1. No category

HOW TO USE DATA TO ENHANCE YOUR
MARKETING EFFORTS
Jeff Canty
Experian Automotive
© Experian Information Solutions, Inc. 2007. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc.
Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified,
or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc.
Confidential and proprietary.
Experian is a $4.0 billion global information
services business
Company
ƒ 15,500 employees in 65 countries
Services
ƒ Credit Services
ƒ Decision Analytics
ƒ Marketing Services
ƒ Interactive
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
2
Experian information assets
Unparalleled
breadth of
data assets
delivering
decision-critical
knowledge to
the automotive
industry
National
Consumer
Demographic
and Lifestyle
National
Credit
Database
National
Vehicle
Database
National
Business
Database
National
Fraud
Database
Integrated data solutions
ƒ 280 million
consumers,
110 million
households
ƒ 600 million+
vehicles –
U.S. and
Canada
ƒ 1,000 data
attributes per
record
ƒ Includes title,
registration,
mileage
readings, key
vehicle events
ƒ 3,200 public
and proprietary
sources
ƒ 215 million
credit-active
consumers
ƒ Nearly 2.8
billion
tradelines
ƒ Over six billion
inquiries
ƒ 325,000
known
fraud
records
ƒ Crossindustry
data
ƒ 15 million
businesses
ƒ Identification,
demographic,
credit
information
ƒ 55 million+
public records
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
3
Solution and market focus
Understand buying
trends and your
competitive positioning
Upsell/cross-sell
customers with the right
message at the right time
Manage your consumer
and vehicle portfolios to
maximize ROI
Markets
served
Target ready, willing and
able to buy prospects
ƒ
ƒ
ƒ
ƒ
OEMs
Lenders
Dealers
Consumers
ƒ Marketing
agencies
ƒ Retail
aftermarket
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
ƒ Fleet / lease
ƒ Insurance
ƒ Warranty
4
Over 20,000 automotive customers
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
5
EXPERIAN AUTOMOTIVE INDUSTRY
INSIGHTS
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
6
Automotive Industry
The current environment
The opportunity is large
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒOEMs, aftermarket
companies, dealers,
lenders and marketing
agencies must change
their strategy to survive
and grow
Gas prices exceeding $4.00
Tight credit is the #1 impediment to selling a new vehicle
New and used vehicle sales lowest in past 15 years
SUVs and pick-ups selling for 50% of MSRP
Auction volume down
Avg. new car owner upside down $4,200 at time of sale
Prime loans Æ ~74% of new car sales (decreasing)
Auto loan originations were down 17.47 percent,
compared to the prior year
ƒ Increasing delinquencies:
ƒ
ƒ
2.23% of all loans are 30 days delinquent (up 10%
0.69% are 60 days delinquent (13% increase) 1Q08 v 1Q07
ƒ Finance companies exiting the direct lending business
ƒ Finance terms extending along with length of avg. car
ownership
ƒ Global parts mfg. competition becoming more fierce
© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.
ƒInformation and
Innovation are the
weapons of choice
ƒValue and fast ROIs are
the keys to success
7
Increased Choices and Competition
45 + Brands
30 + Vehicle
Segments
300 + models!
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8
Increased Choices and Competition
Example: Nearly 50 vehicles available in
Crossover Utility segment alone
More on the way:
ƒAudi Q5
ƒCadillac Provoq
ƒChevrolet Traverse
ƒVolvo XC60
ƒLincoln MKT
ƒMercedes-Benz GLK
ƒToyota Vensa
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Proprietary.
9
Market Overview
GM Strike impacted vehicle
production, including highdemand vehicles e.g. Malibu
• Q2 2008 Market Share:
• When comparing Q2 2008 to prior 12
months, GM, Chrysler and Ford all lost
market share
19.3%
Other:
• Honda and Nissan gained share
12.7%
18.8%
• Toyota had slight gain in market share
25%
Prior 12 months
Q2 2008
6.1%
8.3%
14.3%
9.0%
11.4%
Market Share
20%
15%
10%
Source: Experian NVDB
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Proprietary.
10
G
M
d
C
hr
ys
le
r
Fo
r
To
yo
ta
N
is
sa
n
0%
on
da
• Honda surpassed Ford for #3 position in
terms of share
5%
H
• When excluding fleet and commercial
registrations Toyota had highest share,
followed for the first time by GM
10
Winners and Losers
…Hon
da C
was to ivic
p
selling
vehicl
e
in May
…
• Q2 2008 vs. Q2 2007 Registrations:
• When looking at specific models of vehicles, economy continues to be an important
factor in purchase decisions: Top 10 are all small and mid-size cars
140,000
120,000
Q2 2007
100,000
Q2 2008
80,000
60,000
40,000
20,000
Honda
Accord
Ford
Focus
Honda
Civic
Chevrolet Honda Fit
Malibu
Hyundai
Elantra
Nissan
Altima
Hyundai
Accent
Subaru
Forester
Toyota
Corolla
Source: Experian NVDB
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Proprietary.
11
11
Winners and Losers
• Q2 2008 vs. Q2 2007 Registrations:
• Efficiency also appears to be driving down sales of not-so-economic vehicle choices:
Full Size Pickups and SUVs make up the entire list with the exception of Ford Mustang
90,000
80,000
Q2 2007
70,000
Q2 2008
60,000
50,000
? ??
40,000
30,000
20,000
10,000
Ford F150
Chevrolet
Silverado
1500
Toyota
Tundra
Chevrolet Chevrolet
Dodge
Silverado Trailblazer Ram 1500
2500
Ford
Mustang
Jeep
Wrangler
Honda
CR-V
Chevrolet
Tahoe
Source: Experian NVDB
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Proprietary.
12
12
13
um
m
er
M
in
i
Po Ki
rs a
ch
B e
M
Ja W
gu
ar
A
u
In di
f in
M
er
ce Le iti
d x
Vo es- us
lk Be
sw nz
a
C ge
hr n
C ys
he le
vr r
C ole
ad t
il
Li lac
nc
ol
n
Fo
D rd
od
N ge
is
s
Sa an
tu
H rn
on
d
A a
cu
To r a
yo
M ta
a
M zda
er
cu
r
Vo y
lv
B o
ui
ck
H
Number of Months
How Long are Vehicles Owned?
70
60
New
Used
50
40
30
20
10
0
© Experian Information Solutions, Inc. 2008. All rights reserved.
Proprietary.
13
Solution and market focus
Understand buying
trends and your
competitive positioning
Upsell/cross-sell
customers with the right
message at the right time
Manage your consumer
and vehicle portfolios to
maximize ROI
Markets
served
Target ready, willing and
able to buy prospects
ƒ
ƒ
ƒ
ƒ
OEMs
Lenders
Dealers
Consumers
ƒ Marketing
agencies
ƒ Retail
aftermarket
© Experian Information Solutions, Inc. 2008. All rights reserved.
Proprietary.
ƒ Fleet / lease
ƒ Insurance
ƒ Warranty
14
Key solutions overview
AutoCount market reporting
AutoCount® Dealer Report
AutoCount Lender Report
AutoCount Risk Report
9 AutoCount Vehicles in Operation
Custom Registration Studies
Simmons Local AutoXpert w/AutoCount
Loyalty measurement
Custom loyalty studies
Auto Share of Garage
96% of the top-50 lenders use Experian’s
AutoCount to determine what competitive
financing sources are being used by dealers
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Proprietary.
15
AutoCount® Vehicles in Operation
Vehicles in operation reporting
Vehicles
9 AutoCount
in Operation
Addressing key challenges faced by the aftermarket industry …
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16
AutoCount® Vehicles in Operation
ƒ Autos in Operation
is ACES©
compliant,
offering AAIA
(Automotive
Aftermarket
Industry
Association) codes
ƒ Use of data by third
parties to support
your organization
is permitted
Vehicles in operation reporting
Vehicles
9 AutoCount
in Operation
Vehicle category (e.g.
passenger car, light truck)
Vehicle segmentation (e.g.
midsize luxury)
Manufacturer (e.g. General
Motors)
Vehicle Make (e.g. Chevrolet)
Vehicle Model Year (e.g. 2006)
Vehicle Model (e.g. Camaro)
Vehicle Series (e.g. the trim
level, such as RS)
Body Style (e.g. Coupe)
Door Count (e.g. 2)
Drive Wheels (e.g. All Wheel
Drive or AWD)
Fuel Type (e.g. Gas)
Engine Displacement in Liters
(e.g. 3.8L)
Engine Cylinders (e.g. V6)
Performance Option –
Aspiration (e.g. Turbocharged)
Fuel Delivery (e.g. Fuel
Injected)
Wheelbase (e.g. 201.3 inches)
Vehicle Weight (e.g. 2422 lbs)
Transmission Type – standard
equipment (e.g. Automatic)
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Tires
– Standard
& Optional
Proprietary.
(e.g. P195/75R14)
17
The Challenge: Measuring loyalty to generate
actionable insights
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18
405 million reasons why loyalty matters…
For manufacturer X:
Current Owners:
10,000,000
Returning to market annually (15%):
1,500,000
Corporate Loyalty Rate:
Number of Loyal Purchasers:
40.0%
600,000
Impact of One Percentage Point Increase In Loyalty
Corporate Loyalty Rate:
41.0%
Incremental Sales:
15,000
Avg. revenue per vehicle:
Incremental Revenue:
$27,000
$405,000,000
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19
Loyalty has declined since 1998
49.1%
46.0%
40.2% 39.1% 39.3% 39.9%
Corporate Loyalty
43.3% 42.6%
42.0% 41.3%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Experian Automotive
© Experian Information Solutions, Inc. 2008. All rights reserved.
Proprietary.
20
Loyalty Varies by Brand
50%
45.4%
40%
40.5% 39.8%
38.4%
Brand Loyalty
34.5%
31.3%31.3%
30%
29.4% 28.9%
27.4%
25.9%
20.7%20.7% 20.3%
20%
19.6%
17.2% 16.7%
15.2% 14.7%
12.0%
10%
To
y
H o ta
C on
he d
vr a
ol
et
F
H or
yu d
nd
N
M
is ai
er
ce L san
de ex
s- us
B
C en
ad z
ill
a
B c
M
D W
o
Li dg
nc e
ol
n
C Jee
hr p
ys
Vo
le
lk A r
sw u d
ag i
In en
fin
M iti
az
d
Sc a
Ja ion
gu
ar
0%
Source: Experian Automotive
© Experian Information Solutions, Inc. 2008. All rights reserved.
Proprietary.
21
Customer satisfaction does not equal loyalty
50%
Brand Loyalty
Satisfaction Index
40%
40.5% 39.8%
850
38.4%
Brand Loyalty
34.5%
800
31.3%31.3%
30%
29.4% 28.9%
27.4%
750
25.9%
20.7%20.7% 20.3%
20%
700
19.6%
17.2% 16.7%
650
15.2% 14.7%
12.0%
600
10%
550
0%
Customer Satisfaction
900
45.4%
To
y
H ota
C on
he d
vr a
ol
et
F
H or
yu d
n
N da
M
is i
er
ce L san
de e x
s - us
B
C en
ad z
ill
a
B c
M
D W
o
L i dg
nc e
ol
n
C Jee
hr p
ys
Vo
le
lk A r
s w ud
ag i
In e n
fin
M iti
az
d
Sc a
Ja ion
gu
ar
500
Source: Experian Automotive
Source: JD Power & Assoc.
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Proprietary.
22
External Data Example
Corporate Loyalty
$25,000 or
below
$25,000 $50,000
$50,000 $75,000
$75,000 $100,000
$100,000 $150,000
$150,000 - $200,000 or
$200,000
above
Household Income
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23
Case Study Examples:
Corporate Loyalty
20% Lift
OEM Captive
Non-Captive
Financing Source
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Initial Purchase
24
Case Study Examples:
Dealer Loyalty
27% Lift
OEM Captive
Non-Captive
Financing Source
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Initial Purchase
25
Case Study Examples:
Corporate Loyalty
Body
Electrical
Electical
Mechanical
Drive-Train
Type of Warranty Visit
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Proprietary.
Engine/Trans
Warranty / Service
26
Additional questions?
JEFF.CANTY@EXPERIAN.COM
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Proprietary.
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© Experian Information Solutions, Inc. 2007. All rights reserved.
Confidential and proprietary.