Road-mapping financial services in the auto consumer‘s digital journey

Paris, 28 September 2017

How to optimize online auto finance?

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Automotive Finance 2.0

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Financing the drive

• DE: captive financing is the major source of finance for a new vehicle acquisition• UK: more than half of total buyers use non-captive finance • IT, ES, FR: similar to the UK, with for the most part non-captive finance solutions

45% 37% 37% 36% 34%

28% 52% 47% 49% 47%

27%11% 16% 15% 19%

Germany UnitedKingdom

Italy Spain France

New car financing in selected European markets

Captive Non-captive Non-Financed

The rising of captive finance

*

*Source: Roland Berger 2016

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Improved financesThe creation of financing options in the new vehicle market creates a number of positive knock on effects for OEMs

27.625.7

Customer of an auto bank

Cash buyer

20%

30%

27%

23%

19%

10%

25%

46%

<3 years

3-4 years

4-6 years

> 6 yearsCar buyers

Autobankcustomers

39%38%

28%19%

an extensive configuration

a new car instead of a used car

a new car earlier

a larger car model

The rising of captive finance

*Source: Roland Berger 2016

Because of the financing offer, clients decide to purchase..

What was the purchase price of your current vehicle?x 1000 €

How long did you buy your previous car?

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Finance to Product

Product to Finance “Give me your model and I will finance it”

“Give me your budget and I will find you a model”

“For almost half (45 percent) of leasing and finance customers, the question of which financial service offer to choose is more important than the choice of manufacturer”

AKA 2016

A new Model..

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0

2

4

6

8

10

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2014 2015 2016

www.sophus3.com

9.7%

Visits to Finance Content PagesPercentage of visits to finance content pages total visits EU Big5 2016

7.5%

4.8%

% of visitors who view Finance Content pages using configurator

with a finance calculator

31%

7Visitor KPIS

Average Visitor

20%

6.48 mins

6.4

Finance Content Visitor

(- 44%)

(+ 140%)

(+ 60%)

8Key Question is therefore

How much more likely to

complete anengagement

interaction overall?

?x

9Test Drive Requests

Visitors who access finance content are 60% more likely to request a test drive

0%

1%

1%

2%

2%

3%

3%

4%

4%

Fin Visits NonFin Visits

3.5%2.2%

% of visits to TD vs total visits

% of visits to TD by finance content

visitors

10In-Market Index

Visitors who access finance content more

than twice as likely to be In-Market

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Fin Visits NonFin Visits

4%

1.6%% of In-Market Visits of total

Visits

% of In-Market Visits that view finance

content

11Finance visitors are higher value visitors

More likely to complete anengagement

interaction

80%

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OmnichannelInitiativesBuild a seamless experience

for your customers

13Typical consumer journey - 2017

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Drive the

Deal

Parkers

BuyaCar

CarWow

CarKeys

AutoTrader

Honest John

What Car?

MotoringBroad speed

AutoeBid

Add: new car services

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Drive the

Deal

Parkers

BuyaCar

CarWow

CarKeys

AutoTrader

Honest John

What Car?

MotoringBroad speed

AutoeBid

Add: car disposal services

Wizzle

DealerBid

Car Buying Group

WeBuyAnyCar

CarKeys

AutoTrader

Honest John

Tootle

Motoring

Evans Halshaw

WeWantAny Car

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Drive the

Deal

Parkers

BuyaCar

CarWow

CarKeys

AutoTraderHonest John

What Car?

MotoringBroad speed

AutoeBid Wizzle

DealerBid

Car Buying Group

WeBuyAnyCar

CarKeys

AutoTrader

Honest John

Tootle

Motoring

Evans Halshaw

We Want Any Car

Carspring

Carsift

RAC

Motors

Vcars

Confused

Gum Tree

CarGurus

AutoTrader

PistonHeads

AA

Add: used car services

17Typical buying journey very inefficient

Sophus3 research H1 2016

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Sophus3 research H1 2016

Only 0.08% book test drive

Often ending in frustration

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20Today’s customer journey includes many touchpoints, each one is an opportunity

Sophus3 eDX H1 2017

Awareness

Consideration

Interest

Decision

Word of mouth PR Radio TV

PPC eMail Online Ads Reviews

Website Forum Dealership Social

Vouchers Phone Call Testdrive Live Chat

21Simplifying the consumer journey

Sophus3 eDX H1 2017

Awareness

Consideration

Interest

Decision

Word of mouth PR Radio TV

PPC eMail Online Ads Reviews

Website Forum Dealership Social

Vouchers Phone Call Testdrive Live Chat

22Omni-channel experienceUnderstanding the Customer Journey

GOAL = Offering a seamless experience throughout the customer

lifecycle. Finance is a seamless integrated part of that.

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RoadmappingOptimizing your online consumer finance journey

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First step on the roadmap is getting your digital plaform optimized –getting your ‚house in order‘.

Second step is optimizing your offer in relation to who your customer‘s real competition are.

Third step is to optimize the timing of your offer – converting the customer before s/he goes elsewhere because it is unlikely s/he will be back.

1. Optimize Flow

2. Optimize Offer

3. Optimize Timing

Goals of the Finance Roadmap

25Creating eDX Finance to help Captives optimize online financial services

Optimize Flow Optimize Offer

Tailor the offer that is most

likely to convert by

understanding what

messages/offers your

customer is evaluating.

Optimize Timing

Flag high value finance

visitors via their visitor

behavior on your and other

sites to target them with

your best offers.

Understand, improve and set

targets for each step of the

financial & digital consumer

journey.

26Optimize Flow Reduce uncertainty your performance through the purchase funnel

Your % site visits vs Market Average and anonymised Best-in-Class at each stage

27KPIs measured for phase 1Optimize Flow KPI Frequency Filter

Audience to Finance section on OEM site % Site Visits and Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Captive Bank domain Visits and % Visits vs OEM Finance Visits

Monthly Brand Performance vs Market Average & vs Best-in-Class

Device % Visits by Device type used Monthly Brand Performance vs Market Average

Audience to Financial Offers on OEM site % Site Visits and Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to CB from brand vs model sections

% Site Visits from OEM model pages vs from main site

Monthly Brand Performance vs Market Average

Audience to Configurator that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Configurator completion that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Test Drive that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Test Drive completion that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Request for a Quote that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

Audience to Request for a Quote completion that also visited Finance section

% Site Visits Monthly Brand Performance vs Market Average & vs Best-in-Class

28eDX Finance - Offer

What are the 3 other Offers my visitors are looking at

and THEN what is my best offer?

BIC Offer

Key Question

29eDX Finance - Timing

How do I identify high value visitors

and offer them my top offer?

Top Offer

Key Question

30Rollout of eDX FinanceImplementation Steps upon sign up to eDX Finance cross market in phase 1:

• Tag Finance section with eDX specific tags

• Sophus3 sets up processing and assigns data.

• eDX Finance reporting can be run out after data has been collected for the first full month

We currently estimate the roll-out of this step after6-12 months & cross market:

• No additional set up needed on brand or financial sites if all was tagged in phase 1.

• Once about 6 months of historic behavioural data has been gathered, Sophus3 will set up and issue analysis and reporting to help Optimize Offer.

• Sophus3 can facilate Captive Bank teams make the most of the data insights and help with generating the most effective action plan.

We estimate the roll-out of this step after 12-18 months after first start of project:

• This phase builds on the insights and best practice by brand learned in the first 12 months.

• It further builds on the data gathered to 1) understand the digital customer journey and 2) apply those to the behavioural pattern measured in order to set up an active engagement project on site that maximizes the conversion of purchasing engagements on the digital showroom.

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Group Discussion around leveraging & optimizing digital technologies for Captive Banks with eDX Auto Finance

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THANK YOUAny Questions?