IS20G12 - Understanding the Customer Journey: Know the Signals that Influence Car Sales
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IS20G12 - Understanding the Customer Journey: Know the Signals that Influence Car Sales
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IS20G12 - Understanding the Customer Journey: Know the Signals that Influence Car Sales
- 1. Understanding the Customer Journey: Know the Signals that Influence Car Sales Charlie Bass Vice President of Sales PureCars Title Sponsor
- 2. #1 “Top Rated Platform” in 2017 65 Of the Top 100 Dealer Groups #1 Rated by Dealers 50+ Agency Partners 10+ OEM Partners Certified OEM Partners Waze’s 1st-Ever ‘Preferred Partner’ Customer Satisfaction Champion across all Google partners Top Performing Mobile Platform in Automotive Google Innovator Award Only automotive partner awarded - Awards For - PureCars Creds Dealers Preferred Solution for Top Dealer Groups and OEMs
- 3. Ahhh… The good old days… When advertising just kinda made sense...
- 4. TV RADIO NEWSPAPER BILLBOARD OTHER How much should I spend? YOUR ADVERTISING BUDGET THEN
- 5. WHAT’S THE OTHER GUY CHARGING? Is my pricing competitive? WHAT’S THE OTHER GUY DOING? Are the incentives competitive? WHAT’S IN STOCK? What do I advertise? What am I going to feature in my Sunday ad?
- 6. I know there’s a word for this... LOGICAKA Intelligence AKA Good old dealer know-how Pssst! It’s called...
- 7. Nice ad! This should bring people in and move the right inventory.
- 8. TRADITIONAL DIGITAL MEDIA Ok, so what’s different with digital? YOUR ADVERTISING BUDGET NOW
- 9. Where did my logic go? Guess what? That same logic should still be applied to all your digital advertising. But … is it?
- 10. Not in stock? Pricing that isn’t competitive? Full page for one low margin car that isn’t core? Sorry, no images? Would I … ?
- 11. Of course not!
- 12. Without logic... this is what you’re digital advertising looks like
- 13. News Flash! Digital moves fast...
- 14. Display Networks Video Networks Email Marketing And More... And the consumer has evolved... I need a new car.
- 15. IN MARKET SOLD! Google Search Asked family, friends, colleagues Visited OEM website Looks at photos Browsed Newspaper ads Watched video ad Watched video on YouTube 3rd party site loan calculator Saw a TV ad Read Professional review Visited dealer website Requested online quote Visited newspaper site Used mobile on lot Visited Brand’s social page Influenced by online ad Searched on mobile Built and priced on OEM site Searched dealer inventory Located a dealer from mobile Clicked display ad Used model comparison tool Visited a dealership Test drove a vehicle Which means car buying has changed.
- 16. Not quite there yet...
- 17. I submitted a contact form 100 Prospects What about the other 97%? I called the dealership I submitted a request
- 18. Vanity Metrics Are Easily Manipulated “...You have a lower CPC!” “...We lowered your cost per lead!” “Great News, Mr./Mrs. Dealer ...” Well, that’s simple. Stop bidding on higher cost terms. Well, that’s simple. Stop bidding on terms that don’t generate leads. But, is this smart?
- 19. THE LEAD
- 21. Manual Ad Source Reporting ADF / XML Standardization Push leads to CRMs Autotrader Cars.com Etc. “Truth” reporting for vendors Ad Source to Sale Report The ROI driver for vendors The CRM Happened... ...and the mission was to drive more leads! What used to be simple... Became not so simple...
- 22. The CRM made the lead King
- 23. And last-click attribution was THE measurement
- 24. Maybe 1-3 photos “Call for Price” or high pricing + = The start of digital leads 2005 A website with inventory got more digital leads
- 25. 9 or 27 Photos? Was the debate Pricing had logic from tools like vAuto + = Avalanche of digital leads 2008 More photos and a focus on velocity resulted in more digital leads
- 26. But things have changed… We now have online learning at our fingertips = 20192008
- 27. Stacy represents the reality of today’s shoppers She wants to learn everything NOW without waiting for a BDC rep... Shoppers EXPECT instant gratification They want it all and they want it now
- 28. INSTANT GRATIFICATION “Hey Google. What’s my car worth?” “Hey Google. I want a great deal on a new toyota truck.” “Does this used 2015 BMW 330i have new tires?” “Is this vehicle priced well? Does it have good options?
- 29. Relevant photos & great merchandising Highly competitive pricing & stocking logic + = Only 1-3% of web traffic become LEADS 2019 Relevancy and quality traffic is the focus - leads are down sales are up
- 30. Today, Attribution is Extremely Complex And doesn’t look like the classic “last click” fax machine lead... AutoTrader Cars.com Google TV/OTT
- 31. RETURN ON AD SPEND
- 33. VEHICLES NEED TO BE MARKETED, AND WHY?
- 35. This Dealer only had 1 Nissan Quest in stock, but paid to advertise it... WHAT Is this the best use of your limited ad dollars??
- 36. WHAT Search for a specific Make, Model, Location... And the ad drives to a Make SRP... Is this the best use of your limited ad dollars??
- 37. TO MARKET WHICH VEHICLES, AND WHY?
- 38. WHERE WHERE are they more likely to buy? WHERE are my best opportunities? WHERE can I conquest?
- 39. TO MARKET TO, AND WHY?
- 40. WHO
- 41. Think About The Lifetime Value of Your Customers
- 42. The Old Way 30 Mile RadiusMedia $pend on a limited set of keywords, targeting the 30 mile radius around your store... ...then hope walks in! YOUR DEALERSHIP
- 44. Smart was... I need it sold.
- 45. ZIP Codes? Think Lifetime Value to be smarter with your ad dollars Which ZIP Code(s) have higher Service Retention odds? Which ZIP Code(s) have higher instances of Financing? Which ZIP Code(s) buy more F&I products? YOUR DEALERSHIP
- 46. I need it sold. Smart is...being smarter. Which one? I want a Honda Accord I’m 47 miles from the Dealership & I have cash. $1,400 Profit from Sale I want a Honda Accord I’m 5 miles from the Dealership, in a ZIP Code with higher service retention and decent odds of F&I. $2,300 Profit from Sale + LTV from Service
- 47. TO MARKET, ON WHICH CHANNELS & DEVICES?
- 48. WHEN
- 49. WHEN
- 51. Display Networks Video Networks Email Marketing And More... I need a new car. WHEN
- 52. WHEN ? ? ? ? ? ? ? ? ? ? ? ? 100% ? Google Search Visited OEM website Influenced by online ad Watched video on YouTube Searched on mobile Watched video ad Visited Brand’s social page Google Search Searched dealer inventory Built and priced on OEM site Used model comparison tool Clicked display ad If you’re only counting this, you’re missing the big picture
- 53. The good news? The customer journey is trackable.
- 54. You can finally connect the dots Between online activity and offline sales... ? ? ? ? ? ? ? ? ? ? ? ? SOLD! Google Search Visited OEM website Influenced by online ad Watched video on YouTube Searched on mobile Watched video ad Visited Brand’s social page Google Search Searched dealer inventory Built and priced on OEM site Used model comparison tool Clicked display ad
- 55. And clearly see which channels are driving those sales...
- 56. But, what about my inventory??
- 57. PRICING TOOLS
- 59. Customer behavior plus inventory plus market data reveal opportunities...
- 60. Which drives smart advertising across channels & networks...
- 61. What about the prospects who visits your SRPs and VDPs multiple times?
- 62. Use the signals to create custom micro-audiences...
- 63. And incentivize them with relevant ads on YOUR site.
- 64. Very Cool!
- 66. RETURN ON AD SPEND
- 69. While Technology is great… It’s only 1 piece of the puzzle TECHNOLOGY
- 70. It’s about finding the right balance And the right people, vendors and expertise to maximize your ROAS TECHNOLOGYVENDORS PEOPLEEXPERTISE
- 71. ALL VENDORS ARE NOT CREATED EQUAL
- 72. We looked for a vendor that paired technology with people that would be accessible. Our Success Manager is always available and really understands the Michigan market. He pairs his expertise with PureCars data and our feedback to come up with a strategic approach that yields superior results. Jay Lasco | Vice President, Lasco Ford
- 73. What we love about PureCars is the team of people. Every market is different, and PureCars offers an integrated solution to fit our unique area. PureCars isn’t a “set it and forget it” partner-- we’re able to work with our Success Manager to continuously optimize and customize campaigns to meet our dealership’s unique and changing needs.” Brenda Robinson | Marketing Director, Honda of Fife
- 74. What I like about PureCars is the partnership we’ve built with our Success Manager. We realized internally we weren’t getting the full impact of our results, and assumed that meant we need to increase our budget. Our Success Manager told us it’s how your money is working for you that makes the difference. We went over everything with a microscope: our zip codes, the spend compared to time of day, overlaying our buying patterns with our search patterns to make sure we were spending money efficiently. We were able to fine tune our search to a level most dealers don’t, continuously getting more efficient. He works with us month after month to make sure we are maximizing our spend and, ultimately, the opportunities for our dealership. Stephen Gabbara | General Manager, Szott I-75 Ford
- 76. ENJOY THIS SESSION? Post about it on social media using the hashtag #IS20G! Share some love for your favorite speakers! Contact Info: Title Sponsor Charlie Bass Vice President of Sales PureCars
Editor's Notes
- Before we talk digital… Lets talk about the logic in your advertising that worked “in the good old days”
- Traditional… How much should I spend? Where: TV, Radio, Billboard and Direct Mail A small fraction of budget went to digital ad buy
- What do I advertise? Are the incentives competitive? Is my pricing competitive? Said differently… What did you put in the newspaper?
- When you think back to newspaper, there was logic… Digital wasn’t “here to stay” but now it uses the majority of your budget and is the driver of all your traffic.
- That said, back to the newspaper… Newspaper had logic…
- Fast forward to now… Your digital ad looks like this… What’s changed? Your budget? For sure. What about your LOGIC? Hmmm…???
- The same logic *should* still apply to digital. The same principles *should* still be followed. But with the automation of...everything...do you even know what’s driving your digital advertising strategy?
- A dealer knew what to put in the paper… He/she never showed a vehicle with a photo coming soon or one with a price way out of market. He/she never showed a new car incentive for $100 off MSRP when its competitors had $5K… It was a springboard to drive eyeballs to ads that most likely would influence a shopper to visit the auto mile.
- Sure, technology has enabled automation on an unprecedented scale, BUT much of the logic you’ve applied for decades has been lost in translation… Today digital is the majority of your ad budget yet you have no clue what the “robot” is bidding on, why, etc.
- Think about that… evenly spreading out your inventory in size 10 font on a 2 page ad on the Sunday paper. Stupid right? Well, why are you doing it with your ad budget? Ok, so on to Digital...
- All that said… Digital is here so let’s focus on what you need to do to maximize your ad budget ROAS.
- Wants to consume all online learning online AND THEN go to the store to buy. Far more competitive… Hence the margin erosion in new and used cars...
- In fact the consumer journey as we know went from 4.5 visits to 1.3… Why? The consumer wants all its research online and really just validates the purchase in the showroom. If you don’t screw up you got the deal. The salesman is more or less the order taker and the exception handler for the bad credit, not still on the lot flip to another vehicle etc. When you look at the journey it’s complicated… 24+ touchpoints…
- The industry doesn’t yet have eCommerce at scale…Sure, digital retailing is picking up but it’s still a chicken shit amount of dealers… So what are all these in-market shoppers doing?
- Less than 3% of web traffic submit leads. In fact, Google and others are aware of leads dropping.. phone calls too... Why? Customers want the relevant info on demand... they have no need to call. You’re open normal hours, not 24/7. Once their research is done, they come in.
- We get vanity metrics from vendors. We are guilty of this too! … Mr. Dealer GREAT news.. you have lower CPC… well that’s simple. Stop bidding on higher cost terms… MR. Dealer we lowered your cost per lead… well that’s simple… stop bidding on terms that don’t submit leads… but is this smart? NO… why?
- Let’s revisit how, when and why the lead became King. Attribution used to be simple. You got a lead from your trusty Fax, you assigned where that lead came from and when the vehicle sold, you knew what drove that sale. But then...
- The dawn of digital changed everything...
- Dealers love holding vendors accountable so ad source reports helped determine: Who sold the most cars Who had the best quality leads (lead to sale ratio)
- Think back. A Smartphone is more powerful than our computers 10 years ago. This made us think differently...and behave differently...and interact with technology differently.
- Now it’s ALL about instant gratification. Progressive dealers lost their edge by just having a decent website. Now merchandising is key. In fact, the more you show on a VDP the better.
- And now...
- The good news? We’ve built technology to solve for this, technology that gives dealers all the Signals they need to understand shopper behavior and channel performance...in other words, TRUE ATTRIBUTION for every touchpoint, connecting the dots from the online journey to the offline sale.
- AND a NEW King is crowned. What do you need to think about on the customer journey? What is the one thing you need to focus on? ROAS. Return on AD Spend…
- Back to the Newspaper logic dealers have been using for decades… The difference now? The amount of data available to fine tune that logic. The caveat is that you need the right tech to do it right and to do it well...
- WHAT TO MARKET? Score each vehicle. You need a positive feedback loop to know which vehicles need attention to make the marketing work. You need technology that thinks like you do.
- Where others get it wrong...no logic!
- Where others get it wrong...no logic! We can do better. We DO better. Next up: WHERE...
- Not all ZIP Codes are created equal. There’s no shortage of data out there to inform EXACTLY WHERE you should be marketing each vehicle, down to the ZIP Code level.
- The WHO is the most complex question… So let’s take a quick step back.
- Multiple buyers exist in the ecosystem...
- You have a limited # of sales people, so timing is important when driving prospects to your dealership. IF the majority of your ad buy is happening at month end, you’re overloading your (limited resources) team--not efficient or effective.
- To achieve ROAS, you need to balance your spend across the whole month. It’s about maximizing WHEN from a cost and timing perspective.
- With the increased focus on digital, it’s easy to lose sight of the ongoing importance of traditional media and how it feeds and/or intersects with digital. We can no longer think of them as separate; they are (and should be) intertwined in your mind and marketing strategy--TraDigital Marketing considers the behaviors of today’s shoppers--its importance can’t be overlooked. WHEN is a critical element of the most successful campaigns, across Traditional and Digital channels.
- Back to the complex buyer behavior and journey...how does it all fit together? WHEN does it make sense to target shoppers? And on which channels and devices?
- Again, last click attribution no longer makes sense. It doesn’t cover but the smallest fraction of the complete customer journey.
- How does your inventory management system integrate with and inform your digital advertising strategy?
- Inventory tools like vAuto are rear view mirror. They focus on price to market and give you a guide on Market day supply (MDS). Connecting actual signals from customer behavior IN REAL TIME with inventory and market data is the REAL OPPORTUNITY.
- Instead of looking back and trying to predict the future, REAL TIME SIGNALs reveal REAL TIME OPPORTUNITIES as they’re happening...
- You’ve successfully drive them to your site and they keep coming back to research. Think about when you make a BIG purchase. Do you see something just once and buy it or do you take your time to research multiple options, price, etc.? For most, buying a car is a big deal and they want to feel confident in their purchase. For these visitors, who are so close to making that big, final decision, what can YOU do to incentivize them?
- So what do you need to think about on the customer journey? What is the one thing you need to focus on? ROAS. Return on AD Spend…
- The key takeaway is think about LTV… Think about ROAS and be sure you have the business intelligence powering your marketing automation… Marketing automation without BI is like running your inventory report in the newspaper...
- The key takeaway is think about LTV… Think about ROAS and be sure you have the business intelligence powering your marketing automation… Marketing automation without BI is like running your inventory report in the newspaper...
- One thing to keep in mind...technology can only do so much.
- To maximize ROAS, you need the other pieces.
- Not every vendor understand that balance...
- What our clients value in PureCars is the balance we’ve achieved between our industry-leading and disrupting technology...paired with amazing people.
- Our exceptional team understands the fundamentals of your business and develops and evolves strategies tailored to every client’s unique market. Markets change over time, which means strategies and tactics need to evolve over time to ensure long term success forclients.
- Technology. Vendors. People. Expertise.