If you just turned a used Ford pickup or a certified pre-owned Chevrolet crossover, there is a strong chance it’s because your dealership customer just saw some form of branding campaign pushing the Blue Oval or the Bowtie.
The Nielsen Auto Marketing Report 2018 showed that by the time car shoppers are ready to buy, they have twice as many brands under consideration than when they started their search, reinforcing the dizzying array of choices buyers confront along their path to purchase.
Findings from the report then highlighted the importance of being top-of-mind with vehicle buyers, which accounts for 90 percent of a brand’s purchase intent, according to Nielsen.
“When it comes to automotive brand building, quality awareness is more important than quantity. Brands need to build salience and relevance with consumers, not awareness for awareness’ sake,” said Damian Garbaccio, executive vice president at Nielsen.
“To account for the nuances in a buyer’s path to purchase, automotive marketers need to employ an omni-channel strategy,” Garbaccio continued. “This means cohesive messaging that elevates the brand and converts shoppers into buyers. You need the right combination of buyer-based data, technology and measurement capabilities to make this happen.”
The report provided deep insight into the car buyer’s path to purchase. It looked at how advertising, demographics and brand market share impact buying behavior.
Six of the most significant conclusions included:
• 90 percent of all purchase intent is due to unaided — or top-of-mind — awareness
• Vehicle shoppers with unaided brand awareness have 10 times the purchase intent as those with only aided awareness
• 71 percent of vehicle shoppers recall the advertising they see on linear TV in the final days of shopping
• Purchase consideration for social media users is 25 percent higher than non-social media users
• Millennial purchase consideration nearly doubles during that demographic’s vehicle-buying journey
• Large brands have four to five times unaided brand awareness of smaller brands, leading to three to four times the purchase consideration
The Nielsen Auto Marketing Report is meant to help auto marketers better understand and act on the key drivers of long-term brand equity, shopper engagement and — most importantly — vehicle sales.
Nielsen says this year’s report makes it clear that marketers need to build deeper connections with consumers and balance brand building (for top-of-mind awareness) with customer acquisition tactics to encourage purchase decisions late in the buying process.
The research is based on quarterly online surveys of more than 9,000 respondents planning to purchase a vehicle in the next two years. Since 2012, Neilsen said more than 220,000 of its surveys have been completed.
The entire study can be downloaded here.
With the wholesale price declines for cars beginning to accelerate, Black Book representatives mingling with dealers in lanes nationwide uncovered five interesting trends; ones that might be happening at your local sale or your favorite online bidding platform, too.
First, let’s look at the numbers included in this week’s edition of Black Book Market Insights.
Volume-weighted, editors indicated overall car segment values decreased by 0.54 percent last week. That’s a much higher pace than what Black Book recorded during the previous four-week span when car values decreased by only 0.16 percent on average.
As what was noted from the previous update, as well, Black Book said the sporty car segment experienced the biggest drop, sliding by 0.91 percent or $140.
Meanwhile the volume-weighted data on the truck side showed segment values (including pickups, SUVs and vans) decreased by 0.37 percent last week. Like cars, truck values are softening at a greater rate since market values had dipped by just 0.10 percent on average during the prior four-week period.
Among trucks, Black Book reported the minivan and small pickup segments performed the worst as minivans dropped by 0.95 percent or $123, and small pickups declined by 0.83 percent or $131.
“The decline in used-vehicle values accelerated steeply last week. There was a broad drop in the market, particularly in the car segments,” said Anil Goyal, executive vice president of operations for Black Book.
And finally, here are those observations from throughout the country. See what matches up to your recent experience.
— From Florida: “The buyers were picky as they seem to be doing less speculating for inventory. Trucks continue to perform well here.”
— From Washington: “A more normal fall sale as prices seemed to soften on most vehicles. The dealers that I spoke with were enjoying the decline in values along with a good run of vehicles to choose from.”
— From Illinois: “Representatives from two of the largest remarketers stated they are seeing proceeds come down.”
— From Georgia: “There may be a new pattern emerging: Higher mileage and lower condition vehicles more in demand over the cleaner vehicles.”
— From Wisconsin: “We had more no-sales than usual today along with more vehicles in poor condition.”
Paul Potratz often looks like he’s in exclusive company by his dapper appearance at Used Car Week and other industry events.
Well, POTRATZ now is among companies that are part of an exclusive project involving Facebook.
The dealership marketing firm was asked to participate in an exclusive Facebook Alpha Program focused on testing the efficacy of the Messenger Lead Ad type.
POTRATZ indicated the limited number of agencies asked to participate were required to run campaigns utilizing this revised ad format over the course of a four-week period in order to provide Facebook with comments and findings.
“Very few agencies were selected to join this testing group, and we’re honored Facebook thought of us and sought out our professional opinion on the quality of leads being provided by this ad type,” said Paul Potratz, the firm’s chief operating officer, in a news release
In order to be considered for the Facebook Alpha testing program, POTRATZ explained advertisers needed to be considered:
— Avid and proficient users of the platform for the purposes of advertising
— Generating above average lead counts for their clients
— Having substantial number of clients on Facebook
Throughout the two-phase program, advertisers were expected to define what constitutes a qualified lead for their clients; then track their success rates for review by Facebook, as well as their overall experience utilizing the ad type from creation to conversion.
POTRATZ is currently one of the few agencies recognized by Facebook as a Facebook Adverting Agency. The company has multiple clients currently focusing all of their advertising efforts on Facebook, having helped these companies make the switch from more traditional advertising means; increasing the effectiveness of their marketing and overall success.
To learn more about POTRATZ, visit potratzny.com.
Digital license plates are gaining momentum in the Golden State with franchised dealers leading the charge.
Reviver Auto, creator of the digital license plate Rplate Pro, on Thursday announced it has partnered with the California New Car Dealers Association (CNCDA) to make the Rplate Pro more easily accessible to the customers of the organization’s more than 1,200 franchised dealers.
The Rplate Pro is designed to transform the 125-year old stamped metal license plate into a sleek, digital, high definition display that can offer new efficiencies and benefits. The Rplate’s connected car platform will soon automate DMV renewals, replacing legacy stickers with digital decals and add new levels of personalization to the license plate.
In addition to offering a unique opportunity to reach the millions of new-vehicle purchasers with the Rplate, the California New Car Dealers Association will work with Reviver Auto to educate its members on how the Rplate technology works and about the value it can bring to their dealership customers.
“California’s auto dealers, who serve the largest car market in the U.S., have always been ahead of the auto technology curve and eager to offer their customers the latest and best innovations for their vehicles,” said Neville Boston, chief executive office of Reviver Auto.
“We are thrilled to work in partnership with CNCDA to enable their members to meet the growing consumer demand for the Rplate Pro, which offers a unique value proposition to both consumers and dealerships,” Boston continued.
In addition to enabling users to automatically renew DMV registration, the Rplate can allow consumers to view their vehicle’s telematics and customize the look of their plate by changing the background (black to white / white to black) and adding DMV-approved cause or personal messaging, such as "Support Our Troops," "God Bless America," and "I’d Rather Be Running."
As a truly cutting-edge and unique aftermarket product, the Rplate, which also is meant to beautifully integrate with today’s vehicle styles, can offer dealers an additional way to differentiate their dealerships and add value for their customers.
“CNCDA is excited to announce our new partnership with Reviver Auto. We are eager to assist in facilitating our members’ ability to bring this unique and potentially game-changing technology to their customers statewide,” CNCDA president Brian Maas said.
Veteran dealers understand that appraising a vehicle not only is about considering the current value as it sits in front of them, but also projecting what the figure might be to get that model rolled over the curb.
Automotive artificial intelligence platform CarStory on Thursday announced the launch of CarStory Appraise — a dealer appraisal product to combine sales predictions with big data information in a consumer-grade, intuitive interface.
The CarStory Appraise app is now available for Apple iOS, Android and via the web.
“Buying the right cars at the right price is critical to maximizing profits for a dealership,” said Chad Bockius, president and chief product officer at CarStory. “Historically, dealers have had to juggle a variety of unknowns and gut calls — how fast a car will turn, how much it will sell for, what is the current supply and demand and more — in order to determine what to put on their lot.
“But by using AI-powered, predictive analytics, CarStory Appraise offers the most complete and accurate assessment of a vehicle based on how each car will perform on a specific dealer's lot, not just what other dealers are paying at auction,” Bockius continued.
Key features of CarStory Appraise include:
• VIN Audit: CarStory can capture and analyze data from more than 200 million VINs to create a more complete description of a vehicle, saving time while producing an accurate forecast and appraisal.
• GoPrice: CarStory can predict what a vehicle will sell for and when, potentially leading to better and more profitable purchase decisions.
• Market Intelligence: Knowing what to pay starts with understanding the current market. By analyzing current supply levels, shopper demand, competitive vehicles and dealership performance, CarStory Appraise can show how a potential acquisition fits into the market and how it will sell on a dealer’s lot
Analyzing thousands of data points is the key to developing a precise sale forecast. CarStory Appraise is the industry’s only solution to provide predictions based on current supply, demand, unique features, color, mileage, price and even a dealer’s performance. Using AI and machine learning, CarStory Appraise analyzes a VIN against the local market to see exactly when the car will sell and for how much.
“A potential customer asked me to find a car that I don't typically stock or carry so I was not very familiar with the retail price,” said Bert Straub, owner of 1st Choice Auto in Fairview, Pa.
“I used CarStory Appraise at the auction to scan in a VIN and was presented with an accurate acquisition and retail price prediction for this unit. The best part is that CarStory's Appraise tool prevented me from selling it short by underpricing this vehicle to market,” Straub continued.
“The predictive analysis accurately provided a front-end profit that more than doubled my expectations on a car I don't normally sell,” he went on to say.
This new app is available today on the Apple App Store or Google Play Store. Dealers can sign up by visiting www.carstory.ai/appraise-app.
Federal officials said Hurricane Michael made landfall near Mexico Beach, Fla., on Wednesday afternoon as a Category 4 storm with maximum sustained winds surpassing 150 mph.
The second major hurricane to strike the Southeast during the past month prompted Cox Automotive experts again to project how many more vehicles will be lost because of intense wind and rain. According to an update shared with the media, including Auto Remarketing, Cox Automotive indicated losses likely will be in the range of 10,000 to 20,000 units, considering vehicle registrations, population and the nature of the event.
“Hurricane Michael is directly hitting a less-densely-populated section of Florida and the fast-moving nature of the storm will likely mean less-severe flooding inland, away from the storm surge. Property damage will likely be significant due to flooding at the coast, but evacuations will help reduce the number of vehicles lost,” Cox Automotive said.
“While significant, that volume should have minimal impact on the overall U.S. auto industry,” the company added.
As both new- and used-vehicle inventories are relatively low, Cox Automotive is expecting temporary upward pricing pressure in the areas most impacted by the storm, particularly on the used-vehicle side.
“Any vehicle loss is a tragedy and hardship for someone. Fortunately, in this case, loss volume will be relatively low,” Cox Automotive said.
After making landfall along the Florida Panhandle, Michael was predicted to steam through Georgia and the Carolinas as that area still is in recovery mode from Hurricane Florence drenching the region in September.
“I ask all Georgians to join me in praying for the safety of our people and all those in the path of Hurricane Michael,” Georgia Gov. Nathan Deal said.
Perhaps not surprising to dealership managers and salespeople, consumers are walking into showrooms ready for conflict.
Over what?
It's the retail price of that vehicle that might already be jeopardy of generating little margin — or worse — a potential net loss while also creating an anchor on the store floorplan.
More details from the latest study by Jumpstart Automotive Media and Ipsos surfaced this week indicating that full 86 percent of consumers already have a price in mind for the vehicle they want before visiting the dealer to test drive or purchase. This insight is courtesy of the study title, “Today’s Auto Buyer and the Digital Retailing Experience.”
As mentioned in a previous report from Auto Remarketing, 81 percent of consumers don’t believe a dealer’s “lowest price” and still expect to be able to negotiate savings of a few hundred to a few thousand dollars. At the same time, the study pointed out that customers may not understand how vehicles are priced, which can lead to distrust and frustration on the dealer’s part.
For example, there are often questions around whether the dealer or the manufacturer sets the price, what costs are built into that price, and what (if any) aspects does the dealer have the ability to negotiate.
“Consumers believe that dealers are making a large profit, while dealers today are saying that they don’t make money until they hit volume goals, which are often a challenge to reach,” Jumpstart said.
Part of the challenge consumers feel comes from the fact that prices on many new vehicles today are at or near all-time highs. Americans remain attracted to large SUVs and trucks, and even when they’re interested in cars they want fully loaded with features or size and space for versatility.
Approximately 49 percent of consumers say they determine a “fair” price based on what they find on third-party automotive websites, another 31 percent deem a vehicle to come with a fair price if there is a negotiated savings off the sticker.
Despite nine out of 10 consumers having at least some interest in a “no-haggle” model for vehicle buying, most still prefer to negotiate their own deal versus other ways of settling on a price.
And, even though most agree that the sales process takes too long, they’re still willing to spend a half hour or longer bargaining to save even $100.
What’s more, a consumer’s desire to negotiate their own deal versus the no-haggling approach has more to do with a lack of trust with dealership pricing than a desire to bargain.
Lastly, 68 percent of consumers say they would prefer to deal with a non-commissioned salesperson at a dealership.
“The cat-and-mouse game of pricing and negotiation at the dealership won’t be fully satisfied any time soon,” said Libby Murad-Patel, vice president marketing and strategic insights for Jumpstart. “However, finding a true understanding of what each side is looking for will ultimately help in reducing the friction and adversarial nature when it comes down to vehicle pricing.
“Consumers can’t demand a no-haggle deal but ultimately want to try and save a few bucks, and dealers need to help consumers better understand how they arrived at a certain price point to build more trust,” Murad-Patel continued.
To access the complete report, go to this website.
Murad-Patel also was a part of a recent episode of the Auto Remarketing Podcast, talking about the intricacies of consumer interest in crossovers and SUVs and how those are reflected in the used-car market.
Plus, she explained the opportunities the auto industry has with "influencer marketing" and the best strategies to take advantage.
The full discussion can be found below.
Dealers now have a new device to sell in the used-vehicle retail sales department; and perhaps in the parts department or service drive, too.
Automatic, a SiriusXM company that can bring the power of connectivity to almost any vehicle on the road, on Tuesday announced the launch of the Automatic Dealer Program, an all-new service bundle for dealers to provide to consumers with their new and pre-owned vehicle purchases to enhance their ownership experience.
With Automatic’s new app and easy-to-install adapter, most vehicles, model year 1996 or later, can become connected. The company insisted Automatic can make it easy for dealers and consumers to add connectivity to their vehicles at the time of sale.
The aftermarket device also comes with a free trial subscription.
The Automatic Dealer Program can enable dealers to offer consenting customers a trial subscription that includes three free years of Automatic’s crash alert and connected maintenance services, as well as six free months of premium services, such as roadside assistance. This offering delivers connected vehicle services for a net cost to the dealer as low as $40 a vehicle. This cost includes the device and trial subscription.
Dealers working with Automatic can get:
• Added value for dealer lots: Automatic transforms most cars on the lot into connected vehicles, adding value to dealers’ inventory with the ability to pass along the benefit of Automatic’s safety and convenience features.
• Six-month free premium subscription offers: At the time of sale, dealers can offer customers six months of Automatic’s premium subscription features.
• Connected Maintenance: The Automatic app can create a streamlined connection between the dealer and its customers. Important service reminders, recall notifications and more are sent directly to a customer’s phone, and those customers can use the app to book service appointments with the dealer that sold them their vehicles.
• Long term retention: Dealers can offer their customers free access to important features, including Crash Alert and Connected Maintenance, for three years, a benefit not only for the consumer, but also for the dealer, by creating a long-term relationship between the buyer and seller.
Consumers with Automatic can get:
• Crash Alert: Detects when a serious collision occurs and enables responders to contact the driver, send emergency services and contact a driver’s emergency contacts.
• Roadside assistance: Sends towing and roadside services to a driver’s location when help is needed.
• Real-time vehicle location monitoring and sharing: Shows where car is parked in a crowded lot, and can keep a driver connected with family while out on the road.
• Vehicle health and performance monitoring: Gain insights on driving performance and identify issues when check engine light is on.
• Recall notifications and service reminders: Receive timely recall notifications and service reminders; book service appointments with a dealer with a few simple clicks.
• Integration with smart home devices: Open garage door, adjust thermostat and turn on house lights on your way to or from home.
“This Automatic service introduction benefits from the combined resources and capabilities of Automatic and SiriusXM in the area of vehicle connectivity and product development to create a killer offering for dealers and their customers,” said Joe Verbrugge, executive vice president and general manager of emerging business for SiriusXM.
“The Automatic platform delivers safety and convenience services for consumers that truly enhance the vehicle ownership experience, and the Automatic Dealer Program gives dealers the ability to provide these benefits to their customers, stay connected to those driving off their lot, and increase loyalty and future service lane traffic,” Verbrugge continued.
AT&T’s nationwide LTE-M connectivity will support Automatic’s service
“Automatic’s service platform offers a major technology boost to just about any vehicle. This enhances the safety and convenience for today’s drivers,” said Chris Penrose, president of Internet of Things Solutions at AT&T. “Through our nationwide LTE-M network, our work with Automatic and SiriusXM will bring the benefits of connectivity to even more cars and trucks across the U.S.”
For more information and to enroll in the Automatic Dealer Program, visit https://automaticdealerprogram.com/.
Sonic Automotive didn’t have to leave home to open its newest EchoPark Automotive store.
The retailer has launched an EchoPark used-car standalone store in Charlotte, N.C., which also happens to be where Sonic is headquartered.
The new store is located at 3648 E. Independence Blvd. in Charlotte, about three miles from corporate headquarters.
In addition to this North Carolina location, Sonic now has EchoPark stores in Denver, Dallas and San Antonio.
“We are so proud of this rapidly growing brand and the overwhelming positive reviews we are receiving about the customer experience and our team,” Sonic president Jeff Dyke said in a news release.
“Since 2014, EchoPark has seen triple-digit growth, a great testament to the model and the value of not only meeting, but exceeding customer expectations.”
The company said in a news release that employees of the store have begun volunteering in the Charlotte community for the St. Jude organization’s 5K Run/Walk.
General manager Sanjay Prakash said in the news release: “We are really proud of the team we have brought together here in Charlotte to launch EchoPark Automotive.
“The common denominator of this group is their enthusiasm and commitment to our guests, ensuring they receive the highest level of care when interacting with EchoPark.”
Added Sonic chief executive David Smith: “EchoPark makes a significant economic impact in these communities with substantial dollars invested to open the new stores.
“Beyond the economic impact of our stores, EchoPark is further committed to being a great corporate citizen with extensive community service involvement in our localities,” Smith said.
SpinCar now has more financial resources to enhance its marketing solution for dealer inventory.
The digital automotive merchandising software provider announced on Thursday that it has closed a $22 million financing round led by Wavecrest Growth Partners, with participation from auto and tech industry veterans David Metter and Harpreet Grewal.
SpinCar highlighted the new capital will be used to fund company growth and continued investment in product innovation to meet accelerating market demand for digital automotive merchandising technologies.
SpinCar’s digital automotive merchandising platform leverages advanced 360-degree display technology and proprietary behavioral data to reinvent the way in which dealers, OEMs and third-party automotive marketplaces can engage with vehicle shoppers. The platform can transform static online merchandising content into immersive, VR-enabled experiences, complete with virtual interior and exterior tours as well as tagged, touchable hotspots that allow consumers to explore key vehicle features in rich detail.
By capturing precise vehicle and feature interaction data in real-time, SpinCar can enable dealers to personalize every consumer touch based on the specific needs and interests of individual shoppers. SpinCar’s VINtelligent Retargeting solution can deliver personalized digital ad units for greater marketing effectiveness along the entire car buying journey.
The company mentioned dealers using the SpinCar platform report greater than 30 percent increases in online consumer engagement and conversion rates, as well as 20 percent to 30 percent faster inventory turnover, particularly for used and certified pre-owned vehicles.
“In a world where consumers are just a click or swipe away from a myriad of information sources and alternative purchasing options, every digital interaction for a car shopper represents a critical moment in the purchase journey. SpinCar is enabling local and national auto dealers to bring the personalized showroom experience directly to prospective car buyers wherever and whenever they want. Our platform is generating measurable results for dealers of all sizes, and this investment will enable us to expand our industry reach at an even faster rate,” SpinCar co-founder and chief executive officer Devin Daly said.
“Wavecrest’s customer-first approach and unrivaled B2B SaaS experience make them the perfect partner for our next phase of growth,” Daly continued. “We’re excited to work with their team and network of operators as we accelerate our efforts. This capital will allow us to bring new products to market faster, enhance the services we provide to our customers and partners and expand our world-class team.
Describing the investment, Deepak Sindwani, managing partner at Wavecrest Growth Partners added, “SpinCar provides market-leading technology to a very large industry in the throes of digital disruption. We were impressed with the company’s value proposition, business performance and unique data assets. We look forward to partnering with Devin and his team to transform the way that vehicles get purchased.”
In addition to Sindwani, Grewal and Metter have also joined the company’s board of directors.
Harpreet is a 30-year veteran of SaaS businesses. Most recently, he served as general manager and CEO of Constant Contact after the company’s $1.1 billion sale to Endurance International in 2015. Previously, he was a chief financial officer of public and private SaaS companies.
Metter is the co-founder and president of AutoHook, which was acquired by Urban Science in 2015. He is a frequent speaker on the topic of digital innovation at dealer conferences.
Presidio Technology Partners acted as the financial adviser to SpinCar on the transaction.
