To download full whitepaper and read 3 Smart Ways to Connect with Today's Automotive Consumer, visit http://cem.empathica.com/WP-The-Opportunity_for_Auto_SoLoMo Social, local and mobile: "SoLoMo." These are the new battlegrounds for providing relevancy to today’s consumers. More than ever before, consumers are becoming empowered by the use of new technologies. These technology-savvy consumers are changing the rules of commerce and shifting the balance of power in their favor when it comes to the relationships they have with brands and manufacturers. This trend is especially important for big ticket purchases such as automobiles. Is your customer experience in tune with these new customer behaviors? Download this whitepaper and read the three smart ways on how you can connect with today’s consumers: •Unlock the power of smartphones (e.g. QR Codes, “mobilize” the workforce). •Start engaging with customers to capture feedback in the moment, in real-time. •Drive local action through social media advocacy. To learn more about Customer Experience Management: Product and services page http://www.empathica.com/products-services/ Resource center http://www.empathica.com/resources/ Blog http://www.empathica.com/blog/ Consumer insights reports http://www.empathica.com/consumer-insights/ Industry-specific expertise http://www.empathica.com/industries/ Connect with us: Twitter http://twitter.com/EmpathicaCEM Facebook http://www.facebook.com/EmpathicaCEM LinkedIn http://www.linkedin.com/company/empathica LinkedIn http://www.linkedin.com/company/empathica

1. What is the Opportunity for “SoLoMo”
(Social. Local. Mobile.) to Improve
the Automotive Customer Experience?
3 Smart Ways to Connect with Today’s Automotive Consumer
An Empathica Whitepaper
www.empathica.com

2. An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
Social. Local. Mobile. These are the new battlegrounds for providing relevancy to
today’s consumers. More than ever before, consumers are becoming empowered “Discussions on Twitter and
by the use of new technologies. These technology-savvy consumers are changing Facebook are playing an
the rules of commerce and shifting the balance of power in their favor when it
increasingly influential role
comes to the relationships they have with brands and manufacturers. This trend is
in the fate of retailers,
especially important for big ticket purchases such as automobiles.
auto dealers and brands. ”
Adoption of these technologies is expected to accelerate in coming years. A 2012 study
by Neilson revealed that smartphones now account for almost 50% of mobile phone
subscriptions in the U.S., which represented a 38% increase over the prior year. In fact
eMarketer estimates that there will be 115.8 million smartphone users in the U.S. by the
end of 2012, with that number growing to 176.3 million by 2015.
Not only are consumers becoming more mobile, but we are becoming more social
as well. As the undisputed leader in the space, Facebook, recently published its
current user base as in excess of 1 billion users globally.
Increasingly, consumers are turning to social media as their primary source for
information on brands and products. Their next great dining experience, the hot
new gadget, the next vehicle to transport the family — discussions on Twitter and
Facebook are playing an increasingly influential role in the fate of retailers, auto
dealers and brands. Consumer insights research conducted in 2012 by Empathica
supports this trend with 72% of survey respondents indicating that information on
Facebook had influenced purchasing decisions (see Figure 1). Even more importantly,
half indicated having tried a brand because of a social media recommendation.
Figure 1
Social Media
Recommendations &
Consumer Behavior
Smartphone owners use their devices in
stores to check prices and more
Nearly 3-in-4 consumers (72%)
use Facebook to make retail/
restaurant decisions.
Half of consumers have 72%
tried a new brand due to
a social media recommendation.
Source: Empathica Consumer Insights Panel, Wave 1 2012
2

3. An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
In addition to this, when consumers are out shopping or walking a showroom
floor they now have the power of the Internet in the palms of their hands with the “The bottom line with social,
latest smartphones. At their fingertips and in real-time, they can search for product local and mobile consumers
ratings, reviews and more. Some mobile apps even provide price and discount
is personalization. ”
comparisons. Add that to apps that are designed to generate local incentives or
group discounts, and the experience consumers expect from brands has changed
forever. For example, 2012 research by ComScore found that 43% of smartphone
owners have used their mobile device while in a store for a shopping related reason.
Although these consumers have newfound expectations of the experience they
receive, some things remain the same. Despite these new expectations, they are still
loyal to their favorite brands. However, how these brands earn and keep that loyalty
must change.
The key ingredient with social, local and mobile consumers is personalization.
Technology has groomed consumers to expect a personalized experience from their
interactions with the brands they frequent. Unfortunately, in the eyes of these same
consumers many brands are falling short of this expectation with 2 in 5 Empathica
Consumer Insights Panel respondents indicating they did not feel as though their
shopping experiences are being personalized. Furthermore, according to a CMO
Council 2012 report entitled “The Leaders in Loyalty: Feeling the Love from the
Loyalty Clubs,” 54% of U.S. and Canadian consumers would consider ending their
loyalty relationships if they were not given tailor-made, relevant content and offers
(see Figure 2).
Figure 2
Where market researchers used to talk about demographics in general terms (e.g.
“males 18–35”) today’s consumers see themselves as a demographic of one (i.e.
“me”) and expect to receive customer experiences that reflect that. While this creates
a shift in how brands must do business, the technologies available today makes
this transition more realistic. Smartphones, social media, near field communications
(NFC), the rise of “big data,” all these new technologies can act as the building
blocks to highly personalized consumer experiences.
Consumers want their brand interactions to be through the channels they prefer
and with the tools they use. This applies to everything from the mechanisms they
use to pay for purchases (e.g. Near Field Communications (NFC) devices versus
cash and credit or debit cards) to the activities that earn loyalty points (check-
ins versus purchases) to the loyalty rewards they get (highly personalized versus
generic discounts), and to how they give feedback to the brands they frequent
(increasingly via mobile devices).
3