Mobile App-Users Are More Likely to Purchase Vehicles, and Spend More Money per Purchase, at Auto Dealerships National study of over 366,000 vehicle purchases shows, for the first time, that dealership branded mobile apps influence consumer vehicle purchases
DAYTONA BEACH, Fla., May 6, 2014 /PRNewswire/ -- DMEautomotive (DMEa) today released key research findings from a first-ever study of over 366,000 purchase records, from a mix of 111 dealerships that offered a dealership-branded mobile app during the course of a full year, that sheds new light on the emerging criticality of mobile apps to auto dealerships – and how they are dramatically influencing consumer vehicle purchases. According to the research, a customer with a dealership's mobile app is 73% more likely to buy a vehicle from that dealer than a customer without a mobile app -- and these app-users spent 7% more on their vehicle purchase than non-app-users.
"This initial data is an eye opener: app-users are not only more likely to buy, but they spend more than non app-users," said Mary Sheridan, Director of Research and Analytics for DMEautomotive. "This is a compelling reminder that a fast path for dealers to increased sales units and higher grosses runs through the dealership's mobile app. Dealerships need to enter the app arena – and soon, because that's where consumers are increasingly engaging."
According to Flurry Analytics, time spent with mobile apps increasingly crushes time spent on the mobile Web: 86% of consumer "mobile time" (2.5 hours daily) is now spent with apps – with just 14% (20 minutes) on mobile sites. Furthermore, according to recent DMEa research, today's shopper is avoiding the dealership, and even the test drive, stealthily comparison-shopping dealers/inventory online, and then swooping in to buy when their minds are made up.
Mobile apps can be a potent weapon in countering this "dealership avoidance" phenomenon. This latest study finds that 15% of the vehicles purchased during the study period were by mobile app users who had no prior service history at that dealership, underscoring the growing role mobile apps can play in conquest sales for dealerships.
According to Mike Walther, president and CEO of DMEautomotive, the 'always-on' power of mobile apps provides a critical retention weapon for dealers - and against the growing epidemic of 'dealership avoidance.' And, as the data shows, it appears to be working. Because mobile apps can allow dealers to track their customer's vehicle lifecycles - and signal they're entering the buying phase - dealers and brands can target people with personal offers at the right time.
"Consumers who have downloaded a dealership's app quite literally have that dealership's inventory in their pocket. So, when it is time to purchase a vehicle, it makes sense that they will check there first," said Walther. "We are hopeful that this compelling evidence of the power of the app will help more and more dealerships see the 'app light,' and see it right now."
The DMEautomotive research studied over 366,000 consumer records representing over $2 billion in transactions, between the months of 4/1/2013 and 3/31/2014. The study covered a mix of 111 dealerships, representing multiple brands, store sizes, and regions, all of whom offer Driver Connect, DMEautomotive's dealership-branded mobile app, to their customers.
DMEautomotive (DMEa) is the industry leader in science-based, results-driven automotive marketing, and provides turnkey marketing to the largest and most innovative automotive organizations, from automobile dealerships to many of the largest aftermarket companies in the U.S. DMEa's uniquely panoramic view of the complete automotive sales and service market, combined with its cutting-edge, science-based marketing programs, increases customer yield, conversion and retention.
DMEa does not take marketing performance on faith, and each product and service is measured by a simple, precise scientific approach: Is it true? Prove it. Will it work? Test it. Does it generate results? Show it! Supported by DMEa's proprietary, cloud-based Red Rocket Technology Platform, the DMEa product suite includes science-based, data driven, multi-channel customer acquisition and retention marketing programs; best-in-class campaign reporting; data management and analytics; auto-focused Customer Interaction Center solutions, and complete on-site mail and email fulfillment services. Headquartered in Daytona Beach, Florida, DMEa also has major operations in Jacksonville, Florida.