Attack the Dealer App Gap: Reach Gen Y – Keep

All Customers Close – and Seriously Boost Your

Service Appointments.

Mark Conner

Assistant Vice President, Marketing – Lithia Motor Group

A World Evolving At Record Pace

Sources:

Nielsen, July 2012

Frank Magid Assoc. Report, June 2012

Flurry Analytics Data, 2012

Nielsen, July 2012

comScore, 2012

• 46% of all American adults now own a smartphone

• U.S. smartphone users spend 109 billion minutes/month on apps

• Average smartphone has 41 apps downloaded

• Time spent on apps on a smartphone: 64%

• Android and Apple makes up 75% of all smartphones owned

Dealers: Get on Board at the 1st Stop…

Don’t Chase After the Train!

Why should dealers take the time and make the

invest to create an app?

Sources:

Nielsen Research, July 2012

74%aged 25-34

own a

smartphone

58%

of American

teenagers

own a

smartphone

18-34 year

olds make

up 53% of

time spent

on apps

Early Adopter: Lithia Motors Group Made

the Move

• We identified the need to engage with our

owners and future customers in this emerging

channel

• As mobile marketing continues to be

refined/defined our app allows for us to directly

engage with and empower our customers

• Product fully integrated with our DMS system

• Inventory including pricing and VDP

• Service reminder notifications

• Appointment setting

• App takes our fully functional web assets into

the app itself, plus delivers other useful tools

Early Adopter: Lithia Motors Group Made

the Move

Sales StrategyThe App is the next logical step because…• New & used Inventory is listed

• It helps sales teams form relationships with their customers and relationships matter

• The app gives the customer an easy way to view detailed info on their vehicle

• It allows a customer to submit a lead

• The app is fun! It engages. It empowers.

• It’s our virtual sales person

Service Strategy

The Service Drive and App were made for each other.

• Integrated with the DMS

• Easy/Convenient scheduling tool for customers.

• Sends out appointment and service reminders via push notifications

• Direct link for instant coupons, discounts and specials

• Keeps our service center top of mind and in the customers hand. Every. Single. Day.

Early Adopter: Lithia Motors Group Made

the Move

• Dealer apps allow for easy prior written consent to

receive text messages

• App – easy way to get the message out to consumers

instantly and avoiding the ever-changing FCC and FTC

laws

• Push notifications are FCC & FTC

compliant

COMPLIANCE

Your Customers Will Simply

Love You for It

• Flashlight

• Find My Car

• Parking Meter

• Location Based Services

• Appointment Setting

• Coupons, Specials and Discounts

18% of people who shop

with apps use ‘location based

services’ to find a location for

purchase

25% of people

who shop with

apps use the app

to acquire coupons

Transitioning Your Store to the

App-tastic World

Lithia Motors Group

Identified the following…

iOS and Android support

Single Brand – All Stores

Inventory Integration

DMS Integration

Service Appointment Setting for

Customers

Engaging Ownership Tools

App-lying the Product to Your Stores

Pick Your AppDecide Your

Stores’ NeedsPromote App Downloads

Take Advantage of Unparalleled

Customer Relationships

Getting Your Team On Board

Service and Sales Team Training

• Account Rep perform in-house training for

both sales and service teams

• Prepped reference materials to assist

teams during customer interaction

• Provide appropriate in-house collateral and

promotional materials to assist in teams

message

• Create performance awards for service &

parts personnel

• Incentivize download for sales customers

who use the ‘Showroom’ tool – coupon

offer

App-lying the Product to Your Stores

• Business Cards

• Newspaper Ads

• All mail communications

Keep the discussion alive…

• Promote it through TV and

radio ads

• Promote it during ‘on-hold’

phone messaging

• Promote it through customer

download and activity contests

• Promote it through every day

language at your store

• Promote it via social media

POWER

of the

QR CODE

App-lying the Product to Your Stores

Point Of Sale

Taking It Further:Lessons Learned

After selecting the

right app,

the download is

the single

most important focus to

achieve success

52%Created Accounts

After Downloading

My Lithia app

Avg. Pages Visited

Per App Use

Average Minutes

Spent per VISIT

1519.3

1500+ First Month of

Downloads

675Click throughs on

Facebook

700+ Facebook

Engagements

The Results? App-solutely Phenomenal!

Official Launch: June 2012

Appointments

made in Q3

200+

Downloads

still active

after 30 days

63%

Avg. Time Spent

on App per Visit:

19.3 min

Avg. Page Views

on App per Visit:

15

1,500+

950+

First Month

Avg. / month

Downloads

Taking It Further:Lessons Learned

1. Download the app as part of a vehicle presentation

2. Work in flexibility with the ability of the app so stores can have specific, custom messages

3. Download app as part of service greeting process

4. Make it part of the cashiering process

5. Keep engaging offers in the specials tab

6. Notify owner base of special sales or incentives for promotions

7. Mobil marketing without additional funds from SEM/PPC budgets

8. Social/FB conversations – Likes/Referrals

My Lithia

Let’s see what the hype

is all about!