Mobility, Car Sharing and the Future of the Automotive Industry

Americans are slowly turning away from the concept of car ownership as a necessity and are looking at new options of mobility – car sharing. A study by ABI Researchforecasts that 400 million people will rely on robotic car sharing by 2030. Companies such as Zipcar and Uber are already gaining huge market share, steadily growing in popularity as an alternative to vehicle ownership.

Consumers are turning to these alternatives as a means to more efficient vehicle utilization and more affordable transportation.  LA Times reporter Jerry Hirsch is on point with his statement, “For at least 22 hours a day most cars sit parked, sucking up their owners’ money while waiting to be driven. For most people, it’s one of their most underutilized — but most expensive — assets.” Consumers are looking for new ways to capitalize on these assets.

Consumers Are Demanding New Options for Vehicle Ownership

While research by KPMG indicates that 32% of all consumers still prefer owning a vehicle versus using shared services, these trends are set to change, especially with younger generations.  More than half of millennials in particular report being open to sharing rides with others according to a study from Penn Schoen Berland research firm. And research firm Gartner Inc. estimates that by 2025, 20% of the vehicles in urban centers will be dedicated to shared use.

Additional research by IBM supports these findings.  According to IBM’s study “A New Relationship – People and Cars,” 42% of those surveyed would consider alternative ownership modes such as subscription pricing, while another 24% of respondents were very interested in fractional ownership of vehicles. Thirty-nine percent of consumers would consider a car -sharing model and 36% surveyed would choose the on-demand ride sharing option.

The Mobility Consumers of the Future

In a particularly interesting study by Arthur D. Little, Future of Mobility 2020, seven types of mobility types were identified: Greenovators, Family Cruisers, Silver Drivers, High-Frequency Commuters, Global Jet Setters, Sensation Seekers and Low-End Users.

• Greenovators: By 2020, they will make up almost 30% of the population. Due to their environmentally-conscious lifestyle, restraint in consumption and luxury are important and will be reflected in their demand for more affordable car options and basic mobility alternatives.
• Family Cruisers: This segment will organize their time around family leisure time, putting new demands on the household’s mobility requirements.
• Silver Drivers: This older generation likes to consume, has a wider range of interests, and are active in their leisure life. Their mobility requirements will gravitate towards vehicles that meet their comfort requirements rather than those packaged as respectable senior citizens’ sedans.
• High-Frequency Commuters: Constantly on the go, networking and meeting customers best describes this segment. They will organize themselves in carpools more spontaneously and at shorter notice and develop a high affinity towards car-sharing and short-term rental car offers.
• Global Jet Setters: Jetting between major cities of the world, as often as several times a week, requires that this segment has mobility options while travelling. They will choose transport that fulfills the functions of a personal workstation, privacy, and familiarity.
• Sensation Seekers: For this segment of consumers, having “fun while driving” will be an important element of their lifestyle – and they are willing to pay for it with mobility options that offer a fun experience and multimedia connectivity.
• Low-End Users: In the future, a significant segment of consumers will no longer be able to afford individual mobility to the extent that they now do. Rising fuel prices and increasing financial burdens are making mobility more expensive, driving their demand for efficient and inexpensive mobility options.

Opportunities for OEMs

Whatever the car-driver of tomorrow looks like, automotive manufacturers need to anticipate consumer demand and respond with the right products and services to meet changing demands. While car sharing seems like a threat for OEMs, the reality is that automakers can place themselves in an excellent position to capitalize on these opportunities. They can take car sharing into account during the car’s design. They can create leasing organizations and dealer networks who specialize in partial ownership and vehicle servicing. And they can reach new drivers and create brand loyalty.

Car sharing and the new age of mobility may reduce the number of cars on the road, but it will also increase mileage as cars are made available to a larger set of drives. While individual car sales may decrease, larger fleet sales and accelerated car replacement will offer new profitability options.

As we head into a future of car sharing and changing trends in mobility, consumers and OEMs alike can benefit. Drivers have more efficient and more affordable transportation options, and car sharing can open up numerous new ways for OEMs to reposition their brand and implement strategies to maximize the bottom line.

To learn more about targeted today’s digitally savvy and connected car consumer, download our Automotive and Dealership Marketing Solutions Guide.

90% of Car Shoppers Prefer a Dealership Where They Can Start the Buying Process Online

This is according to a new survey released by CDK Global. According to the report, “New research from CDK Global found that car shoppers are willing and likely to start the car buying process online. In a recent survey, CDK found that nearly 70% of shoppers expected to find the ability to configure a payment on a dealership website, and 83% indicated that online buying technology would help them narrow down their vehicle choice and determine what is affordable.”

Consumers today are increasingly choosing brands who offer the best customer experience. And when it comes to choosing a dealership, consumers prefer one that offers the ability to start the car buying process online. The CDK Global research study also found that among those same consumers, almost 60% felt more comfortable starting this process on a dealer’s website compared to third-party sites.

Other key findings from the survey include:

• 80% of shoppers say they would likely configure a payment online.
• 60% said they would configure a payment and provide contact information.
• Of those surveyed, more than half said they would configure a payment and start the credit process.

Consumers are more demanding and have more options today and dealerships must step up and cater to their customers and prospects with exceptional customer experiences. In addition to being able to start the buying process online, additional studies indicate the huge competitive advantage dealerships gain when meeting consumer expectations.

Autotrader

• 54% of consumers would buy from a dealership that offers their preferred experience, even if it didn’t have the lowest price.
• 72% would visit dealerships more often if the buying process was improved.

DrivingSales

• 56% of shoppers would buy more cars if the process was easier.
• Auto sales could rise about 25% if the retail experience improves.
• 99 of 100 automotive shoppers begin their purchase journey expecting it to be a “hassle” driven in large part by their experience, and that of friends/family, with retailers seeking to control the buying process to the retailer’s objectives.

Capgemini also released a report indicating a strong correlation between customer satisfaction and loyalty particularly for dealers. Only 10% of customers, not satisfied at all, say they would likely or very likely buy their next car from the same dealer. 87% of highly satisfied customers would purchase the same brand again and 85% would buy from the same dealer.

Clearly there is huge opportunity for dealership to increase revenue among car buyers by providing a seamless and personalized customer experience across channels.

First You Need To Know Who Your Customers Are

A single transaction has the potential to turn into a lifetime relationship. Improving the buying process and offering other amenities to streamline the auto purchase process are certainly good incentives to get new prospects into your door, but getting consumers to drive off the lot in a new vehicle requires knowing who they are.

Today’s household typically has more than one car parked in the driveway, teen drivers may be ready for a first vehicle, and family and friends are looking for recommendations. Rich opportunities exist to cultivate more revenue from a single purchase – if you show your customers that they matter.

To do so, you need the right data insights to get to know them. If your customer data is sitting in different databases such as a billing, customer service calls, service departments, and so forth, be sure to consolidate all this data into one CRM system or marketing database. As each of these customer details come together, you can quickly gain a better understanding of your customer segments.

Third-party data sets add additional value by rich insights to enhance your customer view. Any number of data elements can be appended to your records, such as age, income, occupation, birthdate, online IDs for digital targeting, and much more.Specialty automotive data sources can further drive the most relevant offers by knowing the make, model and year of the current vehicle they drive, whether or not they are in positive equity, and data about other vehicles in the household.

By understanding your customers on a more personal level, including what motivates and drives them to purchase, personalized offers and the most relevant messages can be delivered – creating a great customer experience by showing your customers that you care.

The Biggest Changes Need to Come in Four Main Areas

According to an Autotrader’s Car Buyer of the Future study conducted last year, there are 4 main areas consumers would like changed.

Financing Paperwork:

As further proved by CDK Global’s study, consumers want some serious improvements to the paperwork process. According to Autotrader’s research, “Nearly three fourths of consumers, 72%, want to complete the credit application and financing paperwork online. The key factors driving this desire are to save time at the dealership (reported by 72% of those who favor online paperwork) and to have less pressure while filling out paperwork (reported by 71 % of those who favor online paperwork).

A separate study conducted by Cox Automotive in 2014, showed that the time buyers spend in the F&I office averages at 61 minutes, more than two thirds the total amount of time they want to spend at the dealership (90 minutes). Moving paperwork online and enabling consumers to complete it on their own time would greatly enhance the in-dealership experience and cut down on the time they spend in the dealership on the day of purchase.”

Deal Structuring:

Consumers also indicated that they would like to see changes to the deal structure process. Over half of consumers (56%) want to start the negotiation process on their own terms and preferably online.

Test Drives:

The majority of consumers (88%) stated that they won’t purchase a vehicle before first test driving it – although they seek improvements to the current process. The majority reported that they do not like the current process, which typically involves being accompanied by a sales person. Instead, they seek a more convenient test drive process with less pressure, such as being able to test drive different vehicles across brands in a single place or taking a test drive with a product specialist instead of a sales person.

Service:

Improvements to the vehicle service process are also important to consumers, with 83% indicating the importance to access a network of local service centers that honor service agreements. Consumers seek convenience and off those who prefer local service networks, 76% would prefer to go to a service center close by, and 63% want to be able to service the vehicle anywhere.

Implementing strategies to make the consumer the center of the auto purchase process brings huge rewards to dealerships willing to make the change. With 66% of consumers saying that they would be much more likely to buy from a dealership that offers their preferred experience, the opportunity in new revenue simply can’t be ignored.

To learn more strategies on how to target and acquire new customers, download our Automotive  & Dealership Marketing Success Kit.

DataMentors Launches Innovative Mobile Solution for Automotive Marketers to Target In-Market Consumers As They Are Shopping on Dealer Lots

TAMPA, FL – July 27, 2016 – DataMentors, LLC, a leading provider of Data-as-a-Service (DaaS) and Right Time Marketing, announced the launch of Relevate Signals, a solution for automotive dealerships to target actual, in-market consumers. Unlike traditional mobile marketing, which only targets the device, Relevate Signals is able to target the actual consumer during the crucial 48-72 hour period when they’re making a car buying decision.

“Relevate Signals is a revolutionary new product, completely different from traditional mobile marketing or lead products in the marketplace today,” said Anders Ekman, CEO of DataMentors. “Marketers today target consumers by market segments and devices but Signals leads represent real people who are actively shopping at a dealer lot. Our innovative solution matches mobile devices to actual people complete with demographics, contact information, and VIN data.”

Relevate Signals is built from DataMentors’ family of Relevate data solutions, including Relevate Auto, the largest and most accurate VIN data set in the automotive industry. Relevate Auto contains rigorously verified transactional data on over 225 million consumers and nearly 200 million VINS with linkage at the household and garage level. The database contains full consumer profiles, demographics and contact information, and is fully compliant with all consumer privacy and auto privacy regulations including DPPA and Shelby Amendment. The file is built from over 6 billion records of data each month with daily updates.

“Mobile has completely transformed the car buying journey and we are extremely excited to provide dealerships with a unique mobile solution that will dramatically boost their ROI and conversions,” said Michelle Taves, SVP of Data & Product Management. “With Relevate Signals, dealerships can finally gain insight into exactly which of their customers and prospects are visiting competing dealerships and which dealerships consumers are using for service.”

Specific use cases and results include:

• Dealer Visit Signal – Conquest: A person visiting a competing dealership within a specified radius of a dealership. Relevate Signals can identify over 3 million people annually visiting a competitor brand dealership.
• Dealer Visit Signal – Conquest: A person visiting a competing dealership within a specified radius of a dealership. Relevate Signals can identify over 3 million people annually visiting a competitor brand dealership.
• Service Signal: A person visiting a dealership for service within a specified radius of a dealership. Signals leads represent over 1.5 million people annually visiting a dealership for service. This indicates an opportunity to create service segments by dealership brand.
• Insurance Signal: A person visiting a dealership which indicates a possible auto insurance change. Relevate Signals can identify over 4 million people annually visiting a dealership in search of a new car.

Relevate Signals tracks over 20,000 dealerships across the United States with access to all major dealerships and across brands.  The database includes both independent and OEM dealerships.

For more information contact kidol@datamentors.com or call 1-800-523-7346.

About DataMentors 
DataMentors is the industry’s leading provider of Data-as-a-Service (DaaS) and Right Time Marketing. Our comprehensive data solutions combine an integrated suite of data products, marketing technologies, and analytics to deliver: The Right Person, at the Right Moment, through the Right Channel. This makes us the Right Answer for clients seeking to grow, acquire, and retain their most profitable customers with cross-channel marketing strategies. We help companies leverage the modern data ecosystem and real-time data analytics to create a customized “always on” dataset of consumers where purchase is imminent. Recognized by Gartner for data quality for the past nine years, we provide the most powerful marketing data and technology services in the industry.

How to Turn Millennial Car Shoppers into Car Buyers for Your Dealership

More and more millennials are in the market for cars, and dealerships must take notice and make millennial outreach a priority.  The generation of Americans born between 1980 and 1995 are leading a change in purchase behaviors and trends. Growing up in a digitally-connected world, millennials are savvy shoppers who comparison shop on mobile, head to social media for advice, and expect an informative and interactive experience with a brand’s website.

However, a survey by Borrell Associates and Netsertive showed that only 20% of dealerships said their co-op programs offered marketing support for reaching millennials and one in four dealerships haven’t configured their primary lead-generation tool (their own websites) to “speak” to millennials on their own terms (mobile media).

Estimates indicate that this segment now accounts for 25% of the new-vehicle market and this number is growing. According to research by TrueCar, Millennials purchased 4.24 million vehicles last year, generating $135 billion in revenue. If your dealership plans to engage this demographic, it’s time to start adjusting the way you speak to them.

Mobile First

Millennials are the first mobile generation and 87% have their phones by their side at every second of the day. According to a Placed, Inc. study, millennial shoppers are more likely to use mobile devices for research — and conduct research on multiple device types — than older generations. 65% use a smartphone to research prior to visiting a dealership, compared with 53% of those 35 and older. 85% of Millennials use the Internet for vehicle shopping, and they use more digital sources of information than shoppers 35 and older.

Mobile can’t be an afterthought, but rather must be at the forefront of every marketing strategy. Here are a few things to consider:

• Mobile usage is a significant part of the purchase journey for all consumers, millennials included.  90% of people report moving between devices, or “multi-screening”, to accomplish a task. Emails, landing pages, and website must all be mobile-optimized. If a website takes longer than 3 seconds to load, 40% of visitors will head elsewhere.  By taking the time to create an enjoyable and consistent mobile experience, this generation will stick around longer to engage and interact with your dealership.

• Social media is one of the primary activities that millennials engage in when on their mobile devices. However, simply having a presence on the latest social networks isn’t going to cut it. Socially driven engagement strategies play a big role in securing millennial loyalty. According to a study by CrowdTwist, 43.5% of millennials said they use social media to spread the word about products or services, which in turn influences their social peers. Social media marketing is evolving into social mobile marketing.

To succeed, dealerships must have an active social presence, both engaging in conversations and creating content that millennials will share with their networks. Millennial shoppers are also particularly willing and enjoy sharing content with their friends and social networks through mobile. Millennials will be particularly inclined to share engaging or visual types of content – pictures, videos, contests, and anything that shows your dealership’s personal side and trust-worthiness.

Millennials Are More Brand Loyal Than You May Think

Despite what we have heard, millennials tend to very brand loyal. In fact, a study byAdroit Digital indicate that this generation believe they’re as — if not more — brand loyal than their parents. However, brands will have to work harder at earning this loyalty by providing exceptional and genuine experiences.

This loyalty can mean long-term revenue for your dealership in both repeat purchases and as service revenue. Ongoing service and maintenance is an important consideration for millennials during the car buying process. According to research byGFK Service Intender, 29 million millennials have had a qualifying vehicle repair in past 12 months.  Millennials currently represent 25% of all consumers getting vehicle repair or service. Although millennials are more likely to use independents and chains, they are open to considering dealers, and 70% say they are willing to pay more for quality vehicle maintenance/service.

Also notable is that a study by Elite Daily found that only 1% of millennials say they are influenced in any way by advertising. What does work is authenticity and genuine connections. Whether the encounter occurs in the store, online, or through another channel, millennials are more apt to be loyal to those dealerships that personalize interactions, and take the extra time to add the personal touch to every experience.

What constitutes an authentic, personalized experience is subjective, but millennials are particularly interested in social connections. Just as social interactions are a huge part of the mobile experience, social media also drives brand loyalty. Elite Daily found that 62 percent of Millennials are more loyal to brands that engage directly with customers on social media. Similarly, the CrowdTwist study found that nearly 50 percent of respondents wanted socially conscious benefits like charitable giving or one-of-a-kind rewards and experiences as a result of brand interactions.

Additional Insights into Connecting with Millennial Car Shoppers

J.D. Power recently released the “Millennials Insight Report: The Customer Experience Perspective.” According to the report’s findings, the following points reveal additional ways to establish connections with this generation:

• Customer Service is Critical to Millennial Loyalty: Millennials have the lowest tolerance for errors and delays of any other generation studied—they simply expect things to work. However, when there is a problem and it is resolved fully, Millennials are substantially more likely than Boomers to reuse a product or service.
• Value for Money Is King: The secret to millennial satisfaction? It’s value for money. Unlike other generations that tend to buy things for status, image or brand loyalty, Millennials are most likely to make a purchase decision based on value for money—across virtually every product category.
• Privacy—What’s in it for Me?: Millennials are less concerned than other generations about privacy.  They accept the erosion of privacy as inevitable and are generally willing to have their information collected if it comes with benefits in the form of targeted offers and personalized services.

More so than any other generation, millennials have disrupted traditional means of retailing. Dealerships must shift focus to embrace and implement strategies to which they are most apt to respond – and take the leap forward into turning millennial car shoppers into car buyers for your dealership.

To learn how to target today’s auto consumers with data-driven marketing strategies, download this free Automotive Marketing Guide for dealerships.

Why Dealerships Should be Using Facebook to Target Auto Shoppers

Shopping for cars on Facebook happens more often that you may realize. Did you know that nearly a quarter of prospective car buyers use Facebook for researching their next car purchase? According to Turning Social Feeds Into Business Leads, “Social media is stimulating extensive auto-related conversations and content that creates major opportunities to identify likely buyers and engage them based on their preferences and purchase intent.”

According to the research:

• 38% of consumers say they will consult social media in making their next car purchase
• 23% of car buyers say they use social media to communicate their purchase experience
• 84% of automotive shoppers are on Facebook, and 24% of them have used Facebook as a resource for making their vehicle purchases
• 40% of new car purchases over the next 10 years will be made by millennials
• 94% of millennial car buyers gather information online

Today’s auto shopping crosses channels and social has quickly evolved into a channel of choice for research and ecommerce. Businesses have used social for some time now to target and convert prospects through personalized advertisements, to identify in-market purchase signals, for content marketing, and to engage in 1:1 conversations. Sites like Facebook offer many options for dealerships to reach out to social car shoppers.

What Are Auto Shoppers Looking for on Your Facebook Page?

A study by Dealer.com revealed that, “Twenty-eight percent of the buying population feels that social media greatly influences the narrowing of their brand or model consideration. Twenty-seven percent said social media greatly influences their identification of a dealership from which to purchase.”

The study also found that, “Approximately two-thirds of those who use Facebook in the automotive purchase process indicated that a friend’s favorable post about a brand or vehicle positively impacts their own opinion of that brand or vehicle, and 69 percent indicated that a friend’s favorable post about a dealership positively impacts their opinion of the dealership.”

Facebook reviews are obviously important to auto shoppers but what else do consumers particularly seek out on a dealership’s page? A survey from Digital Air Strike asked what consumers wanted most on a dealership Facebook page. They found that when visiting dealer Facebook sites, car buyers have clear ideas about what they want to see. The top five items cited as valuable on Facebook pages included, in order of priority are:

• Dealership service promotions such as coupons or discounts
• Pictures of cars
• Sales promotions
• Reviews from consumers about the dealership
• Articles about cars and/or car care tips

Facebook is Ideal for Dealership Video Marketing

Video sells cars and Facebook is the perfect forum to showcase video content. According to one Google study, more than half of all car shoppers watch at least a half-hour of video during the buying process and one in four watches an hour or more. Data from AutoTrader.com also shows that shoppers are 20% more likely to click on a specific vehicle listing if it has video.

Facebook video marketing can be highly effective for dealerships, especially with video ads being one of the most effective means of advertising on the platform. Dealerships can really make an impact with Facebook video marketing by utilizing Facebook’s audience data and audience automotive data from third party vendors to identify and target in-market car shoppers within their geographical area.

The most effective forms of Facebook video marketing for dealerships include customer testimonials, inventory walk around videos and “Get to Know Us” clips.  Additionally, you should have an Inventory Videos page available from your Facebook Menu, making it easy for anyone visiting your Facebook Page to quickly see videos of the inventory you have available.

Reach Millennial Auto Shoppers on Facebook

According to a study from the CMO Council, “Millennials have finally fought their way to a financial state that justifies auto ownership, and analysts believe that they will make up 40% of the next decade’s auto purchases.” And when millennials go car shopping, they are asking their friends for advice on Facebook. They are far more likely to turn to social media for advice than head into a dealership.

More than 9 out of 10 Millennials now turn to the Internet when shopping for a new car or truck, according to research conducted on behalf of eBay Motors. Another study found that this is true for many buyers in the car buying process. More than half are strongly influenced by what their friends say on Facebook.

Because Facebook reviews from social peers are such a critical factor in the millennial purchase process, dealerships need to be extra diligent in encouraging their customers to leave reviews. Customers love to tell others about their positive experiences. An example of a great app to encourage them to do so is Snap21. With Snap 21, a dealer can take photos of customers who have just bought a new car, the photo is then branded with the dealership’s information to be sent to the happy new customer, and from there the customer can do the rest! Up to 1/3 will share their branded photo on Facebook and with the average Facebook user having 350 friends, this can add up to a lot of great testimonials for your dealership.

Target Consumers with Facebook Ads

A study by comScore found that Facebook ads increase vehicle consideration and also decreases consideration of other competitors. According to the study, actions after seeing Facebook ads include:

• 37% increase in dealership visits
• 17% increase to dealership and automotive brand sites
• 11% increase in brand search activity
• 14% decrease in competitive model searches
• 3% decrease in competitive band searches

Facebook has become much more sophisticated in the way consumers can be targeted with ads. In the “Automotive” behavioral category alone, consumers can be targeted by the following areas:

• New Vehicle Buyers (“near market” thinking about buying in the next year)
• New Vehicle Shoppers (“in market” looking to within next 180 days)
• Owners
• Purchase Type
• Used Vehicle Buyers (in the market to buy now)
• Motorcycle

Other popular segments include:

• Vehicle Type (car, SUV, truck, van)
• Make
• Model
• Year
• Financial (i.e. median home value and credit score range)
• Segments such as vehicle history data and garage data

Facebook is a highly effective platform to reach auto shoppers and encourage them to visit your dealership. Remember, social media is about being sociable and your followers, customers, and prospects can become your most powerful advocates. Utilizing Facebook can generate more leads and ultimately more sales opportunities for your dealership. It’s time to take a fresh look at your Facebook strategies and to even begin thinking of it as your dealership’s second website.

To learn how to target auto consumers through digital channels with data-driven marketing strategies, download this free Data-Driven Marketing guide for dealerships.

Three Ways Mobile Technology is Changing the Auto Industry

Each day consumers spend a little more than 3 hours on their smartphones – and that’s not even making calls. The innovation of mobile technology has forever changed the course of history, and generations moving forward won’t even know what life is like without a mobile device such as a cellphone or tablet. Mobile tech’s influence on the economy and nearly every industry is vast, and automotive retail is no exception.

Here are three ways automotive mobile technology has changed car sales- and how dealerships can get ahead of the next mobile tech trends.

Dealership Tech

According to Frost & Sullivan’s “Executive Outlook on the Future of Automotive Retail”, 20-30% of the space in dealerships will be allocated to technology in the next few years. High end, luxury brands like Audi and Mercedes Benz are leading the marketplace as they finalize plans for interactive vehicle show rooms complete with virtual reality headsets for shoppers to experience the vehicles based on their personal settings. While your local car lot may not be rolling out the VR headsets just yet, if they’re looking to stay up to speed in a competitive marketplace there should be at least a few tech upgrades in the near future.

Tablets for sales use is a popular method of improving dealership experience and sales associate efficiency. Instead of walking customers from vehicle to vehicle across the lost, salespeople can quickly scroll through available inventory with the customer as they work through the sales process. They also aid in harnessing valuable customer information for follow up contact regardless if the shopper makes a purchase.

Dealerships looking to implement mobile tech for their sales team need to take steps to ensure an easy transition. Make sure wireless networks are equipped with enough bandwidth to support multiple devices, as the tech is only as good as its ability to be used. Research different model options to decide what is the best, and most cost effective, device for your business’ needs. One benefit to mobile tech is that it will reduce the need for desktop devices, which can provide a cost-savings in the long run.

Mobile Location Data

In the US alone there are 207 million smart phone users and 156 million tablet users. This means a LOT of data being generated in a variety of high value categories for automotive marketers. The ability to deploy targeted campaigns at the very moments that shoppers are most apt to engage is an unprecedented opportunity that cellphones and tablets have brought to the industry.

According to recent research by Cars.com, car shoppers using a phone or tablet on the lot are 73% more likely to go to a different dealership while car shopping compared to those shoppers who aren’t using a mobile device. Comparison shopping is a staple of the modern auto consumer’s purchase journey, and now thanks to geo-location mobile targeting auto marketers can even deploy perfectly tailored messaging to consumers while they’re on the lot, taking Right Time Marketing to an entirely new level. Not only can the messages be sent based on a consumer’s proximity to certain dealerships, or the fact that they are currently at a dealer or competitor’s lot, the campaigns can be hyper segmented based on actual consumer demographic and behavioral profiles.

Consumer Experience:

According to Nielsen, 63% of consumers expect in-car connectivity so that their mobile use is never interrupted, even while in their vehicle. This trend mirrors customer expectations for seamless brand experiences via all channels. Dealerships who provide access to helpful mobile apps and optimize websites and service portals will see tremendous gains in customer loyalty and retention, especially in their service centers.

Mobile integrations can be as complex as designing mobile applications through which customers can schedule vehicle maintenance or check on a current repair status or as simple as implementing an automatic texting platform that reminds customers when they’re due for routine maintenance or special offers. The level of integration may vary, but in order to stay relevant it’s imperative that dealers start now.

Download our Automotive & Dealership Marketing Strategy Guide to learn how to use data, technology, and analytics to target and acquire today’s multi-channel car consumer.

Auto Shoppers Are In Market Longer Than Ever – 5 Ways to Target and Convert New Customers

Today’s auto consumers are in-market longer than ever, with the majority of shoppers in market for 2 months or longer. These longer purchase journeys translate into more opportunities for auto brands. 80% of consumers start their search with a different manufacturer in mind than the manufacturer brand they ultimately end up purchasing.  With so many car shoppers changing their mind, dealerships have a huge opportunity to target and convert today’s auto consumers.

Graphic Credit: PCG Digital Marketing

One: Invest in Digital Channels

When researching a new vehicle, 7 of the top 10 sources shoppers turn to are digital channels. These include:

• 83% – Dealership Sites
• 82% – OEM Sites
• 76% – Search Engines
• 70% – Vehicle Evaluation Sites
• 64% – Blogs/Forums
• 61% – Professional Review sites

Graphic Credit: PCG Digital Marketing

Offline channels such as visiting a dealership, getting referrals from family and friends, direct mail, and other forms of offline market certainly have their place in the purchase decision. However with digital channels dominating the scene, dealerships would do well to invest more heavily in online marketing strategies.

Two: Continually Optimize Your Dealership’s Website

Your dealership website is clearly one of the top go-to’s for consumers shopping for a vehicle. Consumers expect an interactive and user-friendly when they come to your website, so it’s critical that you are continually keeping up with best practices.

Is your website mobile-optimized? If not, according to Gartner, 43% of mobile customers are unlikely to return to a mobile site that loads slowly and 74% of mobile site visitors wait up to 5 seconds, but 60% wait less than 3 seconds and never return. Do you clearly showcase your inventory with easy-to-use search capabilities? Can visitors schedule appointments, save coupons to their digital wallets, or chat online with a customer service representative? Is your location, directions and contact information visible throughout the site?

New website features and technology are quickly evolving so what may have worked last year for your website will most likely need an update.   Pay attention to new tools and features that consumers are using to continually provide the best user experience possible.

Three: Auto Shoppers Love Video so Start Producing

This is the year of video – auto consumers love video and consider it one of the most engaging ad formats.

According to research by Google and Polk:

• 52% of car shoppers find online video ads the most useful ads in their shopping process
• 40% of car shoppers decided which company to purchase from based on an online video ad
• 30% of car shoppers were prompted to start shopping by seeing an online ad

Posting videos can boost engagement and interest in dealerships by displaying inventory and information where most consumers research first, making your dealership the go-to place for interested car shoppers. And when using videos in social media advertisements you can use a data provider with digitally addressable data for highly targeted campaigns. Here are a few ideas to help you get started:

• Film a weekly series showcasing the best new models on the lot
• Post a walk through video of most popular models
• Answer the most common questions your service center receives (ex. What’s the difference in tire rotation and balancing? What kind of oil change do I need?)
• Showcase new features such as navigation, sound systems, sunroofs, etc.
• Employee profiles “Get to know our team”

Four: Get Found through Search with SEO Best Practices

80% of new car shoppers start with a search engine. The single most important way for your car dealer website to increase traffic is to optimize it for search engines. The more effective a dealer’s SEO is, the better their online visibility and, ultimately, their sales. Proper car dealer SEO drives more qualified car buyers to your dealership’s website, resulting in higher conversion ratios and greater profits. Solid website design, quality content, keyword research, and a meaningful social media presence are all important factors in search engine optimization.

Check out these great statistics on how SEO strategies can lead to more vehicle sales:

• 8% of consumers who search for a specific type of business via mobile call or visit within 24 hours (Google’s Mobile Movement Study)
• 75% of users never go past the first page of search results (HubSpot)
• 79% of search engine users say they always/frequently click on the natural search results over paid

Five: Append Your Data

As new prospects begin engaging with you through your website, calling your dealership, or scheduling appointments, you are hopefully collecting all this data so you can follow-up and encourage a sale. While your first party data is powerful, you can better understand these prospects with additional third-party data appends.

Perhaps you have collected information such as a name and phone number and possibly an email address. This is enough to at least reach out with campaigns to attempt to schedule an appointment but how will you know what type of messaging these valuable prospects will be most likely to respond to?

Every lead record should be appended with additional third-party data sources to maximize its conversion potential. Add a variety of data elements such as gender, occupation, estimated income, credit card, lifestyle and interests, and presence of children. A variety of auto & VIN marketing data can also be appended such as make, model, year, engine type, auto equity data, Kelley Blue Book and Black Book data, and other vehicles in the household. You worked hard to get these leads so be make sure you work just as diligently to convert them into the final sale.

Today’s auto shoppers are in-market longer, utilizing any number of channels to help them make decisions. They may begin with one manufacturer in mind, but the majority of them will end up changing their mind so there is plenty of opportunity to get your marketing strategies in order to target and convert these potentially lucrative consumers.

Download the Automotive Marketing Data Success Kit to learn more data-driven tips and strategies to target and win with today’s multi-channel automobile shopper.

Why Auto Dealers Must Embrace Digital Marketing

You may have heard it time and again, but if you aren’t using digital in your marketing plans, you are losing out. Simply put, traditional marketing no longer works like it used to for auto dealerships. According to research by DealerSocket, traditional advertising such as radio spots, TV ads, and billboards bring in an average total profit of $1,702 per vehicle, while digital marketing brings in $2,514 per sale. Consumers research and shop across digital channels and dealers must go digital to target and acquire new auto customers.

Digital marketing includes channels such as websites, email, social media, and mobile. Not only does digital marketing bring in more revenue per car sold, it also costs much less. DealerSocket found that it costs $150 of digital marketing to sell one car compared to $1,581 in traditional media. This translates to paying 10 times more than necessary if you use traditional strategies.

This is not to say that traditional media should be left behind. It certainly has its place, but dealerships must move away from solely using traditional advertising channels and begin to implement more digital targeting options. As consumers become more digitally savvy, they expect to be catered to through digital channels. By not targeting these consumers in the ways they expect to be reached, dealerships are losing out on an entire target audience of online car consumers.

According to a study by SiriusDecisions, 67% of the buyer’s journey is now completed digitally.  Consumers use digital channels to research and to decide which dealership to ultimately visit. During this important phase of research, you need to ensure that your dealership is one of the options being considered.

Here are 7 digital strategies to be considered at the very beginning of the search journey all the way through to the final purchase.

1. Search
   Research by G/O Digital revealed that 30% of consumers immediately go to search engines when starting the car-buying process. A dealership’s online presence is a huge factor in determining success at this initial point in the purchase journey. Strong Search Engine Optimization (SEO) strategies will ensure that car-buyers can find your dealership in search results. A comprehensive SEO strategy should include your website, keyword optimization, pay per click campaigns, link building, online reputation management and quality content.
    
2. Online Reviews
   According to a study by Digital Air Strike, a huge percentage of car buyers turn to online review sites before making a purchase. In fact, 70% of car buyers say that online dealership reviews influence where they choose to go. Additionally, 24% consider review sites to be the “most helpful” factor when it comes to making purchase decisions. Be sure to monitor your online reviews, quickly and constructively respond to negative reviews, and continuously encourage your customers to leave reviews about their purchase experience.
    
3. Mobile
   It’s the age of “Mobilegeddon” and your website, content, and marketing messages must all be optimized for mobile. When a consumer visits a page that is not mobile-friendly, they will quickly leave in search of a competitor who can deliver an optimized mobile experience. Research by cars.com shows that 63% of car shoppers examine merchandise online via mobile while physically shopping at an auto lot. “Of the mobile content sought out by these shoppers, 51% pertains to price, payments and offers, and 29% is inventory information. These numbers indicate that large numbers of customers are relying on mobile not just for preliminary research, but also as they make final decisions about what to purchase and where.” Based on the increasing use of mobile throughout the purchase journey, from initial research to final purchase, mobile has never been more important for car dealerships.
   
   
4. Email
   When done properly, email marketing is a highly effective channel for dealerships. Personalization is key to creating emails that convert. Research by G/O Digital shows that 35% of car buyers want emails tailored based on their interests. Additionally, 28% said they would click on an email from a dealership if it included information about a style, color or model they’re interested in. And if consumers are sent an impersonal email (i.e. not specific to their interests or location), 23% are less likely to visit that dealer’s website and 32% feel irritated or resentful toward that dealership.  With the sophistication of today’s data sets, emails can be targeted by a huge range of selects, such as exact make and model of current vehicle being driven, blackbook value of car they currently drive, people most likely “in the market” for a new car, and other demographic selections such as income, ethnicity, hobbies, children and more.
    
5. Social Media
   According to the CMO council, 1 in 4 car buyers talks about buying a new car on social media and 38% say they will consult social sites before they purchase a vehicle. Facebook is also hugely popular with social automotive consumers – 84% of automotive shoppers are on Facebook, and 24% of them have used Facebook as a resource for making their vehicle purchases. Social media is a hugely important way for the automotive industry to connect with new car buyers. Not only is social media full of real-time purchase indicators, but dealers can use social to build brand loyalty, improve the customer experience, and influence purchase decisions. When using social channels, be sure to share plenty of engaging content on different social channels, post pictures of inventory, engage in conversations on your social pages, monitor social reviews, and have your contact information easily accessible (location, hours, email, and phone).
   
   
6. Social Media Advertising
   In addition to having a social presence and interacting on social platforms, consumers can be targeted with extreme precision through social advertising. If just beginning with paid advertising on social, a great place to begin is on Facebook. Consumers can be targeted by a range of demographics such as age, income, geographic location, gender, and more. Specialty auto data can also be used for targeting consumers on Facebook, such as information on Vehicle Type (car, SUV, truck, van), Make, Model, Year, Financial (i.e. median home value and credit score range), and other segments including vehicle history data and garage data.
    
7. Online Video
   Online video marketing is becoming a huge trend this year. Posting videos can boost engagement and interest in dealerships by displaying inventory and information where most consumers research first, making your dealership the go-to place for interested car shoppers. According to a study byGoogle, 64% of people who used YouTube while buying a car were influenced by it- more than TV, newspapers, or magazines and auto review videos on YouTube have been watched more than 3M hours in the first 9 months of 2015, of which more than 1.2M were on mobile, more than 2X as many as last year. When creating videos, keep them short. Videos between 30 seconds and 1 minute are shared 18% more often than videos longer than 1 minute. The top 3 types of content that shoppers are interested in are test drives, features and options, and walk throughs.

Overall, digital and traditional marketing should complement each other. A good marketing strategy should blend different channels and elements based on each dealership’s unique audience.

To learn more about targeting and winning with today’s multi-channel automobile shopper, download the Automotive Marketing Data Success Kit.

As more and more vehicles tout a range of exciting features, better safety, connectivity and the next best thing in car design, manufacturers and dealers will need to compete on a different sphere – the customer experience. The customer experience is increasingly becoming the most important factor as consumers choose between brands and dealerships.

At the heart of providing exceptional customer experiences is of course the customer. Consumers want to be understood, their needs and preferences considered, and above all, feel valued.

However, a recent Customer Satisfaction Pulse Study conducted by BARE International indicated this is not the case in more than 40% of vehicle sales.  The research found that dealership personnel didn’t gather information such as what the buyer is looking for, how the vehicle will be used and how much a buyer is comfortable spending.

To gain insights from the customer’s perspective, a mystery visit study evaluated three major automotive brands (Jeep, Toyota and Ford) across 10 countries. The study investigated five relevant touch-points of the customer journey:

• Pre-visit telephone call
• Arrival at the dealership
• Sales advisor interaction
• Sales closing
• General impressions and recommendations

Key findings from the study include:

Almost 4 out of 10 calls completed to the dealerships were not answered as expected.

Contact information of potential buyers was collected only 55% of the time.

Knowing more about the current vehicle and usage is important to understanding customer needs but consumers were only asked about their current vehicle 65% of the time.

Understanding price tolerance is key to base sales and to upselling however consumers were asked this only 59% of the time.

The Power of Internal Data

Data is one of the most important assets in the marketing mix and can make the difference between selling a new vehicle or driving a prospective buyer to a competitive lot. According to a report by Forbes Insights and Turn, Data Driven and Digitally Savvy: The Rise of the New Marketing Organization, “Organizations that are ‘leaders’ in data-driven marketing report far higher levels of customer engagement and market growth than their ‘laggard’ counterparts. In fact, leaders are three times more likely than laggards to say they have achieved competitive advantage in customer engagement/loyalty (74% vs. 24%) and almost three times more likely to have increased revenues (55% vs. 20%).”

According to a report by eMarketer, a January 2015 study by Forrester Consulting, commissioned by Adroit Digital, found that 87% of US digital marketers and customer insights professionals cited internal data or 1st party data as the most important data source, especially when combined with 3rd party data enhancement. Additionally, 1stparty data sources would be most important to respondents’ strategy moving forward, with transaction history (87%), customer information (80%) and behavioral data (74%) cited as the most important data types.

In the automotive industry, this means dealerships must be extra diligent to ensure important customer and prospect data is being captured. For example, seemingly simple details such as contact information and current vehicle and usage can provide important insights into who the consumer is and what will get them to buy. While additional 1st party data sets must also be calibrated into the mix, the initial data collection process when engaging with a new prospect in crucial.

Adding Third Party Data Enhancement

You have taken the time to collect some basic contact information – name, email address, phone number and maybe information on the current vehicle the prospect drives.  So now what? The beauty is that this is all you need to start building a comprehensive prospect profile – in real time. With only basic information such as a name, email address, or phone number, a third party data provider can append missing data elements in real time. These elements include age, occupation, marital status, estimated income, lifestyle and interests, home information, and more.  Specialty auto data can also be added such as exact make and model of the current vehicle being driven, other cars in the household or Blackbook value of the car they currently drive.

By tweaking your processes from the moment a prospective car buyer first walks into the showroom, the right data can be captured to create the perfect offer leading to a new sale.  Throwing out the proverbial welcome mat, asking your prospects questions and getting the basics such as a name, email address and other information not only shows consumers you value them and their business, but these basic data elements can provide the foundation to ramp up your customer acquisition strategies to new levels.

Download the Automotive Marketing Data Success Kit to learn more data-driven tips and strategies to target and win with today’s multi-channel automobile shopper. 

What Drives the Automotive Aftermarket’s Online Shoppers

E-commerce continues to be on a rapid path of growth in the automotive aftermarket industry, especially as the average age of automobiles climbs beyond its current record of 11.4 years. According to new research by UPS and comScore, 56% of online automotive parts and accessories shoppers are making their purchases online – an 8% increase over the previous year.  Automotive aftermarket e-tail revenue is projected to double within three years.

Other key findings from the study indicate:

• Online comparison shopping increased 12% since 2014, with 95% of online automotive aftermarket consumers now comparing products and prices before they buy.
• A majority (63%) use online coupons and 52% are more likely to shop with a retailer if they receive email offers with discounts.
• Online shoppers buying auto parts use ship-to-store 55% of the time, which is a 14% increase from the prior year, as part of a growing trend toward increased convenience and no-cost ship-to-store pricing.
• An additional 10% of consumers, 86%, strongly prefer to return items to a store compared to the prior year.
• Replacement parts shoppers primarily look for the best price and availability, while upgrade customers are researching product details and reviews.
• The top reasons that consumers shop at one retailer over another are price (52%), product availability (45%) and selection (37%).
• 63% like to receive email or text delivery alerts with the approximate time of delivery, up from 47% in 2014.
• Consumers who are shopping for auto parts online are increasingly mobile, researching products, reviews and pricing, with 43% using mobile devices to compare prices, 43% using mobile to look up product reviews, and 41% using mobile to read product details.

The study also revealed some interesting comparisons among shopper segments.

Men vs. Women

According to the research, “Men are more patient than women when it comes to receiving their online orders, willing to wait almost twice as long for their deliveries. A large number of men want packages delivered to locations other than their homes, whereas the majority of women prefer to have packages delivered to their homes. Women are significantly heavier users of social media versus men and value free shipping options more than men. When it comes to selecting retailers, women are heavily influenced by price, whereas men are most concerned with fitment data. On average, men are installing more parts themselves than women.”

(Image Source: UPS – What’s Driving the Automotive Parts Online Shopper Study)

Millennials vs. Older Age Groups

“Defined as individuals ages 18-34, millennials are far more likely to use mobile devices and social media versus older age groups. They tend to select faster shipping options, however, they are willing to wait twice as long for deliveries versus older age groups. Millennials also want packages delivered to locations other than their homes, whereas older age groups prefer to have packages delivered to their homes. Older age groups are much more concerned with price when selecting retailers versus millennials. Both groups of shoppers highly value free shipping.

(Image Source: UPS – What’s Driving the Automotive Parts Online Shopper Study)

DIY and DIFM Segments

Another study, the Auto Care Association’s E-tailing in the Automotive Aftermarket, surveyed both technicians and end consumers (as compared to the UPS study which focused solely on end-use consumers). The study looked at parts DIY (Do-it-Yourself) and DIFM (Do-it-For-Me) segments are purchasing online. DIYers are purchasing parts such as filters, glass and lighting products, and electrical parts that are generally less technical and easier to install. DIFM purchases include more complex parts such as computers and emissions components to exhaust systems.

DIFM purchasers are more likely to be Millennials, purchasing parts for upgrades. These consumers are more tech-savvy than replacement customers, and because these items tend to be heavier, DIFM buyers will gravitate towards retailers who offer a range of shipping options to meet pricing and timing needs.  They also tend to use social media for recommendations and to share their experiences, so be sure to offer a strong social media presence and a seamless purchase experience.

DIY customers are also more than 5 times as likely as DIFM customers (11% to 2% respectively) to perform their own maintenance or have maintenance performed on their vehicle at least once a month (Auto Care study), while nearly 70% of DIFM consumers report having maintenance done to their vehicle every two-to-six months.

Know Your Prospect Audience

With a basic understanding of what these segments look like, you can then create rich customer and prospect profiles and target them with messaging to which they will be most apt to respond. To pinpoint your ideal target audience, your internal data sets should be augmented with third party demographics and auto specialty data.  For example, target millennials based on a certain income and who exhibit a tendency to engage in DIY projects.  Add additional selects such as the make, model, and year of the vehicle they drive and data such as engine size, fuel type, drive train, engine block, and engine cylinders. Or target women with offers for free shipping with specific data pertaining to the vehicle type and year they drive.

Your 1st party data is a great starting point, but by adding a wealth of additional demographic and auto selects, you can create messaging that will really cut through the clutter and to which consumers will take notice.

Today’s consumers are rewarding their business to those aftermarket retailers who offer flexibility, con
venient shipping options, and a seamless online experience. As this market continues to grow, implement strategies now to reach these consumers with the right messages across channels.

To learn more about targeting and winning with today’s multi-channel automobile shopper, download the Automotive Marketing Data Success Kit.