Automotive

Online proposition and sales flow

Facts

81% of people who agree that they like innovative cars are going

online everyday or most days.

80% of those who like to drive fast go online everyday or most days.

77% of online users who would choose a car mainly on the basis of

its looks, are going online everyday or most days.

74% of online users who are not interested in what goes on under

the bonnet of a car are going online everyday or most days.

Of online users who are very/quite likely to convince others about a

car, 79% are going online everyday or most days (64% everyday).

Of online users who have talked to many different people about cars

in the last 12 months, 78% are going online everyday or most days

(and 16.5% of people who go online everyday have talked about

cars to many different people across the last 12 months).

Those who intend to buy a car in the next 12 months are 38% more

likely to use online during the car purchasing process than regular

internet users. (From BMRB TGI.net, wave 14)

Future

Consumers expect significant changes to the vehicle buying process in the

coming decade. Will automotive dealers and manufacturers be ready?

Online Vehicle Buying: ‗With the Click of a Mouse‘

Fuel Economy/Alternative-Fuel Vehicles: ‗No Emissions, No Petrol‘

The Role of Dealers and OEMs Will Change and follow the consumer‘s

needs

―The Web will be used to compare vehicles, select the model to buy,

configure it and get a quote, select the financing (credit or lease quote on

site), and make an appointment with the dealer for a test drive‖

―The role of the dealer will be to allow test drives, wrap up the sale and the

financing, and maintain the vehicle.‖

Recommendations

Implement online vehicle buying capabilities.

Take green seriously

Implement a holistic customer interaction strategy focused on improving

loyalty.

Be vigilant in allocating your marketing mix in reaching your customers.

Our vision

Internet has revolutionized how consumers buy cars and how the become

far more informed than a decase ago.

Online has greatly streamlined the decision making process for purchasing

a car.

Consumers are nowadays less dependent on a dealer channel.

Our vision

The better consumers are informed, the happier they are to buy.

• Online

acquisition • Website • Dealerships

Customer

buying

process

* study from J.D. Power and Associates.

– Recruiting leads with

different needs, in

different market

segments

– Optimize landings

pages, website

patterns, path/click

stream analysis

– Intuitive navigation

– Dealer/model

websites?

– (Local) SEM

– Dealer response on

leads

– Precision and

behavioural targeting,

depending on stage in

buying process

– Latest technologies e.g.

online video

development, social

– Internet leads are

quality opportunities*

– Customer engagement:

current customers are

more savvy, expect to

be engaged

– Branding or lead

generating campaigns

– Lowest CPM/CPC

– Short lead closing time

– Digital marketing

consulting & execution

– Contact strategies

– Audits digital marketing

performance

– Lowest customer

acquisition cost

– Optimized brand

awareness

What‘s u

p

What to

kn

ow

W

hat w

e d

o

Automotive process

Needs‘ Phase (6 months – 4 months)

Basic consumer needs and desires — size, space and

styling.

More than four models on the shopping list

High cross segment consideration

Movement between segments accounts

‗Features‘ Phase (3 months – 2 months)

Comparing models within a single segment focusing on

product features.

‗Price‘ Phase (final month) Vehicle cost becomes paramount as the intender visits

dealerships (usually for the first time)

Final comparisons are made that lead to purchase.

Less than two models on their list in last two weeks

Negotiate the best price with dealerships.

Source: CMI, Time Inc. Automotive Purchase Process ©December 2005

Automotive buying process

Finance

Insurance

Car specs

After sales

Maintenance plan

Dealer

Dealer

Dealer

Dealer

Quote

Dealer response

times

Cost per

Configured car

Print, save, email

Select multiple dealers

Full price availability

Cost per

test-drive

Cost per

survey

Test-drive

Post-testdrive

survey

My Car

Needs phase

Dealer

website

OEM

website

3rd party

website

Dealer profiles

Video technology

Online registration

Cost per

Visitor

Cost per viewed content

Cost per registration

Paid

search

Dealer communication

availibility

Testcar delivered at home

Negotiate price online

Natural

search

Social

media

Display

ads

(incentiviced) owners & test-drive

ambassadors

Spy fotos

Email

marketing

Feature phase

Develop contact strategy for

personalised newsletter & brochures

Event invitation, sneak previews

Behavioral & re-targeting

Eye-tracking study

Price phase

Brand, image,

quality

Space, styling,

Models available

Local search

Affiliation

CPM, CPC, CPA

ROAS

Content optimisation dealer/OEM

websites

Affiliate marketing strategy

Enhanced car configuration

More information

Douglas & Breitner

Timorplein 45

1094 CC Amsterdam

P.O. Box 94588

1090 GN Amsterdam

Stephan Schroeders - partner

M +31(0) 6 456 00 507

E stephan.schroeders@douglasandbreitner.com

W douglasandbreitner.com