Proof is in the Numbers - Reviews Drive Business
With 84% of Americans acknowledging that online evaluations have an influence on their decision to purchase a product/service, an online reputation management strategy is no longer simply a “nice to have” for today’s successful dealerships – it’s a necessity. The ideal is an online reputation that enhances the public’s opinion of your dealership and its employees. This perception converts to sales.
What’s your offense for online reviews? Are they helping your dealership drive sales? New quantifiable data shows that dealerships’ online reviews and associated star ratings do just that – drive new vehicle sales and increase share of brand sales.
In this presentation, Heather will share results from a recent DealerRater-Polk study that demonstrates the direct correlation between dealership online star ratings and dealer vehicle sales. Study results also compare the sales performance of DealerRater Certified Dealers to the general market as well as to non-certified dealers. Heather will then present dealer case studies that explore the fundamentals of building and maintaining an online reputation that enhances auto consumers’ interest in doing business with your dealership and its employees. Finally, Heather will review proven strategies for adopting a strong offense for online reviews (both at the dealership and employee level) resulting in selling more cars across the Web and in the showroom.
1. Mark Pauzé
Senior Marketing Manager Analytics & Consulting
Heather MacKinnon
Vice President National Accounts-DealerRater
The Proof is in the Numbers
Reviews Drive Business
2. Agenda
Reviews Drive Business- The methodology and results of a
2012 Polk Study measuring the impact average star ratings have
on new vehicle registrations.
Booking More Appointments & Breaking Down Barriers-
Utilizing review content to book more sales/service
appointments.
Let Your Customers Do the Talking- Increase Sales/Service
business through reputation leveraging strategies
Inspect What You Expect- Promote the positives!
3. Consumer Behavior...
88% of all in-market consumers conduct research on the internet
before walking into a dealership (JD Power)
89% of car buyers go online to verify recommendations before
purchasing a vehicle (Cone Study 2011)
4 out of 5 consumers do not move ahead with a purchase based
on negative online reviews (Cone Study 2011)
59% of auto shoppers said they feel more positive about dealers
who respond to negative comments (2013 Ford Direct study)
5. Polk manages a complex set of online vehicle data
to support the automotive industry as our core business
• 500 million unique vehicles
– Passenger
– Commercial
• Over 135 million households,
195 million individuals
– Demographics
– Lifestyles
– Vehicle intenders
– Internet shopping
• 2.6 billion transactions
• 240+ data sources
• Titles
• Registrations
• Sales
• Over 17 million businesses
• 35 million vehicles
The world’s largest provider of automotive market
intelligence and solutions.
Polk’s Industry Intelligence
6. All global OEMs (including emerging)
Dealers/Dealer groups
Aftermarket companies
Finance and insurance companies
Advertising agencies
Media companies
Consulting organizations
Government agencies
Investment firms
Market research firms
Web portals
Search engines
Polk’s Customers
6
7. Polk’s Areas of Expertise
Analyze & Forecast
Market Potential
Plan & Manage
Multichannel Target
Marketing
Improve Owner Loyalty
Manage Aftersales &
Aftermarket Operations
Optimize Dealer
Networks
Interpret & Apply
VIN Information
8. Study Background
• Polk was requested by DealerRater to conduct a study
evaluating:
1. How franchised dealership star ratings affect sales
performance
2. How various levels of participation in DealerRater’s
Certified Dealer Program affect sales performance
• Goal was to investigate assumptions about star ratings and the
Certified Dealer Program
9. Study Methodology
DealerRater provided Polk with industry database file
(including DealerRater certified dealers and other dealerships)
7,784 dealers in the sample set
◦ DealerRater data elements included:
Dealer ratings
Certified dealer date & certification type
Reviews
Usage of DealerRater tools
Jan-Sept 2012 vs. Jan-Sept 2011 & historical new vehicle registrations to
2009
10. 12.2%
14.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Dealers Rated 2 or Less Dealers Rated 4 or More
% Growth
Jan-Sep 2012 vs. 2011
Dealers with an average star rating of 4.0 or higher had a 21% greater
increase in sales compared to dealerships with an average star rating
of 2.0 or less
Reviews Drive Business
11. Certified dealers averaged a 5% increase after six months and an 8%
increase after 12 months
360Certified dealers averaged an 11% increase after six months / 19%
increase after 12 months
Certified Dealer Program
Impacts Dealer Growth
* 360Certified dealers using all
DealerRater tools
5%
8%
11%
19%
0%
5%
10%
15%
20%
25%
6 months after certification 12 months after certification
% Growth After Certification
Certified Dealers
*360Certified Deale
12. In other words, on average certified dealers sold 6 more cars per
month in the 12 months after joining the program
A Measurable ROI
13. Certified dealers experienced on average a 23% greater increase in new car
sales compared to non-certified dealers.
360Certified dealers who were fully utilizing the program tools had a 50%
greater increase in sales compared to non-certified dealers.
23%
49%
0%
10%
20%
30%
40%
50%
60%
% Greater Increase in Sales
% Growth vs. Non-Certified Dealers
Certified Dealers
*360Certified Dealers
Outpace the Average Dealer
*360CertifieddealersusingallDealerRatertools
15. Bozard Ford Reputation Results
Instituted a Reputation Strategy early 2010 comprised of building DealerRater
and Google Sales and Service Reviews.
Bozard Ford Sales 2010:
Average # of vehicles sold per month: 100
Average # of vehicles sold per month sourced through the internet: 8
Featured fewer than 20 online reviews
Bozard Ford Sales 2013:
Average # of Vehicles sold per month: 300
Average # of Vehicles sold per month sourced through the internet: 120
Features over 1000 reviews on DealerRater and Google combined
Bozard Ford Service:
Monthly Repair Orders up over 50%
Since 2011, 100% of Bozard Ford’s Marketing has leveraged reputation
17. Decide and Conquer
Vast majority of Search Traffic comes from Dealer Name-
based Search.
◦ 65% of search traffic is Directory Search (Bozard Ford) vs.
◦ 35% of search traffic is Keyword Search (Ford Dealers St
Augustine, FL)
***2013 Autotrader.com reported at JDPower March 2013 Conf.
Keyword Versus Directory Searches
18. Create Employee Buy In
•Engage entire staff
•Recognize Top Rated Employees Weekly
•Drive Competition and Recognition
36. Inspect What You Expect:
Testimonial Pages
contain timely 3rd
party
powered reviews
37. Inspect What You Expect:
•Review History is Consistent/Current
•Strong Sales & Service Reputation
38. Questions?
For additional questions or information:
Heather MacKinnon
Vice President of National Accounts
800-266-9455 x 3533
Heather@dealerrater.com
www.DealerRater.com