HOW TO USE DATA TO ENHANCE YOUR MARKETING EFFORTS Jeff Canty Experian Automotive © Experian Information Solutions, Inc. 2007. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc. Confidential and proprietary. Experian is a $4.0 billion global information services business Company 15,500 employees in 65 countries Services Credit Services Decision Analytics Marketing Services Interactive © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. 2 Experian information assets Unparalleled breadth of data assets delivering decision-critical knowledge to the automotive industry National Consumer Demographic and Lifestyle National Credit Database National Vehicle Database National Business Database National Fraud Database Integrated data solutions 280 million consumers, 110 million households 600 million+ vehicles – U.S. and Canada 1,000 data attributes per record Includes title, registration, mileage readings, key vehicle events 3,200 public and proprietary sources 215 million credit-active consumers Nearly 2.8 billion tradelines Over six billion inquiries 325,000 known fraud records Crossindustry data 15 million businesses Identification, demographic, credit information 55 million+ public records © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. 3 Solution and market focus Understand buying trends and your competitive positioning Upsell/cross-sell customers with the right message at the right time Manage your consumer and vehicle portfolios to maximize ROI Markets served Target ready, willing and able to buy prospects OEMs Lenders Dealers Consumers Marketing agencies Retail aftermarket © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. Fleet / lease Insurance Warranty 4 Over 20,000 automotive customers © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. 5 EXPERIAN AUTOMOTIVE INDUSTRY INSIGHTS © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. 6 Automotive Industry The current environment The opportunity is large OEMs, aftermarket companies, dealers, lenders and marketing agencies must change their strategy to survive and grow Gas prices exceeding $4.00 Tight credit is the #1 impediment to selling a new vehicle New and used vehicle sales lowest in past 15 years SUVs and pick-ups selling for 50% of MSRP Auction volume down Avg. new car owner upside down $4,200 at time of sale Prime loans Æ ~74% of new car sales (decreasing) Auto loan originations were down 17.47 percent, compared to the prior year Increasing delinquencies: 2.23% of all loans are 30 days delinquent (up 10% 0.69% are 60 days delinquent (13% increase) 1Q08 v 1Q07 Finance companies exiting the direct lending business Finance terms extending along with length of avg. car ownership Global parts mfg. competition becoming more fierce © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary. Information and Innovation are the weapons of choice Value and fast ROIs are the keys to success 7 Increased Choices and Competition 45 + Brands 30 + Vehicle Segments 300 + models! © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 8 Increased Choices and Competition Example: Nearly 50 vehicles available in Crossover Utility segment alone More on the way: Audi Q5 Cadillac Provoq Chevrolet Traverse Volvo XC60 Lincoln MKT Mercedes-Benz GLK Toyota Vensa © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 9 Market Overview GM Strike impacted vehicle production, including highdemand vehicles e.g. Malibu • Q2 2008 Market Share: • When comparing Q2 2008 to prior 12 months, GM, Chrysler and Ford all lost market share 19.3% Other: • Honda and Nissan gained share 12.7% 18.8% • Toyota had slight gain in market share 25% Prior 12 months Q2 2008 6.1% 8.3% 14.3% 9.0% 11.4% Market Share 20% 15% 10% Source: Experian NVDB © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 10 G M d C hr ys le r Fo r To yo ta N is sa n 0% on da • Honda surpassed Ford for #3 position in terms of share 5% H • When excluding fleet and commercial registrations Toyota had highest share, followed for the first time by GM 10 Winners and Losers …Hon da C was to ivic p selling vehicl e in May … • Q2 2008 vs. Q2 2007 Registrations: • When looking at specific models of vehicles, economy continues to be an important factor in purchase decisions: Top 10 are all small and mid-size cars 140,000 120,000 Q2 2007 100,000 Q2 2008 80,000 60,000 40,000 20,000 Honda Accord Ford Focus Honda Civic Chevrolet Honda Fit Malibu Hyundai Elantra Nissan Altima Hyundai Accent Subaru Forester Toyota Corolla Source: Experian NVDB © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 11 11 Winners and Losers • Q2 2008 vs. Q2 2007 Registrations: • Efficiency also appears to be driving down sales of not-so-economic vehicle choices: Full Size Pickups and SUVs make up the entire list with the exception of Ford Mustang 90,000 80,000 Q2 2007 70,000 Q2 2008 60,000 50,000 ? ?? 40,000 30,000 20,000 10,000 Ford F150 Chevrolet Silverado 1500 Toyota Tundra Chevrolet Chevrolet Dodge Silverado Trailblazer Ram 1500 2500 Ford Mustang Jeep Wrangler Honda CR-V Chevrolet Tahoe Source: Experian NVDB © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 12 12 13 um m er M in i Po Ki rs a ch B e M Ja W gu ar A u In di f in M er ce Le iti d x Vo es- us lk Be sw nz a C ge hr n C ys he le vr r C ole ad t il Li lac nc ol n Fo D rd od N ge is s Sa an tu H rn on d A a cu To r a yo M ta a M zda er cu r Vo y lv B o ui ck H Number of Months How Long are Vehicles Owned? 70 60 New Used 50 40 30 20 10 0 © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 13 Solution and market focus Understand buying trends and your competitive positioning Upsell/cross-sell customers with the right message at the right time Manage your consumer and vehicle portfolios to maximize ROI Markets served Target ready, willing and able to buy prospects OEMs Lenders Dealers Consumers Marketing agencies Retail aftermarket © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. Fleet / lease Insurance Warranty 14 Key solutions overview AutoCount market reporting AutoCount® Dealer Report AutoCount Lender Report AutoCount Risk Report 9 AutoCount Vehicles in Operation Custom Registration Studies Simmons Local AutoXpert w/AutoCount Loyalty measurement Custom loyalty studies Auto Share of Garage 96% of the top-50 lenders use Experian’s AutoCount to determine what competitive financing sources are being used by dealers © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 15 AutoCount® Vehicles in Operation Vehicles in operation reporting Vehicles 9 AutoCount in Operation Addressing key challenges faced by the aftermarket industry … © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 16 AutoCount® Vehicles in Operation Autos in Operation is ACES© compliant, offering AAIA (Automotive Aftermarket Industry Association) codes Use of data by third parties to support your organization is permitted Vehicles in operation reporting Vehicles 9 AutoCount in Operation Vehicle category (e.g. passenger car, light truck) Vehicle segmentation (e.g. midsize luxury) Manufacturer (e.g. General Motors) Vehicle Make (e.g. Chevrolet) Vehicle Model Year (e.g. 2006) Vehicle Model (e.g. Camaro) Vehicle Series (e.g. the trim level, such as RS) Body Style (e.g. Coupe) Door Count (e.g. 2) Drive Wheels (e.g. All Wheel Drive or AWD) Fuel Type (e.g. Gas) Engine Displacement in Liters (e.g. 3.8L) Engine Cylinders (e.g. V6) Performance Option – Aspiration (e.g. Turbocharged) Fuel Delivery (e.g. Fuel Injected) Wheelbase (e.g. 201.3 inches) Vehicle Weight (e.g. 2422 lbs) Transmission Type – standard equipment (e.g. Automatic) © Experian Information Solutions, Inc. 2008. All rights reserved. Tires – Standard & Optional Proprietary. (e.g. P195/75R14) 17 The Challenge: Measuring loyalty to generate actionable insights © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 18 405 million reasons why loyalty matters… For manufacturer X: Current Owners: 10,000,000 Returning to market annually (15%): 1,500,000 Corporate Loyalty Rate: Number of Loyal Purchasers: 40.0% 600,000 Impact of One Percentage Point Increase In Loyalty Corporate Loyalty Rate: 41.0% Incremental Sales: 15,000 Avg. revenue per vehicle: Incremental Revenue: $27,000 $405,000,000 © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 19 Loyalty has declined since 1998 49.1% 46.0% 40.2% 39.1% 39.3% 39.9% Corporate Loyalty 43.3% 42.6% 42.0% 41.3% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Experian Automotive © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 20 Loyalty Varies by Brand 50% 45.4% 40% 40.5% 39.8% 38.4% Brand Loyalty 34.5% 31.3%31.3% 30% 29.4% 28.9% 27.4% 25.9% 20.7%20.7% 20.3% 20% 19.6% 17.2% 16.7% 15.2% 14.7% 12.0% 10% To y H o ta C on he d vr a ol et F H or yu d nd N M is ai er ce L san de ex s- us B C en ad z ill a B c M D W o Li dg nc e ol n C Jee hr p ys Vo le lk A r sw u d ag i In en fin M iti az d Sc a Ja ion gu ar 0% Source: Experian Automotive © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 21 Customer satisfaction does not equal loyalty 50% Brand Loyalty Satisfaction Index 40% 40.5% 39.8% 850 38.4% Brand Loyalty 34.5% 800 31.3%31.3% 30% 29.4% 28.9% 27.4% 750 25.9% 20.7%20.7% 20.3% 20% 700 19.6% 17.2% 16.7% 650 15.2% 14.7% 12.0% 600 10% 550 0% Customer Satisfaction 900 45.4% To y H ota C on he d vr a ol et F H or yu d n N da M is i er ce L san de e x s - us B C en ad z ill a B c M D W o L i dg nc e ol n C Jee hr p ys Vo le lk A r s w ud ag i In e n fin M iti az d Sc a Ja ion gu ar 500 Source: Experian Automotive Source: JD Power & Assoc. © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 22 External Data Example Corporate Loyalty $25,000 or below $25,000 $50,000 $50,000 $75,000 $75,000 $100,000 $100,000 $150,000 $150,000 - $200,000 or $200,000 above Household Income © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 23 Case Study Examples: Corporate Loyalty 20% Lift OEM Captive Non-Captive Financing Source © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. Initial Purchase 24 Case Study Examples: Dealer Loyalty 27% Lift OEM Captive Non-Captive Financing Source © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. Initial Purchase 25 Case Study Examples: Corporate Loyalty Body Electrical Electical Mechanical Drive-Train Type of Warranty Visit © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. Engine/Trans Warranty / Service 26 Additional questions? [email protected] © Experian Information Solutions, Inc. 2008. All rights reserved. Proprietary. 27 © Experian Information Solutions, Inc. 2007. All rights reserved. Confidential and proprietary.
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