WELCOME TO THE WEBINAR Changing Lanes The New Paths to Car Buying June 3, 2014 All registrants for today s webinar will receive a follow-up email with a link to the presentation and recording To ask questions during the session use the chat window on the right of the screen Participate in polling during the webinar use the polling function on the right of the screen Corrin Maier Director, MemberCONNECT
WELCOME TO THE WEBINAR Changing Lanes The New Paths to Car Buying June 3, 2014 Stephen Arnold Vice President, TruStage Auto and Home Insurance Program General Manager for Digital Media Program
Did you use the internet in any capacity to research your first car? A B C D No, because back then, the internet didn t exist No, because I preferred other ways to do research I really didn t research my first car Yes, I used the internet
When you envision the sales experience at a typical dealership, what comes to mind? A B C D A source of helpful bias-free information A no-pressure environment People who only want to sell cars, not worry about financing and insurance Vending machine coffee
The way things were 1 2 3 4 $$
The changing foundation of car buying Relatively slow internet Laptops available Portable web Browsing and social media
High-speed data changed our culture
High-speed data changed the process of buying a car
Today, almost every vehicle purchase begins online Source: CapGemini, My Car My Way, 2013.
In 2012, 94% of consumers used the web to research automobiles perhaps the most profound car buying trend in the last 10 years. Source: CapGemini, My Car My Way, 2013.
The number of dealership visits has drastically declined. Source: Innovating automotive retail, McKinsey & Company, 2013.
The average buyer visits just 1.6 dealerships while car shopping. Source: Innovating automotive retail, McKinsey & Company, 2013.
An average car buying journey is getting longer. 3 MONTHS FINISH START Source: thinkgoogle, Vehicle Launch Excellence and Beyond, 2013.
Brands are happening sooner. FINISH START
A consumer saw an average of 300 brand impressions. FINISH START Source: Cobalt, A Guide to the Modern Car-Shopper Journey
At least 300 brand impressions on car buying journey Source: Cobalt, A Guide to the Modern Car-Shopper Journey
Will sell 375,000 new vehicles this year That s more than 1,000 per day Source: Jeff Skeen, General Manager of Costco, Americans Rethinking How They Buy Cars, CNBC.com, Feb 2014.
Brands introducing financing and insurance early in the journey Up-front offers designed to get an early, easy YES 5 of the top 10 consumer insurance brands are associated with banks
There are perhaps thousands of different paths, but these represent some commonalities today.
HANNAH Young Millennial Purchased 25% of all vehicles in 2012, with that expected to double in the next 8 years. 50% don t have a car Follows on Instagram Likely purchase Honda, Toyota, Chevy Accesses online sources & calculators Source: Deloitte, 2014 Global Automotive Consumer Study
How prepared is your credit union in serving someone like Hannah? A B C D We re very prepared and doing it now. We re getting there we ve got a good start. We ve done a few things, but it s mostly business as usual. We re not really prepared at all.
THE ANDERSONS Family Their age group is big market for NEW cars. They buy 3.8 million new vehicles each year. Entire family is tech-savvy Have 5 top brands Look at independent car reviews Family vote after test drives Source: JD Power, 2013 Automotive Marketing Roundtable.
Among credit union members 72% of car buyers will finance their purchase Loan terms are getting longer Leasing hit record high as of February Source: JD Power, 2013 Automotive Marketing Roundtable.
THE ANDERSONS Family Are in prime buying and borrowing years Entire family is tech- savvy Have 5 top brands. Look at independent car reviews Family vote after test drives
What percentage of this group would consider buying a NEW car entirely online? A 20% B 45% C 55% D 67%
What percentage of this group would consider buying a NEW car entirely online? B 45% Source: Accenture, Playing to Win, 2013.
Of those who would consider buying a NEW car entirely online, how many actually do it? A Almost none. B About 20%. C A little less than 50%. D About 75%
Of those who would consider buying a NEW car entirely online, how many actually do it? A Almost none. But the thought is there. Source: Accenture, Playing to Win, 2013.
DAVE Baby Boomer He may not finance, or if he does, he s more likely to finance through a dealer. Car enthusiast Reads car blogs, visits dealers for new models Reading about redesign of classics Serious about a fun car Source: Accenture, Playing to Win, 2013.
Be there when the relationships are forming. A Think about visibility of B auto loans and car insurance programs in your branches. C D Make specific plans for digital messaging.
Younger ages Focus on price comparisons Frequently switch brands Be there from beginning offering assistance
Reach sooner & stay relevant
Patience in the car buying journey 74% would go elsewhere if too slow in answering questions. 81% would go elsewhere if the answer quality was poor. Source: Cars Online, CapGemini, 2013..
Consumer Car Buying Empowerment Journey Self Empowerment 1 2 Reality of purchase 3 Time
Consumer Car Buying Empowerment Journey Self Empowerment Reality of purchase Opportunity Time
Vehicle Financing $ One Company $ Auto Insurance
Only about 14% of those who switched insurance companies attributed the switch to a new vehicle.
Members with several insurance products, deposit accounts or a credit card are more likely to come to you for loans.
Credit Union Loyalty and Affinity is Real. Forge relationships early Add value early in the process Build on your service strengths
Is your brand ready to be like Jeeves? 74% said they were satisfied/very satisfied with their most recent car shopping experience Source: CapGemini, My Car My Way, 2013.
Is your brand ready to be like Jeeves? Good experiences build loyalty Never too early Member mindsets focus on convenience and empowerment
With the AskAuto app, help members shop for a car and a great loan. Get your customized lending message to members while they re on the dealer s lot. Provides selling price info Compares scanned vehicles Streamlines application process
Get Car Insurance Campaign Marketing Materials www.cunamutual.com/carcampaign Coordinated materials available today! Campaign flyer Lobby screen ads Ready to use newsletter articles Facebook posts Web banners, ads and emails
QUESTIONS? Stephen Arnold Vice President, TruStage Auto and Home Insurance Program Corrin Maier Director, MemberCONNECT THANK YOU FOR ATTENDING Changing Lanes The New Paths to Car Buying