A Consumer Has Found Your Dealership Through A Smartphone Search: Then What? John Busby Senior Vice President, Marchex Institute September 23, 2014 So this is happening… #DD17 @johnmbusby @marchex 2 What is the most common response to a mobile search? Visit to a Web Site? Filling out a Form? Online purchase? Visiting a dealer? Going in-store? #DD17 @johnmbusby @marchex 3 Actually, it is none of those. #DD17 @johnmbusby @marchex 4 In 2016, mobile search will produce 70 billion consumer to business phone calls Internet Call Volumes by Channel 70000 60000 50000 40000 Calls generated from desktop search 30000 Calls from mobile search 20000 10000 0 2010 2011 2012 2013 2014 2015 2016 Source: BIA/Kelsey (2012) #DD17 @johnmbusby @marchex 5 We know that most car buyers use search engines. 52% Of car buyers see search engines as the most important source for vehicle research #DD17 @johnmbusby @marchex Source: Capgemini: Cars online 2014 6 And we know that searches are going mobile. 31% Smartphone 38% 8% 10% Tablet 61% Desktop Q4 2012 52% 48% Of all searches for car dealers are now coming from mobile devices Q4 2013 #DD17 @johnmbusby @marchex Source: Google Internal Data, Easy Life Vertical Trends Report for Auto Dealers (Q4 2013) 7 We know that mobile searches yield phone calls. 3:1 Mobile Calls Mobile Forms #DD17 @johnmbusby @marchex Automotive News, “Dealer’s Phone Rings Again” July 21, 2014 8 But what do we know beyond that? http://bit.ly/marchexauto #DD17 @johnmbusby @marchex 9 First, at a high level we found that there are three types of phone calls. 16% Unanswered 71% Product or Service Calls 13% Non Product or Service Calls #DD17 @johnmbusby @marchex 10 What kinds of calls are not product or service calls? 13% Personal Job Inquiry Wrong Number Vendor Voicemail Unclear Intent Non Product or Service Calls #DD17 @johnmbusby @marchex 11 How about unanswered calls? Non-Product Voicemail Fax Hold Time or Ring Hang-up 4% 1% 7% 88% Voicemail Phone Tree Hang-up #DD17 @johnmbusby @marchex 12 Are they calling about a new car? New Car Other New Business Used Car Sales 5% 9% 13% 19% Parts 54% Service #DD17 @johnmbusby @marchex 13 Calls can be a profit center for dealerships. #DD17 @johnmbusby @marchex 14 Product or service: How many produce appointments? PoS Voicemail Message Hours & Directions 3%1% 15% Service Not Offered Follow-up 2% 52% 27% Other Product Inquiries Sale or Appointment #DD17 @johnmbusby @marchex 15 Ugh. In 60% of calls, an appointment was never tried. 29% 8% 63% Customer Service Rep Never Mentioned #DD17 @johnmbusby @marchex Note: Based on data from 2014 auto campaign driven by Marchex Call Market Place. 16 It’s even more dismal for sales-related calls. 6% 1% 4% 1% confirmed appointment no appointment but ready to buy soft commitment - customer will call back soft commitment - customer will stop by soft commitment - rep tells customer to stop by other 87% N= 223 #DD17 @johnmbusby @marchex Note: Based on data from 2014 auto campaign driven by Marchex Call Market Place. 17 What we’ve observed as successful by analyzing calls to dealerships. 1. Whenever a consumer inquires about store hours, provide “next available appointment”. 2. Capture “drive-by” callers by offering promotional prices or limited time offers. 3. Turn “research” calls into “why us” calls. #DD17 @johnmbusby @marchex 18 A few things we left out of the study… http://bit.ly/marchexauto #DD17 @johnmbusby @marchex 19 Our data shows that Millennials and Generation X are most predisposed to calling from digital and mobile ads. More Than 64 0% 11% 55 to 64 0% 22% 45 to 54 0% 20% 35 to 44 0% 25% Age 25 to 34 0% Less Than 25 19% 3% 0% 5% 10% 15% 20% 25% 30% Over Index Against US Population Under Index Against US Population Most Over Indexed Segment Against US Population #DD17 @johnmbusby @marchex Sources: Marchex Data2014, more than 40,000+ calls. Neustar Element One 20 How did we collect the information for the paper? Through Call DNA – conversational analytics. 21 For this study, it can show us the types of service calls. #DD17 @johnmbusby @marchex Note: Based on a random sample of 5,000+ calls from 2014 that were >45 seconds long. 22 Or whether a brand or location is truly about giving consumers the lowest price. #DD17 @johnmbusby @marchex Note: Based on a random sample of 6359 calls from Oct. 23 through Nov. 30 that were >45 seconds long. 23 Call DNA can also begin to show the effectiveness of different digital marketing campaigns. #DD17 @johnmbusby @marchex Sources: 10,000+ calls from Sep-Nov 2013 24 Or how often a consumer is mentioning a specific make or model when calling a dealer. Model mentions among Model mentions among new and used car calls parts and service calls #DD17 @johnmbusby @marchex Sources: Marchex Data2014 25 Should auto dealers be getting coal in their stockings this holiday season? #DD17 @johnmbusby @marchex Sources: Marchex Data2013 26 Auto dealers did pretty well (all things considered). #DD17 @johnmbusby @marchex Sources: Marchex Data2013 27 Marchex is a leading advertising technology company focused on mobile and phone calls. = 100K+ 400M+ Customer scale Annual call connections CALLS 30 400/50% Patents granted & pending Employees / % in Product & Engineering roles #DD17 @johnmbusby @marchex 28 Marchex Call Analytics Marchex Call Marketplace The leader in measuring phone calls from advertising The leading mobile pay-per-call advertising network +1,000 clients Hundreds of national brands 400M annual Call connections 100+ publisher sources 30 patents granted or pending Proprietary Call Ad-Server and voice search technology Leading in innovation, Clean Call, Call Firewall, Dynamic Tracking, Call DNA, Call Rescue. 25% average conversion (sale) rate Rate per Qualified Call business model Rate per Call or Usage model (flexible) #DD17 @johnmbusby @marchex 29