Merchandising Strategies To Connect New Cars with Customers FEATURED PANEL
Merchandising Strategies To Connect New Cars with Customers FEATURED PANEL Nathan Tenbrink John Griffin Sr. Manager Enterprise Analytics AutoTrader.com VP of Performance Management Software Division Autotrader Group, vAuto Moderator: Lori Dearman, Executive Webinar Producer Sponsored by: vAuto Who’s In the Audience? A diverse audience of over 150 professionals registered from 35 states. A Word From the Sponsor John Griffin VP of Performance Management Software Division Autotrader Group, vAuto Poll #1 Do you include custom photos of your new vehicles online? • Yes • No • Sometimes Featured Presenter Nathan Tenbrink Sr. Manager Enterprise Analytics AutoTrader.com May 22nd, 2014 SMART STRATEGIES THAT WILL GO THE DISTANCE Nathan Tenbrink Senior Manager, Enterprise Analytics Source: The Rikess Group Wednesday, June 24, 2009 RECONDITIONING ACQUISITION PROCESS CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION TRANSPORTATION Front-End Fundamentals 8keys to driving a sale Source: The Rikess Group CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION Front-End Fundamentals 8keys to driving a sale Wednesday, June 24, 2009 What is the Digital Audience Analysis Understanding online car shopping behavior • Proprietary data from AutoTrader.com & select partner companies • 6,605 new vehicle sales across 1,000 dealerships • December 15, 2012 – August 15, 2013 • No P.I.I. Source: The Rikess Group Wednesday, June 24, 2009 RECONDITIONING ACQUISITION PROCESS CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION TRANSPORTATION Front-End Fundamentals 8keys to driving a sale 42% of vehicles shopped were the same make as the vehicle purchased Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 32% of vehicles shopped were the same model as the vehicle purchased Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 Real-world story What’s the right sedan for me? New Used Viewed USED Ford Focus Dealer Site Viewed NEW Kia Optima Viewed USED Honda Accord Viewed NEW Honda Accord Viewed USED Toyota Camry Viewed USED Honda Civic Dealer Site Dealer Site Dealer Site Dealer Site Searched Kia & Honda SEDANS Dealer Site Dealer Site Viewed NEW Nissan Juke Viewed NEW Nissan Altima Viewed SPECIALS Viewed NEW Nissan Altima BOUGHT NEW Nissan Altima Researched NEW Nissan Altima Viewed NEW Nissan Juke implication: The right inventory mix can help put your dealership in shoppers’ consideration sets implication: Think multi-brand Source: The Rikess Group Wednesday, June 24, 2009 RECONDITIONING ACQUISITION PROCESS CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION TRANSPORTATION 8critical functions of dealership operations Poll #2 If you posted a price other than MSRP, would you expect gross to go up or down Go up Go down perception Pricing transparency erodes value & gross Price range shopped narrows closer to purchase $35,000 average price paid $25,000 $15,000 60 days Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 purchase date 76% of new car buyers paid more than the prices of cars shopped online Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 $32,000 average price paid Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – Aug 15, 2013 34% more VDPs when vehicles are listed below MSRP Source: AutoTrader.com Core Site Data Q3, 2013 MSRP $55,855 Why are VDPs important? Search Results Page SRP= virtual drive-by Vehicle Details Page VDP= virtual walk-around 34% more VDPs when vehicles are listed below MSRP Source: AutoTrader.com Core Site Data Q3, 2013 MSRP $55,855 Dealers who listed below MSRP captured 11% more buyers than dealers who listed at MSRP Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 52% will travel 30+ miles to purchase a vehicle for 10% below MSRP Source: October 2013, AutoTrader.com & MOREPACE Car Shopper Study Car buyers traveled an average of 9 8 7 6 5 4 3 2 1 10 00 to buy cars listed below MSRP Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – Aug 15, 2013 more miles implication: Pricing transparency attracts valuable buyers & can increase dealership profitability implication: New cars priced below MSRP attract more attention online Most important pricing info Guaranteed price…………………. Estimated monthly payment…….. Dealer invoice…………………….. Retail asking price………………... Internet price………………………. MSRP……………………………… Source: October 2013, AutoTrader.com & MOREPACE Car Shopper Study 44% 38% 36% 33% 25% 24% But, it’s more than price. Source: The Rikess Group Wednesday, June 24, 2009 RECONDITIONING ACQUISITION PROCESS CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION TRANSPORTATION Front-End Fundamentals 8keys to driving a sale 34% more VDPs when vehicles are listed below MSRP Source: AutoTrader.com Core Site Data Q3, 2013 MSRP $56,555 186% more VDPs when priced below MSRP & have multiple custom photos Source: AutoTrader.com Core Site Data Q3, 2013 MSRP $56,555 Geo-distance whitepaper • Telephone survey • 35,077 New car buyers • 32,665 Used car buyers • Purchased between July 2011 – Aug 2012 Multiple custom photos 30% more car buyers traveled 30+ miles to the dealership Source: Geo-distance Analysis, 2012, compared to dealers without photos Vehicle comments 26% more car buyers traveled 30+ miles to the dealership Step into this 2014 Subaru Outback! With active-steering & all-wheel drive, this vehicle easily supports spirited driving maneuvers. Smooth gearshifts are achieved thanks to the refined 6 cylinder engine. Source: Geo-Distance Analysis, 2012, compared to dealers without comments Real-world stories Dealers who are well merchandised & priced below MSRP had fewer competitors & more share of shoppers Dealer example #1 Priced at MSRP & poorly merchandised competitor competitor competitor 1 Dealer # Shoppers competitor competitor competitor competitor Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 Dealer example #2 Priced below MSRP & well merchandised competitor competitor competitor 2 Dealer # Shoppers competitor competitor competitor competitor Source: AutoTrader.com Digital Audience Analysis, December 15, 2012 – August 15, 2013 implication: The right car at the right price & merchandised drives influence & preference Source: The Rikess Group Wednesday, June 24, 2009 RECONDITIONING ACQUISITION PROCESS CUSTOMER HANDLING DESCRIPTIONS PHOTOS PRICING VEHICLE SELECTION TRANSPORTATION Front-End Fundamentals 8keys to driving a sale for all car buyers Customer experience is very important, second only to the right car at the right price Source: 2013 AutoTrader.com/ Polk Automotive Buyer Influence Study Why did you buy from this dealership? They offered the best deal They had the car you wanted Past experience with the dealer Dealer's location Dealer's reputation Dealer's service department Always buy from my salesperson Other Mentions Referral from someone else Liked salesperson/treated us well You found the dealer or the car advertised online Source: 2013 AutoTrader.com/ Polk Automotive Buyer Influence Study 30% 28% New Buyers 25% 15% 12% 7% 7% 6% Wednesday, June 24, 2009 6% 3% 2% Why did you buy from this dealership? They offered the best deal They had the car you wanted Past experience with the dealer Dealer's location Dealer's reputation Dealer's service department Always buy from my salesperson Other Mentions Referral from someone else Liked salesperson/treated us well You found the dealer or the car advertised online 30% 28% New Buyers 25% 15% 12% 7% 7% 6% Wednesday, June 24, 2009 6% 3% 2% 60% What dealers can do Have the right mix of inventory Market new & used cars side by side Employ an inventory-based marketing strategy Strategies Price below MSRP Create a positive in-store experience Merchandise to the max Tactics Connect the online & on-lot experiences Ensure your staff is knowledgeable May 22nd, 2014 THANK YOU Nathan Tenbrink Senior Manager, Enterprise Analytics John Griffin John Griffin VP of Performance Management Software Division Autotrader Group, vAuto How Conquest Helps Price New Vehicles To The Market • Allows Dealer To ID “Sweet Spot” For Every New Vehicle (Same, Competing Brands) • Incorporates Real-Time Incentives Into Pricing • Makes Pricing Automatic (based on Makes, Models Based On Invoice and MSRP) Poll #3 Based on what you heard today, what will be your top challenges moving ahead? (Choose all that apply) • • • • • Vehicle selection New Car Pricing Photos Custom descriptions/comments Customer handling Next Steps • Resources: vauto.com (Dealer Resources) • Stay tuned for the next vAuto educational series webinar • Visit www.weworkforyou.com/partners for info on ATG solutions and questions • Email: [email protected] or call 1.877.627.9585 A Pricing and Process Blueprint For New Car Success ASK THE EXPERTS Nathan Tenbrink John Griffin Sr. Manager Enterprise Analytics AutoTrader.com VP of Performance Management Software Division Autotrader Group, vAuto Moderator: Lori Dearman, Executive Webinar Producer
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