CarMax 2011 Annual Report Download - page 6

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4 CarMax 2011
DRIVING EXECUTION
For CarMax, driving execution is all about continuing
to enhance the key elements of our offer by listening
to our customers and relentlessly responding to their
needs. Our sales associates and sales management
teams continue to benefi t from ongoing enhancements
to the Professional Selling Principles training that we
rolled out in fi scal 2010. Associates learn to better
CONNECT WITH CUSTOMERS, which improves the experi-
ence of our shoppers and converts more of them to
purchasers. Communicating effectively with custom-
ers is particularly important when the customer is
transferring a vehicle from one store to another, and
approximately 30% of our used vehicle sales resulted
from customer transfers during fi scal 2011.
Over time, customers have increasingly utilized carmax.com
as a fi rst step in their shopping process, and in recent
years, approximately 75% of the customers who pur-
chase a vehicle from CarMax tell us they visited our
website fi rst. Due to the increasing desire of consumers
to browse the web when they are on the go, we launched
our CARMAX.COM MOBILE SITE in December 2010. The
site, specifi cally designed for mobile devices, was well
received and already accounts for approximately 10% of
our website visits.
While most of our customers are not ready to buy a
car sight unseen, many indicate that they would wel-
come the ability to complete more of the car-buying
process online from the comfort of home. At fi scal
year end, we implemented CARMAX EASYSHOP in two
test stores. This online initiative gives customers
more control and lets them save time in the store by
doing more beforehand via carmax.com, including set-
ting an appointment, putting a car on hold, ordering
and paying for a transfer, and starting to complete the
paperwork. In addition, customers can apply for credit
and get fi nancing decisions online in minutes.
Another CarMax goal is to continue to IMPROVE THE
EXPERIENCE OF THE CUSTOMERS who sell us their vehi-
cles. Our buyers utilize our regularly upgraded proprietary
systems, our comprehensive database of appraisal val-
ues and wholesale market information, and the cumula-
tive experience of their store buying teams to expedite
the appraisal process and reduce customer wait time.
For our dealer-only, on-site auction customers,
we released a complete upgrade of our website,
CARMAXAUCTIONS.COM, during fi scal 2011. This
website now offers better search capabilities and
a streamlined dealer registration process—and we will
continue to add greater functionality in fi scal 2012.
Given the other unique benefi ts of our auctions, includ-
ing an approximately 97% sales rate and vehicle condi-
tion announcements, these user-friendly enhancements
to our auction website represent additional reasons
why our on-site auctions are so successful. Our whole-
sale vehicle revenues increased more than 50% in
fi scal 2011 compared with fi scal 2010 and we were
particularly pleased to achieve a signifi cant milestone
of more than $1 billion in wholesale vehicle sales.