Research & Analysis

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Reputation is Everything. Hispanic Car Buying Preferences Survey Review

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In my first article on Hispanic Car Buying Preferences , I gave a broad overview of our 2020 and 2021 surveys. For this article, I will focus on dealer and brand reputation. As you know, your dealership’s reputation is worth its weight in gold, especially on the Internet where negative reviews can cost you money. But reputation isn’t just about a review that lauds praises or trumpets condemnation; it is also about how customers feel about your business or the vehicles that you sell.   For our last two Hispanic Car Buyer surveys, we asked a series of questions that sought to surface the Hispanic community’s feelings about a range of topics, some of which are laser-focused on brand and dealership reputations, while others look at tangential, but related, issues such as how a respondent would feel if they were marketed to in Spanish. The results are telling… Your Reputation US Hispanics, like everyone else, see a dealer’s reputation as very important to their car buying decision. In 2021, when we asked respondents, “When you buy a car, truck, or SUV, which of these things do you consider?”, we found that dealer reputation was the most important thing to the community, even ahead of the response “Dealer advertised in Spanish”. If you combine these two questions - a strong positive reputation and advertising in Spanish - you will see the roots for a strong argument why you should direct your dealership towards building a good reputation with your local Hispanic community while marketing to them in Spanish (or a mixture of Spanish and English).  Other general market data supports our results. A quick Google search can find a number of surveys that show that a company’s reputation is an important concern in the buying process. For example, according to one survey , 75% of US Hispanics said that they are more likely to think favorably of a brand or purchase their products, if the brand makes an effort to include elements of their culture in their advertisements. And more importantly, 80% stay loyal to a brand when they find one that they like. Although this data doesn’t directly relate to car buying, it’s not intellectually dangerous to assume that this same logic applies to dealerships. Meet Your Next Hispanic Customer Referral Traffic Referral traffic is a powerful thing. A well-developed referral program can be quite profitable as many dealerships know all too well. In our experience, we’ve found that many Hispanics will refer customers when they’ve been treated well.   The data vigorously supports our anecdotal information. According to our 2021 survey, 79% of all respondents said that they are moderately to extremely likely to refer a customer to a dealer who speaks Spanish.  Sales and Service So what happens when we market in Spanish for car sales and service? Pretty much the same thing. When asked if they would visit a car dealer who advertises in Spanish to buy or service a car, just under 75% chose moderately likely or higher.   And, even more interestingly, 43% said that they would travel further if a dealership advertised to them in Spanish. Throw in the “Not Sure” respondents and the number jumps to 69%. This should make you go “Hmmmm.” if you aren’t already marketing to your local Hispanic community. With that said, our 2021 data quite interestingly contrasts with 2020’s results. According to last year’s survey, only 55% of the respondents replied that they prefer to buy a vehicle from a dealership who advertises to them in Spanish. This discrepancy could be due to the nature of the two samples and will require further research. For example, if last year’s study was weighted heavily in favor of multi-generational US Hispanics, rather than foreign born Hispanics, then marketing in a culturally sensitive way makes more sense than just in Spanish. This supposition is born out by other data. Check out this 2013 MSNBC video illustrating this point.  Most Valued Auto Brands for US Hispanics If building a good reputation and selling to U.S. Hispanics in Spanish makes members of the community more likely to buy from your dealership or refer a friend, then what happens when manufacturers spend time marketing and building a reputation with the community? Not surprisingly, what you see is what you would expect. In both last and this year’s survey we found that the brands that had a reputation for reaching out to the community in Spanish are the same brands that are viewed positively by the respondents. Below are the results when respondents were asked to choice rank their favorite brands. Were there any differences between the two years in terms of who is on top? Yes. For 2021, Ford edged into third place pushing Chevrolet into the #4 slot.   What the most significant lesson learned from this data is that Toyota’s Hispanic-focused marketing continues to produce great results. Our data just echoes what other surveys have found before: Toyota holds a solid lead because it has invested in creating a good reputation and relationship with US Hispanics.   Final Comments Your reputation requires investment and good planning. Those dealerships that work hard to create a good reputation with their customers reap the rewards in terms of better sales and better long-term growth prospects. Creating a good reputation with your local Hispanic community is more than just the act of advertising in Spanish and responding to reviews, it is found in understanding your local culture and marketing accordingly. Do you know which holidays are important to your local community? Do you understand how to flavor your Spanish advertising so that it uses words that resonate culturally? It is these things that we have to think about when creating a marketing plan that works with US Hispanics. The investment is worth it with a market that will continue to grow and mature in the coming years.
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A Revealing Look At Dealership Homepage Banners

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The emphasis many dealers place on creating homepage banners is a glaring example of the industry’s failure to communicate changing consumer behaviors. It’s no surprise that these have become a staple of websites , not just in automotive retail. They’re a visually compelling way to communicate monthly specials and incentives to car shoppers on a highly visible page where many consumers land.  You may be one of those dealers who compels their agency partner to create — say — a baker’s dozen each month.  The truth is that — even with the high-traffic visibility — homepage banners are not nearly as effective as you may have originally thought. The Numbers Behind the Banners While intuition can serve you well, no decisions regarding your digital marketing should be made without statistically relevant data. One of our (Reunion Marketing) Client Success Specialists intuitively felt that homepage banners were an outdated focus, so we took 24 clients who used the same industry-leading website hosting platform to analyze homepage data over a determined period of time.  Below are the numbers of what we found. Car shoppers clicked on the following:  Navigation: 49.36% Inventory Search Widget: 29.73% Homepage Banners / Videos: 5.99% This means that car shoppers , no matter the source or medium, who landed on our clients’ homepage, approximately 0.05 (or 1 in 20) of them clicked on a homepage banner. While it’s true that one person in twenty does have purchasing power, let’s take a closer look into the numbers. Of the 5.99% of car shoppers who clicked on a homepage banner, here’s what we found: 45.51% of them clicked on the 1st Position Banner 25.27% of them clicked on the 2nd Position Banner 14.37% of them clicked on the 3rd Position Banner 9.42% of them clicked on the 4th Position Banner This means that by the time you’ve created a 4th Position Banner, you’ve allocated time and resources to a homepage item that only receives 0.56% of all homepage clicks.  Our research led to our setting-specific recommendations on homepage banners for our Dealer partners.  Homepage Banner Recommendations Based on the data, we concluded that automotive dealerships should create no more than three new homepage banners . Though there is a demonstrated steep decline in car shopper clicks after the First Position Banner, we know, based on our work with hundreds of Dealer partners, that you need to manage more than a single special or event during a given month. This also begs the question for many Dealers: How do I manage this when my OEM requires XX (number of) banners? You can still follow the recommended three new banners for your latest incentives and have a host of stock banners that satisfy the OEM requirement through which you can rotate.  SEO Is Incomplete Without Conversion Rate Optimization (CRO) This understanding of homepage banners is part of an ongoing process called Conversion Rate Optimization (CRO), which should be a part of any internal team or agency partner’s SEO work. Beyond the homepage data analysis, there are dozens of other items that should be regularly checked or strategies that you can implement. Hotjar to monitor consumer behavior on pages. Checking for buttons above the fold. Compare metrics across devices. SRP to VDP Efficiency Audits Ensuring clear and consistent merchandising. Homepage to SRP Efficiency Audits Compare benchmarks for mobile clicks-to-call, form submissions, etc. Understanding what goals are underperforming These are just a handful of items that should be part of your dealership’s Conversion Rate Optimization. You are, after all, spending money to have internal teams or outside partners work to send high-quality traffic to your website. It is incumbent upon them to also help optimize their ability to shop the site and feel further compelled to take action.
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Auto Dealer Digital Strategies that Drive Engaged Shoppers Online

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Driving shoppers to the dealership website is only part of the battle... getting them to stick around & engage is the real feat! Back in the early 2000s, we marveled at our ability to attract consumer “eyeballs” as they migrated en masse to the web. Banner ads, pop-ups, and search advertising propelled at a pace that would take your breath away!  It took some time and billions of dollars of ad spending, but we finally began to understand the importance of delivering the right content to the right potential customer at the right time. Even more, we figured out that by doing so, our ad dollars yielded much more than just the presence of our target market members – it inspired their participation with our brand, products, and services.  For dealers, the holy grail is to drive a high volume of quality website traffic that gets deeply engaged with inventory search results pages (SRPs) and vehicle details pages (VDPs). By making shopper engagement a priority, dealers can draw more website visitors deeper into the purchase funnel while providing a seamless transition to the showroom. Website Visitor SRP & VDP Views vs. Engagements Digital professionals understand the importance of ad tactics that land visitors directly on SRPs and VDPs. Such a strategy is crucial considering that dealership website visitors only view between 3-4 pages per session on average. These SRP and VDP “views” are synonymous with the “eyeballs” from the early 2000s – and they accomplish the goal of getting inventory pages in the presence of potential car buyers. But what about getting visitors to “participate” with SRPs and VDPs – to engage with content, elements, and tools? Today, the digital imperative for dealers is to drive digital-first shopper engagement experiences – inspiring SRP & VDP interactions rather than just views - the top priority for advertising dollars. Average SRP & VDP Visitor Stats Consider the following facts about dealer website traffic on average: About 30% of a dealership’s total monthly website traffic makes it to an SRP  Total website visitors stay on the site for about 3 minutes Only about 35% of website traffic that views an SRP, drills down to the VDP level Visitors that view both an SRP and a VDP, view nearly 9 pages per session and stay on the site between 9-10 minutes Look at the following Google Analytics reporting from a live dealership over a 90-day period. We can see that there is a huge opportunity to get more SRP visitors to drill down to the VDP level. When they do, they stay on the site 6.9x longer and view 3.6x more pages per session. Additionally, there is a much higher engagement rate at the VDP level than the SRP level.  There is a direct correlation between VDP engagement and a car deal - the more engagement, the higher the probability the visitor will become a customer. Digital Strategies That Drive SRP Traffic To VDPs The typical car buyer spends about 14-15 hours researching before they make a purchase decision with most of this research done online. However, about 50% of car buyers have no contact with the dealership before they arrive in the showroom. This gap from online to in-store indicates a need for dealers to create strategies to get higher levels of interaction from car buyers while they are on the dealership website. When conducting research, car buyers search for the following information and more: Video Test Drives Service History Reports Reconditioning Records Inspection Results OEM Window Stickers Used Vehicle Return Policies Extended Service Options eBrochrues Vehicle Photos & Videos Dealership Reviews Special Incentives Trade-In Value Monthly Payment Estimates Dealership Value-Add Programs Much of the information that car buyers look for during the research process is either not on the dealership website, buried under navigation tabs, or not contained on SRPs and VDPs. If shoppers only view 4-5 pages on the website and two of those are an SRP and a VDP, then we know they are not seeing other valuable information that would aid their decision making. Look at the SRP image below… From this view, shoppers can see that there are reconditioning records, the manufacturer’s ebrochure, an OEM window sticker, the dealership’s inspection results, a video walkaround, a digital portfolio, and dealer reviews. By bringing such valuable information to the SRP level, more shoppers will drill down to the VDP level and ENGAGE. More importantly, you will have provided information that shoppers want right up front – without forcing them to drill down into your website or leave your inventory pages altogether to get the information they need. Not all SRPs are designed to accommodate this size of a widget, but there are a variety of options for creating more interest even with a vertical, narrower SRP layout.  Placing informative banners above the SRP is another strategy for informing shoppers that there is additional valuable information that will help in their decision-making. Today’s, car buyers expect a rich, interactive shopping experience. Serving up highly engaging content such as videos, reports, documents, and photos on SRPs and VDPs allows you to get the right content at the right time to shoppers in the discovery and research phase of the car buying process. Proving relevant information upfront that answers questions and educates shoppers creates a transparent environment where trust is built. The result is increased conversions, a smooth and seamless transition from online to in-store, and higher levels of customer satisfaction.  To bridge the gap from the digital retailing experience to in-showroom – dealers must explore creative options to engage car buyers on key inventory display pages and draw them deeper into the purchase funnel.
car spare part
The Power of Return Parts Buyers

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You probably know the age-old business adage that it’s cheaper to sell to an existing customer than it is to acquire a new one. In fact, it’s about 5x more expensive to acquire a new customer than it is to sell to an existing customer. It’s been reported that increasing customer retention by 5% can yield a 25 - 95% increase in profit for your business. Furthermore, the average success rate of selling to an existing customer is 60-70%, while that of a new customer is just 5-20%.  All customers are important, but not all of those customers are created. Although every vehicle owner is a valued potential parts customer, the difference is between new and returning shoppers. RevolutionParts recently looked at a year’s worth of data consisting of over 100 million unique users. Based on the data, here is why return parts customers are so important: They lead to more purchases They spend more money They bring in additional business Return Parts Buyers Make Up More Than Half of RevolutionParts Web Store Visitors RevolutionParts shopper behavior data shows that return shoppers account for 54.9% of visits, where new shoppers account for a lesser 45.1%. Source: RevolutionParts eCommerce Shopper Behavior Report More than half of web store visitors are return customers; this emphasizes the importance of nurturing customer loyalty through marketing and outreach after the initial point-of-sale.  Return Part Buyers Spend More Money It’s no secret that you want customers to spend more in your parts department, and that is exactly what return customers do. Return shoppers to RevolutionParts web stores spend $65 more per order on average. Once someone makes a purchase from your web store, they are likely to spend more money the next time they purchase a part from you.  Return Part Buyers Convert at a Higher Rate Getting someone to come to your web store costs ad dollars. Once someone lands on your website, your job is to convert them into customers. The higher your conversion rate, the less money each conversion costs you. Return parts shoppers convert at 2X the rate of new visitors, meaning they will take less money to acquire. Return Part Buyers Bring The Customers to You Word-of-mouth is a blessing to your marketing budget. After all, it’s free advertising. Generally, research has shown that return customers refer 50% more people than one-time buyers. When you give customers an affordable, convenient, and reliable shopping experience, not only will they come back for future needs, they’ll tell their friends and family to shop with you too. That means you stand to gain new customers at absolutely no cost. RevolutionParts found that over 5% of gross sales came from referrals. Get the Full eCommerce Shopper Behavior Report The RevolutionParts eCommerce Shopper Behavior Report gives insight into the behavior of new and returning customers, including demographics, the devices your customers are using to purchase their items, and customer traffic sources. To view the full report, visit: https://www.revolutionparts.com/
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Did You Know This? Latest Hispanic Car Buying Preferences

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There are over 60 million Hispanics are living in the United States and their purchasing power hit $1.7 trillion in 2020 , up from $210 billion in 1990! The U.S. Hispanic population continues to grow rapidly, accounting for around half of all U.S. births.   Rapidly Changing Demographics Many states are facing rapidly changing Hispanic demographics.  Texas ranks #2 and has a Hispanic to white population growth of 9:1 , and that same population is expected to become the largest sub-group in the state this year.  North Carolina's population , on the other hand, is much smaller, but is also growing rapidly reaching 1 million in 2019. Next, while New York has the fourth-largest concentration of Hispanics in the U.S., their spending power is $170 billion , around 10% of the national average.   Young Buyers are Good for Your Dealership Next, the U.S. Hispanic population is very young with a median age of about 30. Compare this with the national average of 38 years, and you can see long-term value in building with the Hispanic community around your dealership. Thinking more broadly about these stats, it is no wonder that U.S. Hispanics are fueling the growth of several key segments of the economy, including the auto industry.   These numbers are no joke. If you are a dealership and you don't know the volume and composition of the Hispanic market around you, then you are making a big mistake. So let's look at the data first, starting with last year's survey and then the highlights of this year's. A Snapshot of Our 2020 Survey We did our first Hispanic Car Buyers survey in early 2020, just before COVID changed everyone's lives.     In 2020, 58% of our respondents were women, and 42% were men. Over half the respondents were 18-31 years of age. Add just seven more years, and the number jumped above 75%.   Five things stand out from last year: Women play a bigger role in decision-making than most people think. U.S. Hispanics want to touch, feel and test-drive vehicles. Toyota enjoys a dominant role in appealing to the Hispanic market because they have reached out to them for years. Selling in Spanish does matter. Hispanics are online and in force and they respond to digital advertising. 2021 Overview - Who'd We Talk To? In this year's survey, we sought to overlap but not completely mimic last year's survey. Consequently, we dug deeper to understand Hispanic online buying behavior. Our sample composition is very similar to last year's, although we had more who were 45 and older. The distribution breaks down in the following way: 54% of respondents were women; 43% of respondents were men; 3% Preferred not to say 17% fell in the age range of 18-25; 37% fell between 25-31; 23% were between 35-44; 17% were between 45-54; and 6% were 55 or older.  As with last year's survey, we hope that this data will encourage executive management at car dealerships and advertising agencies to explore marketing to the community, even if they start with baby steps. The U.S. Hispanic market is growing too fast to ignore and their buying power is exploding. Failing to connect with them will leave any dealership with a large Hispanic population at a disadvantage, especially when competitors act first. 5 Things We Learned in Our 2021 Hispanic Car Buyer's Survey Massive amounts of data show that U.S. Hispanics are becoming a financial juggernaut in America. Still, yet they are often ignored in advertising either culturally or through the use of Spanish language marketing.   If the stats in the introduction are not enough proof that U.S. Hispanics are becoming financially powerful, perhaps a current article in the Wall Street Journal will help convince you. According to the WSJ, in 2020, the number of U.S. Hispanic homeowners rose by more than 700,000, the largest 1-year increase in 20 years… and that was during a pandemic! So what are the highlights of this year's survey and what do they tell us?  Key Findings in 2020 / 2021 Hispanics are tactile . The data proves over both years that they love to test-drive vehicles. U.S. Hispanics prefer to be marketed to in Spanish . Of course, this number is nuanced depending on where you are in the States. For example, with such a long history in the U.S., Texan Hispanics require different messaging than those that might be new to our country. Brand reputation means a lot - whether it is your dealer brand or the manufacturer's . If you market in Spanish and focus on building a solid reputation with the community, then you will be on a good track. And if you sell vehicles whose brand is well recognized, then all the better. Cell phones are the primary shopping tool for U.S. Hispanics . What does this mean to you as a dealer? Your dealer mobile website best be fast, or you'll lose business. Sadly, dealer websites are often relatively slow.  Check out this article I wrote with David Kain and Tom Kline if you are curious. Like last year's data said, U.S. Hispanics are online and in force.  They over-index on social media use and are fully engaged on all the major platforms. This gives you, as a dealer, a straightforward direction to go… get a social media strategy in place and start marketing to Hispanics around your dealership in Spanish. Final Comments For this first article, we gave you an overview of our 2021 study and its highlights. Our next article will delve into raw stats, and our interpretations, around search and shopping behavior of U.S. Hispanics. In the meantime, think about what this article series means to you as a dealer. Do you know the size and composition of the Hispanic community around your dealership? Are you marketing to your local Hispanic community? If your answer is negative for either of those questions, then drop us an email, and we'll give you a hand. 
Auto Parts & Accessories eCommerce: Amazon and eBay

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It's no surprise to anyone, let alone anyone working in or around a dealership, that the automobile industry is a powerhouse — generating almost a trillion dollars each year in the United States. At about 3.5% of the U.S. GDP, there's no denying the importance it plays, even with online sales alone. The same is true for the parts and accessories portion of this behemoth industry.  Specific to online sales for auto parts and accessories, the year-over-year (YOY) growth is unmistakable. According to the  RevolutionParts 2020 Parts eCommerce Year in Review,  sales through just RevolutionParts have grown 117% over the last three years — and they aren't stopping. Even more impressive, when you look at the totality of aftermarket eCommerce, the growth rate for 2021 is expected to be over 30%, with an estimated $390 billion in sales according to Hedges & Company, a research firm specializing in the automotive aftermarket industry. And when it comes to eCommerce, are there any bigger players than Amazon and eBay? That's an easy no.  Not only are they huge players, but their sales are soaring more than ever, especially during our current era of COVID-19 . During the pandemic, many people have been spending most, if not all, of their time at home which gives car enthusiasts ample time to tinker on hobby cars. Or, many people just aren't in the position to purchase a new car, which means an increase in making whatever vehicle they have last longer through repairs and the purchase of parts or accessories. For 2020, that resulted in a dramatic increase in parts and accessory sales. And it's expected to keep climbing.  Big Business of Amazon and eBay Among the many surprises of 2020, one of them was an unbelievable $861 billion in online sales and a YOY increase of 44% for the year, according to the estimates by Digital Commerce 360. Given the stay-at-home directives during the pandemic, people obviously did more shopping online, which gave way to the highest U.S. eCommerce growth jump in two decades — nearly tripling the growth rate in 2019. Even more stunning, Amazon alone accounted for almost a third of all U.S. eCommerce in 2020.  Likewise, eBay's U.S. marketplace had stellar growth rates, with gross-value sales increasing 22% to $37.53 billion throughout 2020. This growth was, in part, due to the addition of 11 million new customers last year, as reported by Digital Commerce 360. Also, it happened to be their highest annual sales growth since at least 2013. Tapping into the Successes of Amazon and eBay  According to Hedges & Company, Amazon is aggressively going after the auto parts market at a claim of nearly $7 billion in sales for aftermarket and OEM replacement parts. With more than 300 million consumers on Amazon, and 46.7% of U.S. online shoppers using it as a platform to start product searches, it's one of the ideal places to find buyers looking to do exactly that, buy. Similar to its counterpart, eBay continues to have impressive sales in the auto parts market. Every minute of everyday buyers is tapping eBay for their auto parts and accessories needs. And the numbers are there to prove it, with eBay itself reporting that throughout 2018 and into the first half of 2019, there were approximately 90 million live auto parts listings. That means, for every second those listings existed, three auto parts sales took place. For the category of wheels and tires, a sale took place every six seconds. That's a lot of parts sold in just the time it took you to get to this point in the article, even for the quickest of readers. eBay also claims that auto parts have been among the top 20 best-selling products to date since June of 2020.  When it comes to dealers looking to increase revenue, the growth of auto parts and accessories eCommerce is a huge opportunity for them to capture consumers online. Dealers selling on Amazon with RevolutionParts alone generated $11,014,300 in revenue in 2020. And for dealerships selling on eBay through RevolutionParts, it was an incredible $38,133,774. As a great complement to their own online store, dealerships are quickly and affordably gaining access to a growing market on Amazon and eBay while successfully increasing their sales volume and revenue. Summary Although both are fantastic platforms for parts and accessory sales, each has its differences and unique challenges to consider. Whether it's   the incredibly high standards for accuracy and customer service , optimizing to get the right traffic, or navigating the tricky balance of pricing and free vs. charged shipping. It often takes more time than many dealerships have available and consideration should therefore be given to enlisting the help of third-party specialists.