Which metrics prove quality photos matter?

[Elmer Kruys]

First post here, really interesting posts on inventory photos. What I would like to know as a (starting) car inventory photo vendor in the Netherlands (Europe): is there any data or metrics which prove you get more dealership visits from car shoppers with top quality photos? I'm thinking of a formula which has VSR views, VDP views, dealerships visits, (reduced) average time on lot, gross per car, and sales volume. Thoughts, anyone?

 

[Alex Snyder]

In the US the need for descriptive photos (ones showing the options and condition) are necessary because vehicle descriptions are so lousy. Vehicle pages don't do a good job of showing the options/features that are most pertinent to that specific vehicle and don't use verbiage the average consumer understands.

In my opinion this is why analytics around vehicle imagery hasn't been important. We just know it is necessary to have decent photos.

However, I like what you're asking! It would be cool to figure out whether a high-pixel-density image downsized to less than 1 megapixel has an impact on the amount of time a consumer gazes at it. Does the image quality inspire a higher level of desire?

Or am I misinterpreting "top quality photos?" I always took "quality" in photography to mean an image that was taken through a professional-grade camera.

 

[Elmer Kruys]

Thanks for your thoughts, Alex In the Netherlands vehicle descriptions are lousy too, but still most salespeople who take the photos, don't seem to care, they just take a few shots without checking the result and loading it up to their Inventory Management System.

With "top quality photos" I mean professional grade camera + focused + not shaken + good composition + lighting + background + editing (cropping, straightening, color enhancement, contrast) Pixel density matters, but only a little, as every Inventory provider compresses images into oblivion in order to speed up loading time, which makes some sense actually.

"Does the image quality inspire a higher level of desire?" I already know the answer (for my definition of "top quality"): it's a big YES, the only challenge now is to put numbers on it. How much will CTR from VSRP to VDP increase? How much will the amount of “ups” at the dealership increase? Will the “up” convert into a quicker sale, as the customer FEELS he/she ‘knows’ the car already.

That should also improve the volume, as cars get sold faster, there is room for new inventory.

Makes sense?

 

[joe.pistell]

A very thoughtful question! Great 1st post Elmer!

Here's my take, it's like a progression of thoughts:

1. Shoppers don't know cars.
2. A picture is worth a thousand words
3. Shoppers use pictures to understand cars.

If this is true, then I'd expect to see:

1. Higher time on site
2. more time on VDPs
3. More pictures viewed p/visit
4. Less lead to visitor ratios
5. Higher return visitor rate

This should create a higher sales to unique visitor ratio (divide sales by # of unique visitors). In the US, it's 1% to 3%.

Background: In the US, Dealers have mountains of standing inventory, ready to test and buy. Shoppers here want to negotiate, so, this dynamic causes the majority of shoppers want to be anonymous.

 

[Elmer Kruys]

Thanks for your insights Joe! Can you explain "Less lead to visitor ratios" ?

And is the "unique visitor" in "higher sales to unique visitor ratio" online or at the dealership?

In NL we have mountains or stock too, but due to ever changing tax regulations and increasing cost of ownership, people are shifting towards smaller cars. So these sell fast anyway, but net profit is also low, I guess it is a high as the US average in 2014 ($193 Brice Englert of TradePending showed yesterday in the DealerOnWebinar). Ideally I would do luxury and exclusive cars only, as big sedans like BMWs and Jaguars lose value literally per day and therefore most gains can be made here. They are also much nicer to 'shoot'.

And shoppers want to be anynomous here too, usually they just show up at the store if the car looks good online. They don't want to give the seller any opportunity to fix or hide any faults with the car in question.

Can you explain "4. Less lead to visitor ratios" ?

And is the "unique visitor" in "higher sales to unique visitor ratio" online or at the store?

 

[joe.pistell]

Can you explain "4. Less lead to visitor ratios" ?

NP.
Leads divided by unique visitors. If you have 10 leads for 100 visitors, you have a 10% lead to visitor ratio. IMO, better photos = less leads. I have come to the opinion that most leads are a result of a bad web shopping experience.

Better photos mean more ups and less leads.


p.s. Unique visitors are the dealer's web site visitors.

 

[Jeff Kershner]

IMO, better photos = less leads. I have come to the opinion that most leads are a result of a bad web shopping experience

Joe, throwing another monkey wrench into the equation. Want more online leads and phone calls? Take crappy photos.

@JoePistell would this theory be geared more towards inventory listing sites (like ATC, CarGurus, Cars.com) and NOT your own dealership website or would dealer websites be included?

Wonder if @Chad Bockius at CarStory would have data to support your theory? They say "less is more" and recommend posting only 9 (particular) photos on listing sites like ATC and Cars.com - http://forum.dealerrefresh.com/threads/9-pics-per-vehicle.4590/

 

[Elmer Kruys]

Now I get it and makes sense, especially with Jeff's comments added

I read the "9 pics" thread. Interesting stuff. From the inventory software we use here it's all or nothing, with most 3rd party sites showing 24-30 images.

Yeah, involving car story is good one! From what I know they are the (big) data kings in automotive, or?

 

[joe.pistell]

Joe, throwing another monkey wrench into the equation. Want more online leads and phone calls? Take crappy photos.

Yup. Leads are often sent by shoppers that can't find something on your website. Evidence is everywhere, for new cars, replace stock pics with real photos... BAM... Less leads. Change "call for price" with rich price info on your website.... BAM... Less leads.

We wonder why so few shoppers ever answer leads. It's becuase they never intended to get into a talk, they simply wanted an answer (to a question the website didn't deliver)

Chat is a lead gen. Look hard at your Chat transcripts. It's loaded with shitty web UX questions. Here's a 5yr old DR post that adds more insight.

Is Your Dealership Chat Used or Abused? http://www.dealerrefresh.com/dealership-chat-used-or-abused/



"Search Helper Needed" = CRAPPY WEBSITE.

 

[Elmer Kruys]

wow, putting lead gen and chat in a different light. Taking "search helper needed" is a double waste: the website investment and the costs of chat...

But aren't we getting a little off topic here? Here's an attemp for a formula:
Basic assumptions
1. Depreciation = $ 1000 per year (price drop at some point required)
2. Depreciation per day $ 2.74
3. average day on lot (type of car specific) = 45 days
4. number of VSRPs (autotrader, cars.com, etc) = 1000
5. Net Profit on car = $ 500
6. Photo cost = $ 50
7. VDP to showroom visit ratio = 3%

My prediction is the CTR money shot thumbnail will go up, I estimate it now to being 5.5%, could go up to 9.0%
That means the number VDPs = 55 with crappy photos and 90 with perfect photos
This means there will be 1.65 (average visits per sold car, with crappy pictures, will go up to 2.7
The number of cars sold = 1 with crappy photos (in 45 days) to 1.69 with top photos
Days on lot 45 with crappy pictures (see 5.) falls to 26.7 (as visits will go up due to more VDP views)
That means the depreciation on the car itself falls from $ 123.29 to $ 73.06 (due to less day on lot)
Which means $ 376.71 net profit compared to $ 376.94 top photos due to 18.3 days less days on lot.
With 18 days extra volume will increase with 0.69 extra cars (in a 45 day period)
And that means your net profit will increase from $ 376.71 to $ 636.09 (because you sold 0.69 car extra)
but minus the extra photo costs of $ 34.38 (0.69 x $ 50) is still a nice $ 225 extra profit over a 45 days.

What do you guys make of this? (I have it in excel too, but could not upload it....)