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![67% of TrueCar prospects buy a different vehicle (make/model/trim) than they originally
configured.
Source: Website Metrics
Vehicle Choice
What % of Internet leads switch to a
different make or trim?
Same
Make,
Model
and
Trim
33%
[CATEGORY
NAME]
[VALUE]
Same
Make
only
10%
Different
make
13%
NEW
Vehicle
Purchased
by
TrueCar
Prospects](https://image.slidesharecdn.com/kerriwise-truecar-160919145642/75/Key-Tactics-to-Compete-and-Win-in-Today-s-Transparent-Marketplace-15-2048.jpg)
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Key Tactics to Compete and Win in Today’s Transparent Marketplace
- 1. Key Tactics toCompete and Win in Today’s Transparent Marketplace Kerri Wise – VP, Dealer Marketing @kkwise11
- 2. Source: Forbes.com article“The New World Of The 'Empowered Consumer” July 16, 2015 Mobile Hands On SmartCommitted Global The Empowered Consumer
- 3. Today’s Car Buyerhas Mixed Emotions about the Car Buying Process
- 4. Car Buyer PainPoints Convenience Transparency Validation “I did my research before going to the dealership, but I ended up buying a different car. I think I paid too much – the dealer didn’t show me any information to prove the price was good.” “I wish I knew how much the dealer was making on the car. Then, I could give them a fair commission but still get a good price. Not knowing makes me trust them less.” “I didn’t like the handoff. I had to give them the same information over and over again, like I was starting over.” “I really don’t like the waiting. I don’t like the way they put me off.” Customization “I didn’t like the way they tried to push me into a car I didn’t want.” “I felt like I was on a conveyer process. The whole process was about them, not me.” “They kept bringing up things I didn’t care about.” “There was no financial explanation at all, and it seemed like my payment came from some mystery algorithm, because they did the math in the other room.” “Unless you ask all the questions, they don’t tell you what you should know.” “I would have trusted the dealer more if they had given me a roadmap or menu showing all aspects of the deal.” Source: TrueCar Research
- 5. How much profitdo car buyers think you make? 21% 14% 3% Consumers think you Make They are willing to pay Actual Dealer Profit Consumer Perception of Dealer Profit Perception vs. Reality Source: 2015 Strategic Vision NVES W1-W3
- 6. Right Vehicle Right Dealer RightPrice/ Deal
- 7. Vehicle Info, Photos, Reviews Ratings/Reviews,Inventory, Salespeople Profiles Vehicle Pricing, Mkt Supply, 3rd Party Benchmarks, Dealer Offers, Calculators Right Vehicle Right Dealer Right Price/Deal Car Shoppers use Online Research to Inform and Validate their Decisions
- 8. Vehicle Info, Photos, Reviews Ra4ngs/Reviews, Inventory, Salespeople Profiles Vehicle Pricing, Mkt Supply, 3rd Party Benchmarks, Dealer Offers, Calculators Right Vehicle Right Dealer Right Price/Deal ONLINE Product Knowledge/ Consulta4on Efficient and Streamlined Process Transparency, Price valida4on, Value OFFLINE Top Dealers build off the online experience, to deliver a Superior in-store experience
- 9. … and asa result Experience Higher Close Rates 2xHigher Close Rates than the Competition
- 10. Streamlined Process Pricing Strategy Validation Value Source: TopPerforming Dealer Study Key Differentiators of Top Dealers
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- 12. 2.5XFaster response thanthe competition Top Performing 20 mins Competitors 52 mins 1st Custom Response Time Top dealers respond significantly faster to leads than their competition, setting the stage for a streamlined process. Source: Mystery Shops Expedite the Process
- 13. Source: Mystery Shops 79%senda Custom Email vs. 66% of the Competition Top dealers are more likely to personalize their lead responses, sending customized emails and using more personal contact methods, such as a phone call, text and video. Personalize Lead Response
- 14. Leverage Trusted ConsumerAffiliations Top Dealers acknowledge the consumer’s online journey and leverage their affiliations to trusted sources Source: Mystery Shops robert@email.com (555)500-5000 120 Broadway St. Santa Monica, CA 90401 Robert Smith Example Call: “Hi Major Smith. This is Travis Pennington, the USAA representative here at Hometown Nissan. I want to thank you for choosing the 2015 Nissan Rogue through the USAA car buying program. It looks like we have one in Tan and White like you selected…”
- 15. 67% of TrueCarprospects buy a different vehicle (make/model/trim) than they originally configured. Source: Website Metrics Vehicle Choice What % of Internet leads switch to a different make or trim? Same Make, Model and Trim 33% [CATEGORY NAME] [VALUE] Same Make only 10% Different make 13% NEW Vehicle Purchased by TrueCar Prospects
- 16. Top dealers keep the purchase process moving by proac4vely sending custom price offers on alterna4ve vehicles. Source: Dealer Performance Data Suggest Alternatives Close rate increases by 32% when a consumer receives a price offer on a specific vehicle
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- 18. Source: Dealer Interview EmbraceTransparency 73%Of Top Dealers will give a price quote over the phone “Our process is designed to engage & include the customer in every step of the process. Transparency is our culture & the tools we use in the sales process support transparency.” - Honda Dealer (Salt Lake City) “We have to be because of this day and age.” - Chevrolet Dealer (Denver)
- 19. Top dealers avoida “set it and forget it” pricing strategy, frequently evaluating their pricing strategy against the market. Source: Dealer Performance Data and Website Metrics Offer Market Based Pricing ü Evaluate Pricing 1.5x More Often Than Average ü Pricing is typically in-line with other Dealers
- 20. Source: Dealer Interviews OfferMarket Based Pricing “Until recently our pricing strategy has been lowest price for new cars. However, we recently changed that strategy and have been focused more on the TrueCar “curve” – fair market pricing. The results have been far better gross and volume has not yet been affected.” - Nissan Dealer (Los Angeles)
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- 22. Source: Dealer Interviews Validatethe Vehicle “Credibility is one thing that separates my dealer from others and the condition report just goes deeper into creating a credible experience for me as an independent dealer.” - Independent Dealer (Indiana)
- 23. Used Vehicle Shoppersthat see a 3rd Party Price Rating on a vehicle are 24% more likely to submit a lead to a dealer Source: Website Metrics Validate the Price 5.2% 5.6% 4.3% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% Great Good No Price Rating Price Rating Lead Conversion
- 24. Top Dealers use3rd party benchmarks to help validate the competitiveness of their price. Source: Dealer Interviews Validate the Price
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- 26. Source: Study referencedin book titled “Absolute Value” Which camera would you buy? $170 $240 $470
- 27. People and Process ShowcaseValue John Wilson Subaru Product Specialist
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- 30. Showcase Value I understandthat our dealership may seem far away but here are a few reasons why people make the trip out to us: 1. You will be dealing directly with either our General Manager or Sales Manager who WON'T keep going back and forth with numbers. 2. Our TAX RATE is lower 3. We do not have ADVERTISING FEES on our INVOICES as Clark Country dealerships do (ranging between $500-$1,000 depending on vehicle.) 4. We WILL NOT do the bait-and-switch on you; the vehicle we do the numbers on will be the same vehicle when you get to us (our TRUECAR PROMISE). 5. If we cannot come to an agreement we will fill your vehicle up to $50 for taking the time to see us. 6. When you do purchase from us we will send you and a friend to THE WINERY for either lunch or dinner on us. 7. “Buyers Bonus” benefits including Auto Repair and Deductible Reimbursement Benefits of Driving a Long Distance
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