more and more digital conversations are happening...more and more digital conversations are...

CONTACT AT ONCE!2014 DEALER SURVEY RESULTSTap into Instant Connections with Online, Mobile Shoppers

N O R T H A M E R I C A

More and more digital conversations are happening* Based on the volume of digital conversations (chats and texts) between consumers

and dealers facilitated via the Contact At Once! network of sites each year.

2014201320122011

IS YOUR DEALERSHIP PREPAREDFOR THE FUTURE OF CAR SHOPPING?The steady advancement of the millennial generation into prime car-buying ages and the growth of mobile technology use in every generation are playing big roles in what automotive consumers now expect and dealers are starting to provide. But just how prepared are dealerships when it comes to actually engaging today’s (and tomorrow’s) car buyers?

In a recent survey, Contact At Once! asked dealership professionals for their opinions on several key communications for the online shopping path, and we’ve chronicled what they could mean for the industry here:

WHAT’S CHANGEDFOR CONSUMERS

HOW DEALERSARE ADAPTING

WHERE WECOULD IMPROVE

MethodologyAlong with outside research into consumer trends, this report is based on a two-week July 2014 survey Contact At Once! conducted with 1,600 dealer

professionals in North America, from GMs to sales managers, Internet sales managers and directors, as well as salespeople. About 66% were from dealer groups; 34% were from stand-alone dealerships. Statistics are based on opinions expressed by

respondents on specific topics and questions. All

questions were not answered by every participant; nor

did every participant have knowledge applicable to

every question.

What’s the Online Shopping Path?It includes steps a consumer takes online before purchasing, from searches to website visits, inventory views, video plays and, of course, direct engagement (chat, text, email), etc. Check out last year’s 2013 Dealer Survey Results for more on this new path to purchase and how chat can help dealers win:autodealerchat.com/download

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p2 2014 DEALER SURVEY

2014 SURVEY SAYS

Millennials:A Force to Reckon WithIt used to be easy to discount the millennial generation—too young to buy cars, not making enough money, etc. But guess what? They’re growing up. Every day, more millennials edge into the car-buying consumer market:

Recently, J.D. Power and Associates saidmillennials generated a larger share of U.S. new vehicle sales than the slightly older Generation X (26% vs. 24%).1

By 2020, they’ll make up about 40% of the car-buying population. 2

While they currently lag behind baby boomers as the car-buying majority, remember: Millennials will be where the boomers are sooner than you think. And they’re bringing theirsmartphones and mobile mindset with them.

CHALLENGE: Understand and adapt to millennials’ buying behaviors so you can reach and influence them before their decision is made. (For example, 94% of our survey respondents say that millennials do more research before coming into the dealership.)

WHAT’S CHANGED FOR CONSUMERSMillennials and mobile continue to be hot topics in every industry,and they’re only getting hotter.

92% say the millennial generationis very important for their dealership to attract. It’s also seen as the most difficult:

What generation is the hardest to sell to?

15.6% GEN X

17.8% SENIORS

22.7% BOOMERS

44% MILLENNIALS


CHALLENGE: Meet and interact with shoppers atthose moments of need, no matter when or where or the device used.

Mobile Technology:It’s Changing EverythingOnline research isn’t just something millennials do, either. Google says that 95% of vehicle shoppers use digital channels—and many of their up to 24 research points 3 are now accessed via mobile device. That mobile access is what’s really changing the game:

Almost everyone’s using it: As of June 2014,comScore reports that 173 million people in the U.S. own smartphones (72% of all mobile subscribers). 4

Those who do are always-on, always-connected: Consumers spend 2 hours, 51 minutes 5

on their mobile devices per day; 38 hours per month 6 on phones alone. And 43% never unplug. 7

It changes how consumers research, communicate & buy: More than 4 in 5 U.S.smartphone/tablet owners use those devices for shopping activities. 8 In the auto world, this often translates into mobile searches and visits (63% even do this while on a dealership lot 9). In fact, 35% of auto research is now done exclusively on mobile. 10

No wonder most buyers show up with their “homework” done. But will they show up at your dealership? The chances are significantly higher if you can get into their circle of influence and build your value story as they research. They’re looking for answers; provide them!


HOW CONTACT AT ONCE! DEALERS ARE ADAPTINGOffering mobile-friendly communication options—like chat and text—helpsdealers appeal to the growing number of always-on digital consumers, includingmillennials. And the survey says that it’s paying off.

Almost all (98%) of our survey respondents say theirtext-based communications are important; about 75%call them very important. Perhaps that’s because with chat and/or text messaging, their shoppers have easy ways to ask questions and get answers in real time right as they research...on the screen of their choice.

Such convenience only seems to get more attractive as consumers get more mobile. Chat and text are what millennials prefer, according to 90.8% of ourrespondents. Plus, we looked back at the last three years of Contact At Once! data and found a steady increase in the number of chats that convert to sales.

Want More About Chat?Download last year’s 2013 Dealer Survey Results for more on how dealers are using chat to boost their sales opportunities: autodealerchat.com/download

2014 SURVEY SAYS 2014 SURVEY SAYS

The average number of cars sold per month to consumers who first contacted the dealership* through chat grew 10.65% in 2013 and 8.42% in 2014.

*based on those with Contact At Once! chat on their dealership website and third-party listings.

2012 2013 2014

TOTAL CARS SOLD

96% of respondents who expressed an opinion said the Contact At Once! platform helps their dealership sell more cars.

8.42%10.65%

2014 GROWTH

2013 GROWTH


And it’s not a fad. It’s an evolution.

Tapping into Text:The Modern ConvenienceTexting is also rising in popularity among dealerships and their customers—no surprise when you consider it’s native to the phone that likely follows you from bed to work, school or play, and home again. Here’s how our survey respondents are tapping in:

92% of the salespeople who took our survey saythey personally text with customers.

94% of respondents say they would miss opportunities if they didn’t use SMS texting to communicate with customers.

Almost 75% say they’re more likely to get a response from a lead when they follow up via SMS vs. a phone call. (After all, mobile users check their phone 100x/day. 5 )

Consider this: The ease of click-to-call buttonson mobile have already prompted many consumers to go that route as opposed to waiting for an email. 11 Tap-to-text options can be even more convenient, depending on the shopper’s availability and his or her tendency to put off calls until the last possible moment. Millennials especially prefer to text, seeing it as less of a time commitment. (Calls inevitably take up more time than a text conversation.12 You don’t feel the need to make small talk while texting!). Plus, ongoing text conversations can keep you connected to customers for days or weeks!

However, while texting can be a great way tointeract with customers, there are still regulations businesses have to follow. That’s where many dealerships falter. For example, the majority of respondents did not use a texting solution to track those conversations or help with proper opt-in, opt-out and permission procedures (more about the risks that poses later).


WOULD YOU WANT TO MISS ANY OF THESE OPPORTUNITIES?

2014 SURVEY SAYS

It can only invite more opportunities your way.

Offering Choice:The Ultimate Convenience Another interesting find in this survey is the number of dealers who believe in offering car shoppers multiple options to connect: 86.4% of respondents say they’dmiss opportunities if they relied exclusively on phone and form leads.

Now, some shoppers who chat or text with dealerships today would still place a call if that was their only choice. But—this is key—some shoppers wouldn’t. They’d put it off, giving competitors more chances to woo them away with convenience or deals. As previous Dataium results revealed, chat adds leads to the ones gathered from a dealership’s more traditional sources.13 Those added leads are consumers who might not otherwise have reached out.

Look at it this way: You don’t make “ups” jumpover a barbed wire fence to get to your showroom. Why do it to your digital shoppers? Instead, lower the barriers to taking that first online (or mobile) step toward a sales conversation. Let them choose what’s most convenient for them at the moment.

86.4% of respondents say they’dmiss opportunities if they relied exclusively on phone and form leads.


33% CHAT

28% PHONE CALL

22% TEXT

*Based on 3 separate IHS Automotive/Polk analyses commissioned by Contact At Once! in 2012

and 2014. In those studies, IHS Automotive/Polk matched shoppers who provided personally

identifiable information via either chats, texts or phone calls to households with vehicle sales.

Percentage of Identifiable Shoppers Who Purchased a Vehicle*after connecting with a dealership via the following methods

WHERE WE COULD IMPROVEIs your dealership doing all it can to prepare for the changes mobile consumers are driving? Many are moving in the right direction, but there’s still work to do. Based on the survey results, here are a few improvements to consider:

Get an Official Texting SolutionWhile almost every salesperson

in the survey said they texted

with their customers, the

majority of respondents

didn’t use a secure texting

solution under the dealership’s

control. If such is the case for

your dealership, it means you

might not be able to track and

capture those mobile leads and

conversations in your CRM, and

you might be at an increased

risk of non-compliance with

the Telephone Consumer

Protection Act (TCPA). 14

Whatever You Do,Be FastAround 96% of survey

respondents say it’s important

that each customer request

be followed up with quickly.

Other studies say responding

to online shoppers within five

minutes 15 is vital, which fits right

in with the instant gratification

that millennials grew up

with and mobile technology

spreads. Chat or text make it

easier to provide even faster

responses because they’re

live, ongoing conversations.

Optimize for Mobile EverythingDon’t stop with texting or adding

the ability to chat from your

mobile site. Start thinking about

mobile-optimized solutions not

just for your website, but for

email design, local advertising,

credit applications, service

reminders, payments, etc. Look

at all your dealership’s processes

the way a consumer might: How

can they do more with you right

from their smartphone or tablet?

MAKE THIS A PRIORITY:

Look for a solution that builds

in permission-based rules,

automates opt-out processes,

and records and tracks all

conversation transcripts for

your one-to-one business-to-

consumer texting. (For example,

Mobile Text Connect offers all

that while syncing to the same

Contact At Once! platform

you can also use for chat.)

Look into additional help—

from backup as needed to

after-hours coverage and fully

managed solutions—so you’re

prepared when your team

just isn’t available to respond

quickly. (Almost half of the

survey respondents who use

Contact At Once! chat or text on

their dealership websites also

use our Virtual Receptionist

service for this very reason.)

Don’t forget mobile solutions

for your own team! If you

chat or text, make sure

your team downloads the

provider’s mobile app

so they can interact with

customers anywhere (without

losing tracking abilities).

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IN SUMMARYAccording to a 2014 Accenture survey, 78% of marketing executives expect that digital and mobile will transform their businesses in five years, yet only 21% think they’ll be prepared to reap the full benefits.5 Don’t let that be you!

Mobile is a fact of life for almost every car-buying consumer, and dealers need to respect its power. Pay attention to mobile consumers’ needs (be they millennials or any other generation). More importantly, start adapting to those changing needs, as many in this survey have done:

The vast majority of salespeople who participated are already texting with customers, and almost all respondents thought they’d miss opportunities if they didn’t.

Almost everyone confirmed that it was important to respond to customers quickly...and we know that emails just don’t cut it in that case. (Perhaps that’s one reason they also said they’d miss opportunities if they just relied on phone and form leads.)

And remember: Many of those who chat and text with dealerships do end up buying, according to both this survey and recent IHS Automotive analyses. 16

Questions?If you want to know more about Contact At Once!, Chat Connect 360 (our chat solution), Mobile Text Connect (our texting solution) or Virtual Receptionist (our managed chat and text service), please visitwww.autodealerchat.com...or text with us at 404-850-9297!


RESOURCES1. CNBC. “Millennials Buying More New Cars

Than Gen X.” Paul A. Eisenstein. August 1, 2014.

http://www.cnbc.com/id/101884889

2. Deloitte. “Fourth Annual Gen Y Automotive Survey.” January

2012. http://www.deloitte.com/assets/Dcom-UnitedStates/

Local%20Assets/Documents/us_automotive_2012_

DeloitteAutomotiveGenY_Executive%20Summary_092613.pdf

3. Google. “Digital Drives Auto Shopping.” November

2013. http://www.thinkwithgoogle.com/research-

studies/digital-drives-auto-shopping.html

4. comScore. “comScore Reports June 2014 U.S. Smartphone

Subscriber Market Share.” August 6, 2014. http://www.

comscore.com/Insights/Market-Rankings/comScore-Reports-

June-2014-US-Smartphone-Subscriber-Market-Share

5. eMarketer. “Big-Picture Perspective on Consumers and

Marketing in an Always-On, Digital World.” August 4, 2014.

http://www.emarketer.com/ana-keynote.aspx?ecid=NL1001

6. Nielsen. “Emerging Trends in Mobile and What They

Mean for Your Business.” August 5, 2014. http://www.

nielsen.com/us/en/insights/news/2014/emerging-trends-

in-mobile-and-what-they-mean-for-your-business.html

7. eMarketer. “People Are Pretty Much Glued to Technology

24/7.” August 11, 2014. http://www.emarketer.com/Article/

People-Pretty-Much-Glued-Technology-247/1011097/1

8. Nielsen. “Shopping Lists: How Mobile Helps Consumers

Tick All the Boxes.” February 20, 2014. http://www.nielsen.

com/content/corporate/us/en/insights/news/2014/shopping-

lists-how-mobile-helps-consumers-tick-all-the-boxes.html

9. Cars.com Insights - Placed Inc. “Mobile Device

Use at the Dealership: How Smartphone Shopping Is

Impacting Automotive Retailing.” January 2014. http://

dealeradvantage.cars.com/da/wp-content/uploads/2014/01/

Placed-Mobile-Device-Use-Study-Jan-2014.pdf

10. xAd-Telmetrics. “2014 Mobile Path-to-Purchase

Study.” June 2014. http://www.telmetrics.com/

mp2p/MP2P_2014_GeneralRelease.jpg

11. Automotive News. “Dealers’ Phones Ring Again.”

David Barkholz. July 21, 2014. http://www.autonews.com/

article/20140721/RETAIL07/307219959/dealers-phones-

ring-again?cciid=email-autonews-&r=2772E6102356H8W

12. “The Millennial Mystery of Texting Vs. Calling

Revealed.” Ryan Jenkins. April 21, 2014. http://

ryan-jenkins.com/2014/04/21/the-real-reason-

millennials-choose-texting-over-calling/

13. Dataium. “Better Interactions, Better Results.” 2013. http://

www.autodealerchat.com/download#downloadCollateral

14. Contact At Once!. “What Should Your Dealership

Know About TCPA?” January 2014. http://www.

autodealerchat.com/download#downloadCollateral

15. Automotive News. “Study: Online Shoppers Demand

Fast Responses.” David Barkholz. November 4, 2013. http://

www.autonews.com/article/20131104/OEM06/311049967/

study:-online-shoppers-demand-fast-responses

16. Contact At Once!. “Last-Mile Connections: Helping

Shoppers Move From Online Search to Showroom

Visit.” July 2014. http://www.autodealerchat.

com/download#downloadCollateral


BE EVERYWHERE YOUR CUSTOMERSARE, READY TO RESPONDContact At Once! software boosts engagement by making it easy for consumers to connect with auto

dealers and ask questions at the moment their interest is piqued. More engagement can translate

into more sales, and that’s why 13,000 dealers, the world’s busiest automotive classified sites and

many automotive manufacturers rely on the Contact At Once! digital conversations platform to build

relationships with online shoppers. In fact, we’ve been #1 in dealer satisfaction for 4 years running at

the DrivingSales Dealer Satisfaction Awards.

Call or Text: [email protected] www.autodealerchat.com

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