Monday, December 14, 2015

Nissan uses Analytics to Track Consumer Behavior

Shopping online has become big business and is one of the fastest growing segments in the commercial industry. Tracking a customer experience from browsing to check out provides valuable data for a business. One of the top ranking auto dealers in the world uses Google Analytics to help them measure their website traffic. A case study by Google reports how the Nissan Motor Company uses the analytic data to gain deeper insights about consumer’s car preference – about the type, model, and color of car they like the most. Knowing which cars are most popular helps Nissan make inventory decisions for their global markets (Google, Inc., 2013).


A study by the McKinsey & Company, reports that Americans are rethinking how they buy cars. “This is the most dramatic change we've seen in the auto industry and how people buy cars in the last 50 years," said Hans-Werner Kaas,” senior partner with McKinsey (LeBeau, 2014).  CNBC Reporter, Phil LeBeau explains that consumers are doing more research online and less shopping at the dealerships. According to the McKinsey report, most consumers visit just 1.6 auto dealerships before purchasing a car, compare that to a decade ago when the average buyer visited, at least, five dealerships. Kaas says that’s because there is so much more information and resources online and the auto dealers who can adapt to this new opportunity, will be the ones who succeed.

One auto dealer that is ahead of the game is the Nissan Motor Company. In doing research for this blog topic, I was pleasantly surprised to find that another IMC student in 2013, Marcie Shanks, had chosen Nissan for her blogpost on e-commerce and web tracking analytics.
Shanks does an excellent job and details how Nissan has integrated and diversified their use of online technology and analytics.

From using Skype, social media platforms, mobile apps, and even gaming technology, Shanks discovered Nissan collected data, the analytics, from all these sources and used that information to help improve their website content and make business decisions. She also found there were a few things that Nissan could do to improve their website performance. I decided to see if perhaps, 
Nissan had implemented any of the recommendations she made and see if there were any improvements on their website.

In her research, Shanks found that the home page, NissanUSA.com, took a while to load, 2.292 seconds to be exact, that is 38% slower than other websites (Shanks, 2013). Fast forward to 2015, using different platforms, I re-tested Nissan’s homepage ranking and loading speed.
I found that it loads even slower, drastically slower, between 4.8 to 13.7 seconds (the speed was different depending on which platform is used and if the test was repeated), that means 65% to 95% of the world's websites load faster. You would think that would be a concern. A slow rate of speed could detour your user, and they could leave the site before it finishes loading. When Shanks did her research in 2013, the homepage load speed was 2.292 seconds. What happened? The image slider on the home page takes forever to load. However, apparently users don't mind - they either love the pictures and the information and don't mind waiting.

Would you agree that when the information is as vital as making a purchasing decision, especially one as expensive as a car purchase, and comes with an enticing interactive experience, it is one that is worth waiting for?

Shanks also reported that there were 93 HTML errors on the home page, I checked the homepage with the W3C Markup Evaluator tool and found 115 errors. To get more insight, I ran the URL on WebPageTest.org site. Nissan received an F ranking for its images not being compressed, and an F for having cached static content. I also ran a test on Pingdom.com, and it confirmed the poor page speed performance. Pingdom tools provided recommendations on how to improve Nissan’s website performance. To improve the download parallelization, Pingdom recommends that you distribute requests across multiple hostnames. Currently, there are 91 parallelizable requests to www.nissanusa.com. Other recommendations included minimizing redirects, combining external JavaScript, leverage browser caching, and combining external CSS (Pingdom, 2015). More information about these speed rules and how to improve them can be found on  Google Developers PageSpeed Insights.

Finally, I wanted to get back with how Nissan uses Google Analytics to track consumer behavior. Nissan's Global Marketing Strategy division wanted to know which vehicles were most popular so they could make inventory decisions to serve different markets across the world and optimize their website. Karun Takkar, wirth Digital Vidya Blog, writes that Nissan leveraged Google Analytics like a clairvoyant, a medium who is capturing insights to predict consumer purchasing behavior (Takka, 2014). Even Google was impressed on how Nissan used their analytics tools and made it one of their case studies (Google, 2012). Without even using e-commerce transactions, Nissan was able to use Google Analytics to help them discern a consumer’s product preference that in turn helped them make accurate business decisions (Google, Inc., 2013).  Nissan simply places an e-commerce tag on the follow through pages, on the 'thank you' page after the user downloads a brochure or signs up for a test drive. It’s at this stage when Nissan captures consumer’s preference information about the cars.
 Google Analytics' explains that their profile setting and custom reporting allows Nissan to take complex and timely information from one report view and easily share it within the organization, saving them time and money.

References

Google. (2012, January). Nissan Motor Company Gains Insights with Google Analytics E-Commerce. Retrieved from think with Google: https://www.thinkwithgoogle.com/case-studies/nissan-motor-company-gains-deep.html
Google, Inc. (2013). Nissan Motor Company gains deep insights into users’ product preferences with Google Analytics e-commerce. Google, Inc. Retrieved from Google Analytics Case Study.
LeBeau, P. (2014, February 26). Americans rethinking how they buy cars. Retrieved from CNBC: http://www.cnbc.com/2014/02/26/americans-rethinking-how-they-buy-cars.html
Pingdom. (2015, December 7). Nissanusa.com Page Speed Performance. Retrieved from Pingdom: http://tools.pingdom.com/fpt/#!/dxvPAn/nissanusa.com
Shanks, M. (2013, March 4). Nissan uses Innovative Marketing to Gather Web Analytics . Retrieved from Digital Marketing Marcie: http://digitalmarketingmarcie.blogspot.com/2013/03/nissan-uses-innovative-marketing-to.html
Takka, K. (2014, June 21). nissan motor company leverage web analytics to capture different market operations. Retrieved from Digital Vidya: http://www.digitalvidya.com/blog/nissan-motor-company-leverage-web-analytics-to-capture-different-market-operations-dmblog-0604/



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