Understanding the Importance of Digital Channels during the ... - Deloitte [PDF]

Understanding the Importance of Digital Channels during the Decision Making Process for a new Car A comparative study on the Impact and Maturity level of Digital Channels in the Belgian Automotive Industry May 2014

Table of Contents

The consultation of digital channels

6

The influence of websites and applications process

7

Survey Results 7 Maturity Assessment 8 Website8 Mobile applications 12

The influence of social media on the decision making process

14

Survey Results 14 Maturity Assessment 15 Facebook15 Twitter18 YouTube19

Online purchase of cars

20

Survey Results Maturity Assessment

20 20

Synthesis 21

Title of publication Focus area of publication

2

The digital maturity of the Belgian automotive industry

Survey results Influence of websites and applications Influence of social media

Consultation of digital channels

43%

Online purchase

43% 40% 34%

32%

32%

29% 25%

23% 21%

20%

19%

16%

14%

5%

Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

Not at all

To a large extent

Influence of websites and applications

To little extent

To some extent

5%

To a large extent

Very unlikely

Influence of social media

Unlikely

Likely

Very likely

Who would ever buy a car online?

Maturity assessment Websites and applications

Social media

Online purchase possibility 10

9,09 8,18

8,18 7,27

7,27

6,82

6,36

6,83 5,93 5,25 4,30

3,83 2,90 1,80

Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F

Rating website and applications /10

Brand A

Brand G

Brand F

Brand C

Brand B

Rating social media /10

Brand D

Brand E

Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G

Rating online purchase possibility /10

Understanding the Importance of Digital Channels during the Decision Making Process for a new Car

3

Introduction

BRAND Digital channels

Website

Smartphone/ application

Tablet

Search engine

Facebook

Twitter

YouTube

The last few years, marketers have

analyzing the digital maturity of seven

been overwhelmed by articles about

brands in the Belgian automotive

the importance of digital marketing,

industry. Therefore Deloitte Digital, in

especially e-commerce and social

collaboration with the University of

marketing.

Global

Antwerp, developed a maturity model

Automotive consumer study confirms

by integrating the critical aspects of

the importance of the digital strategy

digital marketing, being the website,

and

mobile applications and social media.

its

A

Deloitte

consistency

throughout

different digital channels. It showed that the majority of Generation Y

This study began with 207 people

consumers spend more than 10

who filled out a survey about the

hours researching before purchasing

influence of websites and social

a vehicle. Moreover, 53% of this

media on the decision making

generation trust the manufacturer

process. After demonstrating the

websites

social

importance of these digital channels,

networking sites to influence their

seven brands were subject to the test:

purchase decision. However, very

do they respond to the expectations

little studies have been done on

of the customers and who stands out

digital maturity so far. Deloitte

in which digital channel?

and

32%

trust

decided to take up the challenge by 4

Brands assessed The following brands have been assessed within the scope of this study:

Data sources • Survey: 207 respondents from October 2013 to December 2013 • Facebook: posts by Brand A, Brand B, Brand C, Brand D, Brand E, Brand F, Brand G: data from September 2013 to November 2013 • Twitter: posts by Brand A, Brand B, Brand C, Brand D, Brand E, Brand F, Brand G: data from September 2013 to November 2013 • Websites: posts by Brand A, Brand B, Brand C, Brand D, Brand E, Brand F, Brand G: data from September 2013 to May 2014 on PC, tablets and smartphones. • Mobile Applications: posts by Brand A, Brand B, Brand C, Brand D, Brand E, Brand F, Brand G: data from September 2013 to December2013 • Search Engine: Google: research between September and November 2013.


5

The consultation of digital channels


Survey results Consultation of digital channels

As presented in Figure 1, 84% of the people consult from little to a large extent digital channels like websites and social media when they want to buy a new car.

Influence of websites and applications Influence of social media


Survey results



43%

40% 34%

32%

32%

29% 25%

23% 21%

20%

19%

16%

14%

43%

Figure 1: Influence of websites and applications

Online purchase

43%

Not at all

To little extent

To some extent

To a large extent

Not at all


43%

5%

To little extent

To some extent

Not at all

To a large extent


To little extent

To some extent

To a large extent

Very unlikely

Unlikely

5%

Likely

Very likely



34%

32%

Maturity assessment

29%

Websites and applications

25%

Social media


Figure 2: Consulting according to age 9,09

8,18

8,18

Consulting according to age 7,27

7,27

6,82

6,83

6,36

5,93

5,25

21%

20% 4,30

3,83

19%

2,90 1,80

16%

14%

50% Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F

Brand A


Brand G

Brand F

Brand C

Brand B

Brand D

Brand E


Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G


40%

30% Not at all

To little extent

To some extent

To a large extent

Not at all

To little extent

To some extent

Not at all

To a large extent

To little extent

To some extent

To a ex

20%

Consulting according to age

Based on perception,ofmainly the younger generation Consultation digital Influence of websites Influence of 50% 10% would consult digital channels. However, as illustrated channels andinapplications Figure 2, 91% of Generation X consumers also consult 40% 0% digital channels in order to make this important decision. Not at all To little To some To a large Moreover, people older than 45 years old consult digital extent extent extent 30% channels as well. Moreover, Baby Boomers consult digital Maturity assessment channels as well.

socialGeneration med

Generation

Baby Boom

20%


Generation Y

Social media

Furthermore, 90% of the respondents who own a 10% Generation X company car, go online to find information about their next automobile, which is 12% more than people who Baby Boomers 0% own a 9,09 private car. People who have a company car may To little To some To a large Not at all be less loyal 8,18 towards8,18a particular brand than people extent extent extent 7,27 7,27 Figure 3:6,83 Consulting according to ownership 6,82 Consulting according to ownership owning a private car, as they usually have the opportunity 6,36 5,93 5,25 to switch cars (and brands) more often. In terms of gender 50% 4,30 3,83 there are no significant differences: 84% of women and 88% of men consult digital channels.

1

2,90 1,80

40%

These results underline the importance of the quality of a E Brand G Brand C Brand D Brand B Brand F Brand A Brand brands’ digital presence. Consulting according to ownership

The next paragraph sets and out the degree of influence 50% Rating website applications /10 digital channels (e.g. websites and applications) exert on people. It is notable that 10% of people who consult 40% digital channels don’t believe they are influenced by them. Moreover, 39% of people who consult digital 30% channels don’t think they are influenced by social media.

30% Brand A

Brand G

20% Rating

6

To some extent

To a large extent

Brand E

Bra

Ra

C

N

0% Not at all

No car To little extent

Brand D

O

Company car

Not at all

Brand B

10%

Own car

0%

Brand C

social media /10

20%

10%

Brand F

To little extent

To some extent

To a large extent

The influence of websites and applications process The digital maturity of the Belgian automotive industry

Survey results

Survey Results



43%

Online purchase

43% 40%

Attracting people to consult their digital channels is one important goal, but persuade customers to buy your product is the main objective of each firm. This process e digital maturity of the Belgian automotive industry should not only take place through websites, but also through the creation of a community around your brand. In this marketing process, it is very important to know Figure 5: Influenced according to age who is influenced by your efforts.Survey As Figure results 4 shows, 84% Influenced according to age of the respondents believe that their decision making process is influenced by the quality of the consulted 50% Influence automotive websites and applications,of of websites whom 43% isand applications Consultation of digital channels Influence of social media influenced to some extent. 34%

32%

32%

29%

25%

21%

20%

23%

19%

16%

14%

5%

Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

Not at all

To a large extent


To little extent

To some extent

To a large extent

5%

Very unlikely

Unlikely

Likely

Very likely



Maturity assessment


Social media

Online purchase possibility

10

9,09

8,18

8,18

7,27

7,27

6,82

6,83

6,36

5,93

5,25

4,30

3,83

2,90

1,80

Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F


Brand A

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E


Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G


Online purchase

40%

Figure 4: Influence of websites and applications Influenced according to age 43%

30%

43%

50%

40%

20% 34%

32%

32%

40%

29%

21%

30%

19%

Not at all Generation Y

10% To some extent

To a large extent

Bab

0%

20%

To little extent

To little extent

To some extent

To a large extent

5%

Generation X

Not at all

To little extent

0%

Not at all

To some extent

To little

To a large extent

To some

Not at all

To little extent

To some

To a large

Very unlikely

Unlikely

Likely

Ve

extent Baby Boomers extent

To a large

Figure 6: Influenced according to ownership In Influence terms of age,of wewebsites don’t Consulting according to ownership extent see significant extent differences extent Influence of social media Who would between Generation Y and Generation X. More than and applications online? 50% 35% of the Baby Boomers think they are not influenced at all by these digital channels. (See Figure 5)

onsultation of digital hannels

Ge

23%

20%

16%

14%

t at all

Ge

10%

25%

ever buy a

40%

Websites and

In this chapter we analyzed who is influenced by digital Maturity assessment channels, and to which extent. In the next chapter we Consulting according to ownershipof the seven brands in will investigate the performance applications Social media these particular digital channels.

30%


50%

20%

40%

10%

O 9,09 8,18

Brand E

C

8,18 7,27

Brand A

10

7,27

6,82

6,83

30%6,36

N

0% 5,93

5,25 84% of the respondents believe that their 4,30 3,83 20% decision making process is influenced by the 10% quality of the consulted automotive websites Brand G Brand C Brand D Brand B Brand F Brand A Brand G Brand F Brand C Brand B and applications 0%

Not at all


To little

To some

To a large

Not at all

To little extent

To some extent

To a large extent

2,90 1,80Own

car

Company car Brand D

Brand E

No car

Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G

extent social Rating media /10 Rating online Understanding the extent Importance ofextent Digital Channels during the Decision Making Processpurchase for a new Car possibility 7

32% 29% 25% 21% 16%

14%




Not at all

To little extent

To some extent

43%

32%

Online purchase

To a large extent

43%

Not at all

40%

34%

32%

To little extent

29% 25%

23% 21%

20%

19%

16%

14%

5%

5%

Consultation of digital channels Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

Not at all

To a large extent


To little extent

To some extent

To a large extent

Very unlikely

Unlikely

Likely

Very likely



Maturity assessment

Maturity Assessment


Social media

Influence of w and applicatio


9,09 8,18

8,18 7,27

7,27

6,82

6,36

6,83 5,93 5,25 4,30

3,83 2,90 1,80

Websites

Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F


User experience Websites are the ultimate online medium to reach the customer. In general, all websites seem to meet the basic criteria: they have a clear product range, price transparency and auto configuration. To assess the quality of the website, we used ten criteria a website should meet in order to offer the ultimate user experience. The most important criteria, is the website quality through different channels: computers, tablets and smartphones. Furthermore, people need to experience being in a real dealership. Therefore, 360° view in- and outside the car is very important. Moreover, some basic website features like an intuitive way to find the homepage and a search option, are essential. Criteria: • Standard and intuitive way to find homepage • Guidance • 360° view configuration • Inside view in the car • Comparative tool • Search option on homepage • Website on tablet: attractiveness and functionality • Website on smartphone: attractiveness and functionality Results are presented in Figure 7 and Table 1. Based on all the criteria above, Brand G scored the best with 9,09/10. The lowest score is voor brand F with 6,36/10. (Details cf. Infra: addendum)

8

Brand A

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E

Brand E


Brand A

Brand B

Brand C

Brand D

Brand F

Brand G


Websites and applications Figure 7: Performance website score on 10 points

9,09 8,18

8,18 7,27

Brand A

Brand E

Brand G

Brand C

7,27

Brand D

6,82

Brand B

6,36

Brand F

Table 1: Performance website on 10 points Rating website andscore applications /10

Brand

Score

Brand A

9,09

Brand E

8,18

Brand G

8,18

Brand C

7,27

Brand D

7,27

Brand B

6,82

Brand F

6,36

6,

Bran

Rat

Search , compare, understand and buy Four brands offer a search button in order to search on the entire website (Brand A, Brand B, Brand F, Brand G). Others only provide a search button to locate dealers. None of the brands offer an online comparative tool to compare their own models, but the majority of the brands enable customers to compare different options. Also, it astonishes that two out of seven brands don’t explain the options in their auto-configuration (the criterion guidance). The customer needs to be pretty much a car expert in order to be able to configure a car on their own.

Website

It astonishes that two out of seven brands don’t explain the options in their auto-configuration.


Smartphone/

Tablet

Search

Facebook

9

Twitter

Responsive design Mobile websites are assessed in two main areas: attractiveness and functionality. A website on a mobile phone is attractive when the font size is not too small and when it fits to the screen. It is functional when the important content is available and compatible with the device. For the websites on mobile phones, all brands meet all the criteria, except for brand C. Brand C has a mobile version, but the screen is compressed on Android. Brand G's mobile website is an example of a good mobile website, both in terms of attractiveness and functionality.

Figure 8: example of a mobile website

10

Compatibility with technology We also analyzed the attractiveness and the functionality of the websites on tablets. Concerning the attractiveness, there are issues with compatibility of Flash Player on the iPad. This was initially the case for Brand B, Brand F, Brand G and Brand D. A second analysis after the Motor Show in January 2014, shows that most brands improved the compatibility with technology. With respect to functionality, the brands do a better job, especially Brand B, C and E because their website is fully functioning. Regarding the overall score, Brand A, Brand E and Brand G meet the most of the criteria. Some brands should take the opportunity to improve their website in order to keep up with the competition. For instance, on the website of Brand G, the car configurator doesn’t work on iPad because it requires Flash Player .

Despite the fact that the use of mobile devices is booming and catching up on desktops, we see that certain car configurators simply still do not work on an iPad.

Operating system Carmakers should not force their customers to choose being part of the Apple clan or the Google clan. Therefore, it is recommended to make the applications available, both on the Google Play Store and on the App Store. We found numerous applications that were available on Android but not on iOS and vice versa.


11

Mobile applications Developers have a lot of opportunities for applications in the automotive market. They can, for example, link service applications with their driving system. Furthermore, there is a whole new level of advertising through games and other promotional applications. In this part of the analysis, points are awarded for the presence of authentic applications (issued by the brand itself) in the top ten (Android1) and for the presence of service apps, games and promotional applications (Android and iOS). Methodology: • Android: Analysis of the 50 first results on Google Play to check the type of available applications. Analysis of the 10 first results on Google Play to check the authenticity of available applications. (brand owned or not) • iOS: Analysis of type of applications that have been developed by the brand.

Table 2: Mobile applications performance

Brand

Score

Brand A

8,57

Brand D

8,57

Brand G

8,57

Brand B

6,86

Brand C

6,86

Brand F

5,14

Brand E

3,43

Figure 9: Mobile applications performance 8,57

8,57

8,57 6,86

6,86 5,14 3,43

Brand A

Brand D

Brand G

Brand B

Brand C

Brand F

Brand E

Performance mobile applications /10

1 Done for Android only, as in the App Store the applications are already classified by developer, and therefore the authentic applications are clearly separated from the other ones.

12

Especially in the Google Play Store, brands need to monitor the presence of applications that are developed by others. Everyone can take the logo of your brand and make a game or another type of application. This can have a negative impact on brand value, if not done properly. In the Play Store, Brand C has an authentic application made by their own developers on number one, whereas for Brand A there is no self-developed application in the top five2. Brand E ranks on number ten in this part of the analysis. This is because they only offer one type of application (i.e. the service application). Service apps The most important application for the future is the service application. On Android, only Brand A, Brand E, Brand F and Brand G offer service applications. Nevertheless, these applications are not always equally sophisticated. For example, with the service app of Brand F, you can see the number of kilometres, the chassis number, contact service and photos.

With the slightly more extensive service app of Brand G, you get car trouble assistance and an explanation of the check engine lights. The app can even save your parking location. With the more advanced Brand A service app, you can manage your Brand A from a distance (lock or unlock, honk, flash lights). But Brand E Motors has an even more complete application. The Model S owners are in direct communication with their cars anytime, anywhere: they can check charging process, locate, vent or close the roof, lock or unlock from afar and honk/flash lights. On iOS, all brands offer service applications. Since smartphones and tablets are omnipresent today, firms need to be consistent and draw one line through their different digital channels. For example, Brand F only offers the app in Japanese on iOS.

Figure 10: The Google Play Store

2

This was the case in December 2013


13

The influence of social media on the decision making process The digital maturity of the Belgian automotive industry

Survey results

Survey Results



43%

Online purchase

43% 40%

Another important digital research area is social media. As Figure 11 shows, 43% of people believe they are not influenced at all by social media.

34%

32%

23% 21%

Not at all

To little extent

To some extent

To a large extent

Not at all

To some extent


To little extent

To some extent

5%

To a large extent

Very unlikely

Unlikely

Likely

Very likely



Social media


9,09

Figure 12: Influenced by social media according Influenced by social media according to age to age 8,18

8,18

7,27

7,27

6,82

6,36

6,83

5,93

5,25

4,30

3,83 2,90 1,80

70% Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F


Brand A

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E


Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G


60% 50% 40%

Online purchase 30%

60% Figure 11: Influence of social media 50% 43% 40%

20%

18-29

10%

30-44 45+

0% Not at all

34%

30%

Not at all

To a large extent

Maturity assessment

As presented in by Figure 13, people who own their own car Influenced social media according to age

40%

To little extent


Survey results

43%

19%

5%

In the context of social media, we would expect that especially Generation Y is more influenced. Figure 17 shows that there are no significant differences between the age categories. Given the time the average Belgian spends on Facebook or Twitter, we anticipated on a larger impact of social media and a bigger difference between the age groups.

are the least influenced by the brands on social media. Influence of websites and applications 70% Influence of social media

20%

16%

14%


utomotive industry

32%

29% 25%

32%

20%

To little extent

To some extent

To a large extent

Generation Y 23%

21%

20%

10%

Generation X

19%

%

Baby Boomers

0% Not at all

all

To little extent

To some extent

Not at all

To a large extent

To little extent

To little extent

To some extent

To some 5% extent

To a large extent

To a large extent 5% Figure 13: Influenced by social media according to ownership Influenced by social media according to ownership Very unlikely 70%Unlikely

Likely

Very likely

60%

fluence of websites d applications


Who 50% would ever buy a car online? 40%

Influenced by social media according to ownership

30%

70%

Maturity assessment 60% 50%

Social media

5,93 5,25 4,30

14

10%

Com

Not at all

30%

6,83

Own

Online purchase possibility 0%

40%

6

20%

10

20%

Own car

10%

Company car No car

0% 3,83

Not at all

2,90

1,80

To little extent

To some extent

To a large extent

No c To little extent

To some extent

To a large extent

43%

43% 40% 34%

32%

32%

% 23% 21%

20%

19%

16%

5%

5%




me nt

To a large extent

Not at all

To little extent

To some extent

Not at all

To a large extent

To little extent

To some extent

To a large extent

Online purchase

Very unlikely 43%

Unlikely

Likely

Very likely

43% 40% 34%

32%

32%

29% 25%

23% 21%

digital


20%

19%

16%

14%

5%

Influence of social media Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

To a large extent


5%

Who would ever buy a car online? Not at all

To little extent

To some extent

To a large extent

Very unlikely

Unlikely

Likely

Very likely



Maturity assessment

Maturity Assessment


Social media


9,09 8,18

8,18 7,27

Figure 14 gives the overall score of the brands for social media. ItMaturity is the sum ofassessment the scores of Facebook, Twitter and YouTube. The results indicate that there is still room for improvement. In what follows, it will be clarified media which areas need a Social little bit more attention from some brands.

nd applications

7,27

6,82

6,83

6,36

5,93 5,25 4,30

3,83 2,90 1,80

Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F


Brand A

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E


Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G



Figure 15: scores Facebook and of likes Facebook and scores number of number likes 100

7,27

7,27

6,82

6,36

80 70

6,83

100

5,93

60

5,25

90

4,30

80

50

3,83

40

2,90 1,80

70 60 Brand C

Brand D

Brand B

Brand F

50

Brand A

30 20

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E

40

and applications /10

10

90

Figure 14: Performance social media in general Facebook scores and number of likes

10

Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G

Likes

0

30

Rating social media /10 Facebook 20

Brand A Brand B Brand C Brand D Brand E Brand F Brand G

Rating online purchase possibility /10 Scores

10

We will assess Facebook in 4 areas, i.e. the creation of Likes 0 community feeling, the level of interaction, maintaining a Brand A Brand B Brand C Brand D Brand E Brand F Brand G casual appropriate tone and relevance of content. Table 3: Facebook scores Initially, you like a Facebook page because you like the brand, intend to purchase something from them or maybe already are the proud owner of a car from their Brand range. Therefore, the more popular a brand is, the Brand A more Facebook likes they will have. Because it is more Brand B interesting to take care of a broader fan base, we expect Brand C a Facebook page with more likes to score higher on our Brand D test. Surprisingly, this was not the case. For example, Brand E Brand A has more or less the same amount of likes as Brand C, however the latter scores only half the points Brand A does. Figure 15 ranks the score from high to low. It demonstrates, for example, that Brand G has the highest number of likes but not the highest score. Consequently, likes and brand score are not correlated.

Score

Score 8,22 7,11 5,83 5,13 3,84

Brand F

3,41

Brand G

0,89

Communities The creation of a community feeling is an indispensable factor for a Facebook page. It is measured by analyzing the last 30 posts of the brand and the reactions of their fans. They will get points for the number of likes, comments and shares by fans. Because comments and shares are trivial for a community feeling, they are granted a higher weight. Brand A excels in this domain (Example in Figure 16).


15

Figure 16: Example community feeling (Source: Facebook)

Figure 17: Example interaction (Source: Facebook)

People who approach a brand on Facebook, don’t want to be redirected to another service. Facebook is not solely a promotional channel.

16

For a company, the level of interaction is a significant factor as well. As illustrated in figure 17, some brands (e.g. Brand D, Brand E, Brand F) do not interact with their fans on a regular basis. This was certainly the case at the end of 2013. In January 2014, with the Motor Show coming up, the interaction has improved. Sincerely, the Facebook team Brands need to be aware of their tone and the way of talking to fans. One needs to adopt a casual appropriate tone, because Facebook is an informal digital channel. “Act like friends or people will defriend you”, is the motto. If brands post generic comments on a regular basis (Cf. Figure 18), create a large formal distance or post evasive comments, points will be subtracted. An example is given in figures 18 and 19, where the difference between a good casual appropriate tone and an inappropriate one is illustrated. Also notice the signatures: “the Facebook team” and “the Brand G team”. The first one seems to imply that the Facebook team is a separate unit. People who approach a brand on Facebook, don’t want to be redirected to another service. Facebook is not solely a promotional channel.

Figure 18: Example casual appropriate tone (Source: Facebook)

Do not focus solely on promotion Another important area is the relevance of content. The ideal proportion between promotion and other relevant content is 20%-80%. Promotion can be described as posts that explicitly advertise to educate customers, with the ultimate goal to persuade them into buying a car. Relevant content, on the other hand, are all other types of posts (Example see figure 20). It may include some promotional value, but it mainly contributes to valuable relationships and the creation of a community feeling as well. This category also includes all the other discussed categories: without relevant content, there will not be enough interaction, there is no community feeling and brands cannot act like friends.

Figure 19: Example casual appropriate tone (Source: Facebook)

Figure 20: Example relevant content (Source: Facebook)


17

Twitter Twitter is not as popular in Belgium as Facebook is. The question is whether marketers should pay attention to Twitter when just a small minority is using it. The analysis shows that some firms manage to turn their Twitter account into a popular social platform. We will assess the Belgian Twitter pages on the basis of three criteria: the number of followers, the number of tweets and whether the pages are up to date. Three out of seven brands do not update their Twitter page anymore. As listed in Figure 21, the one who stands out in this case is Brand C: they use a brand hash tag, interact with followers and their Tweets are original. Brand E, Brand F and Brand G tweet (almost) on a daily basis. The first Tweet of Brand B was also the last one. Table 4: Score Twitter /10

Brand

Score

Brand C

10,00

Brand G

8,13

Brand E

7,36

Brand F

5,49

Brand A

1,09

Brand B

0,45

Brand D

0,21

Figure 21: Score Twitter /10 10,00 8,13

7,36 5,49

1,09

Brand C

Brand G

Brand E

Brand F

Score Twitter /10

18

Brand A

0,45 Brand B

0,21 Brand D

Youtube YouTube is another digital channel that also should be considered as a social medium. In this report, both the Belgian channel and the official channel are considered. A score will be awarded according to the number of subscribers and the number of views on both pages.

Generally, carmakers don’t seem to attach too much importance to their presence on this type of channel. Brand C, Brand D and Brand E don’t even own a Belgian YouTube channel.

Table 4: YouTube scores

Brand

Score

Brand F

7,88

Brand A

7,58

Brand G

3,08

Brand B

2,52

Brand C

2,14

Brand D

0,92

Brand E

0,38

In order to assess the numbers of subscribers and views, we need to set a point of comparison. For example, Brand F has the highest number of views on the Belgian page, so Brand F obtains the maximum score. Brand F has far more subscribers than Brand G, which explains why their score is much higher.

Figure 22: Score Youtube /10 7,88

7,58

3,08

2,52

2,14 0,92

Brand F

Brand A

Brand G

Brand B

Brand C

Brand D

0,38 Brand E

Score Youtube /10


19

Online purchase of cars

of the Belgian automotive industry

elgian automotive industry

Survey results The digital maturity of the Belgian automotive industry

Influence Survey Resultsof websites and applications Survey results Influence of social media

digital channels

Survey results

43%

annels

32%

of43% marketing is a key challenge43% for every industry in the global market, certainly for the large automotive industry. 34% functioning It does not simply include creating a well 43% online purchase platform, but it influences the entire supply chain. In the future, e-commerce has to become a valuable component in the34% value chain. 20%

43%

21%

As Figure 23 shows, 28% of the respondents think it likely that they will ever buy a car online. This is an 19% important signal towards the carmakers as the presence of an online purchase possibility might influence the decision making process for customers who are ready to Not at all To little 5% To some To some To a large buy online. extent extent extent extent

16%

Not at all

To little extent

32%

23% 21%

20%

19%

Online purchase 16%

5%

Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

Not at all

To a large extent


To little extent

To some extent

5%

To a large extent

Very unlikely

Unlikely

Likely

Very likely



40%

Maturity assessment Websites and applications

Social media


Figure 23: Online purchase

10

9,09

8,18

8,18 7,27

7,27

6,82

6,83

6,36

Brand A

Brand E

Brand G

32%

5,93 5,25

40%

4,30

3,83 2,90 1,80

Brand C

Brand D

Brand B

Brand F

Brand A


Brand G

Brand F

Brand C

Brand B

Brand D

Brand E

Brand E


Brand A

Brand B

Brand C

Brand D

Brand F

Brand G

23%


32%

23%

20%is

21%

To a large extent

34%

32% 29% 25%

14%

19%

16%

Online purchase

43% 40%

Today, e-commerce is growing faster than ever, not

Influenceonly of websites andin applications in B2B, but also the B2C-market. Every day, transactions Influencenumerous of social mediaoccur over the internet. This type

Online purchase



5%

5%


Survey results

To a large extent

Very unlikely



43%

Unlikely 5% Likely Online purchase

Very likely

43% 40% 34%

32%

32%

29%

Not at all

ital

To little extent

To some extent

Not at all

To a large extent

To little extent

To some extent

To a large extent

Very unlikely 25%

Unlikely

Likely

Very likely

Influence of websites Influence of social media Who would ever buy a car and applications online? Influence of websites Influence of social media Who would ever buy a car Maturity Assessment and applications online? 21%

16%

14%

20%

23%

19%

5%

Not at all

To little extent

To some extent

To a large extent

Not at all


To little extent

To some extent

Not at all

To a large extent


To little extent

To some extent

5%

To a large extent

Very unlikely

Unlikely

Likely

Very likely



Maturity assessment


Social media


10

9,09 8,18

8,18 7,27

7,27

6,82

Maturity assessment As Figure 24 shows, Brand E is the only brand that offers the option to order your car on the website. After the configuration of your dream car, you can order it and Maturity assessment Socialright media Online purchase possibility have to pay an advance away. Brand C, for example, does own a web store for stock vehicles, but if you want Figure 24: Performance online purchase possibility Social Online purchase possibility to order a media car, you still have to contact the selling centre 10 or contact the dealer. 6,36

6,83

5,93

5,25

4,30

3,83

2,90

1,80

Brand A

Brand E

Brand G

Brand C

Brand D

Brand B

Brand F


applications

ons

27

7,27

6,82

Brand G

Brand F

Brand C

Brand B

Brand D

Brand E


Brand E

Brand A

Brand B

Brand C

Brand D

Brand F

Brand G


10

6,83

6,36

Brand A

5,93 5,25

6,82

nd C

rand B

6,83

6,36

4,30 5,93

3,83 2,90

5,25 4,30

1,80 3,83 2,90

Brand D

Brand B

Brand F

Brand F

Brand A

d applications /10

tions /10

20

Brand A

Brand G

Brand F

Brand G

Brand C

Brand F

Brand C

1,80 Brand B

Brand B

Brand D

Brand E



Brand D

Brand E

Brand E

Brand E

Brand A

Brand B

Brand A

Brand C

Brand B

Brand D

Brand C

Brand F

Brand D

Brand F

Brand G

Brand G



Synthesis

To assess the digital maturity of a company, online presence is analyzed through different digital channels. The weights of the channels are presented in table 6 and depend on the relative importance of the medium. Table 6: Share of the digital channels

Share

Research area

40

Website

20

Mobile applications

15

Facebook

10

YouTube

5

Twitter

10

Search engines

Search Engines As table 6 shows, this synthesis also includes the assessment of paid advertisement on Google. A research of 20123 shows that 94,1% of Dutch speaking Belgians use Google when searching on the internet. That is the reason why we excluded other search engines. Primary focus is on paid advertisement, considering organic rankings differ from computer to computer, hour to hour, user to user. The keywords used for this analysis are generated using Google AdWords. A maximum of 13 points can be earned: one point for advertisement per key word and one point for advertisement searching one’s own brand name. Table 7 illustrates that Brand B, Brand D, Brand C and Brand G are omnipresent with their advertisement. On the other hand, Brand A, Brand E and Brand F don’t invest in Google Ads. Searching on the brand name itself, only four out of seven brands invest in the advertisement. Table 7 Performance Search engines

Brand

Score

Brand C

7,7

Brand D

6,2

Brand G

6,2

Brand B

4,6

Brand A

0,8

Brand F

0,8

Brand E

0

3 Source: http://www.slideshare.net/Bloovi/laurent-bousis-search-study-2012-part-1-how-do-belgian-users-use-search-engines-today-introby-laurent-moreau-ant-research


21

Maturity model Website

Standard and intuitive way to find homepage, Guidance, 360° view configuration, Inside view in the car (360°), Comparative tool between different options and models, Search option on homepage, attractive and functioning website on tablet and smartphone, online purchase possibility

Mobile applications

Android: manage the ranking in the Google play store, Android & iOS: games, promotional applications, service applications, manage the influence caused by others using your brand

Facebook

Creation of community feeling, interaction, casual appropriate tone, relevant content

Twitter

Frequent updates, relevant content, interaction, brand hash tag

YouTube

Belgian channel, views, subscriptions

Search Engines

Paid advertisement

Digital maturity This maturity model emphasizes the consistency of a brand’s presence through different channels. The ratio used for the final assessment is 60-30-10, whereof 60 points are assigned to the website (computer, tablet, mobile phone) and applications, 30 points to social media and 10 points to search engines. Final results are listed in table 8. Brand G and Brand A are the two brands with the most mature digital presence. On the other hand, Brand E scores the lowest, notwithstanding their website is one of the better examples. The main reason is that Brand E is still penetrating the Belgian automotive market, and therefore has a relatively low social media presence in Belgium. In July 2013, Brand E opened its first showroom in Belgium. Thus, their digital maturity may rise very quickly once their penetrating strategy in Belgium is fully elaborated. The arithmetic average amounts to 55,76%. Every brand is thus able to make progress further down the line, and all of them are doing it already. This is proven by the continuous improvement during the time span of the observation. Additionally, the varying results per criteria tells us that brands can learn from each other’s best practices.

22

Figure 25: Performance digital maturity

68,66

68,37 57,77

55,48

52,55

48 39,51

Brand A

Brand G

Brand C

Brand D

Brand B

Brand F

Table 8: Performance digital maturity Performance digital maturity

Brand

Score

Brand A

68,66

Brand G

68,37

Brand C

57,77

Brand D

55,48

Brand B

52,55

Brand F

48

Brand E

39,51

Brand E

Conclusion

BRAND Digital channels

Website

Smartphone/ application

Tablet

Search engine

Facebook

Twitter

YouTube

This study emphasizes the importance and the status of the digital marketing experience in the Belgian automotive market. The results show that people go massively online before making a decision. Additionally potential car buyers clearly demonstrate that their decision making process is actually being significantly influenced along their ‘digital journey’ and some even consider doing the actual purchase online. Even though the importance of digital channels along the customer decision journey for a car is clearly demonstrated in this survey, we can conclude that there is still a significant variation in the quality of these digital channels, resulting in sometimes surprising outcomes – e.g. Facebook messages that remain unanswered, car configurators that do not work on a mobile device, branded apps which are not owned nor controlled by the brand itself, etc. As such, coping with today’s omni-channel reality has become one of the key challenges in the automotive industry: managing multiple (digital) customer touch points and as such offering a consistent and superb digital experience, will be one of the critical success factors for thriving in today’s post-digital era.


23

Addendum: Methodology Website Guidance

2

Is there enough information about the engines and the differences between options.

360° view configuration

1

Inside view

1

1/1 when 360°; 0,5/1 when only front view + back view

search option

1

1/1 = general search option; 0,5/1 = to search for dealerships

Standard and intuitive way to find homepage

1

Upper left corner

Comparative tool (and easy to find)

1

1/1 = between all models 0,5/1= only between options

Website on tablet attractiveness

1

Does it fit the screen, is the font size big enough

Website on tablet functionality

1

Flash requirements, functionality of configuration

Website on smartphone attractiveness

1

Does it fit the screen, is the font size big enough

Website on smartphone functionality

1

Flash requirements, functionality of configuration

Mobile applications Sum of Android and iOS (equal load) Android Analysis of the 50 first results on Google Play: Presence in the first 10 results

2 points

Presence of service applications

2 points

Presence of promotional applications

2 points

Presence of games

1 point

iOS Analysis of applications developed by the brand (Already classified by authorship)

24

Presence of service applications

2 points

Presence of promotional applications

2 points

Presence of games

1 point

Facebook Creation of community feeling /5

Analysis of 30 posts by the brands (central limit theorem). Count all the likes, comments and shares per post + apply the following formula: (like*1)+(comment*2)+(share*3)

Interaction /5

Analysis of 30 posts by fans (central limit theorem). Count all the likes, comments and shares per posts + apply the following formula: (like*1)+(comment*2)+(nothing*0)

Casual appropriate tone /5

We start with 5/5. Points will be deducted for 3 types of violations: generic comments (-2), large formal distance (-1) and evasive comments (-1). The subtraction will be linked to the score earned for interaction. The lower the score for interaction, the higher the weight of the violation. The brands already interact too little and when they do, it is not appropriate. E.g. When interaction = 5/5, one needs 5 violations to subtract 1 point. When interaction = 4/5, 4 points are enough for a subtraction. The point for interaction is rounded upwards.

Relevance of content /5

80%-20% content-pure promotion ratio. Analysis of 30 posts by the brand (central limit theorem). Categorization: promotion or not? Ratio content/promotion

Score

80/20 (or less promotion)

5/5

70/30

4/5

60/40

3/5

50/50

2/5

40/60

1/5

30/70 (or more promotion)

0/5

Something is categorized as promotion when the only goal is to present the car to persuade the customer into buying it. For example: when there is a picture of a new car with the question: “What is your preferred color for this model?”, it will be categorized as content. When there is a picture of a new car with the subscript: “now available”, it will be categorized as promotion.


25

Twitter Number of followers

Maximum 2 points (the brand with the largest number of followers will score 2/2, the rest gets a point relative to that number)

Number of Tweets

Maximum 2 points (the brand with the largest number of Tweets will score 2/2, the rest gets a point relative to that number)

Update in the last month

2 points

YouTube

26

Managing a Belgian YouTube Channel

0,5 points

Number of subscribers on Belgian Page

Maximum 0,5 points (the brand with the largest number of subscribers will score 0,5/0,5; the rest gets a point relative to that number)

Number of views on Belgian page

Maximum 1 point

Number of subscribers on official page

Maximum 1 point

Number of views on official page

Maximum 2 points

Search Engines We mainly focused on paid advertisement, considering organic rankings differ from computer to computer, hour to hour, user to user. The keywords used for this analysis are generated using Google AdWords. Per keyword, a brand gets a point when a paid advertisement appears typing the keyword on Google. The analysis was repeated multiple times on different computers. Auto Auto kopen Nieuwe auto kopen Familiewagen Nieuwe wagen Bedrijfswagen Klasse wagen Elektrische auto Zuinige auto Terreinwagen Terreinwagen kopen 4x4 Name of brand A Name of brand B Name of brand C Name of brand D Name of brand E Name of brand F Name of brand G

Possibility to buy online 10 points are awarded to the brands who offer the possibility to buy a car online. This means: order a car online without having to contact a dealership first.


27

Contacts

For more information, please contact: Steven Moors Partner + 32 497 59 63 98 [email protected]

Emanuel Nuyts Manager +32 49 952 63 50 [email protected]

Kim Janssens Researcher at University of Antwerp

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© February 2014 Deloitte Digital Designed and produced by the Creative Studio at Deloitte, Belgium.

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