Reaching customers online can drive sales before they visit dealerships
With the power of the internet at
their fingertips, consumers of all ages increasingly research what they want to
buy before making their purchases. In the U.S. alone, it is projected that by
2021 230.5
million people will be shopping online,
up from 209.6 million in 2016. It’s a sign that they are becoming savvier
consumers–after all, you wouldn’t close on a house before looking at all your
options.
When it comes to a purchase as significant
as a car, most consumers will be doing their due diligence to find the right vehicle.
In fact, a recent report found more than 80 percent of car buyers conduct
online research when looking for a car. In order to drive sales in the evolving
digital space, dealers need to examine how they reach customers online and
optimize their marketing tactics.
Growth of online sales provides new
choices for consumers
Competition for customers has only
increased thanks to the growth of online sales. Now, car shoppers can easily
find thousands of automotive websites to compare reviews and prices. Some shoppers
are taking it a step further, completing full vehicle purchases from the comfort
of their homes. Online retail companies like Carvana offer consumers a new
level of convenience by limiting the car shopping experience to digital
interactions.
So how can traditional dealers
compete? Many dealerships have already adopted an online sales model for their
business. OEMs have started to roll out online ordering systems their customers
can use to purchase vehicles. One automaker, Volvo, is making a commitment to
dealerships by requiring customers who purchase its vehicles online to choose a
dealership location and accept the retailer’s offer on finance packages as part
of the purchase. This links a customer to a reliable location for future
vehicle services while providing additional revenue for the dealership.
Use digital marketing to reach your
customers
After the Great Recession in 2008, dealerships
had to reevaluate their marketing strategies. Many found that their online
sales efforts needed to grow, or in some instances, be established. This
strategic shift has only continued to grow in popularity – as of 2017, online
advertisements made up 55.4 percent of dealership ad budgets, compared to 22.2
percent in 2009. However, if your marketing messages don’t resonate with
customers, it can be an uphill battle to bring more business into your
dealership.
To create strategies that reach online
shoppers and bring them into the showrooms takes data. But, with the vast
amounts of data created, it can be difficult for a dealer to know where to
start. Often, dealers will try to leverage either national statistics, or base
strategies off data only in their CRM and previous purchase history. The
problem with this is that each community has unique needs, so national
statistics don’t always apply. Additionally, relying on just CRM data means
that you could be missing households that are in the area and in market, but
haven’t been to your dealership previously.
To alleviate this, dealers should work with a third-party partner that can not only provide a platform that will augment a dealership’s data with additional localized insights, but will work alongside them to help them better understand the insights on a monthly basis.
Additional data can give you a better understanding of what activity is occurring in the area immediately surrounding your dealership, but it’s dynamic. Having a partner who can help interpret the data, will help ensure that your strategies–whether in store or online–are as strong as possible, and bring more people into the store.
Car shoppers are not going to wake up
one day and stop using the internet to find their next ride. While it may be
uncomfortable to change your business strategy, rolling with digital can
deliver knockout sales numbers. Taking a step into the online sales space can
help modernize your business and grow your total customer base.