Analyst Note June 2013
2
1 J.D. Power & Associates does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Reproduction of any material contained in this publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power & Associates. Any material quoted from this publication must be attributed to J.D. Power & Associates. © 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved. Canada June 18, 2013 Behind the Numbers Website Visitors Want Tools, Not Toys [email protected] (416) 507-3247 AFTER VISITING THE OEM WEBSITE, A TOP BOX FUNCTIONALITY RATING INCREASES LIKELIHOOD TO TEST DRIVE MORE OFTEN Source: J.D. Power & Associates 2013 Manufacturer Website Evaluation Study SM 72% 66% 62 64 66 68 70 72 74 % incidence Likelihood to Test Drive Increased Top box rating (10 out of 10) for functionality Top box rating (10 out of 10) for appearance New-vehicle shoppers want OEM websites that enable them to accomplish their goal of researching a vehicle. When new-vehicle shoppers are asked what is best about the site and what needs improvement, this ability is cited more frequently than the OEM’s brand image, a particular vehicle model, or the aesthetics of the website. For shoppers to accomplish their goal, OEM websites need to be functional as a tool and not just a pillar of graphic design or a lifestyle vignette. Nearly three-quarters (71%) of the open-ended survey responses in the 2013 Manufacturer Website Evaluation Study SM relate to using the site as a research tool. By far, new-vehicle shoppers using manufacturer websites focus on the ease with which they can use the site. In quantifying this concept, shoppers were asked to rate the website’s ability to help them perform the following six tasks (on a 1-10 scale, with 1 being “Unacceptable” and 10 being “Outstanding”): Determine the estimated monthly payment Find a dealer Compare a vehicle against another vehicle Research all of the vehicle information important to you Equip the vehicle and determine price Browse the pictures, videos, and other images of a vehicle Among shoppers who rate the site 10 for its ability to help them perform these tasks, 72% indicate an increase in their likelihood to test drive a vehicle from that manufacturer. In contrast, among those who rate the site 10 for appearance, only 66% indicate an increase in their likelihood to test drive a vehicle from that OEM. So, how can manufacturers increase their vehicle sales by leveraging their website? The answer is by developing and enhancing research tools instead of aesthetics. One of the themes to emerge from the study is that new-vehicle shoppers in Canada want OEM sites to address the appropriate audience in terms of content, including Canadian-specific content overall, content specific to Canadian regions, and improved quality in material presented in the French language. A website’s quality and reliability as a research tool diminishes when shoppers are able to identify missing or inadequate information. One shopper’s response to the survey’s open-ended question regarding what website improvements were needed stated, “[the] Canadian site should have the same amount of information as the American site.” Tailored content that exceeds shoppers’ expectations is paramount, as disappointment related to the lack of information and functionality may have significant repercussions for the vehicle brand. Arriving at a website to find that little attention has been paid to displaying the most relevant information from the shopper’s perspective will likely impact the attention they pay to the manufacturer’s brands.
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From JD Power the Analyst Note for June 2013
Transcript of Analyst Note June 2013
1 J.D. Power & Associates does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Repr oduction of any material contained in this publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power & Associates. Any material quoted from this publication must be attributed to J.D. Power & Associates.
© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.
Canada June 18, 2013
Behind the Numbers
Website Visitors Want Tools, Not Toys [email protected] (416) 507-3247
AFTER VISITING THE OEM WEBSITE, A TOP BOX FUNCTIONALITY RATING INCREASES
LIKELIHOOD TO TEST DRIVE MORE OFTEN
Source: J.D. Power & Associates 2013 Manufacturer Website Evaluation StudySM
72%
66%
62
64
66
68
70
72
74
% in
cid
en
ce L
ike
liho
od
to
Te
st
Dri
ve I
ncr
eas
ed
Top box rating (10 out of 10) for functionality
Top box rating (10 out of 10) for appearance
New-vehicle shoppers want OEM websites that enable
them to accomplish their goal of researching a vehicle.
When new-vehicle shoppers are asked what is best about
the site and what needs improvement, this ability is cited
more frequently than the OEM’s brand image, a particular
vehicle model, or the aesthetics of the website. For
shoppers to accomplish their goal, OEM websites need to
be functional as a tool and not just a pillar of graphic
design or a lifestyle vignette.
Nearly three-quarters (71%) of the open-ended survey
responses in the 2013 Manufacturer Website Evaluation
StudySM
relate to using the site as a research tool. By far,
new-vehicle shoppers using manufacturer websites focus
on the ease with which they can use the site.
In quantifying this concept, shoppers were asked to rate the website’s ability to help them perform the following six tasks (on a 1-10 scale, with 1 being “Unacceptable” and 10 being “Outstanding”): Determine the estimated monthly payment Find a dealer Compare a vehicle against another vehicle Research all of the vehicle information important
to you Equip the vehicle and determine price Browse the pictures, videos, and other images of
a vehicle
Among shoppers who rate the site 10 for its ability to help them perform these tasks, 72% indicate an increase in their likelihood to test drive a vehicle from that manufacturer. In contrast, among those who rate the site 10 for appearance, only 66% indicate an increase in their likelihood to test drive a vehicle from that OEM. So, how can manufacturers increase their vehicle sales by leveraging their website? The answer is by developing and enhancing research tools instead of aesthetics.
One of the themes to emerge from the study is that new-vehicle shoppers in Canada want OEM sites to address the appropriate audience in terms of content, including Canadian-specific content overall, content specific to Canadian regions, and improved quality in material presented in the French language. A website’s quality and reliability as a research tool diminishes when shoppers are able to identify missing or inadequate information. One shopper’s response to the survey’s open-ended question regarding what website improvements were needed stated, “[the] Canadian site should have the same amount of information as the American site.”
Tailored content that exceeds shoppers’
expectations is paramount, as disappointment related to the lack of information and functionality may have significant repercussions for the vehicle brand. Arriving at a website to find that little attention has been paid to displaying the most relevant information from the shopper’s perspective will likely impact the attention they pay to the manufacturer’s brands.
2
Brian Murphy
416-507-3253 ▪ [email protected] June 18, 2013
J.D. Power & Associates does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Reproduction of a ny material contained in this publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power & Associates. Any material quoted from this publication must be attributed to J.D. Power & Associates.
© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.
61 20
19
48 49
3
New Vehicles Used Vehicles
Cash Lease Loan
48
53
58
63
68
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Se
p-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan
-13
Fe
b-1
3
Ma
r-1
3
Ap
r-13
Ma
y-1
3
New Used
$465
$485
$505
$525
$545
$565
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Se
p-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan
-13
Fe
b-1
3
Ma
r-1
3
Ap
r-13
Ma
y-1
3
New Lease New Loan
Percent of Total Transactions (Past 12 Months)
Average per Customer
72 Months and Greater
62%
0%
10%
20%
30%
40%
50%
60%
70%
200
8
200
9
201
0
201
1
201
2
201
3
Data from JDPA PIN Incentive Spending Report (ISR)
20%
30%
40%
50%
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Se
p-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan
-13
Fe
b-1
3
Ma
r-1
3
Ap
r-13
Ma
y-1
3
% Negative Equity Trade-In %
Percentage of negative equity vehicles at trade-in
$27,000
$28,000
$29,000
$30,000
$31,000
$32,000
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Se
p-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan
-13
Fe
b-1
3
Ma
r-1
3
Ap
r-13
Ma
y-1
3
Vehicle Price Transaction Price
