Research Insights Automotive Internet Users111507

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  • DEALIXAutomobileShoppingBehavior2007ResearchInsightsforDealixCustomers

  • DEALIX

    Highlightsof5MajorIndustryStudiesin2007

    > 2007NewandUsedAutoshopper Studies

    > 1millionleadsfrom1,140dealershipsrepresenting 35brandsmatchedwithDMVdatatoassesssalesratesandtim etoclose

    > Twoconsumersurveys:- 550vehicleshoppersandpurchasers

    - 1000vehiclepurchasers||

    > 2100dealershipsineMystery shopcampaigns[20bran ds]> 20onsitevisitstotopperformingdealers

  • DEALIX

    KeyInsightsforYourDealership

    > Allcustomersareinternetcustomers

    > 3rd partyleadsareessentialtoreach20-25%ofshoppe rs

    > Manyshoppershaveadifferenttimelinethanyours alesteam

    > Youonlyhaveoneshottowinoverashopper

    > Excellentleadmanagementpracticesincreaseclose rates2-3X

  • DEALIX

    ConsumerShoppingProcess

    1. ShouldIbeinmarket?- Resalevalue/conditionofcurrentvehicle- Changeinvehicleneeds- Gotta have newmodel

    2. Whichmodelsmeetmyneeds?- Price,styling,reliability,size- Previousexperience- Advicefromfriends

    3. WhereshouldIpurchase?- Price- Convenientlocation- Service

  • DEALIXMetricsThroughtheFunnel

    Consideration

    Purchase

    Awareness

    Familiarity

    VisitDealer

    Changeinawareness Improvementinfamiliarity Improvementofopinion

    Clickonad Clicktosite

    Buildavehicle Searchinventory Searchfordealerinfo Requestaquote

    MeasuresofSuccess

  • DEALIXAllcustomersareInternetcustomers

    Base:TotalRespondents(550)Q4 Whenresearchingautodealerships, whichofthese onlinesearchenginesdidyouusetoobtaininformation?(Pleaseselecta llthatapply.)QS10Whichofthefollowingresourcesdidyouuset ogatherinformationwhileshoppingforyournewvehicle? ORareyouusingto gatherinformationwhileshoppingforyournewvehicle?Q0Youmentionedthatyouusedtheresourcesshownb elowtoresearchandshopfornewvehicles.Howdidyoureacheachoft hesewebsites?

    Carshoppersarequalifyingdealersbyresearchingonline&usingsearchforvehicledealershipresearch

    Yahoo!SearchMarketingProprietaryandConfidentia l. 2007.AllRightsReserved.

  • DEALIXPercentofNew-VehicleBuyers

    SubmittingaRequestforOnlineDealerReferral

    20% 21% 21% 22%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    2004 2005 2006 2007

    Basedtonew-vehiclebuyersSource:J.D.PowerandAssociates2004-2007NewAut oshopper.comStudies

    Requestsforonlinequotesaresteady%

    o

    f

    A

    l

    l

    Bu

    y

    e

    r

    s

    VisitedDealerFoundOnline

    39%

  • DEALIXMethodthatLedtoUsedVehiclePurchased

    14%11% 10%

    5% 5%11% 12%

    16%

    23%

    9%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    NewspaperClassifieds ClassifiedAdMagazines OnlineClassifieds

    Basedtolatemodelused-vehiclebuyersSource:J.D.PowerandAssociates2003-2007UsedAu toshopper.comStudies

    23%of used vehiclessoldaresourcedonline

    2003 2004 2005 2006 2007^

    %

    o

    f

    A

    l

    l

    Bu

    y

    e

    r

    s

  • DEALIX

    KeyInsightsforYourDealership

    > Allcustomersareinternetcustomers

    > 3rd partyleadsareessentialtoreach20-25%ofshoppe rs

    > Manyshoppershaveadifferenttimelinethanyours alesteam

    > Youonlyhaveoneshottowinoverashopper

    > Excellentleadmanagementpracticesincreaseclose rates2-3X

  • DEALIXPurchaseMilestonesofNew-VehicleAIU's

    012345678910111213141516WeeksBeforePurchase(Mean)

    Decideontypeofvehicle

    Startvisitingdealers

    Thenew-vehicleshoppingprocesstakesabout3monthsfortheaverageshopper

    Decideitwastimetopurchase

    ShopvehiclesontheInternet

    Startactivelyresearchingvehicles

    Decideonmodel

    Purchasenewvehicle

    14.7

    11.7

    11.0

    10.4

    7.6

    6.3

    0

    Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

  • DEALIX

    One-thirdofnew-vehiclebuyerspurchasewithin1monthofdecidingtheyneedanewvehicle

    ShoppingTimelineofAIU's

    8%

    15%

    10%

    2%

    18%

    22%

    13%13%

    0%

    5%

    10%

    15%

    20%

    25%

    53ormore

    25to52 21to24 9to20 5to8 4 3to2 1week

    WeeksBeforePurchase

    Decidetimetobuy

    34%ShoppingProcessOneMonthorless

    27%ShoppingProcessOverSixMonths

    Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

  • DEALIXPurchaseMilestonesofUsed-VehicleAIU's

    012345678910111213141516WeeksBeforePurchase(Mean)

    Decideontypeofvehicle

    Startvisitingdealers

    Theprocessisnotmuchdifferentforlate-modelusedvehiclebuyers

    Decideitwastimetopurchase

    ShopvehiclesontheInternet

    Startactivelyresearchingvehicles

    Decideonmodel

    Purchasenewvehicle

    14.9

    13.8

    10.9

    9.9

    10.1

    6.9

    0

    Source: 2007 J.D. Power and Associates Used Autoshopper.com Study. Based to AIUs. PreliminaryData

  • DEALIX

    Overone-thirdofnew-vehiclebuyersseriouslyconsideronlyonemodel

    NumberofVehiclesConsidered

    34%30%

    20%16%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    One Two Three FourorMore

    Loyal

  • DEALIX

    Consumersconsidermultiplebrands

    Consumersvisitanaverageof 6

    dealerships,buttheyvisitonly onedealershipper

    brand

    Base:TotalRespondents(550);ThoseRespondingQS6Pleaseselectthestatementthatbestdescribes yourconsiderationofeachmakelistedbelow.QS7Howmanydealershipsdidyouvisitforeachmak e?

    Yahoo!SearchMarketingProprietaryandConfidentia l. 2007.AllRightsReserved.

  • DEALIX

    Geographicareaofconsiderationgrows

    68% ofconsumersarenotwillingtotravelmorethan

    20miles32% ofconsumersare

    willingtotravelfartherthan20miles

    Athirdofconsumerswilldrive morethan20miles

    fromhome

    Base: TotalRespondents(546)** DontknowresponsesremovedQS8 Againthinkingaboutthedealershipsyouvisited ,thinkabouthowfareach

    dealershipwasfromyourhome.Inmiles,pleasetel lusthedistancebetweenyourhomeandthefarthestdealershipyouv isitedforeachmake.

    Yahoo!SearchMarketingProprietaryandConfidentia l. 2007.AllRightsReserved.

  • DEALIX

    KeyInsightsforYourDealership

    > Allcustomersareinternetcustomers

    > 3rd partyleadsareessentialtoreach20-25%ofshoppe rs

    > Manyshoppershaveadifferenttimelinethanyours alesteam

    > Youonlyhaveoneshottowinoverashopper

    > Excellentleadmanagementpracticesincreaseclose rates2-3X

  • DEALIX

    Overallconversionissteady

    45%ofleadsdidnotconvert

    55%ofleadsconverted

    BasedonregistrationinformationsuppliedbyR.L. Polk&Co.Sales/leaseshavebeenadjustedformatchingeffici encybyafactorof1.36,whichrepresentsa73%historicalmatchrate

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

    OneMillionNewCarLeads

  • DEALIX

    Lostopportunityisstillhigh

    90%closedatadealerotherthantheonetheleadwassentto lostopportunity

    BasedonregistrationinformationsuppliedbyR.L. Polk&Co.Sales/leaseshavebeenadjustedformatchingeffici encybyafactorof1.36,whichrepresentsa73%historicalmatchrate

    Soldatintendeddealership

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

  • DEALIX

    Allmissed sales

    BasedonregistrationinformationsuppliedbyR.L. Polk&Co.Sales/leaseshavebeenadjustedformatchingeffici encybyafactorof1.36,whichrepresentsa73%historicalmatchrate

    Soldatintendeddealership

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

  • DEALIXToomanyleadsgounanswered

    2007Overallresponsiveness 68.6%

    Responsetimeaverage(hrs) 7.1

    Qualityofresponses:Answeredtheshoppersquestions 28.6%

    Usebrandorproducthighlight 25.5%

    Morethan30%ofleadsgoingunanswered.

    2007CobaltNationaleMysteryShop,Base:2,111

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

  • DEALIX

    Leadresponsetimeisslow

    2007Overallresponsiveness 68.6%

    Responsetimeaverage(hrs) 5.4

    Qualityofresponses:Answeredtheshoppersquestions 28.6%

    Usebrandorproducthighlight 25.5%

    20%ofconsumerswantaresponsewithin4hoursortheyllgosomeplaceelse.*

    2007CobaltNationaleMysteryShop,Base:2,111*CarsOnline06/07:UnderstandingtheDynamicsof ConsumerBuyingBehaviorandCustomerLoyalty CapGamini

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

  • DEALIX

    Poorleadhandlingcontributestobranddefection

    QV5- Thosewhosaidtheypurchasedadifferentmake /brandthansubmittedaninquiryabout(301)Whichofthefollowingreasons describewhy youpurchasedanothermake/brandthanyousubmittedanonlineinq uiryabout?

    Ofthosethatswitchedbrands,23%didsobecauseofpoordealerinteraction

    Whydidyoupurchaseadifferentbrandthanyousub mittedanonlineinquiryabout?

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

    Poorornoresponse

    Baddealerexperience

  • DEALIX

    Qualityofleadresponseispoor

    2007Overallresponsiveness 68.6%

    Responsetimeaverage(hrs) 5.4

    Qualityofresponses:Answeredtheshoppersquestions 25.0%

    Usebrandorproducthighlight 25.5%

    2007CobaltNationaleMysteryShop,Base:2,111

    TheCobaltGroup,Inc.ProprietaryandConfidential . 2007.AllRightsReserved.

  • DEALIX

    eMysteryNationalShop2005vs.2007

    2005 2007Overallresponsiveness 69.7% 68.6%

    Responsetimeaverage(hrs) 6.5 5.4

    Qualityofresponses:Answeredtheshoppersquestions 25.9% 25.0%

    Usedbrandorproducthighlights 30.4% 19.5%

    2007CobaltNationaleMysteryShop,Base:2,1