new strategies for online retail · 2015. 9. 15. · mike burgiss founder & vp | makemydeal...
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New Strategies for Online Retail
That Keep You in Control
Mike Burgiss
Founder & VP
AGENDA
Part 1: Concepts
Part 2: Making It Real
Online Retailing is Here 1
“I can buy everything else online,
why not my next car?”
BUY ONLINE FREE SHIPPING
SKIP THE DEALERSHIP
10
Selling cars is a relationship business.
It always has been, and it always will be.
11
Selling cars is a relationship business.
It always has been, and it always will be.
HISTORY OF THE INTERNET
2014 1994 2004
HISTORY OF THE INTERNET
1994 2014
PUBLISHING
2004
1994
HISTORY OF THE INTERNET
2014
PUBLISHING
2004
SHOPPING CART
eCOMMERCE
1994 2004 2014
HISTORY OF THE INTERNET
PUBLISHING CONNECTION &
COMMUNICATION
SHOPPING CART
eCOMMERCE
1994 2004 2014
HISTORY OF THE INTERNET
PUBLISHING CONNECTION &
COMMUNICATION
CONNECTION COMMERCESM
SHOPPING CART
eCOMMERCE
3 CONNECTION COMMERCESM
The Right Strategy for Automotive is
not Shopping Cart
eCommerce
CONNECTION COMMERCE
SM
Cox Automotive “It’s About Time” Whitepaper 2014
4 The Top 5 Car Buyer Frustrations Are All About The Buying Experience
The Experience Economy
Source: Joseph Pine 2004
Commodity
The Experience Economy
Good
Commodity
Source: Joseph Pine 2004
The Experience Economy
Service
Good
Commodity
Source: Joseph Pine 2004
Experience
The Experience Economy
Service
Good
Commodity
Source: Joseph Pine 2004
Experience
The Experience Economy
Service
Good
Commodity $ 0.02
$ 0.10
$ 1
$ 4
Source: Joseph Pine 2004
Experience
Basis of Competition
Service
Good
Commodity
Source: Joseph Pine 2004
Experience
Basis of Competition
Service
Good
Commodity Availability
Source: Joseph Pine 2004
Experience
Basis of Competition
Service
Good
Commodity Availability
Price
Source: Joseph Pine 2004
Experience
Basis of Competition
Service
Good
Commodity Availability
Price
Quality
Source: Joseph Pine 2004
Experience
Basis of Competition
Service
Good
Commodity Availability
Price
Quality
Authenticity
Source: Joseph Pine 2004
29
An Authentic Buying Experience is the new basis of competition
5
Genuine
Legitimate
Real
Authenticity
Starting
Relationships?
Being
Authentic?
How well does your VDP perform at:
SUBMIT
~2006
67%
ONLINE SHOPPING
Source: *McKinsey’s 2013 Retail Innovation Consumer Survey
** 2009 J.D. Power Autoshopper.com Report
SUBMIT
~2006
67%
ONLINE SHOPPING
SUBMIT
3-5 DEALERSHIP VISITS
1.4 Source: *McKinsey’s 2013 Retail Innovation Consumer Survey
** 2009 J.D. Power Autoshopper.com Report
~2006
67%
ONLINE SHOPPING
SUBMIT
3-5 DEALERSHIP VISITS
1.4 10%
Source: *McKinsey’s 2013 Retail Innovation Consumer Survey
** 2009 J.D. Power Autoshopper.com Report
Don’t Just Get The Lead, Win The Deal Online 6
~2006
67%
ONLINE SHOPPING
SUB
MIT
3-5 DEALERSHIP VISITS
1.4 Source: *McKinsey’s 2013 Retail Innovation Consumer Survey
** 2009 J.D. Power Autoshopper.com Report
Starting Relationships? Being Authentic? Winning the Deal?
How well does your VDP perform at:
SUBMIT
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
CURRENT STATE: TRUST GAP
FIRST CONTACT
COMPLETED
DEAL
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
CURRENT STATE: TRUST GAP
FIRST CONTACT
COMPLETED
DEAL CONSUMER’S PREFERRED PATH
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
CURRENT STATE: TRUST GAP
FIRST CONTACT
COMPLETED
DEAL CONSUMER’S PREFERRED PATH
DEALER’S PREFERRED PATH
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
CURRENT STATE: TRUST GAP
FIRST CONTACT
COMPLETED
DEAL CONSUMER’S PREFERRED PATH
DEALER’S PREFERRED PATH
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
CURRENT STATE: TRUST GAP
FIRST CONTACT
COMPLETED
DEAL CONSUMER’S PREFERRED PATH
DEALER’S PREFERRED PATH
Credit App Lead Forms
Pricing Guarantee
Payment Calculators
Dealer’s Danger Zone
Customer’s Danger Zone
Work Deals, Not Just Leads 7
How much the Dealer knows about the Consumer
How much
the
Consumer
knows
about the
Deal
FIRST CONTACT
COMPLETED
DEAL
Summary of Concepts
1 Online Retailing is here
2 Selling Cars is a Relationship Business
3 CONNECTION COMMERCE, not
4 Top 5 Frustrations Buying Experience
5 Compete on Experience & Authenticity
6 Win the Deal Online
7 Work Deals, not just leads S U B
M I T
SM
AGENDA
Part 1: Concepts
Part 2: Making It Real
44
$383*
Start
START YOUR CAR DEAL ONLINE
45
Start Your Deal
Start
$383*
Start
START YOUR CAR DEAL ONLINE
(900-750) (749-700) (699-650) (649-600) (<599)
(MakeMyDeal N=2693)
0%
10%
20%
30%
40%
50%
Excellent Very Good Good Fair* Poor*
#WorkDealsNotLeads
U.S. Average
APPEAL TO BUYERS ACROSS THE CREDIT SPECTRUM
47
$383*
Start
START YOUR CAR DEAL ONLINE
48
Start Your Deal
$383*
49
Start Your Deal
$383*
(MakeMyDeal N=2547)
TRADE-IN CONDITION
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Excellent Very Good Good Fair
At HandShake
#WorkDealsNotLeads
KBB Benchmark
TRADE-IN CONDITION
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Excellent Very Good Good Fair
At HandShake
#WorkDealsNotLeads
KBB Benchmark
(MakeMyDeal N=2547)
TRADE-IN CONDITION
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Excellent Very Good Good Fair
At HandShake
#WorkDealsNotLeads
KBB Benchmark
(MakeMyDeal N=2547)
53
2014 Nissan Xterra S
MILEAGE: 17,595
STOCK #: T1164
VIN: 5N1AN0NW9EN839675
Retail Price: $22,000 XXXX
54
55
XXXXX
56
XXXXX
57
XXXXX
(MakeMyDeal N=369)
0%
10%
20%
30%
40%
50%
60%
70%
1-5 6-10 11-30 31+
#WorkDealsNotLeads
Email Leads
D A Y S T O B U Y
ACCELERATE THE SALES CYCLE
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
18-33 34-46 47-68 69+
#WorkDealsNotLeads
Traditional
Millennials X-ers Boomers Silent
(MakeMyDeal N=217)
APPEAL TO ALL GENERATIONS
Source: Dealer CRM email from customer to dealer
BUYER FEEDBACK
This was my best purchase experience by far.
— Dantae
Why Online Retailing Will Keep You in Control
Mike Burgiss Founder & VP | MakeMyDeal
Atlanta, GA | 404-259-4225
mike.burgiss@makemydeal.com
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