Key Tactics to Compete and Win in Today’s Transparent Marketplace
-
Upload
karinabradley -
Category
Automotive
-
view
80 -
download
1
Transcript of Key Tactics to Compete and Win in Today’s Transparent Marketplace
![Page 1: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/1.jpg)
Key Tactics to Compete and Win in Today’s Transparent Marketplace
Kerri Wise – VP, Dealer Marketing @kkwise11
![Page 2: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/2.jpg)
Source: Forbes.com article “The New World Of The 'Empowered Consumer” July 16, 2015
Mobile
Hands On
Smart Committed
Global The Empowered Consumer
![Page 3: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/3.jpg)
Today’s Car Buyer has Mixed Emotions about the Car Buying Process
![Page 4: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/4.jpg)
Car Buyer Pain Points Convenience Transparency Validation
“I did my research before going to the dealership, but I ended up buying a different car. I think I paid too much –
the dealer didn’t show me any information to prove the
price was good.”
“I wish I knew how much the dealer was making on the
car. Then, I could give them a fair commission but still get
a good price. Not knowing makes me trust them less.”
“I didn’t like the handoff. I had to give them the same information over and over again, like I was starting
over.”
“I really don’t like the waiting. I don’t like the way
they put me off.”
Customization
“I didn’t like the way they tried to push me into a car I
didn’t want.”
“I felt like I was on a conveyer process. The
whole process was about them, not me.”
“They kept bringing up
things I didn’t care about.”
“There was no financial explanation at all, and it seemed like my payment came from some mystery
algorithm, because they did the math in the other room.”
“Unless you ask all the
questions, they don’t tell you what you should know.”
“I would have trusted the
dealer more if they had given me a roadmap or menu
showing all aspects of the deal.”
Source: TrueCar Research
![Page 5: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/5.jpg)
How much profit do car buyers think you make?
21%
14%
3%
Consumers think you Make
They are willing to pay
Actual Dealer Profit
Consumer Perception of Dealer Profit
Perception vs. Reality
Source: 2015 Strategic Vision NVES W1-W3
![Page 6: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/6.jpg)
Right Vehicle
Right Dealer
Right Price/Deal
![Page 7: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/7.jpg)
Vehicle Info, Photos, Reviews
Ratings/Reviews, Inventory, Salespeople Profiles
Vehicle Pricing, Mkt Supply, 3rd Party Benchmarks, Dealer Offers,
Calculators
Right Vehicle Right Dealer Right Price/Deal
Car Shoppers use Online Research to Inform and Validate their Decisions
![Page 8: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/8.jpg)
Vehicle Info, Photos, Reviews
Ra4ngs/Reviews, Inventory, Salespeople Profiles
Vehicle Pricing, Mkt Supply, 3rd Party Benchmarks, Dealer Offers, Calculators
Right Vehicle Right Dealer Right Price/Deal
ONLINE
Product Knowledge/ Consulta4on
Efficient and Streamlined Process
Transparency, Price valida4on, Value
OFFLINE
Top Dealers build off the online experience, to deliver a Superior in-store experience
![Page 9: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/9.jpg)
… and as a result Experience Higher Close Rates
2x Higher Close Rates
than the Competition
![Page 10: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/10.jpg)
Streamlined Process
Pricing Strategy
Validation Value
Source: Top Performing Dealer Study
Key Differentiators of Top Dealers
![Page 11: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/11.jpg)
Streamlined Process
![Page 12: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/12.jpg)
2.5X Faster response than the
competition
Top Performing 20 mins
Competitors 52 mins
1st Custom Response Time
Top dealers respond significantly faster to leads than their competition, setting the stage for a streamlined process.
Source: Mystery Shops
Expedite the Process
![Page 13: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/13.jpg)
Source: Mystery Shops
79% send a Custom Email vs. 66%
of the Competition
Top dealers are more likely to personalize their lead responses, sending customized emails and using more personal contact methods, such as a phone call, text and video.
Personalize Lead Response
![Page 14: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/14.jpg)
Leverage Trusted Consumer Affiliations Top Dealers acknowledge the consumer’s online journey and leverage their affiliations to trusted sources
Source: Mystery Shops
[email protected] (555)500-5000 120 Broadway St. Santa Monica, CA 90401
Robert Smith
Example Call:
“Hi Major Smith. This is Travis Pennington, the USAA
representative here at Hometown Nissan. I want to thank you for
choosing the 2015 Nissan Rogue through the USAA car buying
program. It looks like we have one in Tan and White like you
selected…”
![Page 15: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/15.jpg)
67% of TrueCar prospects buy a different vehicle (make/model/trim) than they originally configured.
Source: Website Metrics
Vehicle Choice
What % of Internet leads switch to a different make or trim?
Same Make, Model and Trim
33%
[CATEGORY NAME] [VALUE]
Same Make only
10%
Different make 13%
NEW Vehicle Purchased by TrueCar Prospects
![Page 16: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/16.jpg)
Top dealers keep the purchase process moving by proac4vely sending custom price offers on alterna4ve vehicles.
Source: Dealer Performance Data
Suggest Alternatives
Close rate increases by
32% when a consumer receives a price
offer on a specific vehicle
![Page 17: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/17.jpg)
Pricing Strategy
![Page 18: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/18.jpg)
Source: Dealer Interview
Embrace Transparency
73% Of Top Dealers will give a price
quote over the phone
“Our process is designed to engage & include the customer in every step of the process.
Transparency is our culture & the tools we use in the sales process support transparency.”
- Honda Dealer (Salt Lake City)
“We have to be because of this day and age.” - Chevrolet Dealer (Denver)
![Page 19: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/19.jpg)
Top dealers avoid a “set it and forget it” pricing strategy, frequently evaluating their pricing strategy against the market.
Source: Dealer Performance Data and Website Metrics
Offer Market Based Pricing
ü Evaluate Pricing 1.5x More Often Than Average
ü Pricing is typically in-line with other Dealers
![Page 20: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/20.jpg)
Source: Dealer Interviews
Offer Market Based Pricing
“Until recently our pricing strategy has been lowest price for new cars. However, we recently changed that strategy and have been focused
more on the TrueCar “curve” – fair market pricing. The results have been far better gross
and volume has not yet been affected.”
- Nissan Dealer (Los Angeles)
![Page 21: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/21.jpg)
Validation
![Page 22: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/22.jpg)
Source: Dealer Interviews
Validate the Vehicle
“Credibility is one thing that separates my dealer from
others and the condition report just goes deeper into creating a credible experience for me as an independent dealer.”
- Independent Dealer (Indiana)
![Page 23: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/23.jpg)
Used Vehicle Shoppers that see a 3rd Party Price Rating on a vehicle are 24% more likely to submit a lead to a dealer
Source: Website Metrics
Validate the Price
5.2%
5.6%
4.3%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
Great Good No Price Rating
Price Rating
Lead Conversion
![Page 24: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/24.jpg)
Top Dealers use 3rd party benchmarks to help validate the competitiveness of their price.
Source: Dealer Interviews
Validate the Price
![Page 25: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/25.jpg)
Value
![Page 26: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/26.jpg)
Source: Study referenced in book titled “Absolute Value”
Which camera would you buy?
$170 $240 $470
![Page 27: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/27.jpg)
People and Process
Showcase Value
John Wilson Subaru Product Specialist
![Page 28: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/28.jpg)
Showcase Value
Ownership Benefits
![Page 29: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/29.jpg)
Showcase Value
Why Buy Messaging
![Page 30: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/30.jpg)
Showcase Value
I understand that our dealership may seem far away but here are a few reasons why people make the trip out to us:
1. You will be dealing directly with either our General Manager or
Sales Manager who WON'T keep going back and forth with numbers.
2. Our TAX RATE is lower
3. We do not have ADVERTISING FEES on our INVOICES as Clark Country dealerships do (ranging between $500-$1,000 depending on
vehicle.)
4. We WILL NOT do the bait-and-switch on you; the vehicle we do the numbers on will be the same vehicle when you get to us (our
TRUECAR PROMISE).
5. If we cannot come to an agreement we will fill your vehicle up to $50 for taking the time to see us.
6. When you do purchase from us we will send you and a friend to THE WINERY for either lunch or dinner on us.
7. “Buyers Bonus” benefits including Auto Repair and Deductible Reimbursement
Benefits of Driving a Long Distance
![Page 31: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/31.jpg)
Showcase Value
Profit Share Program
![Page 33: Key Tactics to Compete and Win in Today’s Transparent Marketplace](https://reader036.fdocuments.us/reader036/viewer/2022062503/58f0ee1b1a28ab156a8b45c5/html5/thumbnails/33.jpg)
Questions? [email protected] @kkwise11