ken potter – growing from within
TRANSCRIPT
Driving Growth From WithinKen PotterInternet Sales 20 GroupApril 2014
Car Buyers Start Online
Car buyers use the Internet to research their new vehicle purchase79%Use Multiple Devices34%Use a Tablet25%
23% Use a Smart Phone
1J.D. Power and Associates 2013 New Autoshopper StudySM September 9, 2013
Market Share Grows for Millennial Buyers
Millennials are increasing in market share at the greatest rate among all new vehicle buyers and now comprise more than 20% of all retail sales.
47% of online shoppers using a smartphone are Millennials
54% of online shoppers (open to any brand) are Millennials
1J.D. Power and Associates 2013 New Autoshopper StudySM September 9, 2013
Consumer Online Shopping Behavior
90% research model information and vehicle pricing
19% research dealer ratings and reviews prior to purchase
The average consumer visits 10 automotive websites while researching a vehicle.Including third party, dealer, and manufacturer sites.
1J.D. Power and Associates 2013 New Autoshopper StudySM September 9, 2013
Total time spent buying a vehicle has decreased:
Consumers who Shop Online are More Efficient
Total time spent shopping online has increased:
60%
2011
2013
75%
New Car Buyers
19hrs
2013
2011
13.75hrs
18hrs
20132011
15.25hrsUsed Car
Buyers1Internet Is Making Car Shopping More Efficient as Role of Traditional Media Declines, According To a Polk Study Commissioned By AutoTrader.com, June 27, 2013
Decisions are Made Deeper in the Funnel
46% of consumers who planned to buy a
new vehicle bought a used car or truck instead.
1.2% of TrueCar users submitted a lead for a new and bought used
1TrueCar, Inc.2Autobytel & Polk Study: Nearly Half of Potential New-Car Buyers Opt for CPO or Used Model, October 12, 2012
1Strategic Vision, Inc. 2013 New Vehicle Experience Study (“NVES”)
2TrueCar, Inc. online survey of car buyers March 2013
% that value the advice of friends and family when buying a new vehicle
64% Women Men 55%Younger car buyers care most about Older car buyers care most about
Monthly payment and fuel economy
West/Midwest cares most about Northeast/South cares most about
Value for money and experience with brand
Fun to DriveDiscounts/Incentives
Available all-wheel drive Durability
1
2
2
Car Buying Varies by Gender, Age and Region
Presenter NameMonth Year
Close Rates by Demographic
BuyerShopper Close Rate
Price vs. Distance
When they have to choose, consumers favor the closest dealer over the cheapest dealer by 2:1.
Cheapest and Closest Cheapest but not Closest Closest but not Cheapest Neither0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
61,253
20,906
43,198
28,316
Tru
eCar
Sal
es(
Jul,
2013
-Dec
,201
3)
39.9%
13.6%
28.1%
18.4%
1TrueCar, Inc. analysis of car TrueCar sales between July 1,2013 and December 31, 2013
• Selling Costs are Higher
• Satisfaction Scores are Lower
• Customers are Apprehensive
• Marketing Expense Grows
• Discounting becomes Central
• Loyalty Behavior is Less Likely
• Customer Focus Shifts to Price
Business Executives
HMO Managers
State Governors
Insurance Salespeople
Advertising Practitioners
Lawyers
Stockbrokers
Senators
Car Salespeople
Members of Congress
0% 10% 20% 30% 40% 50% 60%
27%
27%
31%
36%
36%
38%
39%
45%
49%
54%
Least Trusted Professions
% of Consumers Expressing Distrust
The Impact of Trust
Nearly 20% of all cars are sold at a loss.
1Gallup, Inc. Survey November 26 to 29, 2012
Consumer Perspective
We recently conducted a national survey and asked consumers:
Transparency cuts through this misunderstanding. 1TrueCar, Inc. Customer Surveys2NADA 2013 Data State-Of-The-Industry Report
Metric Based Factors
• The Car Buyer Continues To Change
• The Shopping And Buying Behaviors Continue To Change
• Customers Want Efficiency And Transparency
• Price Is Not The Overriding Factor To Choosing Dealer
• Customers Have A Lack Of Trust In General And Assume Dealers Make Large Profits
1J.D. Power and Associates 2013 New Autoshopper StudySM September 9, 2013
What Now? Start With The End In Mind
A/B Testing
Dealer Example
Dealer Example
Dealer Example
Dealer Example
Utilizing Email to Increase Conversion
Inform your prospects of pricing and incentives5%Follow-up with useful information to keep your prospects engaged11%
16% Increase in Sales 1Analysis based on recent results of TrueCar, Inc. email campaign
TrueCar Moving Forward
Be sure to visit www.truecar.com for more information and updates.
THANKYOU
CONTACT TRUECAR
120 BroadwaySanta Monica, CA