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Spring 2021 Dealer Resources

 

FEATURED CONTENT

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AutoHook 2020 Review: Results Delivered

Taking a look back at the impact AutoHook and our Dealers had on the auto industry despite a year of unprecedented challenges. Check out the results we succeeded in delivering...

 

The Unbreakable Value of the In-Person Test Drive

| by Eric DeMont, Global Practice Director, Urban Science

Recent survey findings from the Harris Poll and Urban Science partner studies highlight one aspect of the vehicle purchase process that has largely remained unchanged -- in a year in which just about everything else has been forced to adapt...

 

CONGRATS TO OUR DEALERS

Check out the latest AutoHook consumer survey results!

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- Urban Science Customer Survey conducted January-March 2021, 168 total responses from consumers that have gone through the AutoHook gift card redemption process at an AutoHook subscribing dealer

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THE ULTIMATE 1-2 PUNCH

Read success stories on the results our dealers are getting with
TrafficView + AutoHook

 

EMPLOYEE SPOTLIGHT

Meet Kelly Blunden | Client Success Specialist, Urban Science

KELLY @ WORK

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KELLY @ HOME

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The Unbreakable Value of the In-Person Test Drive

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by Eric DeMont | Global Practice Director, Urban Science

If there has ever been any doubt regarding the relevance of the in-person test drive, we have confirmed loud and clear that it is here to stay. Over the summer of 2020, we worked with the Harris Poll to survey over 1,500 adults in the U.S. on how the pandemic has influenced the way they shop. As data scientists, we look for both patterns and anomalies hidden in the data that we then infuse into our informed perspectives. What we’ve learned following the permanent effects the year 2020 has had on the world is that once again, not much remains constant aside from change. This study, however, also highlighted one aspect of the vehicle purchase process that has largely remained unchanged in a year in which just about everything else had been forced to adapt.

The in-person test drive at a physical dealership is one enduring element of the car-buying process that has more than weathered the storm of COVID-19. The 2021 auto buyer still wants to experience their next vehicle purchase the same way as the 2010, 2018, 2019, and 2020 auto buyer. According to the study(1), most adults (82%) agree that there are certain elements of the vehicle purchase process that are better fit for in-person visits and cannot be done online. Of that 82%, 80% point directly to test drives as a key component of the purchase process that simply cannot be replicated in a virtual environment.

While we can’t statistically say the pandemic has had no effect whatsoever on people’s interest when it comes to digital retailing or that there aren’t consumers out there embracing the idea of moving many parts of the purchase process online, we can say the majority of adults (79%) still to this day report “they would never buy a vehicle without test driving it first.” Furthermore, 81% agree that a vehicle is too substantial of an investment to risk not seeing it in person before buying.

In November of 2020, Urban Science conducted a follow-up study(2) to evaluate consumer appetite for how they want to buy a vehicle nine months after the virus initially hit. According to the survey, despite the rise in COVID-19 cases across the U.S. during this period, 86% of consumers report being very or somewhat comfortable with buying a vehicle in person and 64% believe it’s completely safe to visit a dealership today.

Even more notable was when we asked consumers if they were ready to purchase a vehicle exclusively online, the response was a resounding “no.” While there are some aspects of the process people do prefer to complete online, most adults said that in person at a dealership is the most helpful to ensure a positive experience, especially when it comes to, you guessed it, TEST DRIVES. 

Once again, both dealers and automakers have proven their resilience to change and adversity as this industry has done throughout historical recessions, pandemics, and natural disasters. Within weeks of the first U.S. case of COVID, we saw dealers quickly act to remediate the situation at hand with advertising containing language around “at-home test drives” and “we’ll bring the car to you!” Dealerships immediately stepped up their game in terms of both vehicle sanitization efforts and operational modifications to adhere to new and everchanging CDC-compliant safety protocols.

At Urban Science, we too had to adapt our test drive incentive solutions to accommodate for things like at-home test drives. We customized offers to help support local restaurants and changed our messaging to inform the public of the great measures our dealers were taking to ensure the safety of their customers. While the fundamental concept of normalcy shattered around us during this time, the collaboration and innovation that arose as a result is something that made our solutions much like the need for the in-person test drive experience, unbreakable.

In many ways, one could argue that the unrelenting impact of this global disaster has only strengthened the relationship people have with their cars. The vehicle itself has consistently been the ultimate symbol of freedom. In times of lockdown, trepidation, and uncertainty, a personal vehicle has become one of—if not the only—places people can go to escape the chaos of our new lives often stuck at home, plagued with screen fatigue. Going for a drive may be the only time and place many of us can find peace or feel free from COVID-related restrictions during times when we can no longer gather for entertainment, go out to dinner, attend a concert or sporting event…the list goes on. Perhaps more of a behavioral observation than a data point, your car is one of the best ways to get out of the house and still be safe, free, and socially distant. It would only make sense that the need to test drive a vehicle in person before making such a large commitment would prove to be pandemic-proof.

 

To learn more about Test Drive Solutions from Urban Science, contact Eric DeMont at ekdemont@urbanscience.com.

 

(1) Urban Science and The Harris Poll Joint Study, Around the Bend: How COVID-19 Impacts the Next Normal for Dealers

(2) Urban Science Online Study, The Harris Poll “Continuing Through COVID: Are Consumer Buying Intentions Changing All That Much?”, 2020

 

© 2021 Urban Science. All rights reserved.

Findlay Kia Converts Lost Sales to Closed Sales with the 1-2 Punch of TrafficView™ + AutoHook®

In a down market, Findlay Kia needed an effective way to analyze their CRM data to expose inefficiencies in their sales process. They needed to identify which sales they were losing to their top competitors and the sources responsible for those defections. After defining the areas where they could improve, they needed a solution to help them reclaim lost sales to the competition.

Click below to see the complete set of results and how we did it.

AutoHook® Quick Tip: Boost Performance of Specific Models – New or Used

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Inventory may be hard to come by these days, but it can also be hard to get rid of. Depending on the unique intricacies of your market, we know there are certain models you can’t seem to stock enough of and others that tend to overstay their welcome on your lot. If the latter is the case, take advantage of one of the most simple and straightforward solutions – test drive incentives. Use higher value test drive offers on the specific vehicle details pages (VDPs) of the models in your inventory that may need a little help. If you know you have a high defection rate tied to a specific new car model, you can incentivize customers who land on those VDPs or submit a lead for that model with a greater value incentive, say a private offer for $50-$100 when they come in for a test drive. Target and boost any model that may be underperforming.

The same logic can be applied to your used and CPO inventory. Offer higher value incentives only on stubborn or aging inventory you can’t seem to move. A great example of how this can be executed came from Jim Burke Automotive Group on a 2016 Subaru Impreza.



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“We needed to move the Impreza ASAP and we were able to accomplish this utilizing AutoHook’s Web2Show solution via our Dealer.com website. We did an increased, targeted offer for the Impreza’s stock number only of $100 for a test drive and sold the vehicle in just 4 days. We are thrilled with the quick turnaround of this specific vehicle targeting campaign and will definitely continue to use AutoHook’s solutions in the future.”

-          Gordon Gibbs, President, Jim Burke Automotive Group


© 2020 Urban Science. All rights reserved.                   

Dealer Survey Points to Three Ways to Combat Inventory Shortage Problems

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Exploring recent survey data from the Urban Science® COVID-19 Dealer Survey

This survey was conducted online within the U.S. by Urban Science to understand the impact of the pandemic on dealers and how they are evolving to fulfill the changing needs of consumers while remaining a successful business. Survey responses were evaluated for margin of error at a 90% confidence level.

While it is no secret that inventory shortages have become a common struggle for many U.S. dealerships, our recent survey data indicates opportunities can be found in an otherwise disadvantageous situation. Overall, dealers are recognizing that ongoing vehicle shortages are influencing consumers to increasingly use dealer website inventory to inform their decisions on which retailer(s) they will visit before making a purchase.

Below are three critical implications of the pandemic and actions dealers can take to turn them into opportunities:

1. 80% of dealers report consumers are submitting leads from further distances based on inventory

As consumers become more willing to take a drive for the car they want, they become less likely to be loyal to their nearest dealership. This means dealers in strong inventory positions should expand their media and test drive incentive campaigns to reach further-out geographies. On the contrary, dealers with limited inventory should deliver test drive incentives to all consumers visiting their digital inventory pages to entice them into their showroom, even if they don’t have the specific model that in-market consumers are looking for.

2. 82% of dealers say inventory views have increased during the pandemic

The world may be upside down, but the fact than an increase in VDP views still correlates directly to an increase in vehicles sold is a good sign for dealers. Current industry trends indicate tight marketing budgets would be well spent on things like test drive or purchase incentives to help you convert active, in-market consumers by encouraging them to come in and test drive the exact vehicle they could be taking home. Test drive incentives continue to be a surefire tactic to getting more of your VDP viewers into your showroom, where you have a higher chance of closing the sale.

3. 76% of dealers agree that consumers are more likely to buy the vehicle they submitted a lead for

Increasing lead close rates should give dealers reassurance to work their leads persistently and confidently. If there is a greater likelihood for people to purchase what they say they want, dealers should be mindful to not allow their competitors to steal a sale due to insufficient follow-up. They should follow up with their leads for as long as it takes to get in-market consumers into the showroom and into the vehicle. More specifically, this means salespeople shouldn’t call it quits after seven days and should prevent leads from defecting during that critical 8-14-day period. If you get a customer on the phone, don’t let them hang up without setting up an appointment to come in and take a test drive. If they’re on the fence, lock in the appointment by issuing an instant test drive offer over the phone or in a follow-up email, such as a $25-$75 Visa e-Gift card as a thank you for coming in. For elderly, at risk, or just nervous customers, offer to bring the vehicle to them!

As we settle into the fourth quarter, supply concerns don’t seem to be dissipating. While demand is certainly rebounding from the two months of production lost to the pandemic, pent up demand can contribute to even more of a scarcity of vehicles as automakers struggle to keep up and replenish outputs. More than ever, dealers need to continue to make the most of what they have by keeping the right mix of vehicles in stock to the best of their ability and taking advantage of incentive programs that they can control based on their own unique inventory situation.

As of last month, 2021 models accounted for only 3% of dealership inventory, according to Cox Automotive, compared to a quarter of dealer stocks being new models at this time last year. Therefore, OEM-sponsored clearance deals and incentive programs have been slower to materialize, calling for individual dealerships to take matters into their own hands and work with vendors that can help them convert more of their growing website visitors to actual showroom visits, test drives, and ultimately sales with more targeted and personalized incentives.

 

© 2020 Urban Science. All Rights Reserved.

BEYOND BEST PRACTICES: 10 Outside the Box Ways to Use AutoHook’s Private Offers

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[The 2020 Edition]

AutoHook is best known for converting online traffic into showroom visits using private offers and test drive incentives on dealer websites and third-party sites. These private offers and incentives, combined with our untouchable attribution model, has proven to be one of the most (if not the most) cost-effective ways to get customers physically into your showroom and into the driver’s seat of a vehicle, where you have the best possible chance of closing a sale.

What many dealers don’t realize, is that AutoHook’s capabilities go far beyond rewarding customers for visiting your showroom for a test drive. Our most successful dealers use AutoHook to boost revenue across multiple departments – not just new car sales.

Customized incentive campaigns can be executed at any time to support any and all of your unique initiatives from securing more service customers to acquiring more quality trade-ins for your used inventory. The following are 10 ways to use AutoHook’s private offers to further boost your bottom line. All customization options below have proven successful at actual dealerships across the U.S. and are free of charge for current customers. In this case, more sales (and the data to prove they came from us) really are just a phone call away.

1. Boost Specific Model Performance

Depending on your brand, we know there are certain models you can’t stock enough of and others that overstay their welcome on your lot. Use higher value test drive offers on the vehicle details pages (VDPs) of the models in your inventory that may need a little help. If you know you have a high defection rate tied to a specific new car model, you can incentivize customers who land on those VDPs or submit a lead for that model with a greater value incentive, say a private offer for $50-100 when they come in for a test drive. Target and boost any model that may be underperforming or even a single VIN.

The same logic can be applied to your used and CPO inventory. Offer higher value incentives only on stubborn or aging inventory you can’t seem to move. A great example came from Jim Burke Automotive Group on a 2016 Subaru Impreza.

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“We needed to move the Impreza ASAP and we were able to accomplish this utilizing AutoHook’s Web2Show solution via our Dealer.com website. We did an increased, targeted offer for the Impreza’s stock number only of $100 for a test drive and sold the vehicle in just 4 days. We are thrilled with the quick turnaround of this specific vehicle targeting campaign and will definitely continue to use AutoHook’s solutions in the future.”

-          Gordon Gibbs, President, Jim Burke Automotive Group

2. Target Underperforming ZIP Codes

Increase the value of private offers in areas where you’re struggling. AutoHook can set up custom filters to target your website visitors located in specific ZIP Codes where you see high defection rates or where you know you’re getting crushed by competitors. For example, offer a $65 test drive incentive only to customers located in the ZIP Codes you define and a $35 reward to website visitors in your backyard. The further away the ZIP Code, the higher the reward should be. Planet Honda did this and saw outstanding results. They identified three ZIP Codes where they were losing the most sales to competitors. They increased their test drive offers from $35 to $50 for any customer viewing inventory on their website located in one of these areas. We tracked their sales attributed to AutoHook incentives over six months, and their results speak for themselves. Check them out below or read the complete case study here.

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3. Incentivize Your Service Drive

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With new car sales forecasted to decline in 2019, dealers need to shift focus to service and parts to make up for potential losses in new car sales revenue. We’ve had dealers get extremely creative with using private offers to persuade customers to choose their dealership for their service needs rather than the local body shop shown the street. Use AutoHook to get more service appointments by offering customers who book appointments online a special reward that can only be redeemed when they come in for their appointment. You can also use our Issue Instant Reward feature when setting up appointments over the phone to help ensure they show up.

Another idea is to target specific segments of service customers by pulling contact lists from your CRM that meet certain criteria. For example, pull a list of customers that are due (or overdue) for their first service appointment and email them an offer for a $25 reward when they complete their first scheduled vehicle maintenance at your location. The same can be applied to your parts department or special service events. For example, “Get an instant Amazon eGift Card when you schedule an appointment to come in for our Spring Tire Sale!” Or, “Receive a $100 Visa eGift Card when you purchase a complete set of tires!”

Dealers have also used AutoHook to incentivize service customers who have a desirable vehicle for their used inventory or vehicles that exceed a certain mileage range. In addition, you can always pull a list of appointments you already have on the books and use our Bulk Coupon Generator (just call us and we’ll do it for you) to reward your service customers with a $25 gift card to test-drive one of your new vehicles instead of sitting around waiting for their car to be serviced. Who wouldn’t want to get paid to take a spin in a vehicle that peaks their interest while they wait? Use our Issue Coupon Code or Issue Instant Reward features for customers sitting in your waiting area that may not have received a pre-generated offer to test drive a new vehicle.

4. Revive Dormant Leads

Use the Lead History report in the AutoHook portal to pull a list of anyone who completed an AutoHook test drive offer lead form but has not yet come in to redeem their gift card. You can also pull a list of all leads in your CRM that are 90 days or older (or a timeframe of your choice) and reengage them with a $50 offer to visit your showroom for a test drive. AutoHook can help you set up custom targeted offers based on the leads (or even lead sources) you want to influence.

5. Integrate Across Digital Marketing and Social Campaigns

Using AutoHook’s Triggered Links feature, custom incentive campaigns can be set up on your dealership’s social media pages and in paid social ads. We can also integrate private offers into paid search and display campaigns, or on any landing page or microsite. You can even use AutoHook in your social ad campaigns to reward customers for booking a service appointment online or to promote a discount on parts.

6. Get More Quality Trade-Ins for Your Used Inventory

Target customers with a private offer to get them to trade in their desirable car and purchase or lease a new one from you. Simply pull a list of customers in your CRM that have a lease expiring in the next 90 days or a time frame of your choice. Offer them a $50-100 Visa Gift Card to come in and test drive a newer model and trade in their lease early. If you have equity mining software, pull a list of lease pull ahead customers and email them with a unique offer to get out of their lease early and into a new vehicle.

7. Get More Positive Reviews

Who doesn’t need more positive reviews? Use AutoHook as an enticement for customers to leave reviews, testimonials, or feedback of their experience buying or servicing their vehicle at your dealership. Give happy customers a reason to take the time to write you a good review by emailing them a link to instantly redeem a Visa or Amazon virtual gift card. Our Issue Instant Reward feature is the perfect way to say thank you on behalf of your dealership for submitting a positive review. Testimonials can be used in a multitude of ways to show off the value of your unique dealership experience or a specific salesperson.

If you identify a list of customers you want to solicit for reviews, you can call our Client Success Team and they will help you utilize our Bulk Coupon Generator to create unique incentive codes for each contact on your list. We can create email campaigns on your behalf or you can include a unique triggered link in your own personal emails to customers.

8. Protect Your Reputation

On the flip side, you can use the Issue Instant Reward feature for any customer who complained or had a poor experience at your dealership. Not that that would ever happen at your store…but know it’s available for you to have in your back pocket, should that problem ever arise.

9. Get More Customer Referrals

Use the Issue Instant Reward feature as a great way to say “thank you” to any customer who refers your dealership to their friends and family. Issue Coupon Code can be leveraged to lock in referrals over the phone in those states that allow referral payments. Check with your state Dealer Association for more information.

A great example came from a Kia dealership that runs a strong referral program and uses AutoHook incentives as their fulfillment and measurement tool. AutoHook worked with their Internet Sales Director to build a set of special Issue Instant Reward placements ranging in value up to $200 and marked each as a Referral Gift. This dealership loves having the gift card fulfillment process completely handled for them. They can also track the specific placements to see who refers the most people to buy and how much they need to offer to incent the best referrals. Additionally, this will make your accounts payable department very happy, in that they only have to write one single check for all of the output in a given month.  

10. Magnify Existing Campaign Success

Piggyback on OEM launch campaigns including new model launches, holiday sales events, loyalty programs and more. Use higher dollar offers to drive those intenders into your showroom instead of defecting to a competitor. Holding a private or special sales event unique to your dealership? Use AutoHook as a way to get more customers to attend and test drive one of your vehicles. One of our largest dealer groups loves to use our Issue Instant Reward feature to create customized marketing campaigns around holidays including Black Friday, Valentine’s Day and Summer Sales Events.

The customization opportunities AutoHook offers are endless. So much so, that we truly struggled to cut this list down to 10. If you ever think of your own creative way you’d like to integrate our private offers, give us a call and we will help make it happen.

Contact AutoHook’s Dealer Support Team anytime at 855.532.3274 or email us at DealerSupport@UrbanScience.com.

AutoHook Releases All-New Advanced Lead Scoring to Deliver More Sales at a Lower Cost to Dealers

As part of ongoing solution innovation initiatives, Urban Science’s Advanced Analytics team was tasked with the challenge of developing a new, technologically superior, enhanced lead scoring model to apply to AutoHook’s third-party incentive solution, also known as Lead2Show. This new, centralized model has proven to pinpoint even more leads with the highest probability of purchasing, faster and more accurately than ever before.

AutoHook’s new lead scoring model leverages the unrivaled sophistication of the Urban Science® DataHub™ - the only source of near-real-time industry-wide sales* data-fueled directly from automakers, not 90-day old registration data. Daily processing of sales and lead data allows us to deliver superior lead scoring automation technology that identifies more in-market buyers faster, without increasing the number of incentives issued.

For our dealers, this means a more efficient, cost-effective solution that eliminates instances of wasted time and money incentivizing leads with a low likelihood of purchasing or leasing a new vehicle. Simply stated, this advanced lead scoring model allows us to send even higher quality leads with the highest propensity to buy into dealer showrooms.

The direct-to-dealer benefits of our new, advanced lead scoring include:

  1. More Sales

  2. Higher Buy Rates

  3. Lower Cost Per Sale

  4. Less Waste (more buyers without increasing the number of incentives issued)

But we don’t expect you to take our word for it. In true Urban Science fashion, we have the data to prove it. We conducted extensive testing and validation efforts to confirm not only that the technology effectively does what we built it to do, but we also calculated the exact statistical significance of the implemented enhancements compared to our previous scoring model.

Methodology

To calculate the success of the upgraded technology, we applied both scoring models to the same data set of 173,532 third-party leads across all OEM brands over a two-week period. The actual results shown below reflect only the leads that were validated to have a high likelihood to purchase and thus received an AutoHook incentive offer. The data confirmed the new and improved algorithm provides significant, quantifiable benefits to our dealers including more sales, a higher buy rate and a lower cost-per-sale.

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Results

  • 73% Higher Buy Rate

  • 23% Reduction in Cost Per Sale

  • 11% Increase in # of Sales

  • 10% Reduction in Incentives Redeemed


Good news for current AutoHook clients, this upgrade in our technology is already working for you and will not affect the cost of our solutions. If you don’t use AutoHook’s third-party incentive solution (Lead2Show), for a $77 cost per sale, why wouldn’t you take advantage of this service?

*Sales refers to vehicle unit sales and does not represent vehicle price or revenue.

WHO'S WORKING YOUR LEADS? On the Dealer Front Lines (Part 4)

It’s day 23 of shelter-in-place, and other than the world needing a haircut, there’s positive news for the auto industry. Sales are certainly down, but they’re not gone. Whether your dealership is open or closed due to COVID-19, you still have leads to work - or your competition will.

Lead volumes are in fact declining, but not consistently across the board. Some brands are even seeing increases right now, and there are still approximately 20,000 vehicle sales happening each and every day. So how are you going to capture them?

At Urban Science, we have a tool called TrafficView™ that shows the highest rate of sales defections happen after 14 days. This means leads that came in during March need to be worked now. So do not shut down, and if you have to, then your internet teams should be working the leads in your CRM from home.

This is a time to be innovative and proactive, whether you are a salesperson, or a manager a GM. Here’s another easy idea. Focus on consumers with lease expirations and positive equity opportunities. Did you know that there are 1.8 Million leases due to expire between now and July of this year? Let’s just start there. You can sustain your business doing only that. In the words of Abraham Lincoln, “The best way to predict the future is to create it.”

In Part 5 of On the Dealer Front Lines, where we’ll cover how dealers can start preparing to capture the pent-up demand once the market recovers. Stay tuned!