Cars.com at Digital Dealer 2011 -- Winning With Mobile: Selling Generation Smartphone

Winning With MobileSelling to the Smartphone Generation

About Me

Jack Simmons• Dealer Training Manager, Cars.com• Over 30 years of automotive retail

experience

Connect with Me:

dealers.cars.com/facebook

dealers.cars.com/twitter

email: [email protected]

Our Objectives

• Understand the mobile audience and learn how shoppers are using mobile devices Who?

• Build a mobile game plan for your store to reach and connect with the mobile shopperHow?

• Engage mobile shoppers and build process to drive more sales Wow!

Who is Generation Smartphone?

A Large and Growing Market

eMarketer, February 2011

Car Shoppers Plan to Use Mobile

78% of people looking to buy a new car in the next year indicated that mobile will have a role in their car purchase process.

Greystripe 2011

Cars.com/Nielsen Survey

In May 2011, Cars.com partnered with Nielsen to conduct an online survey of mobile car shoppers.

• The study involved more than 1,600 respondents who either purchased a car in the past 6 months or are planning to purchase one in the next 6 months

• Respondents used their smartphone, advanced feature phone and/or tablet in the vehicle shopping process

n=1,647

apps

mobile web

Mobile Shoppers Are…

14%

62%

17%

Household Income

Series 1

18-24 9%

25-34 30%

35-44 24%

45-54 18%55+ 20%

Age

…Younger, More Affluent and Building a Family

Nearly half have kids under 18

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

A Valuable Audience

Key Decision Makers• All Mobile Car Shoppers play some role in the purchase decision, with the majority

making the final decision• 63% will make the final decision

Ready to Buy• Most shoppers who intend to purchase a vehicle will do so within 4-6 months –

55% • 33% will purchase within 3 months

New Car Intenders• Most Mobile Car Shoppers are in the market for a new vehicle rather than used or

certified pre-owned• 43% plan to purchase a new vehicle

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

Smartphones Dominate Shopping

83%

44%28%

97%

73%

32% 28%15%

Smartphone Mobile Phonewith advanced

features

Tablet PCs Desktop orLaptop

computer

MP3/portablemedia player

Handheldgaming device

E-bookreaders

Basic MobilePhone

83% of mobile car shoppers have a

smartphone28% use a tablet

Types of Devices OwnedBase: All Respondents (n=1647)

Note: device ownership is not mutually exclusive

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

Where Do Shoppers Go Mobile?

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

92% at home

On the go:• 64% outside• 59% at a restaurant, café or bar• 54% waiting in line

66% at the office

60% of recent purchasers used

their device on the dealership lot!

38% in the bathroom

Building Your Mobile Game Plan

Mobile Shoppers Likely to Use Dealer Sites

eMarketer, October 2010

Yet Only Small Percent Deliver

eMarketer, October 2010

Win the Sale by Going Mobile

• Develop Mobile Websites and Apps Create a mobile-ready version of your dealership

website Gain a competitive advantage by giving your customers

the option of searching your website via their mobile phone.

Allow customers to view your inventory, see detailed vehicle listings, complete lead generation forms, or click-to-call your dealership.

Frequency of Using Automotive Apps and WebsitesAll Mobile Car Shoppers (n=1647), Males (n=832), Females (n=815)

Q. How often did you use/have you used the following on your mobile device to find information or research for your most recent/in your current vehicle shopping process?

Mobile Web Dominates Apps

5%

8%

6%

4%

9%

8%

18%

31%

19%

17%

32%

30%

14%

27%

16%

12%

27%

28%

20%

20%

20%

30%

33%

43%

2%

39%

47%

3%

2%

31%

Automotive Apps onMobile Device

Automotive Websiteson Mobile Device

Male (Apps)

Female (Apps)

Male (Web)

Female (Web)

Every Day At Least Once a Week At Least Once a Month Less than Once a Month Never

All Mobile Car Shoppers

Automotive Apps of Mobile

Device

Automotive Websites of

Mobile Device

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

Preference: Automotive App Vs. WebsiteUsed Both Mobile Apps and Mobile Web on Phone (n=62), Used Both Mobile Apps and Mobile Web on Tablet (n=39)

Q. You mentioned that you have used both Automotive apps and Automotive websites on your mobile phone/tablet PC in the past 3 months. Do you prefer using downloadable Automotive apps or Automotive websites on your mobile phone/tablet PC?Q: How often did/do you use the following on your mobile device to find information or research for your most recent/current vehicle shopping process?

Those who use both prefer apps

On Mobile Phone On Tablet

55%

33%

23%

41%

23% 26%

Prefer using downloadable automotive apps

Prefer using automotive websites

No preference

Web98%

App57%

Automotive App vs. Web Usage on Mobile Device for Vehicle Shopping

All Mobile Shoppers (n=1647)

55%

Cars.com: Mobile Web and App Usage for Automotive Shoppers (Source: Nielsen)

Mobile ActivitiesAll Mobile Car Shoppers (n=1647)

What Mobile Features Are Most Important?

Q. In your most recent vehicle shopping process, which of the following did you do on your mobile device within the automotive apps or websites you visited?

Mobile Activities

View photos 77%

Find dealership info 76%

Compare vehicle prices 71%

Search new/used listings 67%

Read expert/ consumer vehicle reviews 63%

Evaluate how much car is worth/trade-in values

60%

Read dealer reviews 51%

Contact dealer via email 41%

1% 1%1%

3%

4%

6%6%

8%

6%

Easier toUse/Navigate

Faster Speed View/ CompareSpecifications

Price Info/Comparisons

BetterPictures/Videos

Easier toCompare Cars

Discount Info Loan Info More Reviews

Additional Desired Features on Automotive Apps/Mobile WebsitesAll Respondents (n=1647)

Opportunities for Dealer Sites and Apps

Q32. What types of features are currently missing from current automotive apps/mobile websites? Which additional features would make your shopping experience better?

• “I would like better layouts and more options”

• “They currently lack good mobile web interfaces that are easy to read and navigate”

• “Specific info including options available and their costs”

• “Price comparisons for similar types of cars”

• “A greater emphasis on comparative shopping”

• “Easier way to compare vehicles”

Wow: Engage Mobile Shoppes

Mobile Coupons

Connect with Text

male female 13-17 18-24 25-34 35-44 45-54 55-64 65+0

500

1000

1500

2000

2500

3000

3500Calls vs. SMS

# of calls made/received # of SMS sent/received

Source: The Nielsen Company, Mobile Media Insights, Q4 2010

Send to Phone

• Alert buyers to your inventory options that meet their needs

Build Confidence on the Lot

• Use QR codes to make it easy for mobile shoppers to connect with information that prepares them for purchase

Fuel Decision Making With Instant Access to Reviews

25

“Smart” Customer Service

• Use mobile services to enhance customer service by allowing customers to: Check in for service on a smartphone Approve service quotes and pay bill directly

from a mobile device Sign up for alerts for maintenance, recalls,

warranty expiration and notifications Your Vehicle is Ready” “Your Special Order Part is in”

Receive service special alerts

Arm Your Staff for Sales Success

• Provide your sales staff with mobile tools: Boost productivity Connect with

customers Be transparent with

the process

Top Mobile Apps for Dealers

• Variety of dealer focused mobile tools to manage every aspect of your business on the lot and away from the store: Inventory management Lead response Mobile chat Appraisals Vehicle history reports CRM

QUESTIONS?

THANK YOU!