The Automotive Industry Consumer Lanscape


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This Automotive Industry Insights paper provides a high level overview of the US Automotive Consumer Landscape. Featured insights include search demand for automotive parts and services, trends in vehicle ownership and use, research habits of consumers and the role of mobile devices in research and purchase. Visit additional insights and case studies from Levelwing:

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The Automotive Industry Consumer Lanscape

  2. 2. 2WHY DO I CARE?Glad you asked…In this report you will find a high-level overview of the U.S. automotive landscape. It is importantthat we keep a pulse on the industry and CONSUMER BEHAVIORS in order to identifyOPPORTUNITIES that transform our businesses.At Levelwing, we specialize in analyzing the paths that contribute to meaningful BUSINESSOUTCOMES. These paths are illuminated through the analysis of data collected via websiteanalytics, customer relationship databases, consumer research, phone call logs and evenrecruitment application databases (yes, we actually enjoy working with the HR folks in addition tothe marketing teams).Our team of analysts, statisticians and strategists are obsessed with data and are experts atTRANSLATING THE DATA INTO A MEANINGFUL STORY that has real business applications andimplications.Please enjoy some of the insights contained within.
  4. 4. 4AUTOMOTIVE CATEGORY SEARCH DEMAND KEYWORD COMPETITION US MONTHLY SEARCHES AUTO REPAIR High 2,240,000 NEW TIRES High 165,000 NEW CAR High 3,350,000 AUTO PARTS Medium 6,120,000Collectively, the automotive category has a substantial amount of monthly searches within theUnited States. Online searches are often indicative of offline demand. This emphasizes theneed for visibility within search engines and search engine results pages in order to capturethis traffic.Source: Google
  5. 5. 5MILES DRIVEN - US Vehicle-Distance Traveled (Billion Moving 12-Month Total on ALL Roads 3,000 2,800 2,600 2,400 Miles) 2,200 2,000 1,800 1,600 1,400 Jan-87 Jul-87 Jan-88 Jul-88 Jan-89 Jul-89 Jan-90 Jul-90 Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jan-94 Jan-04 Jul-94 Jul-04 YearTravel on all roads and streets increased by 0.4% (1.1 billion vehicle miles) for June 2012 ascompared with June 2011 and cumulative travel for 2012 increased by 1.1% (15.6 billion vehiclemiles). Cumulative estimate for 2012 is 1,455.7 billion vehicle miles of travel. As miles drivenincreases so too does the need for routine car maintenance and new tires.Source: U.S. Department of Transportation
  6. 6. 6VEHICLE OWNERSHIP 61% of co nsumers car repair expecting intended to s would h 52% of consumers professio nal do all ave a ep their cars 5 years or more “2011 Afte the work ke Group, Feb 20 11 PD rmarket O utlook Sur v ey”, The N rvey”, The N PD Group, rk et Outlook Su Feb 2011 “2011 Afterma otorists are Avg age of car driven 23% of m increased to 8 years driving c ars from 1990s Consumer Reports N ay 2011 ational Research Cen Center, Apr-M ter, Apr-May 2011 al Research Consumer R eports NationIn addition to consumers driving more miles, they are keeping their vehicles for longer periods oftime so they are driving more miles on those same vehicles. As the average age of cars on theroad increases, the need for routine maintenance and new tires for those cars also increases.
  7. 7. INDUSTRY SEARCH DEMAND & VOLUME 7Top cities searching for “auto repair” in the last 12 months include: San Diego, Minneapolis,Seattle, Denver, Phoenix, Chicago, St. Louis, San Francisco, Los Angeles, and Atlanta. Marketlevel search insights can assist can help fuel strategies in which there is high demand (and wewant to leverage this) or where there is low-demand (perhaps in a market we are trying todominate).Source: Google
  8. 8. 8MILES DRIVEN BY STATE – TOP 5 STATE MILES DRIVE iN JUNE (IN MILLIONS) CALIFORNIA 28,401 TEXAS 19,844 FLORIDA 16,019 NEW YORK 11,145 ILLINOIS 10,582When comparing the top twelve cities searching for “auto repair” to the top five states with themost driven miles in June, three of the top twelve cities searching for “auto repair” are locatedin California, the state with the most miles driven in June. As miles driven increases so toodoes the need for vehicle maintenance and searches for service including, “auto repair.”Source: U.S. Department of Transportation
  10. 10. 12ONLINE RESEARCH HABITS Automotive tire websites 65% Search engines 48% Professional online automotive review websites Dealership websites Consumer generated online reviews 3rd Party automotive websites Online magazines/newspapers Video sharing websites Social networking websites 0% 10% 20% 30% 40% 50% 60% 70%During online research for tires, 65% of consumers go directly to an automotive tire websiteand 48% use a search engine. These online search habits indicate the need for visibilitywithin search engines and search engine results pages during this critical research period.Source: Custom Compete Data
  11. 11. 13ONLINE RESEARCH HABITS 23% 31% Search Usage During the 8% Research Process 42% 13% 51% 10% Used this source at the very beginning of my research Parts 12% Tires Used this source in the middle of my research Used this source at the very end of my research Used this source throughout the 41% entire process 37% 41% 47% 10% 10% 4% 7% Services AccessoriesOver one third of users utilized search throughout the research process. This behavior furthernecessitates the need for visibility within search engines and search engine results pages.Source: Custom Compete Data
  12. 12. 14OFFLINE RESEARCH HABITS local tire store 19% Offline Purchase Drivers warehouse store 10% more convenient to retail store 39% 10% purchase in person 38% I needed it immediately I wanted to talk to a national tire/ 30% 49% salesperson service center 27% better prices 25% faster to shop in person dealership 7% other 5% Offline PurchaseExamining offline research habits can illuminate areas of opportunity. For instance, 30% ofpeople indicated they made an offline purchase because they wanted to talk to asalesperson. Incorporating a “Live Chat with Sales Representatives” feature on your websitecan give your online customers a better experience.Source: Custom Compete Data
  13. 13. 15RESEARCH TIME 7% 4% 5% 3% 3% 6% 8% 12% 16% 19% 21% 31% 38% 43% 30% 27% 17% 10% enhance performance/ appearance routine maintenance repair Less than 1 day 1 day to less than 1 week 1 week to less than 2 weeks 2 weeks to less than 3 weeks 3 weeks to less than 4 weeks 4 weeks or morePurchase reason influences research time; repair shoppers are three times as likely to decide inless than a day. These purchase behaviors indicate the need to provide website visitors withexactly the information they are seeking on their first visit to your site during this critical researchperiod.Source: Custom Compete Data
  14. 14. 16VIDEO AS RESEARCH SOURCE Obtain general information 56% Watch instructional videos 47% Understand specific features 42% Decide which company to purchase from Watch customer testimonials Compare features Other 0% 10% 20% 30% 40% 50% 60%Most service shoppers who watched videos were interested in general information andinstruction. Creating a YouTube channel with instructional videos and general informationsurrounding auto repair and maintenance will fulfill these consumer needs. Including links toyour website within the videos and video descriptions will encourage visitor transfer.Source: Custom Compete Data
  15. 15. 17SMARTPHONE USAGE More than 110 MILLION Americans own a smartphoneAs smartphone ownership increases so does the necessity of having a mobile website forconsumers using these devices for product and service research.Source: comScore, June 2012
  16. 16. 18MOBILE AS RESEARCH SOURCE Read reviews 39% Look for promotions, coupons, or discounts 38% Compare prices 35% Contact business other than by calling Compare features Read general service information Locate a service provider Call a retailer, manufacturer, or business Schedule a service appointment Search a service availability Watch an online video about a service 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%Most service shoppers using a mobile device for research want to read reviews, find deals,and compare prices. Ensuring these elements are prominent on your mobile site will providean optimal user experience for mobile website visitors.Source: Custom Compete Data
  17. 17. 19MOBILE COUPON REDEMPTION30% of mobile users are willing to travel 5+ miles to redeem an automotive coupon.Understanding the unique motivations driving the mobile consumer can lead to greater clarityin local and location-based opportunities.Source: Internal Google Data
  18. 18. 20LIKE WHAT YOU SEE? WANT TO SEE MORE?This is just the beginning of what we can tap into. Imagine what we could do with the data youhave internally…At Levelwing, we specialize in interpreting your data and providing you with applications (and notjust graphs) that can impact your MARKETING, MERCHANDISING, INVENTORY or even TALENTRECRUITMENT. We help companies utilize data to OPERATE WITH GREATER CLARITY +PROFITABILITY.Bottom line, we move your business forward by helping you make sense of your data so thatyou can ACHIEVE WHAT COULD BE.For additional information, please contact:STEVE PARKER, JR.Co-Founder and Managing Partnersteve@levelwing.com1 + 843.631.4587
  19. 19. 21THANK YOUWant to learn more about Levelwing? Just keep reading.
  20. 20. 22WHO IS LEVELWING?
  21. 21. 23OUR BELIEFS The Right Data Changes Everything Marketing Budgets Should Be Smaller, Not Larger Accountability is Essential Success Should Pay For Itself Leverage Existing Demand First
  22. 22. 24THE RIGHT DATA CHANGES EVERYTHINGWe use data to illuminate all facets of your business. You’llsell more and enjoy greater cost-efficiency.More importantly, you’ll operate your business morePROFITABLY.
  23. 23. 25MARKETING BUDGETS SHOULD BESMALLER, NOT LARGERBigger is not necessarily better.We believe by holding media and ideas accountable throughadvanced analytics, you can do MORE with LESS.
  24. 24. 26ACCOUNTABILITY IS ESSENTIALWe measure and create insights based on what’s important,not just metrics that are easy to calculate.We create real ACCOUNTABILITY.
  25. 25. 27SUCCESS SHOULD PAY FOR ITSELF 27An understanding of Return on Investment leads tomarketing efforts that are more than just an expense lineitem.We build SELF-FUNDING initiatives.
  26. 26. 28LEVERAGE EXISTING DEMAND FIRST AWARENESS INTERESTA demand-driven strategy creates media efficiency andgreater profitability by focusing on existing IN-MARKETPURCHASERS. CONSIDERATION PURCHASE
  27. 27. 29INTELLIGENCE IS AT OUR CORE 29Our BUSINESS INTELLIGENCE SOLUTIONS help organizationsunderstand consumer brand perception, gain competitiveinformation and uncover real opportunities to improveorganizational and operational efficiencies.WE BELIEVE in informed, evidence-based decision-making,only made possible by complex and comprehensive datacollection + analysis.Competitive Insights | Data Enrichment | Operational Efficiency | Price SensitivityAnalysis | ROI Analysis | Analytics Solutions | Data Knowledge Management
  28. 28. 30WE ARE LEVELWINGGLOBAL REACH We currently serve clients throughout NorthAmerica, Europe, China and JapanUNIQUE APPROACH Levelwing is the leader in businessintelligence and marketing solutions with data mining + analytics atthe coreFULLY INTEGRATED We employ a matrix organization of marketers,analytics design experts, statisticians, researchers and creativesMEASURED SUCCESS Levelwing has experienced 10 consecutiveyears of growth with industry leading client satisfaction results
  29. 29. 31SOME OF OUR PARTNERSSome of the most innovative and strategic minds in the industry - NovartisSome of the most sophisticated things I’ve seen being done with analytics and ROI measurement - Adobe