DealerRater Presentation Digital Dealer 14

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Proof is in the Numbers - Reviews Drive Business

With 84% of Americans acknowledging that online evaluations have an influence on their decision to purchase a product/service, an online reputation management strategy is no longer simply a “nice to have” for today’s successful dealerships – it’s a necessity. The ideal is an online reputation that enhances the public’s opinion of your dealership and its employees. This perception converts to sales.

What’s your offense for online reviews? Are they helping your dealership drive sales? New quantifiable data shows that dealerships’ online reviews and associated star ratings do just that – drive new vehicle sales and increase share of brand sales.

In this presentation, Heather will share results from a recent DealerRater-Polk study that demonstrates the direct correlation between dealership online star ratings and dealer vehicle sales. Study results also compare the sales performance of DealerRater Certified Dealers to the general market as well as to non-certified dealers. Heather will then present dealer case studies that explore the fundamentals of building and maintaining an online reputation that enhances auto consumers’ interest in doing business with your dealership and its employees. Finally, Heather will review proven strategies for adopting a strong offense for online reviews (both at the dealership and employee level) resulting in selling more cars across the Web and in the showroom.

Published in: Automotive, Business, Technology
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DealerRater Presentation Digital Dealer 14

  1. 1. Mark PauzéSenior Marketing Manager Analytics & ConsultingHeather MacKinnonVice President National Accounts-DealerRaterThe Proof is in the NumbersReviews Drive Business
  2. 2. AgendaReviews Drive Business- The methodology and results of a2012 Polk Study measuring the impact average star ratings haveon new vehicle registrations.Booking More Appointments & Breaking Down Barriers-Utilizing review content to book more sales/serviceappointments.Let Your Customers Do the Talking- Increase Sales/Servicebusiness through reputation leveraging strategiesInspect What You Expect- Promote the positives!
  3. 3. Consumer Behavior...88% of all in-market consumers conduct research on the internetbefore walking into a dealership (JD Power)89% of car buyers go online to verify recommendations beforepurchasing a vehicle (Cone Study 2011)4 out of 5 consumers do not move ahead with a purchase basedon negative online reviews (Cone Study 2011)59% of auto shoppers said they feel more positive about dealerswho respond to negative comments (2013 Ford Direct study)
  4. 4. 2012 Polk StudyMark PauzéSenior Marketing ManagerAnalytics and Consulting
  5. 5. Polk manages a complex set of online vehicle datato support the automotive industry as our core business• 500 million unique vehicles– Passenger– Commercial• Over 135 million households,195 million individuals– Demographics– Lifestyles– Vehicle intenders– Internet shopping• 2.6 billion transactions• 240+ data sources• Titles• Registrations• Sales• Over 17 million businesses• 35 million vehiclesThe world’s largest provider of automotive marketintelligence and solutions.Polk’s Industry Intelligence
  6. 6.  All global OEMs (including emerging) Dealers/Dealer groups Aftermarket companies Finance and insurance companies Advertising agencies Media companies Consulting organizations Government agencies Investment firms Market research firms Web portals Search enginesPolk’s Customers6
  7. 7. Polk’s Areas of ExpertiseAnalyze & ForecastMarket PotentialPlan & ManageMultichannel TargetMarketingImprove Owner LoyaltyManage Aftersales &Aftermarket OperationsOptimize DealerNetworksInterpret & ApplyVIN Information
  8. 8. Study Background• Polk was requested by DealerRater to conduct a studyevaluating:1. How franchised dealership star ratings affect salesperformance2. How various levels of participation in DealerRater’sCertified Dealer Program affect sales performance• Goal was to investigate assumptions about star ratings and theCertified Dealer Program
  9. 9. Study Methodology DealerRater provided Polk with industry database file(including DealerRater certified dealers and other dealerships) 7,784 dealers in the sample set◦ DealerRater data elements included: Dealer ratings Certified dealer date & certification type Reviews Usage of DealerRater tools Jan-Sept 2012 vs. Jan-Sept 2011 & historical new vehicle registrations to2009
  10. 10. 12.2%14.8%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%Dealers Rated 2 or Less Dealers Rated 4 or More% GrowthJan-Sep 2012 vs. 2011Dealers with an average star rating of 4.0 or higher had a 21% greaterincrease in sales compared to dealerships with an average star ratingof 2.0 or lessReviews Drive Business
  11. 11.  Certified dealers averaged a 5% increase after six months and an 8%increase after 12 months 360Certified dealers averaged an 11% increase after six months / 19%increase after 12 monthsCertified Dealer ProgramImpacts Dealer Growth* 360Certified dealers using allDealerRater tools5%8%11%19%0%5%10%15%20%25%6 months after certification 12 months after certification% Growth After CertificationCertified Dealers*360Certified Deale
  12. 12. In other words, on average certified dealers sold 6 more cars permonth in the 12 months after joining the programA Measurable ROI
  13. 13.  Certified dealers experienced on average a 23% greater increase in new carsales compared to non-certified dealers. 360Certified dealers who were fully utilizing the program tools had a 50%greater increase in sales compared to non-certified dealers.23%49%0%10%20%30%40%50%60%% Greater Increase in Sales% Growth vs. Non-Certified DealersCertified Dealers*360Certified DealersOutpace the Average Dealer*360CertifieddealersusingallDealerRatertools
  14. 14. Jeff KingGeneral ManagerBozard Ford, St Augustine FLCreating a Strong but Simple Reputation Strategy
  15. 15. Bozard Ford Reputation ResultsInstituted a Reputation Strategy early 2010 comprised of building DealerRaterand Google Sales and Service Reviews.Bozard Ford Sales 2010:Average # of vehicles sold per month: 100Average # of vehicles sold per month sourced through the internet: 8Featured fewer than 20 online reviewsBozard Ford Sales 2013:Average # of Vehicles sold per month: 300Average # of Vehicles sold per month sourced through the internet: 120Features over 1000 reviews on DealerRater and Google combinedBozard Ford Service:Monthly Repair Orders up over 50%Since 2011, 100% of Bozard Ford’s Marketing has leveraged reputation
  16. 16. Decide and ConquerGooglePage OneDominance
  17. 17. Decide and Conquer Vast majority of Search Traffic comes from Dealer Name-based Search.◦ 65% of search traffic is Directory Search (Bozard Ford) vs.◦ 35% of search traffic is Keyword Search (Ford Dealers StAugustine, FL)***2013 Autotrader.com reported at JDPower March 2013 Conf.Keyword Versus Directory Searches
  18. 18. Create Employee Buy In•Engage entire staff•Recognize Top Rated Employees Weekly•Drive Competition and Recognition
  19. 19. Promote 3rd Party Reputation Everywhere!•Website Staff Pages•Employee Email Signatures
  20. 20. Promote 3rd Party Reputation Everywhere!Print &Online AdsService LoungeMonitors
  21. 21. Promote 3rd Party Reputation Everywhere!• 3rd Party Breaks Down Barriers of Mistrust•Differentiate from Competition
  22. 22. Why Does Bozard Ford Promote 3rd Party Reputation?Online ConsumerReviews 2nd MostTrusted Form ofAdvertising
  23. 23. Promote 3rd Party Reputation EverywhereBecause Reviews Drives Business!•Radio•Television•Online Advertising•Print•BillboardOnlinePrint
  24. 24. Jim McGinnGermain BMWNaples, FLKurt LytleUniversal KiaFranklin, TNBooking More Appointments & Breaking Down Barriers
  25. 25. • Engage the 88% outsidethe showroom• Personal/Professional Bio• Links to 3rd Party ContentCreate an Online Greeting
  26. 26. Follow Up Email Templates/Email Signatures•Engage Every Unsold Prospect•Powerful 3rd Party 1st Impression
  27. 27. Building Today’s On/Offline Evidence ManualPrint Out and Promote 3rd PartyReviewsGive the 88% a reason to choose you!
  28. 28. Jim McGinnGermain BMWNaples, FLMegan BartoCiocca HondaHarrisburg, PACompetition + Recognition = More Quality Appointments
  29. 29. Competition + Recognition = More Quality Appointments“GoogleMe”
  30. 30. Drive Individual & Dealership Awareness on Social Networks•Socialize Reputation•Be Top of Mind
  31. 31. Competition & Recognition = More Quality Appointments!More ReviewsMore Court Time
  32. 32. Eley DukeDuke AutomotiveSuffolk, VAInspect What You Expect!
  33. 33. Inspect What You Expect:Charlotte NC Consumeris the 88%Searching LocalDealersIn Market: Late ModelChevy Yukon
  34. 34. Inspect What You Inspect:Dedicated PageContainingLinks to Five ReviewDestinations
  35. 35. Inspect What You Expect:4 out of 5 consumers…
  36. 36. Inspect What You Expect:Testimonial Pagescontain timely 3rdpartypowered reviews
  37. 37. Inspect What You Expect:•Review History is Consistent/Current•Strong Sales & Service Reputation
  38. 38. Questions?For additional questions or information:Heather MacKinnonVice President of National Accounts800-266-9455 x 3533Heather@dealerrater.comwww.DealerRater.com

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