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Are You Ready for Mobile Shoppers - They are Ready for You!

ed.brooks

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Jan 15, 2010
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I just read this story on MediaPost.com "80% Use Smartphones To Car Shop". That is a HUGE number. The post discussed a "study by mobile ad network Greystripe based on data collected from 851 mobile users over a three-month period ending February 15".

The numbers are interesting;

  • Mobile users are 3 times more likely to be in the market for a new or used car than the general public
  • About half use their their phones for initial research and price comparisons
  • Only a quarter or so use them to locate or contact a dealer
What do you guys think?
 
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I really don't want to be Debbie Downer, but WOW, that is a really small sample size over a very short period of time to extrapolate anything conclusive.

ComScore says there were 63.2 million smartphones in the market in 4th qtr 2010. I'll do the math for you, (just had to relearn "e-5", thanks Google) and there you have it, .00001% sample size. A 3 month survey when the avg time to sale is at least 6 months seems insignificant to even get good data from that sample. Then there is the issue that Uncle Joe will bring up if I don't, "What did they ask?" I always want to see the questions in a survey like this, but especially when the group that publishes the study has a lot to gain from the results. Here is a quote from the article:

"Greystripe said spending from the category on its network more than doubled in the last year. The company doesn't break out spending by industry, but said automotive is one of the largest categories on its network."

I'm not saying to stay away from mobile marketing, but I don't think this study should be the ONLY reason you decide to jump in headfirst either. I'd bet that you can get better data from polling the people that actually step on your lot with your own questionnaire.
 
...that is a really small sample size over a very short period of time to extrapolate anything conclusive.
Ryan, I agree with you. It's a very small sample size and I sure wouldn't bet my life, the farm, or much more than 20 bucks on the statistical validity of this study. The 3 months, I don't have a problem with. This area is changing so fast that I don't really care what people were doing a year ago - I want to know their behavior TODAY.

Start combining this report with other data and it becomes pretty clear every dealer should have a mobile site today. An Infographic was published yesterday on Mashable. The post is titled "How the Real Estate Industry Is Using Social Media". I snipped a small piece that caught my attention:

Mashable Real Estate.jpg

20% of the weekend traffic for Realtor.com is generated by their App.

The thing that is really making me think, in regards to the Greystripe study, is how customers are using their Smartphones - not to locate or contact a dealer, but to research and do price comparisons

I hope we're past the point of asking "Should I have a mobile site" and are moving to the point of analyzing how our customers are using the sites.
 
I have to have exceeded my character count for the day in a post I made on the QR thread. I agree too.

Should a dealership have a mobile site? Absolutely.

Database marketing is about separating customers into groups and tailoring your message to the needs the members in that specific group - How many dealerships actually track a "mobile" group?
 
To small of a sample size to really make an educated decision. I also find it a little leaning towards the "we are going to sell you something later". Sometimes I think studies are done just so someone can use it in their testimonial book.

My studies show that 68% of my neighbors are going to be buy a car in the next 12 months. With the spilt being 82% domestics and 18% import. Anyone want to know where I live? Good marketing opportunity!! <smile> LOL!

I also find it hard to believe that people that own a phone are more likely to purchase a vehicle -- EVERYONE owns a cell phone (last time I looked at the stats it was 92% of adult population under 62). Come on...

My dealers stats that I am seeing also show that a good majority of "mobile" customers have a high bounce rate....could they possibly be coming to the site just for phone number/address? Thoughts?

Just my 3 cents - inflation.