Mobile Consumers Are Calling:
How Inbound Phone Calls Help Auto Dealers
Win Customers, Influence Brand Loyalty
A Marchex Industry Trends Report
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Summary
exactly, happens after a consumer connects with a dealership
The massive rate of mobile phone adoption has ushered in a
over the phone.
dramatic shift in consumer behavior for the U.S. automotive
industry. Consumers researching cars, parts or services are no
Marchex, a mobile advertising technology company, examined
longer content to visit a website, fill out a form or send an email
2014 data from ad-driven phone calls to dealerships to determine
outlining their needs. With a smartphone in practically everyone’s
how dealers can better capture leads over the phone.
hand, consumers want immediacy and human connection. In
short, they want to talk.
The findings show:
Auto dealerships are experiencing a significant increase in
77%
Most phone calls to dealerships are from new
customers.2
74%
The vast majority of customers call dealerships to
inquire about parts and services.2
14%
Percentage of customers inquiring about new or used
cars – which are considered the most valuable phone
calls to dealerships – was substantially smaller.2
the volume of phone calls from consumers, which directly
corresponds to the rise of smartphone growth. In a September
2013 study, Google found that more than half of consumers
searching for cars, parts or services on their mobile phones are
“very likely” to click on a phone number to call a business.1 The
intent of these consumers cannot be overstated.
As dealerships start to recognize phone calls as mobile’s fastest-
The data strongly indicates that the auto industry has a
growing source of lead generation – and as more ad dollars pour
tremendous opportunity to maximize profits with incoming
into mobile marketing to drive these phone calls – there has
calls for parts and services. More importantly, capturing leads
never been a greater need to understand at scale what,
for parts and services strategically engenders customer loyalty.
74%
Call dealerships to
inquire about parts
and services.
When maintenance and repairs are done well, customers come
back, industry executives and analysts say.3
Marchex postulates that brand loyalty is a valuable commodity
that also drives sales of new and used cars – a critical factor
in creating long term, sustainable growth. Brand loyalty keeps
dollars flowing to manufacturers, years after customers have
driven their cars off a dealer’s showroom floor.
Parts and services: Big profits, big chance
for customer stickiness
The National Auto Dealers Association (NADA) released its
annual deep dive into dealership sales and financial trends
in May and found that for all dealerships, sales for parts and
$
84+B
Sales revenues for
parts and services
services rose nearly 4% from $81.35 billion in 2012 to $84.59
billion in 2013.4
That marks the third consecutive year these sales exceeded $80 billion, according to NADA, noting that service work is an “integral
part” of a dealership’s operations.5
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Customers streaming through the parts and services channel
If you would like to learn more about acquiring customers over
present a prime opportunity for dealerships to nurture leads that
the phone, contact:
translate to future car sales. Dealerships need to pay particular
Tom Harter, Director of Business Development – Automotive
attention to Millennials, who represent a strong “DIFM” (Do-It-
Industry at Marchex.
For-Me) opportunity when it comes to paying for auto services.6
Phone: 626-616-3448
Cultivating such relationships also saves money. Indeed, it costs
Email: [email protected]
far less for manufacturers to sell to a satisfied repeat customer
than to win a loyalist away from a competing brand.7
Furthermore, when customers end up choosing auto
Author profile
maintenance specialists – e.g., Jiffy Lube, Maaco, Midas –over
Chen Zhao is the Director of Analytics for the
dealerships for parts and services work, brands get hit twice:
Marchex Institute, the research arm of Marchex,
first, they lose out on the job; and second, they lose the chance
Inc. and is an expert in digital advertising
for customers to see new cars on the lot.
analytics.
Missed opportunities
Prior to joining Marchex, Zhao worked on the publisher side
Whether consumers call about new or used cars, parts or
at Amazon as well as on the client side at Microsoft. While at
services, Marchex found several instances in which dealerships
Amazon, Zhao led the product management team responsible
failed to capture leads effectively over the phone. In particular,
for Targeting and Analytics products for Amazon’s Display
the analysis showed:
Advertising Platform. At Microsoft, she managed end-to-end
audience research, analysis and measurement for multi-million
■■
16% of calls go unanswered.2
dollar global advertising campaigns in the Central
■■
When customers DO connect with a dealer representative,
Marketing Group.
63% of the time there is no attempt to get the customers to
■■
make an appointment.2
About Marchex
66% of the time representatives do not ask for the customer’s
Marchex is a mobile advertising technology company. The
contact information.2
company provides a suite of products and services for
businesses that depend on consumer phone calls to drive sales.
By addressing these three key issues, dealerships can expect
Marchex’s mobile advertising platform delivers new customer
to increase customer conversion rates by 20%, according to
phone calls to businesses, while its technology analyzes the data
the data. 2
in these calls to help maximize ad campaign results. Marchex
disrupts traditional advertising models by giving businesses full
Conclusion
transparency into their ad campaign performance and charging
Ultimately, dealerships must seize on building relationships
them based on new customer acquisition.
every step of the way throughout the online-to-offline customer
journey. This means nurturing leads from the moment the phone
Please visit www.marchex.com or @marchex on Twitter to
rings, to when a customer appears in the lobby, to even after that
learn more.
customer leaves the lot.
1.
2.
3.
4.
5.
6.
7.
Source: “The Role of Click to Call in the Path to Purchase,” Google. September 2013.
Based on 1,000 randomly selected phone calls from Marchex Auto Study in Q2, 2014.
“How Auto Makers Keep You Coming Back,” The Wall Street Journal. January 22, 2013.
Source: National Automobile Dealers Association, NADA DATA report, 2013 and 2014.
“And service work, whether for warranty repairs or a quick oil change, is still an integral part of dealership customer service and operations.” NADA DATA 2014 report.
BB&T Capital Markets, 2014 Presentation by Bret Jordan, CFA, Equity Research Analyst for the AutoCare Association.
“How Auto Makers Keep You Coming Back,” The Wall Street Journal. January 22, 2013.
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