WHAT CONSUMERS ARE DOING AND WHY THEY ARE DOING IT
Ken Insana
Canadian Digital Dealer 6, hosted by the Trillium Automobile Dealers Association (TADA), not only provided attendees with a great insight into effective sales processes and how dealerships can really engage with their customers, it also provided a great insight into what consumers are doing online and why they’re actually doing it.
Ken Insana, from AOL’s Consumer Analytics division, gave a very interesting view on big data, how it enables dealers to really see what consumers are doing online and why and when they are doing it.
He started talking about creating demand, citing Jell-O and how by sending out scores of salesmen to deliver households complimentary Jell-O cookbooks in the 1920s, a value proposition was created and demand for the product exploded.
“Create value and people will buy from you,” says Insana. Referring to how branding acts essentially as a demand generator, Insana notes that branded searches online can prove to be the ultimate closer, provided there is a value proposition for the consumer who is searching.
“If you type in Ford Focus and fuel economy and you see an ad that says Chevy Cruze, 42 miles per gallon, if mpg matters to that consumer — you’ve done a good job at conquesting them.”
On the other hand, he noted that if an ad for a Nissan Versa at $149 comes up, and the person doesn’t know about the Versa, there is no value, so search can’t really work properly.
Insana notes that in the past, the best opportunity to reach decision makers in the household was to contact them at prime time, but today things are different. While data shows computer and mobile usage tend to peak during daytime/working hours, tablet usage peaks during the same period as TV viewing.
He notes that AOL’s own data shows that 97 per cent of those consumers watching TV have another device present with them and that savvy marketers understand the need for complementary media plans where they are not only buying TV ads but also pre-roll video commercials.
THE PRIME TIME SHIFT
“Here’s the scary thing,” Insana says. “PVR and digital recording has shifted prime time viewing and 60 per cent of consumers say they avoided all commercials.” As a result, he says the idea of running time sensitive TV ads today isn’t a good marketing tactic because, chances are the intended audience won’t view the ads when they are relevant.
“Online video is safer in this case,” he says. Insana says that not only can video pre-roll work better from a timing standpoint, it also enables you to get your marketing message across more effectively, since it is tied to a single video and isn’t trying to stand out amid all the noise television commercials tend to generate, even when watching TV live.
Grant Gooley
Moving on to more in-depth data analysis related to automotive shoppers, data from AOL and Polk suggest the average consumer has just a 28 day window before beginning their first interaction related to a vehicle and the time they actually begin the real buying process. “This is remarkably short,” says Insana.
During that period, Insana notes that a lot of activity tends to happen with consumers comparing different models, colours and options but in the case of automotive purchases the actual brand preference tends to have been already set.
Further research, conducted in conjunction with J.D. Power revealed that 61 per cent of consumers said digital research actually impacted their choice of dealership. “Digital is three times more influential than traditional advertising,” says Insana. “If I’m reading a newspaper and noticing an ad, by the time I get to the computer my impetus has gone. If I see something online it is right there and more influential, simply because of convenience.”
HOW IT ALL WORKS
The final speaker during the Toronto stop for Canadian Digital Dealer 6 was Grant Gooley, Director of Marketing for the Zanchin Automotive Group.
Gooley talked about the digital marketing “Eco System” and how dealers can use data to build trust, value and transparency with their customers.
“It takes a long time to make things change,” he says “and we have to take baby steps. But we will get there.”
Vendor area was busy with activity during networking breaks
He says while the growth in social media has led to many dealers wanting to maximize their Facebook “likes” using tools like Google’s AdWords is what really helps them sell more vehicles and cultivate more customers. “When you walk in your dealership every day, you think about selling cars,” he says.
He says a good analogy is to think of the Internet like a subway map. “Where do you put your dealership? Gooley says dealers need to understand that their virtual dealership is a lot more than just a website. He showed a website ROI follow chart that highlighted the sales funnel, from web traffic at the top, to leads, appointments and sales at the bottom. “If we bring in 1,000 web visits and we convert four per cent of that we are going to have 40 leads, which we will convert 15 per cent into appointments and from that have six sales. If anybody in your dealership is trying to build culture, they need to see this chart.”
RESPONSIVE IS KEY
Gooley stresses that it’s vital for dealers to have responsive websites to ensure a smooth transition from desktop to mobile and vice versa. He says that via Google Trends, the three most searched automotive special topics are engine management light, car battery and dealer staff page.
Gooley says he’s still amazed at how many dealership websites don’t have photos and contact information for their staff. “It takes five minutes to put a picture of ourselves up on Facebook, so why not do it on the dealer website staff page?”
He notes that you wouldn’t place cardboard cutouts of cars in your actual showroom but in reality that’s the experience many dealer websites currently deliver online.
Randy Collins and Don Clarke made the trip all the way from London, Ont.
Gooley stated the importance of Search Engine Marketing and how by spending money on tools such as Google AdWords; dealers can significantly boost their conversion rates and ROI. But he stressed the importance of working together with a qualified partner to really make it happen.
“Imagine trying to drive a helicopter through traffic to your next meeting. That’s what this is. A lot of people are doing it outside of their dealership because it is not easy. A partner is somebody who says ‘hey, I can help you drive that helicopter to your next meeting.”
For part 2 of our Canadian Digital Dealer 6 coverage, click here.
For more Canadian Digital Dealer related content, click here:
http://canadianautodealer.ca/?s=TADA+Digital+Dealer
