Manheim’s Enhanced Vehicle Imaging Suite Generates Gains for Toyota Financial Services (TFS)
Case Study Examines TFS Growth in Conversion Rates, Bids and Retention
As a result of Toyota Financial Services’ (TFS) need to find a new and more efficient way to sell their vehicle inventory, Manheim and TFS formed a partnership that led to TFS’s implementation of Manheim’s Enhanced Vehicle Imaging (EVI). TFS’ conversion rates have risen 17 percent, and have achieved gains in both bids per sale and retention value, as documented in a recent case study released by both organizations.
“We needed to adopt a new approach to sell our inventory,” said Mike Reid, national remarketing manager for TFS. “Moving from lane sales to online proved to be a disruptive process for our dealers at first. Making buying decisions without actually seeing a vehicle first hand was difficult for many dealers. But with Enhanced Imaging, our dealers are able to view their target vehicle inventory online very similarly to the physical auction lane. We are well on our way to creating a virtual showroom experience that allows our dealers to purchase vehicles with confidence around the world.”
Designed to help consignors increase sales and conversion rates, EVI provides the highest resolution images available, delivering showroom quality that helps sell vehicles online quickly. The improved package, offered with Manheim InSight ECR Condition Reports, provides customers up to 18 vehicle images, ‘heat map’ graphics that help buyers quickly assess vehicle condition and a dedicated photo staff with the goal of ensuring consistent image quality and standards across all Manheim locations.
During a 16-week trial of the product for TFS’ online auction sales from February-April 2014 at Manheim Ohio and Manheim Phoenix, Enhanced Vehicle Imaging (EVI) helped TFS’ achieve a 17-percent gain in conversion rate to 62 percent in a sample size of nearly 2,700 vehicles. During that trial, the results showed a 26% percent rise in the number of bids and a 1.1% increase in retention value, or an increase of $132 per vehicle.
TFS fully adopted EVI for all of its vehicles consigned at the 20 Manheim operating locations with the product in May 2014. Projections are for all TFS consigned vehicles at those Manheim auctions -- more than 65,000 vehicles in total -- to go through the EVI process in 2015. Since the completion of the trial, Manheim expanded the number of operating locations offering EVI to 21 with the addition of Manheim Toronto.
“This partnership has been very beneficial to both Toyota and Manheim,” said Bonnie Hensler, vice president of product development for Manheim. “The feedback has been positive for EVI, an innovative product designed to help our customers showcase vehicles better. As 21 of our operating locations already have the EVI photo booths in place, we are expanding the program to include other OEMs.”
TFS and Manheim have been working together for many years. Manheim has delivered a variety of business solutions such as OVE.com and EVI that have led to more efficient and profitable solutions for TFS. Among the first adopters of OVE.com, TFS offers its vehicles first on OVE.com.
Not only did EVI help TFS’ sales results during the trial, but arbitration cases dropped 17 percent and customer satisfaction rose. Based on Manheim’s Buyer Satisfaction Surveys conducted before and after the implementation of EVI during the trial period, the case study reports new images have improved the perception of images in Manheim Condition Reports (CRs) versus the competition by 18%. The overall perception of CRs has risen by 15 percent as well.
Hensler reported that the EVI solution was developed by Manheim for customers who have struggled to find vehicle condition reports with consistent imaging quality imaging. “We know that vehicles with a detailed CR sell quicker,” she added.
The 21 Manheim operating locations currently with the imaging product in place include: Manheim Atlanta, Manheim Baltimore-Washington, Manheim Denver, Manheim Fredericksburg, Manheim Kansas City, Manheim Milwaukee, Manheim Minneapolis, Manheim Nashville, Manheim Nevada, Manheim New Jersey, Manheim Ohio, Manheim Orlando, Manheim Pennsylvania, Manheim Phoenix, Manheim Riverside, Manheim San Diego, Manheim San Francisco Bay, Manheim Seattle, Manheim Statesville, Manheim Texas Hobby and Manheim Toronto.
About Manheim (www.manheim.com)
Manheim is the leading global provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace. The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation and mobile products and solutions.
Manheim pioneered in-lane vehicle auctions and has been an innovator in both digital and mobile auction platforms. Manheim registers nearly 7 million used vehicles annually, facilitating transactions representing nearly $46 billion in value. Manheim’s research and consulting arm, Manheim Consulting, provides industry-leading market intelligence and publishes the widely recognized annual Used Car Market Report. The company offers dealer financing through NextGear Capital, Inc., and transportation services through Ready Auto Transport.
Headquartered in Atlanta, Manheim has more than 20,000 employees in 122 worldwide sites and generates annual revenues of more than $2.5 billion. A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.
For further information: John Heid: John.Heid@coxautoinc.com
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