The Automotive Industry Consumer Lanscape
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Transcript of The Automotive Industry Consumer Lanscape
AUTOMOTIVE INDUSTRY PROFILE + LANDSCAPE
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WHY DO I CARE?
Glad you asked…
In this report you will find a high-level overview of the U.S. automotive landscape. It is important that we keep a pulse on the industry and CONSUMER BEHAVIORS in order to identify OPPORTUNITIES that transform our businesses.
At Levelwing, we specialize in analyzing the paths that contribute to meaningful BUSINESS OUTCOMES. These paths are illuminated through the analysis of data collected via website analytics, customer relationship databases, consumer research, phone call logs and even recruitment application databases (yes, we actually enjoy working with the HR folks in addition to the marketing teams).
Our team of analysts, statisticians and strategists are obsessed with data and are experts at TRANSLATING THE DATA INTO A MEANINGFUL STORY that has real business applications and implications.
Please enjoy some of the insights contained within.
AUTOMOTIVE CATEGORY CATEGORY OVERVIEW
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AUTOMOTIVE CATEGORY SEARCH DEMAND 4
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 6,120,000
Source: Google
Collectively, the automotive category has a substantial amount of monthly searches within the United States. Online searches are often indicative of offline demand. This emphasizes the need for visibility within search engines and search engine results pages in order to capture this traffic.
MILES DRIVEN - US 5
Travel on all roads and streets increased by 0.4% (1.1 billion vehicle miles) for June 2012 as compared with June 2011 and cumulative travel for 2012 increased by 1.1% (15.6 billion vehicle miles). Cumulative estimate for 2012 is 1,455.7 billion vehicle miles of travel. As miles driven increases so too does the need for routine car maintenance and new tires.
Source: U.S. Department of Transportation
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Moving 12-Month Total on ALL Roads
VEHICLE OWNERSHIP 6
In addition to consumers driving more miles, they are keeping their vehicles for longer periods of time so they are driving more miles on those same vehicles. As the average age of cars on the road increases, the need for routine maintenance and new tires for those cars also increases.
52% of consumers intended to
keep their cars 5 years or more
“2011 Aftermarket Outlook Survey”, The NPD Group, Feb 2011
61% of consumers expecting car repairs would have a professional do all the work “2011 Aftermarket Outlook Survey”, The NPD Group, Feb 2011
Avg age of car driven increased to 8 years
Consumer Reports National Research Center, Apr-May 2011
23% of motorists are
driving cars from 1990s
Consumer Reports National Research Center, Apr-May 2011
7 INDUSTRY SEARCH DEMAND & VOLUME
Top 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. Market level search insights can assist can help fuel strategies in which there is high demand (and we want to leverage this) or where there is low-demand (perhaps in a market we are trying to dominate). Source: Google
MILES DRIVEN BY STATE – TOP 5 8
STATE MILES DRIVE iN JUNE
(IN MILLIONS)
CALIFORNIA 28,401
TEXAS 19,844
FLORIDA 16,019
NEW YORK 11,145
ILLINOIS 10,582
When comparing the top twelve cities searching for “auto repair” to the top five states with the most driven miles in June, three of the top twelve cities searching for “auto repair” are located in California, the state with the most miles driven in June. As miles driven increases so too does the need for vehicle maintenance and searches for service including, “auto repair.”
Source: U.S. Department of Transportation
AUTOMOTIVE CONSUMER
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RESEARCH BEHAVIOR
ONLINE RESEARCH HABITS 12
During online research for tires, 65% of consumers go directly to an automotive tire website and 48% use a search engine. These online search habits indicate the need for visibility within search engines and search engine results pages during this critical research period.
Source: Custom Compete Data
48%
65%
0% 10% 20% 30% 40% 50% 60% 70%
Social networking websites
Video sharing websites
Online magazines/newspapers
3rd Party automotive websites
Consumer generated online reviews
Dealership websites
Professional online automotive review websites
Search engines
Automotive tire websites
ONLINE RESEARCH HABITS 13
Over one third of users utilized search throughout the research process. This behavior further necessitates the need for visibility within search engines and search engine results pages.
Source: Custom Compete Data
42%
12%
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10% 10%
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51% 13%
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Parts
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7% 4%
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Accessories
Search Usage During the Research Process
Tires
Services
Used this source at the very beginning of my research Used this source in the middle of my research Used this source at the very end of my research Used this source throughout the entire process
OFFLINE RESEARCH HABITS 14
Examining offline research habits can illuminate areas of opportunity. For instance, 30% of people indicated they made an offline purchase because they wanted to talk to a salesperson. Incorporating a “Live Chat with Sales Representatives” feature on your website can give your online customers a better experience.
Source: Custom Compete Data
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Offline Purchase
local tire store
warehouse store
retail store
national tire/ service center
dealership
other
39% more convenient to purchase in person
38% I needed it immediately
30% I wanted to talk to a salesperson
27% better prices
25% faster to shop in person
Offline Purchase Drivers
RESEARCH TIME 15
Purchase reason influences research time; repair shoppers are three times as likely to decide in less than a day. These purchase behaviors indicate the need to provide website visitors with exactly the information they are seeking on their first visit to your site during this critical research period. Source: Custom Compete Data
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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 more
VIDEO AS RESEARCH SOURCE 16
Most service shoppers who watched videos were interested in general information and instruction. Creating a YouTube channel with instructional videos and general information surrounding auto repair and maintenance will fulfill these consumer needs. Including links to your website within the videos and video descriptions will encourage visitor transfer. Source: Custom Compete Data
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Other
Compare features
Watch customer testimonials
Decide which company to purchase from
Understand specific features
Watch instructional videos
Obtain general information
SMARTPHONE USAGE 17
As smartphone ownership increases so does the necessity of having a mobile website for consumers using these devices for product and service research.
Source: comScore, June 2012
110 MILLION Americans own a smartphone
More than
MOBILE AS RESEARCH SOURCE 18
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 provide an optimal user experience for mobile website visitors. Source: Custom Compete Data
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Watch an online video about a service
Search a service availability
Schedule a service appointment
Call a retailer, manufacturer, or business
Locate a service provider
Read general service information
Compare features
Contact business other than by calling
Compare prices
Look for promotions, coupons, or discounts
Read reviews
MOBILE COUPON REDEMPTION 19
30% 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 clarity in local and location-based opportunities.
Source: Internal Google Data
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LIKE 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 you have internally…
At Levelwing, we specialize in interpreting your data and providing you with applications (and not just graphs) that can impact your MARKETING, MERCHANDISING, INVENTORY or even TALENT RECRUITMENT. 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 that you can ACHIEVE WHAT COULD BE.
For additional information, please contact: STEVE PARKER, JR. Co-Founder and Managing Partner [email protected] 1 + 843.631.4587
THANK YOU
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Want to learn more about Levelwing? Just keep reading.
WHO IS LEVELWING?
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The Right Data Changes Everything
Marketing Budgets Should Be Smaller, Not Larger
Accountability is Essential
Success Should Pay For Itself
Leverage Existing Demand First
OUR BELIEFS 23
We use data to illuminate all facets of your business. You’ll sell more and enjoy greater cost-efficiency.
More importantly, you’ll operate your business more PROFITABLY.
THE RIGHT DATA CHANGES EVERYTHING 24
Bigger is not necessarily better.
We believe by holding media and ideas accountable through advanced analytics, you can do MORE with LESS.
MARKETING BUDGETS SHOULD BE SMALLER, NOT LARGER
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We measure and create insights based on what’s important, not just metrics that are easy to calculate.
We create real ACCOUNTABILITY.
ACCOUNTABILITY IS ESSENTIAL 26
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An understanding of Return on Investment leads to marketing efforts that are more than just an expense line item.
We build SELF-FUNDING initiatives.
SUCCESS SHOULD PAY FOR ITSELF 27
A demand-driven strategy creates media efficiency and greater profitability by focusing on existing IN-MARKET PURCHASERS.
AWARENESS
INTEREST
CONSIDERATION
PURCHASE
LEVERAGE EXISTING DEMAND FIRST 28
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Our BUSINESS INTELLIGENCE SOLUTIONS help organizations understand consumer brand perception, gain competitive information and uncover real opportunities to improve organizational and operational efficiencies.
WE BELIEVE in informed, evidence-based decision-making, only made possible by complex and comprehensive data collection + analysis.
INTELLIGENCE IS AT OUR CORE
Competitive Insights | Data Enrichment | Operational Efficiency | Price Sensitivity
Analysis | ROI Analysis | Analytics Solutions | Data Knowledge Management
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GLOBAL REACH We currently serve clients throughout North America, Europe, China and Japan
UNIQUE APPROACH Levelwing is the leader in business intelligence and marketing solutions with data mining + analytics at the core
MEASURED SUCCESS Levelwing has experienced 10 consecutive years of growth with industry leading client satisfaction results
FULLY INTEGRATED We employ a matrix organization of marketers, analytics design experts, statisticians, researchers and creatives
WE ARE LEVELWING 30
“Some of the most innovative and strategic minds in the industry” - Novartis
“Some of the most sophisticated things I’ve seen being done with analytics and ROI measurement” - Adobe
SOME OF OUR PARTNERS 31