He assured me that theI HATE being called sweetie by a male or vehicle was right in front ofa female. When I was told how much Id him as we spoke… When Ibe offered for my car, it was in a very got there, no car, it was “soldcondescending tone and as if I had no this morning.” They did haveidea what the value of my own car is. a few 2011s they wanted to get me in though. First, the salesman I would readily choose tried to get me to another repair facility if sign a blank loan it were not for warranty form... work.
  • 27. Negative Feedback Happens
  • 28. Discuss with your store& answer the following questions about your process: Who… What…o should monitor? o additional action should be taken?o should respond? o impact can your response make?o can benefit? o improvements, if any, can you make? How can you apply this to all areas of your business? New, Used, Service?
  • 29. Making Your Response Meaningful Directly address customer’s concern Take the conversation offlineRemember that your response influences current and future customers
  • 30. Take it Offline Listen & Acknowledge Take the Conversation Offline
  • 31. Reaching Shoppers with Social Media Nearly 1 in 3 shoppers who use Facebook added a dealer to their consideration list based on info received via a social media source Dealer.com/DriverSide/Gfk: THE RISE OF LOYALTY, ADVOCACY & INFLUENCE, 2011
  • 32. Have a Social Media Action Plan6 Tips for Social Media Greatness1. Set (realistic!) goals and develop a strategy to attain them.2. Set guidelines for your staff.  Check out www.charleneli.com3. Have a plan to build your audience. Tip: Participate4. Content is king! in the Conversation5. Social Media is not just about addressing Customer Service issues
  • 33. Objectives New Car Building Measuring to New Car Drive Shopper YourLandscape Performance Needs Brand
  • 34. Define Your New Car StrategyWhat are your goals?▸ Increase brand presence Metrics online?▸ Improve your reviews ratings? Strategy▸ Grow your social media followers? Goal▸ Heighten staff performance?▸ Improve service efficiency?
  • 35. Are You Measuring What Matters foryour New Car Business?
  • 36. Or Is It “Business As Usual?” 1998 2000 2008 2009 2011
  • 37. The most important point in this deck Selling New is different than selling Pre-Owned 37
  • 38. Get Started Today• Do an audit • Marketing channels targeting new-car shoppers • Process & training specific to new-car customers• Begin adapting your new-car strategy and processes • Think big, but start small• Define your new-car metrics • Set goals collaboratively (new-car sales manager, service manager, leadership team) • Choose to collect metrics that impact new-car performance • Incentivize for success
  • 39. Questions
  • 40. Thank You!