COURSE PROJECT:CARMAX

About the CompanyCarMax is the largest used car dealership chain in the US with over 100 dealerships and have sold over 5 million cars.

The ProblemCustomers of CarMax are commonly undecided on the exact car they wish to purchase. Knowing what car type, make, model and options to select as the criteria for a buyer can be a confusing and a long and drawn out process. This often leads to potential customers leaving the dealership without buying a car and risk going elsewhere once their mind is more made up.

CarMax Goals• Increase use of CarMax selection tool• Increase conversion of tool-users to walk-in customers• Increase conversion of walk-in customers to buyers

Project ScopeCreate an online tool•Serves the goals of CarMax•Pays attention to but goes way beyond the current CarMax tool•Targets the identified customer segments

Where do people get their info?

© 2008 Jupiter Research, LLC

1 hour a week

13 hours a week

© 2009 Harris Interactive

84% use search engines to locate automotive use search engines to locate automotive informationinformation

88% conducted research before contacting a conducted research before contacting a dealerdealer

J.D. Power and Associates. Copyright © 2008 by J.D. Power and Associates, The McGraw-Hill Companies, Inc. All rights reserved.

84% start their research with 84% start their research with Google!Google!

Shoppers use different sites at different times

10

New Car Buyer Usage of OEM, TPS, and Dealer Websites

by month leading up to purchase

Source: CNW Purchase Process Study, 2009; Digitas

A majority of customers come to a A majority of customers come to a dealership after seeing them online dealership after seeing them online

firstfirst

Car buying influencers

Television AdsTelevision Ads

♫ Autobahn for All Summer Event ♫

Magazine and Magazine and Newspaper AdsNewspaper Ads

Web SearchWeb Search

Car Reviews

Dealership Websites

Word of Mouth

Social Media

Online Advertising

Purchase Space

Drop-off

Why does this have to be so hard??

Drop-off from fatigue, frustration and lack of forward motion

The customer journey