REVERSE ENGINEERING THE AUTOMOTIVE PURCHASE FUNNEL KEN INSANA SENIOR MANAGER, CONSUMER RESEARCH
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1 REVERSE ENGINEERING THE AUTOMOTIVE PURCHASE FUNNEL KEN INSANA SENIOR MANAGER, CONSUMER RESEARCH
2 COMMON ASSUMPTIONS
3 NONE OF THESE ARE TRUE 6 MONTHS Length of Purchase Process LINEAR Shape of Purchase Process Certain Actions Predict Sales Provide Comprehensive Measurement KPI s OEM SITES
4 PAST OPTIONS NOT ENOUGH IMBB BROAD CLOSED LOOP ROI NARROW LEAD GENERATION SMALL PANELIST RECALL UNRELIABLE
5 WHAT IF WE GO BACKWARD?
6 PANEL SALES BLOG BROCHURE REQUEST BUILD YOUR OWN CALCULATE PAYMENTS CAR FINDER COMPARE VEHICLES PAYMENT ESTIMATOR LOCATE DEALER MODEL INFORMATION OFFERS PHOTO GALLERY REQUEST A QUOTE REVIEWS SEARCH INVENTORY SELL YOUR CAR TRADE IN
7 KEY INSIGHTS
8 WHAT WE LEARNED PURCHASE CYCLE IS SHORTER
9 OLD ASSUMPTION 6 MONTHS 28 DAYS
10 NEW ASSUMPTION 28 DAYS Active In-market period before purchase 37 DAYS PRIOR 9 DAYS PRIOR FIRST KPI LAST KPI
11 WHAT WE LEARNED THERE IS NO LINEAR PURCHASE PATTERN # OF KPI ACTIVITIES VARIES WIDELY FIRST & LAST KPI LOOKS SIMILAR PURCHASER PATHS SHOW WIDE VARIETY
12 A FRENZY OF ACTIVITY 3.5 SITES VISITED 25% VISIT 5+ SITES 80 KPI s PERFORMED KPI % OF SALES # OF TIMES Search Inventory 54.9% 84 Build Your Own 39.3% 41 Model Information 33.8% 10 Request a Quote 32.2% 6 Trade In 30.5% 9 Locate Dealer 28.4% 10 Offers 26.3% 6 Reviews 16.8% 12 Compare 14.8% 16 Payment Estimator 13.0% 8 Photo Gallery 9.7% 4 Brochure 4.2% 3 Blog 2.7% 4 % OF BUYERS WHO PERFORMED
13 WHAT BUYERS DID FIRST KPI % OF SALES Search Inventory 22.2% CPO 17.8% Build Your Own 11.3% Trade In 10.2% Model Information 8.4% Request a Quote 7.7% Locate Dealer 5.5% Offers 5.1% LAST KPI % OF SALES Search Inventory 24.6% CPO 14.8% Build Your Own 13.0% Model Information 9.4% Trade In 7.9% Locate Dealer 6.3% Request a Quote 6.2% Offers 4.9%
14 WHERE BUYERS FINISHED 59% OEM SITES 41% 3 RD PARTY SITES
15 THE STANDARD PURCHASER 5/28 5/31 5/31 6/1 6/1 6/1 IN MARKET FOR 10 DAYS 6/1 121 KPI s UNIQUE KPI s PERFORMED Build Your Own 30 Estimator 5 Locate a Dealer 4 Model Information 41 Offers 5 Photogallery 1 Request a Quote 3 Reviews 32 NISSAN MURANO 6/4 6/3 6/3 6/3 6/3 6/4 6/4 6/5 6/5 6/6 6/6 6/7
16 ALL FOR NOTHING 11/8 11/8 12/15 12/22 12/23 12/23 ClearnignLots.comDealer IN MARKET FOR 78 DAYS 12/23 57 KPI s UNIQUE KPI s PERFORMED Build Your Own 4 Brochure 1 Locate a Dealer 30 Model Information 2 Trade In 1 Photogallery 1 Request a Quote 4 Reviews 14 1/5 1/5 1/2 12/29 12/27 VOLVO XC 90 1/7 1/7 1/15 1/23 1/25
17 THIRD PARTY GURU 1/1 1/1 1/13 1/15 1/17 1/ KPI s UNIQUE KPI s PERFORMED Build Your Own 10 Car Finder 82 Compare Vehicles 5 Model Information 3 Financial 2 Reviews 32 IN MARKET FOR 88 DAYS 1/29 2/5 2/3 1/31 1/30 1/29 TOYOTA PRIUS 2/6 2/7, 2/15, 2/16, 2/20, 2/21, 2/22, 2/23, 2/24, 2/26, 2/28, 3/10, 3/14, 3/19 3/29
18 THE REASSURED 4/29 1 REQUEST A QUOTE CarPriceSecrets.com IN MARKET FOR 7 DAYS 4/30 1 BUILD YOUR OWN 4/30 4 REVIEWS 12 KPI s UNIQUE KPI s PERFORMED Build Your Own 4 Locate a Dealer 3 Request a Quote 1 Reviews 4 5/1 3 LOCATE A DEALER 4/30 2 BUILD YOUR OWN HYUNDAI ELANTRA 5/5 1 BUILD YOUR OWN 5/5
19 WHAT WE LEARNED 3RD PARTY SITES ARE GROWING IN IMPORTANCE VOLUME HIGHER IN 2011 THAN OEM SITES OEM NOT ALWAYS PRESENT IN RESEARCH PATH
20 IMPORTANCE OF 3RD PARTY RESEARCH SITES GROWING 80% 70% 60% 50% 40% 30% OEM 3rdParty 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec KPI defined as: Blog, Brochure, Build Your Own, Calculate Payments, Car Finder, Compare, Payment Estimator, Locate Dealer, Model Information, Offers, Photo Gallery, Request a Quote, Reviews, Search Inventory, Sell Your Car, Trade In
21 BUYERS USE MULTIPLE SITES TO INFORM THEIR DECISIONS 100% 90% 80% 70% 60% 50% 37% NEVER VISITED OEM SITE 40% 30% 20% 10% 0% # of sites used Both OEM & 3rd Party OEM Only 3rd Party Only
22 WHAT WE LEARNED 3RD PARTY SITES ARE USED DIFFERENTLY PORTALS USED BEFORE AUTO SPECIALTY SITES AOL AUTOS: REVIEWS & MODEL INFO MOST IMPORTANT
23 Portals Endemics OEMs MSN Autos 23 Days 18 Days 15 Days 12 Days OEM 22 Days 14 Days 9 Days 25 DAYS PURCHASE MEASURED BY LAST KPI PERFORMED ON RESPECTIVE SITES
24 94% KPI s ARE NOT INVENTORY SEARCHES FIRST KPI AOL Autos Model Information 56.9% MSN Autos Model Information 56.7% KBB Model Information 19.3% Yahoo Autos Model Information 18.1% Edmunds Model Information 16.6% Autotrader Model Information 8.8% Cars.com Model Information 1.8% LAST KPI AOL Autos Model Information 44.8% MSN Autos Model Information 26.9% KBB Model Information 21.6% Yahoo Autos Model Information 15.3% Edmunds Model Information 12.3% Cars.com Model Information 2.7% Autotrader Model Information 2.4% AOL Autos Reviews 13.8% Edmunds Reviews 12.7% Yahoo Autos Reviews 9.7% MSN Autos Reviews 6.0% Cars.com Reviews 5.9% KBB Reviews 2.3% Autotrader Reviews 0.8% AOL Autos Reviews 27.6% MSN Autos Reviews 16.4% Yahoo Autos Reviews 11.1% Edmunds Reviews 9.1% Cars.com Reviews 5.9% KBB Reviews 2.6% Autotrader Reviews 2.4% % OF BUYERS WHO VISITED THAT SITE AND PERFORMED AT LEAST 2 KPI S
25 APPENDIX
26 METHODOLOGY 2011 BUYERS 90 DAYS OF KPI ACTIVITY PRIOR TO PURCHASE ASSUMED 5 DAY LAG BETWEEN PURCHASE AND DMV REGISTRATION NOT ALL KPI ACTIVITY IS CONSISTENT ACROSS SITES DIFFERENT URL STRINGS VARYING LEVELS OF DEPTH PAGES INCONSISTENCY DUE TO SITE REDESIGNS PASSIVE VS ACTIVE KPI (VIDEOS, ETC) KPI DEFINED AS: BLOG BROCHURE REQUEST BUILD YOUR OWN CALCULATE PAYMENTS CAR FINDER COMPARE VEHICLES PAYMENT ESTIMATOR LOCATE DEALER MODEL INFORMATION OFFERS PHOTO GALLERY REQUEST A QUOTE REVIEWS SEARCH INVENTORY SELL YOUR CAR TRADE IN
27 PROCESS IS NOT LINEAR: ORDER AND COMBINATION OF KPI s DOES NO KPI ORDER IS DOMINANT NOT MATTER Search Inventory++Build Your Own 28.9% Build Your Own++Search Inventory 28.3% Model Information++Search Inventory 27.3% Search Inventory++Model Information 26.7% Search Inventory++Locate Dealer 24.1% Locate Dealer++Search Inventory 23.7% Search Inventory++CPO 23.4% CPO++Search Inventory 22.9% Request a Quote++Search Inventory 22.0% CPO++Build Your Own 21.7% NO KPI COMBO IS DOMINANT Build Your Own++Search Inventory 33.8% Model Information++Search Inventory 31.8% Locate Dealer++Search Inventory 28.5% CPO++Search Inventory 28.0% Request a Quote++Search Inventory 27.4% Search Inventory++Trade In 25.2% CPO++Build Your Own 24.9% Build Your Own++Model Information 24.5% Offers++Search Inventory 24.2% Build Your Own++Request a Quote 23.8%
28 QUESTIONS & NEXT STEPS
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