Internet Car Shopper Behavior
description
Transcript of Internet Car Shopper Behavior
Ford Lincoln Mercury Digital Team
Compiled by Trace Ordiway, DMC Dallas Region
from multiple sources
05/04/2010
Ford Lincoln Mercury Digital Team
• 19% of all new FLM sales in 2009 can be directly traced to FLM eLeads.
• Allowing for those sales RDR’d w/out an email address, the true number is possibly 25% +/-.
Ford Lincoln Mercury Digital Team
76%75%
70%68%67%
64%
54%
60% 60%64%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Pe
rce
nt
AIU
s
Note: 2000-2008 data from J.D. Power and Associates New Autoshopper.com Studies. 2009 data from 2009 Web Site Performance Tools Wave 1
Automotive Internet Usage among New–Vehicle Buyers: 10-Year Trend
Ford Lincoln Mercury Digital Team
Automotive Internet Usage
76%
14%
10%
Automotive InternetUsers (AIUs)
Non-InternetShoppers (NISs)
Non-Internet Users(NIUs)
Ford Lincoln Mercury Digital Team
Cumulative Site ReachLeading to Purchase
18%23%
30%36%
47%48%
61%
70%
77%
32%
48%
62%
70%
77%
10%
87%
32%
86%
0%
25%
50%
75%
100%
6 mos. prior 5-6 mos. prior 4-6 mos. prior 3-6 mos. prior 2-6 mos. prior Anytime w/in 6mos. prior
Pe
rce
nt
Vis
itin
g
Dealers OEM Third Party
6 months prior to purchase, 1/3 of Buyers have already visited at least one OEM and Third Party Site
At 3 months prior to purchase, over 2/3 of Buyers will have visited at least one OEM and one Third Party Site
<30 days before purchase almost 90% of Buyers have visited at least one OEM and one 3rd Party Site. Almost ½ have visited a Dealer site
Ford Lincoln Mercury Digital Team
Ford Lincoln Mercury
2009 Consumer Survey Results
Ford Lincoln Mercury Digital Team
11% (237,596)Completed 2009
Sent 24 hours after lead arrives
Resent 30-45 days later
Ford Lincoln Mercury Digital Team
Q2 09 Sample Size: (19,269)
Q1 09 Sample Size: (33,197)
Internet Search Reasons
Research the price or deal
Research the style of vehicle I was looking for
Research the features or options that were available on a vehicle I
wanted
Find out about incentives/rebates
To search a specific dealer's inventory
Reduce the number of dealers I would visit/Save gas
(Top 5)
65%
61%
48%
37%
32%
28%
65%
61%
47%
43%
33%
30%
4th Qtr 2009 3rd Qtr 2009
Q2 09 Sample Size: (19,269)
Q1 09 Sample Size: (33,197)
Internet Search Reasons
Research the price or deal
Research the style of vehicle I was looking for
Research the features or options that were available on a vehicle I
wanted
Find out about incentives/rebates
To search a specific dealer's inventory
Reduce the number of dealers I would visit/Save gas
(Top 5)
65%
61%
48%
37%
32%
28%
65%
61%
47%
43%
33%
30%
4th Qtr 2009 3rd Qtr 2009
Base: N11:
Only 32% lookingat inventory
Ford Lincoln Mercury Digital Team
Q4 09 Sample Size: (3,397) Q3 09 Sample Size: (5,741)
Purpose for Visiting Web Site
40%
29%
11%
9%
5%
3%
3%
38%
26%
10%
12%
9%
3%
2%
I was gathering information for me
I was in the market for a new vehiclein the next few months
I was doing research on new vehicles
I was in the market for a new vehiclein the next month
I was in the market for a new vehiclein the next week
I was gathering information fora friend or family
Other
4th Qtr 2009 3rd Qtr 2009
Q4 09 Sample Size: (3,397) Q3 09 Sample Size: (5,741)
Purpose for Visiting Web Site
40%
29%
11%
9%
5%
3%
3%
38%
26%
10%
12%
9%
3%
2%
I was gathering information for me
I was in the market for a new vehiclein the next few months
I was doing research on new vehicles
I was in the market for a new vehiclein the next month
I was in the market for a new vehiclein the next week
I was gathering information fora friend or family
Other
4th Qtr 2009 3rd Qtr 2009
Only 8.75% avg say in market w/in 30 days
Ford Lincoln Mercury Digital Team
Sample Size: (6,489) (6,779) (7,040) (9,061) (4,132)
56% 58% 57% 56% 56%
0%
20%
40%
60%
80%
100%
4th Qtr 2008 1st Qtr 2009 2nd Qtr 2009 3rd Qtr 2009 4th Qtr 2009
Would Like to be Contacted(% Yes)
Sample Size: (6,489) (6,779) (7,040) (9,061) (4,132)
56% 58% 57% 56% 56%
0%
20%
40%
60%
80%
100%
4th Qtr 2008 1st Qtr 2009 2nd Qtr 2009 3rd Qtr 2009 4th Qtr 2009
Would Like to be Contacted(% Yes)
Customers who have not yet received contact after 48 hours would still like to be contacted by the dealership.
Base: NO_Q2:
Ford Lincoln Mercury Digital Team
Sample Size: (3,397)
Currently In Market to Purchase Vehicle
Still in the market
66%
Not in the market
16%
Don't Know18%
Sample Size: (3,397)
Currently In Market to Purchase Vehicle
Still in the market
66%
Not in the market
16%
Don't Know18%
Follow Up: F2B:Follow Up: F2B1: What type of vehicle are you primarily shopping for?
Note: Totals may not add up to 100% due to rounding.
Of those who have not purchased 30-45 days after the lead generation, 2/3 are still in the market for a vehicle !
Ford Lincoln Mercury Digital Team
Sample Size: (2,233)
Type of Vehicle
New Only56%
Used Only7%
New or Used36%
Don't Know1%Sample Size: (2,233)
Type of Vehicle
New Only56%
Used Only7%
New or Used36%
Don't Know1%
Follow Up: F2B: Are you currently (still) in the market for a vehicle?Follow Up: F2B1: What type of vehicle are you primarily shopping for?
Note: Totals may not add up to 100% due to rounding.
Nearly everyone who remains in the market
is shopping for a NEW vehicle.
Ford Lincoln Mercury Digital TeamSample Size: (1,979)
44%
37%
36%
29%
24%
22%
19%
19%
16%
11%
19%
Price
Better customer service
Information received
Selection of vehicles
Faster follow-up
Online request
More knowledgeable
Method of contact
Number of times contacted
Better financing
Other
Suggestions for Improvement4th Qtr 2009
Sample Size: (1,979)
44%
37%
36%
29%
24%
22%
19%
19%
16%
11%
19%
Price
Better customer service
Information received
Selection of vehicles
Faster follow-up
Online request
More knowledgeable
Method of contact
Number of times contacted
Better financing
Other
Suggestions for Improvement4th Qtr 2009
They want Customer Service
andInformation
Follow Up: F4D: What areas could be improved to increase your satisfaction with the <LEAD DEALER FROM E-CONSUMER DATA> experience?
Ford Lincoln Mercury Digital Team
Ford Lincoln Mercury Digital Team
Sample Size: (2,086)
Time When Likely to Purchase
4th Qtr 2009
22%
31%
26%
18%
2%
Within the next month
1 month but less than 3 months
3 months but less than 6 months
6 months - 1 year
Over 1 year
Sample Size: (2,086)
Time When Likely to Purchase
4th Qtr 2009
22%
31%
26%
18%
2%
Within the next month
1 month but less than 3 months
3 months but less than 6 months
6 months - 1 year
Over 1 year
Follow Up: F2F: When are you likely to purchase/lease this new vehicle?
18% are likely to purchase w/in the next 6-12 mos.
Note: Totals may not add up to 100% due to rounding.
Ford Lincoln Mercury Digital Team
30 Day
Follow Up: F2F: When are you likely to purchase/lease this new vehicle? Note: Totals may not add up to 100% due to rounding.
Sample Size: (2,641) (3,115) (4,133) (3,373) (2,086)
24% 20% 20% 24% 22%
32%31% 33%
32% 31%
26%28% 27%
26%26%
16% 19% 18% 16% 18%
2% 2% 2% 2% 2%
4th Qtr 2008 1st Qtr 2009 2nd Qtr 2009 3rd Qtr 2009 4th Qtr 2009
Length of Time Until Purchase
Over 1 year
6 months - 1 year
3 months but less than 6 months
1 month but less than 3 months
Within the next month
Ford Lincoln Mercury Digital Team
Ford Lincoln Mercury Digital Team
Shopping Timeline of AIU's
8%
15%
10%
2%
18%
22%
13%13%
0%
5%
10%
15%
20%
25%
53 ormore
25 to 52 21 to 24 9 to 20 5 to 8 4 3 to 2 1 week
Weeks Before Purchase
Decide time to buy
34% = 1 month
27% = >6 months
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
39% = 2 – 6 months
Ford Lincoln Mercury Digital Team
Decide on typeof vehicle
Start visitingdealers
Decide it was time to purchase
Shop vehicleson the Internet
Start activelyresearching vehicles
Decide onmodel
Purchasenew vehicle
14.7
11.7
11.0
10.4
7.6
6.3
0
Purchase Milestones of New-Vehicle AIU's
012345678910111213141516
Weeks Before Purchase (Mean)
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
Ford Lincoln Mercury Digital Team
Decide on typeof vehicle
Start visitingdealers
Decide it was time to purchase
Shop vehicleson the Internet
Start activelyresearching vehicles
Decide onmodel
Purchasenew vehicle
14.7
11.7
11.0
10.4
7.6
6.3
0
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
Walk-Ins
Ford Lincoln Mercury Digital Team
Decide on typeof vehicle
Start visitingdealers
Decide it was time to purchase
Shop vehicleson the Internet
Start activelyresearching vehicles
Decide onmodel
Purchasenew vehicle
14.7
11.7
11.0
10.4
7.6
6.3
0
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.
CUSTOMERS STARTSENDING ELEADS HERE
WE GIVE UP ON THEM HERE (NON-RESPONSIVE)
THEY BUY HERE
Ford Lincoln Mercury Digital Team
Ford Lincoln Mercury Digital Team
1. Our records indicate that you purchased or leased a new vehicle since you were online gathering information. Can you confirm this is correct?
2. Have you purchased or leased a vehicle since you were online gathering information?
Ford Lincoln Mercury Digital Team
Sample Size: (6,261)
Purchase Activity4th Qtr 2009
Lead Vehicle26%
Other FLM New7%
Other FLM Used5%
Competitor New6%
Competitor Used2%
No Purchase54%
Sample Size: (6,261)
Purchase Activity4th Qtr 2009
Lead Vehicle26%
Other FLM New7%
Other FLM Used5%
Competitor New6%
Competitor Used2%
No Purchase54%
Only 26% bought themake/model car thatthey inquired aboutinitially
54% say they are stillIn the market
Ford Lincoln Mercury Digital Team
Where Bought New
Sample Size: (2,466)
Lead FLM Dealer54%
Another FLM Dealer30%
Another Brand of Dealer14%
Other2%
4th Qtr 2009
Where Bought New
Sample Size: (2,466)
Lead FLM Dealer54%
Another FLM Dealer30%
Another Brand of Dealer14%
Other2%
4th Qtr 2009
More than ½ purchased from dealer who 1st received the lead
Less than 1/6th
purchased non-FLMvehicle
Note: Totals may not add up to 100% due to rounding.
Ford Lincoln Mercury Digital Team
Sample Size: (1,394)
24%
20%
19%
18%
17%
8%
7%
6%
4%
3%
2%
9%
4%
6%
5%
4%
3%
1%
1%
1%
1%
1%
1%
3%
Better deal from another dealer
Found a vehicle I liked better at another dealer
Did not have the exact vehicle I wanted
Little or no contact from initial dealer
Bad experience with dealership personnel (salesperson, etc.)
Have purchased from other dealer in the past
Trade-in offer too low
Better location
Did not carry the brand of vehicle I wanted
Friend/Family works at another dealer
Financing issues
All other miscellaneous responses
Reasons For Purchasing From Another Dealer4th Qtr 2009
New Used
Sample Size: (1,394)
24%
20%
19%
18%
17%
8%
7%
6%
4%
3%
2%
9%
4%
6%
5%
4%
3%
1%
1%
1%
1%
1%
1%
3%
Better deal from another dealer
Found a vehicle I liked better at another dealer
Did not have the exact vehicle I wanted
Little or no contact from initial dealer
Bad experience with dealership personnel (salesperson, etc.)
Have purchased from other dealer in the past
Trade-in offer too low
Better location
Did not carry the brand of vehicle I wanted
Friend/Family works at another dealer
Financing issues
All other miscellaneous responses
Reasons For Purchasing From Another Dealer4th Qtr 2009
New Used
Ford Lincoln Mercury Digital Team
Sample Size: (91)
4th Qtr 2009
Primary Reason For Not Considering FLM
25%
20%
13%
12%
7%
5%
2%
1%
14%
Better Price / Better Deal from another manufacturer
Bad experience with dealership personnel
The type of vehicle I want is not available
Little or no contact from dealer
Past ownership experience
Vehicle did not meet my needs
Past dealership experience
Ford, Lincoln, or Mercurys vehicle quality
Other
Sample Size: (91)
4th Qtr 2009
Primary Reason For Not Considering FLM
25%
20%
13%
12%
7%
5%
2%
1%
14%
Better Price / Better Deal from another manufacturer
Bad experience with dealership personnel
The type of vehicle I want is not available
Little or no contact from dealer
Past ownership experience
Vehicle did not meet my needs
Past dealership experience
Ford, Lincoln, or Mercurys vehicle quality
Other
Follow Up: F2J:
2nd Place!
Ford Lincoln Mercury Digital Team
Q4 09 Sample Size: (504)
Q3 09 Sample Size: (797)
24%
20%
14%
10%
10%
5%
4%
4%
30%
21%
7%
19%
8%
4%
3%
6%
Poor dealership experience/No dealer follow up
Price too high/Poor value for the money
Better deal elsewhere
Lack of selection/model availability
Prefer another vehicle (unspec.)
Features/Options
Poor trade in offer
Good experience at another brand's dealership
Reasons For Competitor Purchase(Top 8)
4th Qtr 2009 3rd Qtr 2009
Q4 09 Sample Size: (504)
Q3 09 Sample Size: (797)
24%
20%
14%
10%
10%
5%
4%
4%
30%
21%
7%
19%
8%
4%
3%
6%
Poor dealership experience/No dealer follow up
Price too high/Poor value for the money
Better deal elsewhere
Lack of selection/model availability
Prefer another vehicle (unspec.)
Features/Options
Poor trade in offer
Good experience at another brand's dealership
Reasons For Competitor Purchase(Top 8)
4th Qtr 2009 3rd Qtr 2009
It’s not the car!
Ford Lincoln Mercury Digital Team
Sample Size: (1,382)
4th Qtr 2009
31%
29%
16%
12%
12%
8%
6%
6%
6%
3%
Ford
Chevrolet
Toyota
GMC
Dodge
Honda
Nissan
Mercury
Lincoln
Hyundai
Vehicles Considering(Top 10)
Sample Size: (1,382)
4th Qtr 2009
31%
29%
16%
12%
12%
8%
6%
6%
6%
3%
Ford
Chevrolet
Toyota
GMC
Dodge
Honda
Nissan
Mercury
Lincoln
Hyundai
Vehicles Considering(Top 10)
Follow Up: F2G. What vehicles are currently in your consideration set? (Net of 3 mentions)
GMC made big gains in 2009. Hyundai has now replaced Jeep in this Top 10.
Ford Lincoln Mercury Digital Team
1. Our records indicate that you purchased or leased a new vehicle since you were online gathering information. Can you confirm this is correct?
2. Have you purchased or leased a vehicle since you were online gathering information?
Ford Lincoln Mercury Digital Team
Where Bought Used
Sample Size: (398)
Lead FLM Dealer35%
Another FLM Dealer23%
Another Brand Dealer22%
Private Owner4%
Used Car Only Dealer
9%
Internet Purchase1%
Other6%
4th Qtr 2009
Where Bought Used
Sample Size: (398)
Lead FLM Dealer35%
Another FLM Dealer23%
Another Brand Dealer22%
Private Owner4%
Used Car Only Dealer
9%
Internet Purchase1%
Other6%
4th Qtr 2009
More than 1/3bought from dealer who gottheir new car lead
Note: Totals may not add up to 100% due to rounding.
Ford Lincoln Mercury Digital Team
Ford Lincoln Mercury Digital Team
• Just 42% of consumers indicated they were likely to buy from same dealer as last time1
• A third of consumers willing to travel more than 20 miles to visit a dealership2
• 63% of all car shoppers submit a request for a price quote on internet3
• But only 36% of shoppers receive a price quote email response4
• Half of respondents will look for a new dealer if response from dealership is not fast enough5
• 25% of all leads don’t get answered at all 6
• Average response time on leads that do get answered is over 5 hours7
1. CapGemini 2008 Cars Online Study 2. Cobalt/Yahoo/Polk 2007 Dealer eBusiness Study3. Ibid. 4. Cobalt 2008 Automotive eShopper Survey 5. CapGemini, op.cit. 6. Cobalt 2008 Automotive eShopper Survey 7. Ibid.
Ford Lincoln Mercury Digital Team
• Follow-up is key: the average shopping process is three months8
• But while 70% of dealers have some follow-up, the average number of follow-up touch points is just 3.1 attempts9
• Of those who bought elsewhere, 23% did so because of bad follow-up process at dealership10
• Only 42% of all dealers called the shopper, with 32% both emailing and calling11
• A price quote response in 20 minutes or less doubled conversion rates in an OEM study12
• 60% of car buyers said if they received a competitive price and compelling reason to buy from a Dealership they would stop shopping elsewhere13
8. JD Power 2007 New Autoshopper Study
9. Cobalt 2008 Automotive eShopper Survey
10. Cobalt/Yahoo/Polk, op. cit. 1
11. Cobalt 2008 Automotive eShopper Survey
12. Cap Gemini, op. cit.
13. Baumberger, Kurt, Adapt or Die 2010
Ford Lincoln Mercury Digital Team
• They’re fickle• They have options• They’ll put you on trial vs. competition• They want a price quote-- fast• They want a quick follow-up call• They want to be courted for their business• Some are ready to buy now; others will take time but will
eventually buy
Ford Lincoln Mercury Digital Team
The Internet shopper is not necessarily looking for a cheaper price – but they are most definitely looking for an alternative shopping experience.
Ford Lincoln Mercury Digital Team
END