Tier 3 Automotive Marketing

ADVANCE OHIO

September 2016

Steve Erne

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Subprime Car Loans on the Rise with longer terms being granted

Sources: http://sanfrancisco.cbslocal.com/2016/08/24/consumerwatch-used-car-prices-soar/

2.9%

New Car Sales Have PeakedCleveland SAAR sales is down 2.9% over 2015

11.4%

Inventory levels are up 11.4% YoY

9.6%

Average Manufacturer Incentives are up to 9.6% of MSRP

1 OUT OF EVERY 3 NEW CAR SALES IS A LEASE which residually puts more newer used cars in to the market and drive prices down

Subprime Car Loans are on the RISE with longer terms being granted.

IS THE AUTOMOTIVE BUBBLE READY TO BURST?

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• Have a plan to monetize data across departments

• Executive marketing strategies that are in line with what your sales dictate

• Gain competitive advantage by creating experiences along the customers journey

• Market Share is zero sum game, not everyone will win

Tier 3 Auto Plans for the future

KEYS TO PROGRESSIVE — FORWARD THINKING

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OUR PROCESS — MAXIMIZING YOUR DATA

VIDEO

SOCIALMEDIA

DISPLAY

SEARCH

EMAIL

DEALER CRMDATA

DEALER WEBSITE

DATA

ADVANCE 1ST & 3RD

PARTY DATA

ADVANCE OHIODATA MANAGEMENT

PLATFORMIDENTIFIED TARGETS

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Repeat Customers – 60% of monthly salesCRM matching to digital devices for personalized targeting across mediums used most• Lease Renewal Campaigns• Ownership Length (2+ yrs) with Loan Equity

Campaigns• Ownership Length & High Mileage Campaigns• Additional Household Vehicle Purchases

Ex: 700 Customers with 2+ years of ownership and equity

=> 200 take advantage of oil change offer online

=> 40 test drive the new model while waiting

=> 10 buy new car with same payment

=> 5 trades re-sold

Attainable ROI ≈ 7:1 (CRM Match Back)

SALES STRATEGY #1 RETENTION

Gets timely service offer

delivered on phone to come

into dealership.

SALES STRATEGY #1 RETENTION

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Mercedes C-Class+4k equity

Dave (35)

CURRENTLY DRIVES:

DIRECT OFFER

Test-Drive for a day.

Test-Drive for a day.

Also offered same or

lower payment on the newest Mercedes

IN-STORE OFFER:

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Referral Customers – 20% of monthly sales

SALES STRATEGY #2 REFERRALS

We must tap in to the network of your customer database• Personal Network – Auto Intender

Campaigns• Look-a-like Affinities – Auto Intender

Campaigns

Ex: 4,000 loyal customers matched online 12,000 look-a-like targets in their referral network Þ 3,000 targets in market within 180 days

Þ => 10% convert to leads each month

Attainable ROI ≈ 5:1 (Web Analytics Attribution)

+

FRIENDCurrently searching for family SUV’s – 30-90 days outs

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SALES STRATEGY #2 REFERRALS

GMCProud Owner and Loyal Customer

Sarah (40)

CURRENTLY DRIVES:

LARGE SOCIAL NETWORK

OF FRIENDS & FAMILY

SARAH’SSOCIALMEDIA

NETWORK

CO-WORKERlease is up in 3 months, competitive brand

FRIEND OF A FRIEND reached thru customer testimonial on social media

TARGET LOOK-A-LIKES

IN NETWORK

L O O K - A - L I K EO N - L I N E B E H A V I O R S

+

+

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SALES STRATEGY #3 NEW CUSTOMERS

CRM Prospect Re-Engagement Campaign• Recent prospects still in 90 day path to purchase• Previous prospects again showing online auto

behavior

Physical Behavior Targeting Campaign• Devices who have been in competitor dealer

locations

Online Behavior Targeting Campaign

• Targeting people on your site, manufacturer sites, and 3rd party lead provider sites within 30 days

Attainable ROI ≈ 3:1 (CRM Match Back, & Web Analytics Attribution)

New Customers – 20% of monthly sales

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Be Known in Your Backyard

SALES STRATEGY #4 LOCAL MESSAGING

There are 750,000 adults within a 20 mile radius of your dealership, but 735,000 of these are not in the market for a car!

We must still brand your dealership to them because:• 2% drive a Buick now• 3% drive a GMC now• 64% currently drive competitor

make/models

ROI ≈ high funnel awareness

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Service is the future! CRM matching to digital devices for personalized targeting across mediums used most• Inactive Customer Campaigns

o Engage inactive service customers who use aftermarket quick change shops

o Show expertise around new car maintenance, convenience

o Tire Match guarantees

• Increased Profitable ROs with known mileage/age targetingo 75,000 or 100,000 Mile Maintenance Campaigno New Tire Campaign based on known mileage

Attainable ROI ≈ 3:1

SERVICE STRATEGY INCREASE R.O. VOLUME

Re-purchase rates at 40% higher among loyal service customers

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Key Performance Indicators to Track Success• CRM match back sales• Offer redemptions• Website traffic & session increase• VDP’s• Leads• Appointments• Calls

TRACKING AUTO BUYER INTENT

To gather data, we’ll use the following:• UTM codes• Web pixels• Google Analytics

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BUDGET RECOMMENDATION

Data Management Partnership: $XXXX/mo• CRM Ingestion and Data Enrichment• Building 1st Party Dealer Database• Tracking Pixel, Google Analytics Goals & Reporting

Digital Media Spend towards outlined strategies: $XXXX/mo• Retention Strategy: 20% • Referral Strategy : 25%• New Sales Strategy : 30% • Local Brand Strategy : 15% • Service Strategy: 10%

Foundational Digital Lead Capturing: $XXXX/mo• SEM XXXX%, SEO XXXX%

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NEXT STEPS

Pre-Launch:• Signed NDA with AO• CRM Ingestion & data segmentation• Database enrichment and analysis• Pixels placed on Dealer website pages and email

communication• Google Analytics/ Adword access given to AO• Google Analytics goal setup• Social Media access given to AO• AO to receive access to creative assets

Ongoing:• Creative development and optimization• Weekly status reports on each campaign• Monthly reporting and analytics• Database POS match-back

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AUTO DEALERSHIP CASE STUDYTURNING YOUR WEBSITE IN TO A LEAD

ENGINE• REDUCING RELIANCE ON 3RD PARTY LEAD PROVIDERS• CONQUEST TIER 1 AND TIER 2 MANUFACTURER EFFORTS • HIGHER QUALITY BRAND LEADS

28.5leads per month

4.4% close rate

108

new cars sold/month

Before AO 6 months with AO 12 months with AO• Site had more than 180

leads from the website

• 14% close rate• 320% growth in site leads

• Site had more than 71.4 leads from the website

• 6.4% close rate• 117 cars sold/mo

• Site had more than 28.5 leads from the website

• 4.4% close rate• 108 cars sold/mo

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A SEARCH ENGINE MARKETING STRATEGY ABOVE THE REST

Sources: http://www.datamentors.com/blog/10-social-media-strategies-car-dealershipshttp://www.performanceloyalty.com/resources/news/120326_HardFacts_whitepaper.shtml

D E A L E R B

Both targeted keyword groups around specific terms, as well as manufacturer and dealership brand names, but Dealer B outperformed Dealer A despite spending 41% less each month.

How is this possible?

• Website Sessions

SEM Strategies• Targeted

Keyword Groups• Manufacturer

and Brand Names• Dynamic

Inventory• Active Budgeting

& Responsible Bidding

• Hands On

• Paid Search Spend

• Other Lead Conversions

• Total VDP Goal Conversions

• Cost per Vehicle Detail Page

3,389

$10,000

106

1,643

$6.60

4.357

$5,820

716

2,084

$4.25

D E A L E R BD E A L E R A

D E A L E R A Used a manufacturer approved vendor for their SEM campaign.

D E A L E R B Worked with Advance Ohio.

DEALER B Outperformed

DEALER A despite spending

41% less each month.

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Thank you.

Steve Erne