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Stop Leaving Money on the Table: Ensure You’re Making the Most of Your Co-Op Dollars 

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In the big wide world of automotive advertising, co-op advertising remains a crucial strategy for dealers. Supported by OEMs, the shared advertising costs in co-op dollars allows dealers to promote their brands and engage customers. Some lovingly refer to it as “found money”. 

However, you might be surprised to learn that not every dealer uses all of it’s OEM co-op advertising budget and dollars!  

To help make sure you don’t leave money on the table, we’ve interviewed Autotrader’s own Michele Wright, Director of Sales, to discuss ways you can make the most of your co-op advertising dollars, especially as we step into the back half of 2024, and start to plan for 2025. 

Her simple yet sage advice will help dealers ensure they’re maximizing their co-op advertising budgets and using the money, especially as advertising spending increases and the quest to stretch your dollars grows. 

Increased Focus on Co-Op Advertising by Dealers 

Q1: Can you share a bit about why you think co-op advertising has been, and will continue to be, such an important channel marketing strategy for automotive dealers? 

Michele Wright: Co-op programs were created to help dealers extend their brand recognition and market reach. The best way to utilize these funds is to put your messaging in front of as many consumers as possible. OEM-approved co-op solutions are available for all brands that offer co-op, and you can use your co-op funds to cover up to 100% of advertising costs, depending on the manufacturer and the dealer. 

One of the key reasons co-op advertising needs to be a focus—and considered a cornerstone of your strategy—is because it’s a “use it or lose it” situation. Some dealers don’t manage their co-op funds effectively and may not realize they could lose these valuable resources that are essentially free money. 

Shifts in Co-Op Advertising Post-Pandemic 

Q2: What are some of the things that have changed or shifted in the automotive industry when it comes to co-op advertising over the last few years post-pandemic, that supports why dealers need to really focus or re-focus on their co-op strategy? 

Michele Wright: Co-op funds were not as readily available pre-pandemic as they are now. Overall ad spending during and after the pandemic declined, but co-op spending has seen a steady increase—about 13% in the last year, according to Russ Mann, Vice President of marketing at The Advertising Checking Bureau (ACB), which manages co-op programs for various industries, including automotive. 

The auto industry spent about $12 billion on advertising last year, up from a low of $11.4 billion in 2022. This total is expected to hit $12.3 billion this year, according to the BIA Automotive Report 2024. New car inventory is back and starting to age, and dealer flooring costs are causing issues. High interest rates and high new car prices are obstacles dealers are facing.  

Dealers need to start selling new car inventory as quickly as possible and work with their partners to get the right inventory for their lot. The best way to do this is to advertise. And co-op advertising dollars can help support this. 

How Autotrader Can Help Dealers Maximize Co-Op Dollars 

Q3: How is Autotrader helping dealers ensure they are making the most of their co-op dollars and not leaving any money on the table? 

Michele Wright: Autotrader offers customizable co-op options to fit the needs of dealers, including advertising for new, certified, and used vehicles. Our listings and advertising solutions are eligible for co-op reimbursement through 17 OEMs, with reimbursements varying from 50% to 100%. 

Our platform is easy to use, and we provide all the necessary documentation to submit to the OEM. Let me repeat that…. Not only is all the documentation provided to you and there for you to supply to your OEM, but it’s easy to use! The dealer partners I interact with say it’s like an “easy button”. 

We also offer Autotrader-managed solutions that protect dealers from any infractions on our advertising. It removes that layer of worry or stress. Autotrader’s co-op program offers different service levels (Dealer Managed, Autotrader Managed, and OEM Managed) to help dealerships receive and provide the required documents set by the OEM for co-op reimbursement claims. 

The Results Speak for Themselves  

Q4: With Autotrader and Kelley Blue Book, especially with it being the #1 most used third-party automotive site to research and shop online, what type of results are dealers seeing using Autotrader’s listings and advertising solutions that are Co-Op eligible? 

Michele Wright: Autotrader and Kelley Blue Book have the largest audience of in-market shoppers in the country. Utilizing co-op funds with a customizable solution from us gives you the most bang for your buck.  

Dealers have seen significant improvements in their advertising reach and effectiveness, leading to increased sales and better inventory turnover.  

“In times like today, 
where costs are increasing but margins are shrinking, 
the dealers that use all of their co-op dollars 
are seeing more opportunities for their inventory to move.” 

It’s Time to Build or Re-examine Your Co-Op Strategy 

Q5: What should existing or prospective dealers do if they’d like to connect with Autotrader to take a deeper look at their current co-op strategy, to make sure they’re getting the most out of it? 

Michele Wright: For current Autotrader franchise dealer partners—whether you’re using Autotrader co-op programs or not—connect with your rep to find out which of your Autotrader solutions are co-op eligible through your OEM and make sure you’re getting the most out of it. You might be surprised, there may be an opportunity to substantially increase your digital ad spend and effectiveness at no additional expense to you.  

It’s your money, don’t leave it on the table. Request your Autotrader co-op eligibility consultation to ensure you’re not missing opportunities and making the most out of your dollars. 

For dealers that aren’t currently partners with Autotrader, visit b2b.autotrader.com and click on the top right side where it says, “Get Started.” With Autotrader’s Co-op Assistance Program. It’s designed to take the complexity out of the compliance and reimbursement process. 

By leveraging co-op advertising effectively, dealers can extend their brand reach, engage more customers, and ultimately drive more sales. Don’t let these valuable funds go to waste—make sure you’re maximizing your co-op dollars and leaving no money on the table. 

“It’s never been easier and more cost-effective 
to start advertising your inventory on 
the most visited marketplace of ready-to-buy car shoppers.” 

For the Road Forward: 

Within the fiercely competitive domain of automotive advertising, co-op advertising has been, and will continue to be, a cornerstone of a successful channel marketing strategy for all automotive dealers. Co-op advertising, driven by OEM support, has proven time and time again to be an effective tool for dealers and channel partners to engage customers, promote brands, and make sales while sharing advertising costs.   

As dealers move into the second half of 2024, they should ensure they’re maximizing their advertising budgets and not leaving any free money on the table. And Autotrader can help you find opportunities to get in front of shoppers that are ready-to-buy. 

Autotrader provides you with qualified leads for people who want cars. We have the data that connects and activates your data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads that have the highest gross profit on average industry wide. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine.   

Embrace the tips Michele Wright shared and ensure that you close out 2024 and enter into 2025 without leaving any co-op money on the table. When you maximize and take advantage of the customized Autotrader co-op opportunities in front of you, you’ll have the winning strategy to move more cars. 

Video | Stay Top of Mind with Car Shoppers Using Retargeted Marketing 

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Display ad retargeting continues to be a powerful and effective marketing strategy enabling businesses to connect with their target audience in a personalized and impactful way. Find out how it can help you deliver remarkable results for increased brand awareness, improved conversion rates, and enhanced customer engagement. 

In this WardsAuto FastChat episode Dana Middlemiss, Client Success Manager for Autotrader and Kelley Blue Book, shares how dealers can use retargeted ads to boost engagement. 



Video | Stop Leaving Money on the Table: Ensure You’re Making the Most of Your Co-Op Dollars

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Co-op advertising driven by OEM support has proven to be an effective tool to engage customers, promote brands and make sales while sharing advertising costs. Moving into the second half of 2024, dealers should ensure they’re maximizing their advertising budgets and not leaving any free money on the table.

In this WardsAuto FastChat episode Michele Wright, Director of Sales for Autotrader and Kelley Blue Book, shares how dealers can use co-op funds to share the cost of advertising their dealership.



Liked what you heard? Check out all of Autotrader’s co-op eligible solutions.

Video | Ways to Boost Engagement and Leads without Boosting Your Cost

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In today’s fast-paced digital age, ensuring your inventory is getting prominent placement within shoppers’ search results is vital. Find out how to boost your engagement without boosting your costs with merchandising best practices.

In this WardsAuto FastChat episode David Lumpkin, Senior Director of Inside Business Development for Autotrader and Kelley Blue Book, shares how dealers can boost their performance without boosting their spend.

Liked what you heard? Check out all of Autotrader’s tips to make sure you are getting the most out of your marketing spend.

Go for the Gold: Boost Sales and Performance with Tips from Industry Experts 

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Over the last few weeks, almost everyone has had Olympic fever. The opening ceremony, the Eiffel tower in every shot, Snoop Dog, the super-human athletes that we’ve come to personally know from the comfort of our sofas who all have a favorite color… Gold! There’s no shortage of reasons to get swept up every 4 years.  

And no matter what you love most about Olympic sports, there’s one thing everyone can agree on. That victory belongs to those who are not only skilled, but prepared. Putting in the work, day in and day out, month after month, year after year, all with the goal to bring home the gold.  

By looking at the rigorous discipline of athletes, alongside the strategic preparation of top-performing automotive sales teams, parallels can be drawn, and inspiration can be found. Together, let’s look at how adopting the mindset of champions can elevate you and your sales team’s performance and drive you to gold-medal glory. 

From Salesperson to Olympic Athlete: Putting in the work 

Recently, I had the honor of speaking with my dad, automotive legend and Master Sales Trainer and Principal Consultant, Chip Thomas, about the ways in which automotive sales teams can best prepare for the daily demands of their job. After all, when it comes to standing out in such a competitive field, just like elite Olympic athletes, the dealership staff who have the most success prepare both physically and mentally for the role to close the deal (bring home the gold!) every day.  

Along with pre-game focus, top athletes make good decisions in their personal routines outside of practice. It all goes hand-in-hand. Here is Chip’s top advice for building the best routines and habits that drive positive results. 

#1. Systems, habits, procedures help your sales team gain the competitive advantage.  

According to Chip Thomas, you don’t need to take drastic actions to stand out above the rest. You just need to be consistent with the basic small habits that ultimately build on one another to make a big difference. “I made it a habit to send a handwritten ‘thank you’ card every time I sold a card,” he explains. “It’s all about consistency, perseverance, and developing good habits, like coming in every day with an action plan.”  

Get the Gold: Have a clear direction and action plan for each day – when you plan to work and work your plan it makes a huge difference in the long run. 

#2. It also falls on leadership to get your team to the podium. 

Chip cited examples of the difference good leadership can make speaking from his own experience of 41 years at the same dealership. “If I don’t require you to do the things necessary to be a champion, you’re not going to be a champion.” Our Olympic athletes exhibit the very definition of greatness. But even with an incredible amount of practice and desire to win, almost every athlete needs a coach. Both coaches and leadership should be focused on helping you grab the gold, by setting a winning strategy, mapping out how success is attainable, and showing you how to use your strengths in order to bring out your best.  

Get the Gold: If you’re a leader – demonstrate the same commitment to your career as you’d expect of your team. If you’re in sales – ask your leader to hold you accountable to your goals and true capabilities, then show your commitment to reaching those goals to inspire and raise the bar for the entire team. 

#3. Even Olympic athletes recharge their batteries. 

You need to get adequate sleep and exercise to do any job. And, according to Chip Thomas, there is no job more mentally, emotionally, and physically draining than what automotive salespeople do. “Most salespeople waste four to five hours just waiting for something to happen,” he explains. “If you want to win, you have to go in every single day with a game plan.” Did a customer come in while you were out who needs immediate follow up? Have you familiarized yourself with the new and current inventory? Are you up on the current promotions and incentives? Ensure you’re clear on what you need to do that day and have the energy to make it to the podium each day. 

Get the Gold: If you’re rested and recharged in your personal life, you’ll be ready and willing—both physically and mentally—to come into the dealership ready to be and do your best. 

#4. Practice and prepare for whatever’s next 

The greatest athletes practice far more than they perform. Simple things like meeting and greeting, overcoming objections, your walkaround and approach are all things you can improve. It may look like luck to those who didn’t see the work you put in, but you’ll know better. And you’ll be prepared for the unknown.   

Get the Gold: Successful salespeople don’t just leave it to chance. They prepare for the future and make their own opportunities both today and down the road. The old saying is true… practice makes for (eventual) perfect. 

For the Road Forward 

As the closing ceremonies take place, whether an athlete has won a gold, set a personal best, gave their best but came up short, is crying tears of happiness or tears of wishing they would have performed better, the beautiful thing about both athletes and sales is that every day is a new chance to give and do your best in the future.  

For Olympic athletes the training never ends 
and the same holds true for automotive salespeople. 
 

To be successful in a competitive market, salespeople must treat their everyday with the same commitment athletes do – with goals, an action plan, and with the desire to put in the work to do what it takes. Leaders must also channel the spirit of an Olympic coach, guiding their team with a finely tuned strategy and the wisdom of experience on how to help others succeed.  

When you prepare day in and day out to have the success you know you’re capable of, you’ll find yourself winning the gold more times than not. And with tools like Autotrader and Kelley Blue Book on your team, you’re set to be one of the first sprinting towards the finish line.  

Autotrader provides you with qualified leads for people who want cars. We have the data that connects and activates your data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads that have the highest gross profit on average industry wide. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine – shine as bright as GOLD!  

Embrace and adopt the podium making tips shared, and like the most celebrated Olympians, you, your sales team, leaders and dealership will not only reach for gold, but grasp it firmly in victory. 

Want to watch or hear the episode I recorded with Chip Thomas on this? View or listen to our UnJaded episode now available.  

More Profitability Begins with Modern Appraisals and Stocking Strategies

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No matter what you call it, “the New Normal, Pre-Covid, Post-Covid Era” in this ever-evolving market, dealers want one thing to remain the same – the continued profitability that many have experienced in the last few years. But just as the market has evolved, dealers need to meet consumers where they are and evolve their processes to continue to yield the same results. This may leave you wondering, “Where or how do I start?” 

Imagine a puzzle – each piece represents a part of your dealership’s profitability. To understand the story, you need all the pieces to create the full picture of your dealership’s performance. When you can see the full picture, you can make more strategic business decisions resulting in higher profits by having the right car, for the right consumer, for at the right price, with the right strategy… you’ll have the tools to increase your ROI and realize greater profitability. 

It all starts with having what shoppers want and demand. In the current market, your acquisition and stocking strategy needs to be customer- and market-driven. Together, we will get back to the basics and dive deeper into quality inventory and acquisition strategies you can start implementing today to maximize your dealership’s profit potential.  

Profitability Begins with Acquisitions 

In the past, dealers often decided which vehicles to show customers. Today, the situation is reversed – shoppers come into the dealership already knowing which vehicle they want to purchase. Having what shoppers want and demand is key. Here are the top recommendations for dealers looking to unleash their profit potential through vehicle acquisitions: 

Know the Demand: You need to know what is in demand in your market and if you have any holes in your inventory. Historic sales data is essential, but it’s not enough.

Tools that use current market data and help you understand the vehicles your consumers are seeking can have the most impact. If you aren’t factoring in market data, you’re missing a big piece of your puzzle.  

Expand Your Acquisition Channels:
Once you know what’s in demand, you need to acquire it. We all know that there’s no secret watering hole filled with used car inventory, but the good news is that you can get creative with several channels that already exist. Don’t be afraid to explore new sources and processes to fill inventory gaps like online auctions, private sellers, and your service lanes. When you have the right inventory, then you can attract the right customer.   

Maximize Profit: Getting the maximum profit for every vehicle doesn’t just come from selling it, it all starts with the acquisition. Imagine covering seven times more ground to find the inventory that your dealership needs. With Cox Automotive solutions, you can get a view of what, shoppers demand while ensuring that you’re maximizing your profit investment. Scale all of your channels to help you source the vehicles that your consumers are looking for and the ones that will give you the highest profit potential by using predictive analytics to identify undervalued vehicles and negotiate effectively –, getting you the most bang for your buck! 

Appraisals Matter 

Now that you’re putting your vehicle acquisition pieces together to find the right cars to have on your lot, appraisals play a crucial role in this process. It is essential to work across your organization to make your acquisition and marketing process seamless. Here are a few ways to drive more profit from your appraisal process:  

Alignment on Processes: Continuously collaborate between your Used Car Manager and Acquisition or Service Manager to share best practices while having ongoing discussions to talk through operational inefficiencies.   

Data-Driven Appraisals: Leverage market data and appraisal tools to assess trade-ins accurately. Consider factors like mileage, condition, and market demand. Use historical data to determine fair prices and avoid overpaying. 

Service Drive Insights: Monitor which cars are coming through your service drive. These vehicles represent potential trade-ins. Train service advisors to identify customers interested in upgrading. Use this information to align your acquisition strategy with service trends. 

Market Trends: Stay informed about market trends. Are SUVs gaining popularity? Is there increased demand for electric vehicles? Adjust your appraisal process accordingly and consider offering incentives for specific models to attract trade-ins.

Navigating the Customer-Centric Market 

You don’t need us to tell you that shoppers are evolving and they have access to more information than ever when it comes to researching vehicles and online shopping resources. They are also willing to travel further to purchase the right vehicle, all while doing more of the purchase process online.   

On average, customers tell us that they are willing to purchase a vehicle up to 161 miles away. This number was 50 miles only a few years ago.* 

To maximize profitability, dealers need to lean into consumer behavior and make sure they’re evolving their strategies as fast as consumers are adapting theirs.  

Putting the Pieces Together 

To have the complete profit picture, the right car starts with quality inventory and smart acquisition processes. Dealers must lean into this new market and leverage the right tools and data to maximize profits.  

Remember, the complete profit picture requires all the pieces – Cox Automotive has the most connected and comprehensive view of the automotive industry and offers unmatched data and insights into consumer behavior, automotive trends and operational best practices. Whatever your goals, we can help you get there faster to stay a step ahead and successful in today’s marketplace.   

Ready to discover how to drive higher profit potential in today’s market? Be one of the first to register now for The Complete Profit Picture series so you can close out 2024 strong and discover the new of ways working in today’s market to modernize your strategies and drive more ROI and capture more profit in each and every vehicle.  

Register today: https://www.coxautoinc.com/retail/thecompleteprofitpicture/registration/ 

*Source: 2023 Cox Automotive Car Buyer Journey   

Video | Extend Your Ability to Reach More Buyers in More Places to Sell More Cars

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Consumers have gotten used to quickly and easily researching and completing all kinds of purchases from their sofas, no matter what they’re buying, including cars. With the right marketing solution, find out how this customer expectation could translate into more car sales for your dealership.

In this WardsAuto FastChat episode Peter Topazio, Client Success Manager for Autotrader and Kelley Blue Book, shares how dealers can extend their ability to reach more buyers in more places to sell more cars.



Delivering a Consumer Experience Online – The 5 Key Steps 

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The next great phase of the automotive consumer experience is happening online. Your buyers are not only purchasing online, but they’re also making intelligent decisions about payment plans, researching competitors, and weighing their options. And they’re doing it all in a matter of minutes.  

The good news is—if you’re smart—you can have an important role in this journey from the very first moment using insights and data from connected technologies and solutions designed to deliver the best-in-class consumer experience.  

Delivering the digital promise of a faster, more convenient experience for your buyers is within reach for any dealer looking to modernize. And when you follow the following five key steps, that are pillars for delivering an extraordinary online experience, your future will include higher quality leads that result in higher profits and increased business.   

#1: Build a Strategy to Capture More Leads  

More of the car shopping process is indeed moving online. But capturing a virtual shopper isn’t as simple as publishing or updating your website and waiting for your next buyer to offer up their information.  

Car shoppers are leaving hints about their intentions in various ways and it’s up to intelligent data and insights to connect and decipher who and what to do with that information. According to the most recent Car Buyer Journey study from Cox Automotive, 57% of those surveyed visited a third-party site without visiting an OEM site.1  

What does this ultimately mean to your business and marketing strategy? There’s no more room to sit back and passively wait for your next buyer to hand over their information. Dealers need to build a strategy focused on taking the data and insights from third parties like Autotrader and Kelley Blue Book and turn them into actions to take. That their solutions and team can act on easily and swiftly. 

How much of a difference could those third-party listings sites possibly make? Consider this: Autotrader attracts over 29 million unique visitors each month. How many additional car shoppers would you like viewing your listings? Build a strategy around that and align your business objectives with the partners that can deliver. 

Autotrader sees 29 million unique visitors per month. 2 

#2: Measuring Quality in a Quantity Focused World 

Once you set into motion the right strategy mix of tools and digital marketing solutions needed to drive higher volume to your listings, you’ll notice that not all leads are created equal. Although quantity is typically a focus, quality should be the true measure. 

It’s no longer about how many leads you get each day, but whether those leads are quality leads comprised of ready-to-buy shoppers — and how quickly your solutions and sales teams can tell the difference.  

There’s a stark difference in leads more likely to convert vs. leads that simply clog up your sales pipeline. So, what’s the primary driving differentiator? Smart data. Take for example Cox Automotive’s vast treasure trove of first-party shopper data drives nearly twice as many purchases to dealerships than any other third-party listing site. 

Chasing a few bad leads here and there may not seem like a big deal… until you do the math. Let’s say two salespeople working on 200 bad leads per month, at 10 minutes per lead, making calls, sending emails, videos and texting. Add it up and you’ve just wasted 16 hours of their time per person, every single month. Now look at what that looks like over a calendar year and you’re looking at 192 hours – that’s close to 5 full work weeks! 

Be sure to set up metrics and have discussions with your marketing team and leaders at your dealership or within your organization to discuss why quality vs. quantity should be your goal and map out how you’ll reach that. 

#3: Connect with Digital Consumers with Powerful Personalization  

As the old saying goes… It’s not just what you say, but how you say it. Now layer in and how the message is received when it comes to marketing around any large purchase decision—especially one as big as your next car.  

Total time spent by consumers researching and shopping is 13:31 

Personalization in digital marketing matters to your car shopper. Before you even begin building your strategy, make sure you have a partner by your side willing to work just as hard to understand your unique business goals, to provide personalized solutions and give expert guidance. At Autotrader, we’re constantly innovating our consumer experience to attract and retain more qualified, ready-to-buy shoppers and deliver higher-quality leads that close. 

Every month, over 4 million unique shoppers use Kelley Blue Book® My Wallet to help them find a vehicle within their budget and determine their estimate monthly payment.2 

2 Source: Autotrader and KBB.com Google Analytics January – August 2023 

Here are some insights revealed in the annual Car Buyer Journey Study to help you with delivering an experience with personalization which ultimately increased consumer satisfaction levels even more. Consider this a check list for you and your team to strategize around how to be the one that stands out to the consumer: 

Are you leveraging your consumer data to uncover shopper insights?  

Everyone has data – first party, second party and third party – but what are you doing with that data to activate it and turn it into actions you and your team can take to drive profits? That’s the key to data, use it to personalize your interactions and show you know who the shopper is, what they want, and you are the one they should do business with.  

Are you taking it a step further and tailoring your strategy to meet the consumer’s needs? 

Data and insights should reveal actions you should take, especially when it comes to how to personalize your marketing strategy. When you do this, you’ll have the ability to tailor the experience based on what the consumer is showing you they prefer and prioritize.  

Are you utilizing the power of personalization to lessen the chance of attrition? 

With increased cross-shopping happening due to affordability hurdles many of today’s shoppers are facing, it’s important to remember you can use personalization to not only capture new shoppers to you and your brand, but also to re-conquest previous customers and retain existing ones. Make sure to stay in front of your customers, in the right way, at the right time. Remind them why you are their dealer of choice… because you KNOW them! They already like and trust you – so build off that. If you lost some clients over the past few years, reach out to them showing you still know and value them and are ready to deliver the personalized experience they both want and deserve.   

 Kelley Blue Book ® My Wallet Enhancements  

To lead more shoppers successfully through the early stages 

of the shopping funnel and into the buying funnel, 

Autotrader is adding new features to Kelley Blue Book My Wallet, 

including Payoff Quote, Credit Verification and Lease Configuration tools, 

which will allow shoppers to get more personalized, accurate payment 

and price information, resulting in richer sales-ready leads for dealers.  

#4: Deliver the Digital Retailing Experience that Drives Shoppers to Purchase  

As more of the deal becomes digital, the car buying experience will become faster and more personal for your buyers. (That’s the goal, at least.) Miss the mark at that, and your buyers will go looking for a smoother, easier experience somewhere else—and quickly!  

90% of dealers surveyed claimed digital retailing had positively impacted at least one area of their business. 

Fortunately, on-line deal building has been a bonus to businesses as 90% of dealers surveyed claimed digital retailing has positively impacted at least one area of their business. As you unlock new digital paths, each new solution should pull shoppers deeper into the purchase funnel to drive faster, smoother and even more profitable deals. 

#5: Leverage the right experts and partners to accelerate profits  

Leveraging the right partners is essential to amplify your digital presence. Be sure to align your partnerships with experts that can show with data (and results!) active in-market car shoppers are on, active and engaged on their sites. Saying it is one thing, but showing results in the form of consistently accelerated profits is another thing – the thing you should be most focused on. 

Third party sites have proven they weather the changing conditions in the marketplace. In the most recent Car Buyer Journey study, it was discovered in the data that buyers are 57% more likely to visit third party sites exclusively without having to visit the OEM sites, especially among Used buyers.  

So stay in front of consumers on third party sites because that’s where they are, and they’re entertaining different brands, different makes and models, and different types of vehicles than they might have originally intended. 

36% Higher Gross Profit Per Lead than the closest competitor 2 

It goes without saying, having the right experts and partners in your corner can make a huge difference in driving business. Enhanced dealership marketing solutions from Autotrader crush the competition resulting in higher profits than the closest competitors. It’s possible to reach farther, close faster and profit more when you lean into automation, digital retailing and solutions designed to deliver quality leads. 

For the Road Forward 

When you deliver, meet and exceed today’s consumers’ expectations by creating a more personalized shopping and buying experience, you end up with more sales-ready leads for your sales team. It’s a win-win!  

At Autotrader, we’re constantly innovating our consumer experience to attract and retain more qualified, ready-to-buy shoppers and deliver higher-quality leads that close.  

Discover how Autotrader can help you connect with today’s digital consumers and capture more leads, delivering the automotive experience that drives ready-to-buy shoppers further down the purchase path in this guide: The Difference Better Leads and Higher Profits Can Make for Your Dealership: Experience that moment when you close more leads with 36% more profit. 

Sources: 

1 2023 Car and Buyer Journey Study 

2 Comscore data, Autotrader and KBB.com traffic combined, Jan to Aug 2023 

Top Takeaways from the 2023 Car Buyer Journey Study: A Story of Normalization and Resiliency

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With the past several years keeping dealers, OEM’s and the industry on its toes…. It’s no wonder many of us were holding our breaths as the results from Cox Automotive’s 14th annual Car Buyer Journey (CBJ) study came in. However, the results and insights from the highly anticipated study nearly 3,000 respondents who purchased or leased their vehicles in the previous year made two things are clear:

First, Dealers and the automotive industry on a whole have emerged as massively resilient in 2023. Second, things appear to be normalizing. (Knock on wood.)

While ‘normal’ may be a relatively subjective term in the automotive industry, especially over the past four years with the highest inflation we’ve seen in 40 years, record profits, heavily fluctuating inventory, and the rapid shift to digitization… We might finally be at the point we can officially categorize those times as historic and move forward. The CBJ findings signified that bridge into something more level.

The data from the Car Buying Journey offers critical insights that help dealers, OEMs and or industry on a whole determine key changes in consumer buying behavior. Together, let’s look at how the changed consumer behaviors discovered are shaping the car-buying experience, vehicle ownership and digitization both now, as well as for the road forward.

Invest in the Customer Experience for the Long Haul

It’s a keeper! That’s the overall sentiment from the 2023 Car Buyer Journey Study of vehicle owners who planned to hold onto their vehicles. This was one of the more surprising results uncovered from the Car Buyer Journey (CBJ) study as it showed that ride shares and subscription models don’t quite hold the allure they did five years ago. Car ownership is not only here to stay but is increasing.

And while that means your buyers may be slow to return to your sales floor to consider a trade-in or newer model, that doesn’t mean they won’t need to hear from you. Those shifting mindsets around vehicle ownership indicate that more personal usage, more service needs and more consumers adding to their household fleet. It’s presenting you a unique opportunity to build on your relationships with your existing customer base and attract the attention of previous and potential customers.

With the results showing that the number of buyers motivated to own more than one car is increasing, why would you let them buy from a dealer down the street when they already have a relationship with you? It’s time to hit the phones (or emails or texts!) and reach out to current and former customers to get them in for regular service and maintenance.

Going forward: Use the data within your CRM and first-party data and activate it! Reach out in their preferred method, follow up on past customers and make sure current customers know how much you appreciate their previous business. Keeping their best interests as your priority while keeping their vehicles in good working condition is part of the relationship building process. You already have their information on file, so give a personalized experience and show you know who they are, want they want, and should remain their dealer and service department of choice.

91% of respondents plan on keeping their own car for their primary mode of transportation for the next five years

Satisfaction with Shopping Journey Surged

In case no one has told you lately, you’re doing a great job. That’s according to the results from the Car Buyer Journey which indicated that overall satisfaction from the shopping journey surged in 2023 from 61% to 69% overall. With inventory levels returning to pre-pandemic levels, your buyers are returning to peruse your vehicle selection. They also enjoy more options, greater deals and incentives rolling back in, as well as more responsive communications from your sales team.

Going forward: Don’t lose this momentum! Build off the enhanced experience most dealers focused on. Keep in mind that your competition down the block is working just as hard, or harder, to get the attention of shoppers as well. If you let a lead go uncontacted for too long, they’ll find a better deal or better experience, and fast. Don’t forget – Autotrader’s technology is backed by Cox Automotive’s first-party data to deliver AI-driven insights and predictions that help you create more powerful, engaging, and personalized shopping experiences. They don’t just drive leads… they drive real results.

A Personalized, Optimized and Online Experience is King

In the past five years, shoppers took their automotive search online, and, thanks to rapid innovations, resoundingly gave feedback they enjoyed their experience. Time spent searching online went down as digitization made the process smoother and more efficient.

40 minutes was the total time saved at the dealership of purchase for mostly digital buyers vs. light buyers

Going Forward: Build on the trust and transparency established as more buyers use third-party sites than OEM sites to look for their next vehicle. Activate insights and leverage the data from third parties like Autotrader and Kelley Blue BookTM to send personalized messages to buyers. The right message, at the right time, in the right way will help you get them in the funnel faster and help you close the deal.

57% of auto-shoppers visited a third-party site without using an OEM site

Don’t Let Good Enough Be Good Enough

According to the Car Buyer Journey study, the dealership experience was reported as even better in 2023. That’s great. What’s even better than “even better”? There’s still opportunities for improvement to take those higher consumer satisfaction ratings up a notch or two. That’s because shoppers who submitted an enhanced lead before going into the dealership were even happier than the rest.

Enhanced leads make the car-buying process smoother and easier for both sides. Your buyers is happier because they get a more customized, personalized experience that is faster and more transparent, and you get a customer that has shown out the gate they are more serious. It’s a win-win for both sides and makes everyone happier throughout the deal process.

Going Forward: Be the dealership who takes customer satisfaction to the next level by encouraging enhanced lead form submissions. Take your enhanced leads and focus on creating the ultimate personalized experience for them. They gave you more information… now the ball is in your court to tailor the purchase process to what they’ve already shared with you they want, need, prefer and prioritize.

77% of shoppers who submitted an enhanced lead online reported being more satisfied with the dealership purchase experience

The Omnichannel Movement Continues its Momentum

We all know that when dealerships fully embraced digitization and consumer buying habits shifted the way the world interacted with shoppers, the industry did something unique: it

blended the online and in-person experience into the ‘omnichannel experience’. And it doesn’t look like we’re ever turning back.

Car buyers are now moving towards a mix of in-person and online steps. The key is to have different ways to buy based on the shoppers preference, then ensure that the deal carries forward no matter online or in-person. Seamlessness is the name of the game, and the modern dealers that make this the nucleus of their strategy are seeing some pretty big payoffs in both consumer satisfaction and driving profits.

Going forward: There’s still room for improvement, particularly in the financing steps of the car-buying process. Could you make digital forms easier to find for potential customers? Have you educated everyone on assisting consumers through the new omnichannel experience?

We all know that when dealerships fully embraced digitization and consumer buying habits shifted the way the world interacted with shoppers, the industry did something unique: it

blended the online and in-person experience into the ‘omnichannel experience’. And it doesn’t look like we’re ever turning back.

Car buyers are now moving towards a mix of in-person and online steps. The key is to have different ways to buy based on the shoppers preference, then ensure that the deal carries forward no matter online or in-person. Seamlessness is the name of the game, and the modern dealers that make this the nucleus of their strategy are seeing some pretty big payoffs in both consumer satisfaction and driving profits.

Going forward: There’s still room for improvement, particularly in the financing steps of the car-buying process. Could you make digital forms easier to find for potential customers? Have you educated everyone on assisting consumers through the new omnichannel experience?

81% of shoppers surveyed said digital retailing improved the overall buying experience

For the Road Forward

Understanding consumer behavior, no matter what economic or industry hurdles you may be facing, puts you in a primed position. When you center your business and marketing strategy around today’s shoppers wants, needs, preferences and prirorities, you’ll be able to deliver a next-level customer experience to not only capture their attention, but also close the deal.

All that shaking and shifting of the past few years led to digitization and innovations that have shown to be positively affecting not only the auto consumers experience, but also their satisfaction. With normalization taking center stage in this year’s Car Buyer Journey study, we’re starting to see lasting effects of a shifted narrative which are helping dealers have the success they’re after.

Autotrader and Kelley Blue Book, backed by the power of Cox Automotive, continues to be the connected partner you need in today’s times to power your business forward. Together, we’re providing the solutions and products car buyers demand, to help you get the results you need.

Want to hear more about the Car Buyer Journey Study from one of the lead senior researchers Vanessa Ton with Cox Automotive? Then register for an exclusive behind-the-scenes opportunity hosted on Automotive News.

Sources:

(1) Comscore data, Autotrader and KBB.com traffic combined 


(2) 2023 Car and Buyer Journey Study

The 10 Actions Auto Industry Buzzwords are Driving Dealers to Take in 2024

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It’s easy to wonder how (and if) the latest auto industry buzzwords will affect your business, especially after the last few years that came along with an abundance of rapid changes, pivots and firsts for almost all of us.

However, don’t expect any of these words that generated buzz to fade anytime soon as we step into 2024. Several of those trending words demand a dealer’s attention to make shifts now in how they’ll create opportunities to win customers, influence brand awareness and gain market share in the coming year.

So to help you gain a deeper understanding of what the Top 10 Automotive Industry Buzzwords are, and what they truly mean to a dealer’s business success, we asked expert Jade Terreberry, Senior Director of Strategic Planning at Autotrader and Kelley Blue Book to map out ten that should be on your radar in 2024, as well as the steps she recommends to incorporate them into your plans and strategies to drive more business.

Buzzword #1: CDP (Customer Data Platform)

The hottest acronym from the automotive industry last year, think of a CDP as one view of your customer that tells you what they’re doing, how they’re doing it and should steer your actions, marketing, and timeline to provide a personalized experience. 

Actions to Take in 2024:

  • Turn your CDP data and information into actions – that’s where the goldmine is.
  • Connect the dots inside your dealership with your sales and ops teams – use your CDP to personalize the customer experience.
  • Once your CDP has sifted through consumer, vehicle and F & I data – get a deep understanding of the lifetime value of your consumers.

Buzzword #2: AI (Artificial Intelligence)

There are so many ways to use AI, but dealers should think about how it’s being used today across your vendor partners. AI leads to big data, which can help you create more relevant experiences and gain more connectivity to existing and ideal consumers.

Actions to Take in 2024:

  • AI can help you with the end goal – to get the right car, in front of the right buyer, at the right time… in the right WAY!
  • Use AI or your vendor’s AI data to serve personalized messaging – focus on the call to action you want them to take.
  • Retargeting continues to drive brand awareness and profits – AI can help you with this.

Buzzword #3: Virtual and Physical Lot

For years you’ve heard about your virtual and physical lot. And in today’s times with consumers shopping both online and in-store, and often times back online again… what’s happening on your virtual lot is a direct indicator of what’s happening on your physical lot.

Actions to Take in 2024:

  • Make it seamless for the consumer – enable your team members to connect the deal in real time both virtually as well as physically.
  • Merchandise cars that are headed your way – especially if it’s a vehicle that will sell quickly.
  • Follow the formula of trust, triangulation and then transfer – build the trust, collect the information, personalize and connect your experience both online and in-store to drive profits.

Buzzword #4: Extended Loan Terms

With heightened interest rates and affordability being hurdles for today’s auto-shoppers, automotive loan terms have now extended past traditional norms into the 84- and 96-month range. In 2023 the average new-car loan term was 69 mo. and used-car loan was 67 mo.

Actions to Take in 2024:

  • Understand the goal and keep a consumer’s best interests in mind – explain the pros and cons of extended loan terms so that expectations have been set and it’s clear what your customer is stepping into.
  • Forecast and shift expectations and actions by modeling out revenue streams with your sales, F&I and service teams – remember the perfect storm is being set between lenders, your inventory and your customers’ typical patterns on extended terms.
  • Adjust and personalize your communications and cadence – the 72-to-90-mo. loan term customer will have a distinct timeline, equity situation and needs that call for being pro-active in customizing and strategizing your touch points and conversations differently.

Buzzword #5: CPO (Certified Pre-Owned)

In looking at the big picture of the financial efficiency of your organization to keep consumers coming back, you should be focused on CPO vehicles. They provide many protections from a consumer sentiment perspective, as well as consumer brand loyalty, retention and fixed ops perspective.

Actions to Take in 2024:

  • Have a weekly meeting with your Used Car Manager on CPOs – discuss how many are currently, in the process of, and are capable of being certified in your current and incoming inventory.
  • Determine your true cost to certify a vehicle and lifetime value predictor of your CPO customer – include upfront costs, profitability margins of CPO vs. Non-CPO, short-term and long-term revenue derived from a lifetime value client perspective.
  • OEMs are leaning into CPOs – be sure to check if yours are offering incentives or co-op dollars to certify that you might not be taking full advantage of.

Buzzword #6: Hybrid Retailing

It’s essential to have a seamless experience both online and offline. Every piece of a consumer’s information, no matter how they entered your ecosystem, should bridge to give you a singular consumer profile. This keeps the deal moving and improves the consumer’s experience.

Actions to Take in 2024:

  • Ensure your teams are connecting the dots both online and offline – train them how to access information already collected and how to pick up where the consumer left off.
  • Plan for the fully automated future of ecommerce – it’s not a light switch, so make your 5 or 10 yr business plan on how you’ll move in that direction step by step.
  • Test your online to offline experience – be sure the entire team is clear on how to keep the deal moving no matter how or where the consumer chooses to complete the deal.

Buzzword #7: Distance Retailing

One of the areas where you can find the most immediate incrementality for your business from a variable ops perspective is distance retailing. Selling outside your market is now possible with consumers increasingly expanding their search radius to get the right car at the right price.

Actions to Take in 2024:

  • Consumers what a car with the packages, trim and pricing and are willing to travel for it – ensure you have a plan and the right people (ex. drivers) to capture those out of radius shoppers with delivery and a seamless online experience.
  • The total addressable market in your own backyard for you to gain or retain service and fixed ops business has expanded – consumers who bought outside of market are there for you to capture or recapture.
  • Test a few deals to target an extended radius if you’re not currently doing this – give a 30 day trial to measure how it changes or will change your business for incremental revenue growth.

Buzzword #8: Revenue Stream Shifts

What revenue has looked like for the last few years is going to be very different going forward. Strategize for growth and shift based on how and where your revenue is coming in from today in each of your departments, and forecast based on increased use of technology.

Actions to Take in 2024:

  • Get a clear picture of what your existing revenue streams are – this will change monthly and give you a clear indicator of where you’re winning and where you need to improve.
  • Plan for the foreseeable value and equity situation – with extended loan terms and increased car values we’ve seen, how this will affect your business (and your customers!) for the next 5 – 9 years and how will you overcome this challenge.
  • Break your new, used and CPO sales and revenue down monthly – understand the different age groups or types of cars that are truly driving your sales and revenue.

Buzzword #9: OEM Direct to Consumer

It’s clear that you’re the expert for the OEM. Sure, there will be specific lines, makes or models OEMs will build and release for an automated channel because it helps with allocation and efficiency. But there’s still a big role for the dealership and revenue streams that you’ve likely never had before to capture as ecommerce expands.

Actions to Take in 2024:

  • Get a bigger understanding of how your OEM is forward thinking – once you know this, strategize how your role plays within and alongside it to maximize potential.
  • Strive to be the partner of choice – develop frequent and consistent messaging to your team on what makes you, and will continue to make you the premiere partner alongside your OEM
  • OEM certifications make you a gold standard – expand your expert and master technicians, as well as your certified salespeople that are critical to your brand.

Buzzword #10: New Roles within Modern Dealerships

One of the most important things to plan for as your dealership moves forward is making sure you have team members who are focused on user experience, consumer experiences, hybrid and distance retailing and eCommerce. Understand and plan how those roles currently do and will fit into your dealership as technology and eCommerce experiences and demands grow.

Actions to Take in 2024:

  • Align and set pay plans clearly based on goals and priorities – bring and buy your entire staff into a clear direction you’re headed towards and changes you’ll make together.
  • Connect streams of business, roles and accountability for eCommerce and in-store sales – makes sure there is a clear understanding that it’s not a me vs. them mentality when it comes to inventory and that the bottom line and customer satisfaction is a unified goal.
  • Train and recruit the right people for the right roles – these new roles call for specialization to fast-track successful outcomes.

For the road forward

Your recommendation is to take three of the buzzwords above each day and spend about 10 minutes planning and strategizing around them – you must plan your work and you must work your plan. And whether that’s meeting with your teams and holding them accountable for the steps and actions you’ve mapped out, or seeing where you’re stacking up against the measurements you’ve set, these buzzwords can help you both grow and revolutionize how you do business both now, and well into the future.

Autotrader provides you with qualified leads for people who want cars. We have the data that connects and activates your data, and we have the shoppers. Driving quality leads that have the highest gross profit on average industry wide, we’re here for The Deal Doers.

Cox Automotive has the most connected and comprehensive view of the automotive industry and offers unmatched data and insights into consumer behavior, automotive trends and operational best practices. Whatever your goals, we can help you get there faster to stay a step ahead and successful in today’s marketplace.

Would you like access to all of the buzzwords above and actions to take mapped out in an easy-to-read and share format? Find it on the new infographic.