Category: Article

How to Choose a Good CRM for Your Dealership 

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Having the right Customer Relationship Management (CRM) system can make a huge difference. Picking the right technology that meets your needs can change how you interact with customers, simplify operations, and boost vehicle sales—no pressure. So, how do you and your team decide what, exactly, makes a good CRM? Understanding what makes a good CRM system and how to choose a CRM solution is all about what you’d like your technology partners to do for you right now. 

Defining a Great CRM System for Automotive Dealerships 

A great CRM system is designed to optimize and enhance every aspect of the sales process in a dealership. It centralizes customer information, enabling staff to easily access and update records, which strengthens relationships and creates personalized sales experiences. Moreover, the right CRM automates essential tasks like follow-ups, appointment scheduling, and lead management, allowing your team to concentrate on nurturing leads and closing deals. With powerful analytics, it helps dealerships monitor sales performance, identify trends, and adjust strategies in real time, driving growth and boosting customer satisfaction. This comprehensive approach revolutionizes the sales process, ensuring that every interaction contributes to a successful outcome.  

Identifying Key Qualities in a CRM 

To make the selection process even smoother, the list below will guide you and your automotive dealership in self-identifying the key qualities that define “what makes a good CRM.” By reflecting on these attributes, you can prioritize what features matter most to your dealership’s unique needs. This approach not only empowers your decision-making but also ensures that the CRM you choose aligns perfectly with your operational goals and customer engagement strategies. Keep this list handy as you navigate your CRM options. 

Reliability: The Bedrock of a Good CRM 

Imagine a bustling showroom, the hum of conversations, the gleam of polished cars, and the anticipation of potential sales. In this dynamic environment, your CRM must be a steadfast ally, dependable with minimal downtime. Reliability ensures that customer data is always accessible, empowering your team to deliver seamless service. A dependable CRM system becomes the backbone of your operations, ensuring that every customer interaction is informed and efficient. 

Customer Support: The Unsung Hero 

Even the most robust systems encounter hiccups. When these moments arise, stellar customer support is invaluable. A CRM should offer excellent support to swiftly address technical issues, minimizing disruptions. Think of it as having a skilled mechanic on standby, ready to fine-tune your engine at a moment’s notice. This level of support ensures that your team remains focused on what they do best—selling cars and building relationships. 

Ease of Use: The Path to Higher Adoption 

A user-friendly interface is not just a convenience; it is a catalyst for higher adoption rates and operational efficiency. When your CRM is intuitive, your team can navigate it effortlessly, leading to smoother customer-employee interactions. Picture a well-designed dashboard that offers clarity and ease, turning complex tasks into simple, streamlined processes. This ease of use translates into a more productive and satisfied team. 

Automation: Elevating Customer Service 

In the fast-paced world of automotive sales, time is of the essence. A CRM that automates manual tasks like sales pipeline organization, contact updates, and status reporting frees your sales team to focus on delivering high-quality customer service. Automation acts as an invisible assistant, handling the mundane so your team can concentrate on the meaningful. This shift not only enhances efficiency but also elevates the customer experience. 

Integrations: Seamless Connectivity 

A CRM should not exist in isolation. It must integrate smoothly with your existing digital systems, such as your Dealer Management System (DMS). This connectivity ensures a fast track for data flow across the entire car-shopping experience. Imagine a symphony where every instrument plays in harmony, creating a seamless and cohesive performance. Integrations enable your CRM to be a central hub, orchestrating various functions into a unified whole. 

Contact Management: Precision in Marketing 

Effective contact management is akin to having a precise compass in a vast sea. It allows you to improve your marketing strategies by targeting the right audience and fine-tuning your messaging. With a robust CRM, you can segment your contacts, tailor your communications, and engage customers with personalized offers. This precision transforms your marketing efforts into targeted campaigns that resonate with your audience. 

Inventory Management: Informed Decisions 

In the automotive industry, inventory management is crucial. A good CRM provides real-time updates and insights, enabling you to make informed decisions about your stock. Whether it’s ensuring that popular models are readily available or managing the details of each vehicle, a CRM with strong inventory management capabilities keeps your dealership agile and responsive to customer demands. 

Centralized Customer Data: A Single Source of Truth 

Centralized customer data is the cornerstone of a cohesive customer relationship strategy. A CRM that consolidates all customer information into a single, accessible location ensures that your team has a comprehensive view of each customer’s journey. This holistic perspective allows for more personalized interactions and informed decision-making, fostering stronger customer relationships. 

Personalized Experiences: Crafting Unique Journeys 

In an era where personalization is paramount, a CRM that enables tailored customer experiences sets your dealership apart. By leveraging customer data, your CRM can help create unique, personalized journeys for each car shopper. This level of customization not only enhances customer satisfaction but also builds loyalty, as customers feel valued and understood. 

Advanced Analytics and Reporting: Insights for Growth 

Advanced analytics and reporting capabilities are essential for any dealership aiming to grow and thrive. A CRM that offers a wide range of reports, from plug-and-play to customizable options, provides deeper insights into dealership performance. These insights guide strategic decisions, uncover new sales opportunities, and help refine sales processes, driving continuous improvement. 

Enhanced Productivity through Automation: Focus on What Matters 

Automation within a CRM extends beyond basic tasks. It enhances overall productivity by generating tasks for sales staff, automating follow-ups, and providing templates for communication. This level of automation ensures that your team can focus on high-value activities, such as building relationships and closing deals, rather than getting bogged down by administrative tasks. 

Optimized Workflows: Streamlining Operations 

Optimized workflows are the hallmark of an efficient CRM system. By streamlining processes and eliminating redundancies, a CRM can significantly enhance operational efficiency. Think of it as a well-oiled machine, where every part functions smoothly and in sync. Optimized workflows ensure that your dealership runs like clockwork, with every team member clear on their roles and responsibilities. 

Transform Your Dealership with the Right CRM 

Choosing the right CRM is a pivotal decision that can transform your dealership’s operations and customer relationships. Explore the features and benefits of VinSolutions CRM and see how it can elevate your dealership to new heights.  

Take a New Approach to Retailing  

Learn more about the digitization of automotive retailing in our new guide, Build Shopper Trust with a New Approach to Retailing. This eBook from VinSolutions uses insights from the 2023 Cox Automotive Digitization of Car Buying Study to help you build more profitable deals.  

Boost Your Dealership Today: Essential 8-Step CRM Setup Guide 

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The moment you decide to switch to a modern automotive CRM, you embark on a journey toward unparalleled profitability, enhanced productivity, and seamless collaboration within your dealership. This guide will walk you through the essential steps to set up your CRM, transforming your operations and driving your dealership to new heights. 

How to Use a CRM: 8 Steps to Setup Your Dealership 

  1. Onboard Sales Team and Admins 
  1. Stay Up-to-Speed with Trainings 
  1. Customize Your CRM Experience 
  1. Import All Existing Data 
  1. Integrate Your CRM with Dealership Technology 
  1. Automate Your Processes to Improve User Experience 
  1. Manage Your Segments 
  1. Measure Performance with Dashboards & Reports 
     

1. Onboard Sales Team and Admins 

The first step in learning how to use a CRM system is to ensure that your sales team and administrators are fully onboard. This involves not just introducing them to the software but immersing them in its capabilities. A well-informed team is the backbone of any successful CRM implementation. Conduct comprehensive training sessions that highlight the CRM’s features, from lead tracking to customer interaction logs. Empower your team with the knowledge to leverage the CRM effectively, ensuring they understand how it can streamline their daily tasks and enhance their performance. 

2. Stay Up-to-Speed with Trainings 

Continuous education is vital in the ever-evolving landscape of automotive CRM systems. Regular training sessions keep your team abreast of new features, updates, and best practices. This proactive approach ensures that your dealership remains at the forefront of technological advancements. Encourage a culture of learning where team members share insights and tips, fostering a collaborative environment. By staying up-to-speed with training, your dealership can maximize the CRM’s potential, driving efficiency and innovation. 

3. Customize Your CRM Experience 

Every dealership is unique, and your CRM should reflect that individuality. Customizing your CRM experience tailors the system to meet your specific needs and goals. Adjust workflows, create custom fields, and set up personalized dashboards that provide relevant insights at-a-glance. This bespoke approach ensures that your CRM aligns with your dealership’s processes, enhancing usability and effectiveness. A customized CRM experience not only improves user satisfaction but also drives better decision-making and strategic planning. 

4. Import All Existing Data 

A CRM is only as powerful as the data it holds. Importing all existing data, including contacts, deals, and segments, is a crucial step in setting up your CRM. This process ensures that no valuable information is lost and provides a comprehensive view of your dealership’s operations. Utilize data migration tools and services to streamline this process, ensuring accuracy and completeness. By consolidating your data within the CRM, you create a centralized hub of information that enhances visibility and decision-making. 

5. Integrate Your CRM with Dealership Technology 

Integration is the key to unlocking the full potential of your CRM. By integrating your CRM with other dealership technologies, such as inventory management systems, marketing automation tools, and communication platforms, you create a seamless ecosystem. This interconnected approach enhances data flow, reduces manual entry, and provides a holistic view of your operations. Integration ensures that your CRM works in harmony with your existing technologies, driving efficiency and improving the overall user experience. 

6. Automate Your Processes to Improve User Experience 

Automation is a game-changer in the realm of CRM systems. Automating routine processes, such as follow-up emails, appointment scheduling, and data entry, frees up valuable time for your team to focus on high-impact tasks. This not only improves user experience but also enhances productivity and consistency. Implementing automation within your CRM ensures that tasks are completed accurately and on time, driving efficiency and customer satisfaction. Embrace automation as a tool to streamline your dealership’s operations and elevate your service quality. 

7. Manage Your Segments 

Effective segment management is essential for targeted marketing and personalized customer interactions. Utilize your CRM to create and manage segments based on criteria such as purchase history, demographics, and engagement levels. This segmentation allows for tailored communication strategies that resonate with specific customer groups. By managing your segments effectively, you can deliver personalized experiences that drive loyalty and repeat business. A well-segmented CRM enables you to understand your customers better and cater to their unique needs. 

8. Measure Performance with Dashboards & Reports 

The final step in perfecting how to use a CRM system is to measure performance through dashboards and reports. These tools provide valuable insights into your dealership’s operations, highlighting areas of success and opportunities for improvement. Customize your dashboards to display key performance indicators (KPIs) relevant to your goals, such as sales metrics, customer satisfaction scores, and lead conversion rates. Regularly review these reports to make informed decisions and refine your strategies. By measuring performance, you can ensure that your CRM is driving the desired outcomes and continuously improving your dealership’s efficiency. 

Harnessing the power of a modern automotive CRM system can revolutionize your dealership’s operations. By following these eight steps, you can set up your CRM effectively, driving profitability, productivity, and collaboration. Embrace the potential of your CRM to transform your dealership and stay ahead in the competitive automotive market. By adhering to these steps, you’ll not only become proficient in using a CRM system but also unlock new levels of efficiency and success for your dealership. 

Take a New Approach to Retailing 

As car buyers become more willing to share information with dealers, it’s up to you to close the trust gap and help your team become more efficient. This eBook from VinSolutions uses insights from the 2023 Cox Automotive Digitization of Car Buying Study to help you build more profitable deals. 

10 Benefits of a CRM for Car Dealerships

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Staying ahead of the curve requires more than just innovative vehicles. It demands cutting-edge technology that bridges the gap between dealerships and customers. In today’s competitive automotive market, car dealerships need every advantage they can get. Implementing a Customer Relationship Management (CRM) system can be a game-changer. It is a tool that not only streamlines operations but also enhances the very essence of customer relationships. But what are the benefits of a CRM for dealerships? Let’s explore the top 10 reasons why incorporating a CRM system into your dealership’s operations can revolutionize your business. 

Benefits of Using an Automotive CRM: 

  1. Better Customer Relationships 
  2. Centralized Customer Data 
  3. Personalized Experiences 
  4. Advanced Analytics & Reporting 
  5. Enhanced Productivity through Automation 
  6. Improved Inventory Management 
  7. Create More Effective Marketing Campaigns 
  8. Drive Sales and Profitability 
  9. Deliver Higher Customer Retention 
  10. Optimized Workflows 

1) Better Customer Relationships 

Building and supporting strong customer relationships is crucial in the automotive industry. A CRM system helps you keep track of all customer interactions, preferences, and feedback, allowing you provide personalized and attentive service. By consolidating customer interactions and histories into a single, accessible platform, dealerships can provide a seamless and personalized experience.  

Imagine a customer walking into your dealership, and within moments, your team can access their entire history—previous purchases, service records, and even personal preferences. This level of insight not only impresses customers but also builds trust and loyalty, transforming one-time buyers into lifelong patrons. 

2) Centralized Customer Data 

In the age of information, data reigns supreme. Gone are the days of scattered spreadsheets and handwritten notes. Even data scattered across various platforms can lead to inefficiencies and missed opportunities. A CRM system centralizes all customer data in one place, making it easily accessible. This ensures that everyone has the most up-to-date information, improving communication and coordination across your dealership. From sales to service, everyone operates with the same information, reducing errors and enhancing communication. 

3) Personalized Experiences 

Customers expect personalized experiences, and a CRM system can help you deliver just that. By analyzing customer data, you can tailor your interactions and offers to meet individual needs and preferences.  

From personalized email campaigns to customized service reminders, every touchpoint can be fine-tuned to resonate with the customer. This level of personalization not only enhances the customer experience but also significantly boosts engagement and conversion rates. After all, a customer who feels understood and valued is far more likely to return. 

4) Advanced Analytics and Reporting 

Data is king. A CRM system offers advanced analytics and reporting features that provide valuable insights into your dealership’s performance. From sales trends to customer behavior, these insights enable you to make informed decisions, optimize marketing efforts, and identify areas for improvement. By leveraging these tools, your dealership can gain deep insights into customer behavior, sales trends, and operational efficiencies.  

For instance, understanding which vehicles are most popular among certain demographics can guide inventory decisions and promotional strategies, ensuring that your dealership remains responsive and agile. 

5) Enhanced Productivity through Automation 

Automation is a powerful feature of CRM systems. Automation within a CRM streamlines routine tasks such as follow-up emails, appointment scheduling, and data entry. This automation not only reduces the burden on your team but also minimizes the risk of human error.  

With mundane tasks handled efficiently, your staff can focus on what truly matters—building relationships and closing deals. The result is a more productive and motivated workforce, driving your dealership towards greater success. 

6) Improved Inventory Management 

Managing inventory can be a complex task, but a CRM system simplifies it. Your automotive CRM helps you gain a bird’s-eye view of your entire inventory. Beyond providing real-time updates and ensuring that stock levels are always accurate, an automotive CRM enables dealers to better predict future demand based on historical data and make informed decisions. This ensures you always have the right vehicles on hand to meet customer needs. 

7) Create More Effective Marketing Campaigns 

Marketing is more effective when it’s data driven. The customer date in your CRM system helps you segment your customer base and create targeted marketing messages to resonate with specific groups.  

Whether it’s promoting a new model or offering a special discount, your CRM delivers precision to your marketing efforts. Data-backed campaigns can boost engagement and drive conversions, making every marketing dollar count. 

8) Drive Sales and Profitability 

An automotive CRM system acts as a central hub for all sales activities, which helps streamline processes and eliminate redundancies. Your sales teams can utilize your CRM to access customer information, track interactions, and manage follow-ups all from one platform.  

This can help shorten sales cycles and improve conversion rates. With automated reminders and task assignments, no lead falls through the cracks, ensuring that every opportunity is maximized. This seamless integration of sales processes translates to increased revenue and a more productive sales team. 

9) Deliver Higher Customer Retention 

Customer retention is key to long-term success and making customers feel valued is the goal of your operation. A CRM system helps you stay connected with your customers through regular follow-ups, service reminders, and personalized offers. By nurturing these relationships, you’ll increase repeat business and build a loyal customer base. 

10) Optimized Workflows 

Efficiency is the cornerstone of any thriving business. By integrating various dealership functions—sales, service, marketing—into a unified platform, your CRM ensures that processes are smooth and interconnected. For example, a sales lead generated from a marketing campaign can seamlessly transition into a service appointment, with all relevant information flowing effortlessly between departments. This not only enhances operational efficiency but also ensures a consistent and high-quality customer experience. 

Incorporating a CRM system into your car dealership’s operations is more than just a smart move—it’s a revolutionary step towards achieving greater efficiency and customer satisfaction. From centralizing customer data to creating effective marketing campaigns, the benefits of using a CRM are numerous and impactful.

Take a New Approach to Retailing 

As car buyers become more willing to share information with dealers, it’s up to you to close the trust gap and help your team become more efficient. This eBook from VinSolutions uses insights from the 2023 Cox Automotive Digitization of Car Buying Study to help you build more profitable deals. 

The Crucial Role of CRM Systems for Automotive Dealers 

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As dealerships strive to stay ahead in a competitive market, the integration of Customer Relationship Management (CRM) systems has emerged as a pivotal strategy. Far beyond merely managing sales calls, a well-leveraged CRM can transform your business into a powerhouse of efficiency, customer satisfaction, and profitability.  

The Multifaceted Importance of CRM Systems for Your Dealership 

A CRM not only streamlines your sales processes but also enhances customer satisfaction by providing personalized communication and service. With detailed customer insights and data analytics, CRM systems enable your dealership to make informed decisions, improve marketing strategies, and boost overall efficiency. By automating routine tasks and tracking customer interactions, these systems help in nurturing long-term relationships, ultimately driving profitability and growth for your business. Let’s explore the question, “Why is a CRM Important for Your Dealership?” 

Create Efficient Operations 

Efficiency stands as the bedrock of any successful dealership. Your CRM streamlines operations by automating routine tasks, thereby freeing up valuable time for your sales team to focus on what truly matters—building relationships and closing deals. Imagine a world where follow-up emails, appointment scheduling, and data entry occur seamlessly without manual intervention. This automation not only reduces human error but also ensures that no customer inquiry falls through the cracks. 

Moreover, your CRM provides a centralized database where all customer information is stored and easily accessible. This means your team can quickly retrieve data, understand customer history, and provide personalized service without the cumbersome process of sifting through disjointed records. Efficiency, in this context, translates to a smoother workflow, happier employees, and ultimately, satisfied customers. 

Improves Customer Interactions 

Why is having a CRM important to a business? The answer lies in the realm of customer interactions. In the automotive industry, where the competition is fierce, the ability to foster meaningful relationships with customers can make or break a dealership. Your CRM empowers your team with tools to track customer preferences, purchase history, and even their preferred communication channels. 

With this wealth of information at their fingertips, your sales representatives can engage customers with personalized interactions that resonate on a deeper level. Whether it’s sending a birthday greeting, offering a service reminder, or tailoring a promotional offer, these personalized touches build loyalty and trust. Enhanced customer interactions not only lead to repeat business but also generate positive word-of-mouth, a priceless asset in any industry. 

Increase Profits and Close More Deals 

The ultimate goal of any dealership is to boost profits and close more deals. A CRM system plays a crucial role in achieving this objective. By providing insights into customer behavior and sales trends, your CRM enables your team to identify high-potential leads and prioritize them accordingly. This targeted approach ensures that your sales efforts are focused where they matter most, increasing the likelihood of conversions. 

Additionally, CRM systems often come equipped with advanced analytics and reporting tools. These features allow you to track key performance indicators (KPIs) and measure the effectiveness of your sales strategies. By analyzing this data, you can identify areas for improvement, optimize your processes, and make informed decisions that drive profitability. In essence, a CRM system acts as a compass, guiding your dealership towards sustained financial success. 

Establish Better Connection 

In an era where customer expectations are higher than ever, establishing a genuine connection with your clientele is paramount. A CRM system facilitates this by providing a holistic view of each customer, encompassing their interactions, preferences, and feedback. This comprehensive understanding enables your team to engage customers in a manner that feels personal and attentive. 

Furthermore, CRM systems often include communication tools such as email marketing and social media integration. These features allow you to maintain regular contact with your customers, keeping them informed about new arrivals, special offers, and upcoming events. By staying connected, you reinforce your dealership’s presence in their minds, fostering a sense of loyalty and community. 

Optimize Your Sales Process 

Why is it important to have a CRM? One compelling reason is the optimization of your sales process. A CRM system provides a structured framework for managing leads, tracking progress, and closing deals. This structured approach ensures that every lead is nurtured through the sales funnel, from initial contact to final purchase. 

Moreover, CRM systems offer tools for sales forecasting and pipeline management. These features enable your team to anticipate demand, allocate resources effectively, and set realistic targets. By optimizing your sales process, you not only enhance efficiency but also improve the overall customer experience. A streamlined sales journey translates to quicker transactions, reduced friction, and ultimately, higher customer satisfaction. 

Personalize Messaging 

In the digital age, personalized messaging has become a cornerstone of effective marketing. Your CRM empowers your dealership to craft tailored messages that resonate with individual customers. By leveraging customer data, you can segment your audience and deliver targeted campaigns that address their specific needs and interests. 

For instance, if a customer has shown interest in a particular model, you can send them information about its features, financing options, and availability. This level of personalization demonstrates that you understand and value their preferences, enhancing their engagement with your dealership. Personalized messaging not only drives conversions but also strengthens the emotional connection between your brand and your customers. 

Measure and Improve with Detailed Analytics 

In the pursuit of excellence, continuous improvement is key. A CRM system provides the tools to measure and analyze every aspect of your dealership’s performance. From tracking sales metrics to monitoring customer satisfaction, CRM analytics offer a wealth of insights that drive informed decision-making. 

By analyzing this data, you can identify trends, uncover opportunities, and address challenges proactively. For example, if a particular marketing campaign yields high engagement, you can replicate its success in future initiatives. Conversely, if certain areas of your sales process are underperforming, you can implement targeted improvements. Detailed analytics empower your dealership to evolve and adapt, ensuring sustained growth and success. 

The integration of a CRM system stands as a transformative force for any dealership. From creating efficient operations to enhancing customer interactions, boosting profits, and optimizing sales processes, the benefits are manifold. By leveraging the power of CRM, your dealership can forge stronger connections, deliver personalized experiences, and continuously improve through data-driven insights. Embrace this revolutionary tool and unlock the full potential of your dealership. 

Take a New Approach to Retailing 

As car buyers become more willing to share information with dealers, it’s up to you to close the trust gap and help your team become more efficient. This eBook from VinSolutions uses insights from the 2023 Cox Automotive Digitization of Car Buying Study to help you build more profitable deals. 

Enhance Your Digital Marketing Strategy: Key Insights from the 2023 Car Buyer Journey 

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The automotive industry is constantly evolving. To keep up with the changing demands of the industry, the annual Cox Automotive Car Buyer Journey (CBJ) allows dealers and OEMs to stay informed about the state of car buyer satisfaction with the overall vehicle shopping and buying experience.  

The 14th annual Car Buyer Journey study was released earlier this year, based on nearly 3,000 respondents who purchased or leased vehicles in the previous year. It sheds light on two significant points: 1.) The industry is NORMALIZING, and 2.) Dealers and third-party aggregators are RESILIENT.  

While we all might define ‘normal’ differently, particularly because of inflation, record profits, inventory fluctuations, and rapid digitization, we may finally be transitioning from those not so ideal times into a more stable place. The CBJ findings mark a turning point. 

Let’s explore the top 5 takeaways from the study and how they can contribute to enhancing your digital marketing strategy.  

#1: Vehicle Ownership is Not Going Anywhere  

91% of consumers told us they intend to use their own vehicle as their primary mode of transportation in the future, up significantly from 2018 (77%). With ride sharing and vehicle subscription trending in the last 5-8 years, there were predictions that consumers were moving away from personal ownership. However, we’re seeing the opposite.   

With personal transportation needs rising due to personal safety concerns since the pandemic, we see personal vehicle ownership is here to stay.  

Fewer consumers agree that ownership is NOT necessary (down from 43% in 2018 to 35%). And, nearly all consumers tell us they intend to leverage their own vehicle as their primary mode of transportation in the future (91% vs. just 9% who plan to use an alternative).    

WHAT TO DO: It’s more important than ever to enhance the customer experience – with personal vehicle usage up and the desire to own more than one car. In fact, there was a 36% increase in the number of buyers motivated to own more than one car in their household from 2022 to 2023. Ask yourself: 

  • What re-targeting campaigns are in place to retain your existing customers?  
  • What advertising strategy do you have in place to attract new customers? 

Leverage your CRM and activate your first-party data. Reach out to consumers in their preferred method and follow up with past customers to ensure they know how much you appreciate their business.  

#2: Satisfaction with the Shopping Journey Increased  

Overall satisfaction with the shopping experience is higher for both new and used car buyers: 73% for new (70% in 2022), and 68% for used (58% in 2022). The increase was influenced by three factors: 

  1. Better vehicle selection. Fewer consumers felt that there was limited inventory to choose from—39% in 2023 compared to 56% in 2022. 
  1. Better prices. 49% of consumers said prices were higher than expected in 2023 compared to 54% in 2022. However, these numbers are still significantly higher than they were in 2021. This indicates that affordability is still a pain point and even more so among the price-sensitive used buyers.  
  1. More dealer outreach with good deals. There’s been a significant increase in the number of consumers who mentioned that a dealer contacted them with some appealing incentives or some type of deal – 17% compared to 14% in 2022 and 12% in 2021.   

WHAT TO DO: It’s no secret that as inventory rebounded, so did shopper satisfaction with the overall purchase journey – now, with incentives rolling back in, ensure you are getting the right message in front of the right customer at the right time and in the right way. 

This starts with taking an in-depth look at your digital marketing strategy and focusing on your:  

  • Website: Ensure your website showcases relevant information your shoppers want to see. You have a short window to grab their attention, so your website should be personalized, easy-to-navigate, and data-driven.  
  • Advertising: Ensure you are utilizing the correct channels to target your in-market shoppers and serve them the information they want to see. Dealer.com’s Machine Learning and Real-time Bidding platform can analyze prior ad performance, vehicle detail page engagement, and browsing trends in real-time to ensure your ads are served to the most relevant buyers in your market. 

#3: Improved Online Efficiency 

Shoppers spent 1 hour and 8 minutes less when shopping in 2023 (13:31) than 2022 (14:39) as the experience became more efficient. This time spent means you have a shorter window to influence shoppers during their journey, so you must be more strategic and targeted. Delivering personalized content during the entire purchase process to keep shoppers engaged is crucial.  

Third-party sites have been resilient throughout the pandemic and chip shortage – consumers find them to be trustworthy, reliable, and unbiased. We found in our data that buyers are 57% more likely to visit third-party sites exclusively without having to visit the OEM sites especially among used buyers. 

WHAT TO DO: Take the data and insights you receive from third-party sites such as Autotrader and Kelley Blue Book™ and ACTIVATE them. These insights can be used to personalize messaging to stand out as the one to do business with because you know the shoppers wants and needs and can provide them with the experience they’re seeking. 

#4: The Retailing Experience was Top Notch 

Overall satisfaction with the shopping journey surged in 2023 from 61% to 69%. With inventory levels returning to pre-pandemic levels, your buyers are back heavily shopping your vehicle inventory. Contributing factors include heightened vehicle availability, the return of incentives, and a continued shift toward a more digital process. 

Encouraging shoppers to submit an enhanced lead yields higher satisfaction than a basic lead. In fact, satisfaction with the dealership was 10% higher AND 21% more rated their experience as better than their last purchase in 2023. The more you know about your shoppers, the more you can provide a personalized experience, and in turn, shoppers will be more satisfied with their interactions. 

WHAT TO DO: Elevate customer satisfaction to new levels by promoting enhanced lead submissions from your shoppers. The more shopper information you have means you can foster a more personalized experience that ultimately results in higher satisfaction throughout the buying journey.  

#5: Digital Retailing Continues to be Highly Beneficial 

Buyers are moving toward an omnichannel experience—a mix of both in-person and online steps. The key is to have different ways to buy based on the shopper’s 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 focus of their strategy are seeing some pretty big payoffs in both consumer satisfaction and driving profits. 

WHAT TO DO: There’s ongoing opportunity for improvement in dealmaking processes, particularly with the ongoing shift towards digital retailing. 81% of shoppers surveyed said digital retailing improved the overall buying experience. Consider mapping out the necessary steps for your dealership to embrace a more digital future, while addressing current gaps such as financing. This includes integrating digital retailing solutions seamlessly onto your website and providing comprehensive content to educate customers on utilizing the available tools effectively. 

Adapting to consumer behavior, regardless of economic challenges or industry shifts, is key to staying ahead. By aligning your dealership and digital marketing approach with the desires, needs, and preferences of today’s shoppers, you can provide a customer experience that not only attracts their attention but also leads to successful sales. 

Utilize these insights to elevate your digital marketing efforts and access our latest infographic for a bite-sized overview of the top five takeaways. 

Progress, not Perfection. How to Take Your Advertising Up a Notch.  

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Author: Shane Unrein

Advertising SME Blog

Listen, I get it! Staying on top of all-things advertising can be a daunting task. This is a fast-moving space that seemingly evolves daily. From Google rolling out new campaign-types each quarter, like pMax+, to Meta offering verified business checkmarks that help customers feel confident they’re dealing with a legit brand, all these changes affect your advertising in very real ways. We constantly see new advertising capabilities surface that can help dealers reach their customers in what can feel like an endless space.  

However, taking your advertising to the next level does not have to be a massive, time-consuming evolution. It is worth remembering that there is no such thing as “perfection” in this sometimes-confusing space – that is an illusion – we aim for progress! 

Something I’ve learned in my years as Director of Advertising at Dealer.com is that many dealers are only on the cusp of what their advertising strategy can do. Excuse me for taking advantage of a few overused clichés, but there is almost certainly some low-hanging fruit that could mean more traffic on your website and your showroom floor. I’m not talking about reinventing the wheel here or buying a whole social media platform just to change the name to a single letter for the sake of headlines.   

A stale strategy is paramount to failure. But there are steps you can take to beef up your advertising strategy, small things that we can do today can have an impact. 

As we have known for decades, most organisms will grow to the size of their environment, reaching out towards the limits of their domain and then slowing their expansive growth at the edges, becoming rigid – a marketing campaign is no different. Like most successful species, innovative advertising strategies need to be elastic, have room to flex, and be ready to push your boundaries with a diversified media plan.   

Allocating just 8-12% of your monthly advertising budget to evolving your marketing and communications channels can reveal a lot about the topography of your space. You’ll get a better view of what works for you – and what doesn’t – and how much room you have to grow.  Try something new for 45 to 60 days, assess the results, and pivot accordingly.  Avenues that you wrote off a few years ago may prove fruitful, or perhaps a channel you hadn’t considered is now blowing up because of technological strides in targeting or audience capabilities.  

 

Ip targeting

While doing channel discovery testing (which is distinctly different than traditional A/B asset testing) it is important to note that what works for some advertisers doesn’t always work for everyone. And what worked in the past won’t always work in the future!  So many external factors affect the market and buzzy trends tend to capture industry headlines.  But continued and repeated channel testing can often lead to breakthroughs, even on a seasonal basis.  

Why are you not using data?       

In today’s ecosystem, the key to staying in front of high-value car shoppers is with first-party data and audience targeting is the keystone. First-party data allow you to: 

  • Predict Auto Shopper and Consumer Behaviors 
  • Gain Audience Insights 
  • Personalize Content and Advertisements 
  • Define and Map Out the Customer Journey 

First-party data also gives you valuable insights into audience demographics, product-interest engagement metrics, lease or financing options, and service specials, just to name a few. This data also informs us on what customer behaviors are prevalent within an individual’s web activity, which gives you the ability to not only understand more about your consumer but have a clearer picture of how you can effectively reach them at the right time.  These are insights that third-party cookies or purchased list data just can’t compete with. 

 

3rd party data

How many of you are using your own data?  

There are three areas that immediately come to mind when thinking about how to activate the first-party data that you probably already have at your dealership, information you’ve been collecting since the first day you opened your doors.  

Your CRM – This is direct access to your customers’ behavior and can help you with lead management and marketing. Your CRM can be a treasure trove of information on your customers that you can harness to get your message in front of the right people.  

Your Website – Uncover the pages that shoppers have visited on your website, what specific offerings or vehicles they’ve looked at, when they signed up for email specials or price alert notifications, or any of the other ways they’ve engaged with your site.  

Your Email Engagement Strategy – Your consumer emails give you insights into what your target audience engages with. You’d be shocked if I told you most dealers don’t focus on analyzing and activating these insights. You can have a clear picture of what that consumer is interested in so you can use it to tailor your marketing to them and create those critical personalized experiences.  

If you’re already advertising with Cox then you have access to our huge dataset, hyper IP targeting, and cookie-less household addresses. But setting aside just an hour per month to format and upload the info you already have, which we layer onto our own data, can help give a more accurate picture of your customer’s path to purchase, and that’s something we can really use! 

We live in a visual world, now more than ever. 

 

Gosling meme

You heard about Barbenheimer, right? 

Here’s a secret; every agency uses the same providers. Google, Facebook, Instagram, CTV/OTT, etc. are essentially the same platform no matter who is at the wheel. What sets agencies apart is their data – which we talked about above – and the ability to manage creative, especially when it comes to visual mediums like CTV/OTT and Display ads, and creative collaboration is a big part of any successful equation. Fresh, professional-looking creative can make or break the success of a campaign.   

One thing we’ve seen over the years is that, despite best intentions, visual assets often become an afterthought for many clients.  The focus of strategy discussions invariably drifts to campaign budget allocations, search ad copy, or keywords, but these things are slowly disappearing as our world increasingly becomes more bite-sized and visually oriented.  Google’s Performance Max campaign type relies heavily on custom static creative and video messaging, as does CTV/OTT, and Cox’s proprietary audience-targeted display and dynamic remarketing.   

Evergreen Visual Assets – In this new world, it has become imperative that dealers have evergreen assets that act as an anchor for these newer, visually engaging channels.  Crafting an overarching message about your business, that speaks to the customer not about individual products but branding of the buying process, must be the core of these campaigns.  From there, we can build on the message for more seasonal messaging that is more surgical in nature; monthly specials, limited-time deals, or rare inventory, to name just a handful. 

Whether you supply your own custom assets or have our Content and Creative teams build them out, it is important not to let this slip through the cracks. 

Build on momentum.  Finding what works for your business can be uniquely individual. We can analyze broad consumer data to get the broad strokes, but identifying what has worked for your dealership, in your market, is the key to unlocking the inertia within the data.  Using the Email Engagement Strategy above as an example, we can see what types of imagery and verbiage worked well to guide our digital strategy.  Did people respond to a specific deal or phrasing, did they respond to a specific product image or color, or is the market culture focused on a specific topic that is locally relevant?  

Our Barbie meme above show just how much outside “momentum” can affect outcomes. 

With a little coordination, the momentum you get from a well-crafted marketing blast, physical mailer, or even signage can all be reproduced in your digital campaigns, especially as the industry moves quickly towards a more-visual mindset. 

At the end of the day, though, the best way to find success is to test, fail, and test again.  And make no mistake, just because an idea isn’t a homerun this time doesn’t mean we can’t learn from it!  Frequent testing and refinement, combined with continually evolving audience data, is the new normal for digital advertising.  

Dealer.com is Helping Dealers switch to Google Analytics 4

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Ready to switch over to GA4? Click here to get started.

Like most dealers, you are probably eagerly anticipating July 1 – the day Google will be sunsetting its current product, Google Universal Analytics. After July 1, dealers with a Google Analytics account will no longer be processing new data.

As a founding member of the Automotive Standards Council (ASC), Cox Automotive is committed to helping dealers every step of the way, by ensuring that you have completed the pre-work necessary to ensure a seamless transition come July.

Your Site, Your Data, Your Google Analytics, Our FREE Support!

It’s your site and your Google Analytics data, but that doesn’t mean you have to go at it alone. With our dedicated Google Analytics support team, Dealer.com is ready to assist with your support needs, as well as ongoing maintenance, free of charge. If you haven’t set up your GA4 dashboard yet, let us know and we’ll help you get up and running.

We offer two ways to transition:

  1. Our self-service option allows you to customize set-up on your own.
  2. Our dedicated Google Analytics support team can provide complete assistance.1

What You Get with Dealer.com

Now that Google Analytics 4 is finally here, Dealer.com has implemented a host of new features and enhanced event tracking. We offer two service levels allowing for quick expansion and full customization of your Google Analytics deployment.

  1. Self-Service through Google Tag Manager
    Receive a pre-configured Google Tag Manager file, ready to import into your own Google Tag Manager Instance, as well as an instructional guide for further expanding and customizing the data captured by GA4. Think of this as a scalable tagging blueprint, robust enough to stand on its own, or a jumping off point for more extensive tagging.

  2. Full-Service Google Analytics
    Let our Google Analytics experts design a tailor-made solution just for you. Our in-house team can handle everything from custom website tagging to configuring your reporting suite.  Additional services include a detailed needs assessment to align your tagging strategy with your unique measurement goals. Upon execution of the Statement of Work you will have direct access to our project management team who will ensure we remain on-track to execute against the contract.

After all of the buzz, the transition to GA4 is here. Whether you take charge of your own transition, want a dedicated partner to take the lead for you, or just need a little assistance along the way, Dealer.com and Cox Automotive are here to make this transition as smooth as possible.

Check out this quick reference guide for a snapshot on all things Dealer.com and GA4.

Click here to get started.

Footnote:

1. Please note: we expect an influx of requests during this initial transition period. We will address client needs as quickly as we can, however due to high request volume you may experience a delay before our dedicated support team is able to assist.

Step by Step: How Car Consumers are Reshaping the Road Forward

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Having a digital presence as well as online capabilities is something every auto dealer needs in order to do business in today’s times. However, it’s not just a Field of Dreams scenario – if you build it, they will come. Today’s consumers have specific wants, needs and preferences in how they can purchase cars, and it’s reshaping the process for consumers, dealers and the industry alike on a whole.

In order to plan for the road forward, successful dealers know mid-year is the perfect time to take a look at both their current business and marketing strategies, as well as map out how they plan to step into and bridge into the eCommerce future that is already knocking on their front door.  

To do this, it’s important to understand where consumers are, where they’re heading, and what your business should be moving toward for the road forward.

Consumer needs and preferences are reshaping the purchase process

When thinking about today’s consumer, it’s important to remember there’s been an evolution in the way they research, shop, and purchase cars. Especially over the last few years. In-market auto shoppers have new and different considerations during the shopping journey, and you must have new and different ways of strategizing and running your business than you did in years past.

A successful strategy should be firmly centered on meeting consumers where they are. No longer a linear path, consumers follow the purchase path in different ways, at different times, and take different steps in a different order.

But by focusing on personalization and offering a frictionless purchase path that both aligns with their needs while simultaneously overcoming their pain points, you’ll still arrive at the end goal of making the sale and giving your customer the experience, they desire. Staying in front of them, no matter where they’re at in the process, is key.

With so many different types of shoppers that your dealership comes across online, it’s important to take a step back and do a deeper dive into who those customers are, what their pain points are, and how you can offer solutions to not only capture their attention, but also gain their trust and business.

Cox Automotive’s recent Car Buyer Journey Study identified five (5) segments of consumers, and the two (2) categories that they fall in – one shrinking in the market and one growing.

Growing Segments:

Comprised of two different segments, the growing category includes Efficient Independents and Guided Innovators. Efficient Independents comprise roughly 18% of today’s market, and they’re mostly Gen X’s (1965-1980) and Millennials (1981-1996). The largest sector is the Guided Innovator. They make up a quarter of in-market auto shoppers. They’re the youngest – being comprised mostly of Gen Z (1997-2012) and Millennials.

Both growing segments prefer to buy online – with 75% of them saying within the next 5 years they would buy entirely online and currently complete 10 out of 13 purchase process steps online.

Shrinking Segments: It’s also important to note that the three (3) other segments found in the shrinking category are more likely to still buy in-person, however they still take some steps online during the purchase process. The Researchers, Traditionalists and Resisters prefer a process they are familiar with and that’s worked for them previously, that’s very straightforward and simple. These shoppers typically only complete 4 out of 13 shopping steps online.


So, what are the opportunities here for you? We can see how consumers want to do business online, but it’s important to remember it’s still new for them. Focus on educating them and bringing them along the purchase path with you. Your business and marketing strategy should be dialed into those growing segments. They’re online, and in our “Amazon world” they’re open to or moving toward buying high ticket items online, like cars, predominately online both now as well as in the very near future.

Advantages to stair stepping your digital retailing tools into eCommerce

Not every in-market auto shopper wants the same things from their online experience, but one thing they all do want is options. Our research shows that consumers don’t want to follow a prescribed sales process. In fact, 9 of 10 consumers prefer a flexible, personalized car buying experience.

With a complete full service-connected digital retailing experience, like that provided by Cox Automotive, you can give them just that.

Unlike digital retailing, eCommerce directs customers to complete the purchase through an online store.

When it comes to promoting and marketing digital retailing and eCommerce, there are several different strategies that businesses can use.

Digital Retailing Strategy:

It’s important to focus on creating a user-friendly experience for customers when it comes to digital retailing. This includes optimizing your website or mobile app for search engines, ensuring that customer service is top-notch, and using targeted advertising to reach potential customers. You also want to give shoppers the tools to explore the information they are comfortable researching or calculating on their own (inventory, trade-in values, financing terms/payments, F&I products) and make it easy for them to move and bridge the process to the dealership when they’re ready. Being able to easily pick up where they left off will increase their confidence, satisfaction and willingness to do business with you.

eCommerce Strategy:

Businesses should focus on creating a visually appealing online store that’s easy to navigate as they shift toward the full eCommerce experience. Other strategies to consider include using social media to reach customers, running targeted ads, and optimizing content for SEO. Additionally, businesses should consider using customer relationship management (CRM) software to store customer data and track customer activity. Everything from the car, to add-ons, to financing, to delivery and so on should be connected and seamlessly lead into each other.

Overall, digital retailing and eCommerce are two very different forms of retailing. However, both can be successful if dealerships take the time to properly promote, market, and educate the consumer on them and how their business integrates them. By taking advantage of strategies such as SEO optimization, targeted advertising, and actively using the many features of CRM software, dealerships can maximize their chances of success for their business in both digital retailing and eCommerce.

Is automotive eCommerce the way of the future?

Automotive eCommerce is becoming more and more popular as a way of retailing because it’s all about convenience. With eCommerce, customers have access to a much wider selection of vehicles and access new markets than they normally would. Additionally, they can browse through different models and features at their own pace and make informed decisions before making a purchase.

Today’s consumers both want and expect a flexible, personalized car buying experience on their timeline. And eCommerce provides exactly that.

What can you do now to prepare for the automotive eCommerce revolution?

In the beginning as you work step-by-step from having a few digital retailing solutions toward being fully eCommerce enabled, it’s essential to have a strong online presence. This may sound easy, but it involves more than you may think, and it’s built brick by brick, step by step.

Sure, this strategy includes setting up a high functioning easy-to-navigate website, creating a social media presence, and using SEO and PPC, but it also includes building strategies around integrating eCommerce technology into your business plan and timeline as it is adopted within your business and how you’ll market it. When you plan for the shift, it will make it easier for you to track customer preferences and trends if you make it possible for your customers to browse and buy vehicles directly from your site.

For the road forward

The automotive industry is on the cusp of a revolution, and working toward stair stepping your digital retailing into eCommerce is at the forefront of this change. By creating an online presence and integrating eCommerce technology into your business model, then supporting it with a thought-out marketing and consumer educational plan, you can ensure that you’re prepared for the future of the automotive industry.

Reshaping is and will continue to happen to the auto purchase process. And as times and consumer preferences change, so must your business plans and strategy. When you leverage the power of mixing, matching and modernizing your digital retailing toward full eCommerce capabilities, you’ll not only reach more customers and streamline operations, but you’ll also have the ability to unlock the potential for your business’s future success.

Want to hear all the ways to fully activate your first party data to plan for a more successful road forward? Catch the replay of a unique webinar opportunity with Automotive News hosted by Jade Terreberry and Noah Lee. They share examples of actions you should take now, and outline strategies successful dealerships and OEMs are implementing to make the most of your marketing efforts and dollars.

Access the on-demand replay.

Staying a Step Ahead in a Cookieless Future with First-Party Data 

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Autotrader, Dealer.com and ESNTIAL Teams

As the majority of us know, there are really big benefits to both having and collecting first-party data for your business. Think of your contacts, your customers, your leads, your website, your insights, your predictions… Everything that you have been collecting since the day your doors first opened and website went live at your dealership. 

Your revenue sits in that first-party data. Or more importantly the strategy tied to it. And you can unlock many benefits and advantages by learning new ways of how to activate that data. Especially with a cookieless future quickly approaching on the horizon. In an ever-shifting automotive industry and world, your first-party data will help you stay a step ahead. 

When it comes to your business and marketing goals, it’s essential to understand and map out where your dealership or brand is today, and where you’ve set your sites on going. Data can and should be a leading driver to help you successfully do this.  

So together, let’s take a closer look at how your activated data can help you stand out to your ideal customer in your marketing efforts, mix-match-modernize your strategy, and help you map out your step by step as digital retailing and our industry bridges towards an eCommerce future.  

It’s time to re-strategize how you’re activating your dealership’s data 

Part of activating your data is interpreting and acting on the insights, especially when it comes to what your consumer wants, needs and prefers. However, your existing methods of activating your first-party data don’t quite work the same way anymore.  

It’s time to revamp your strategy to accommodate the changing landscape of the industry and connect to new shopper insights.    

Educate and Demonstrate: Remember, how we do business, where we do business and who we do business with has and will continue to shift. You need to make sure that your marketing strategy includes educating and demonstrating to the consumer you have the cars, service, experience and capabilities they want and are willing to show them how to use them.  

Some of these consumers will be existing customers, but they might need reminders of how your business has evolved. And some of these consumers will be part of the heightened 56% of cross-shopping auto buyers who are open to and entertaining a different brand and type of car. Educate and demonstrate the advantages of doing business with you and what makes your brand the one they should choose. They’re new and haven’t had the first-hand experience yet, so give them the virtual experience and highlight hallmark values and experiences your brand offers. 

Communicate the Way They Prefer: If you’re not communicating the way your consumer prefers, you are definitely missing out on business and probably losing some of your current customers. This year’s Cox Automotive annual Car Buyer Journey Study revealed that for the two growing segments of in-market auto shoppers, their preferences for communication steer them towards who they ultimately decide to do business with. 

And what they prefer when it comes to communication is ease, a frictionless experience, and in their preferred method. For many that means texts, having chat available on your site, and instant buttons so they can quickly complete their desired actions. 

Shifting Parts or All of the Car-Buying Process Online: Both of the growing segments of auto shoppers surveyed in the 2022 Car Buyer Journey Study said they prefer to buy online – with 75% of them saying within the next 5 years they would buy a vehicle entirely online. They’re a growing target, currently completing 10 out of 13 of the purchase steps online. 

It’s an Amazon buying world. Consumers are open to and moving toward being more comfortable with buying high ticket items online, like cars, predominately online as well. Look at what you currently offer with your digital retailing tools and map out what steps you still need to go towards a fully eCommerce future. We have a few suggestions and items to consider when doing that below! 

Rome was not built in a day, but it was built brick by brick. And so should your digital marketing strategy – lean the most on your first-party data to be your bedrock foundation and the digital retailing tools you have supporting, feeding and connecting your customers to what they want and need.  

It’s time to gear up for the new speed of retail 

Digital retailing tools continue to grow and expand how auto dealers do business and plan their marketing strategies. This digital foundation was laid in our industry during the pandemic with the goal of a better shopping experience. As satisfaction levels continue to likewise grow with the online experience, so should your focus on adding more digital retail solutions and capabilities as well as connecting them with your first-party data to help drive your business. 

Did you know 70% of shoppers are more likely to buy 

From a dealer if they can start the process online? 

The new speed of retail is here, and shoppers expect a streamlined, digital experience. So, to help you meet them where they are, it’s important to take a look at where you are. 

Whether your dealership is on the low end of the eCommerce spectrum only offering a few digital retailing tools, or are fully automated and full-spectrum eCommerce ready, there are distinct advantages to mixing, matching and modernizing your digital retail strategy. And first-party data should be the core pillar of how you’re connecting it all and moving forward, especially in a cookieless future. 

As we touched on before, by alleviating your consumer’s pain points, and activating your first-party data with personalization, you’ll have the ability to not only stand out to your ideal customer and retain existing customers, but you’ll also have the ability to improve your customer’s experience in the following ways reported in the annual 2022 Car Buyer Journey Study. In a cookieless future this is where your revenue will have the ability to grow. 

In-market auto shoppers and buyers reported the following satisfaction levels and advantages with transacting online: 

  • 88% – Save time at the dealership  
  • 86% – Save time with the buying / leasing process 
  • 83% – Seamlessness of continuing the online buying transaction in store where they left off 
  • 81% – Improved the overall buying experience 
  • 78% – Greater transparency with pricing 

By connecting your first-party data to your existing and future digital retail tools, you’ll not only give your consumers what they’re looking for, but you’ll set yourself up for increased exposure and reach, the ability to turn vehicles more quickly, increase your opportunities for acquisition and inventory and close more deals. More specifically… profitable deals! 

Automotive digital retailing vs. eCommerce: What’s the difference?  

There is often confusion when it comes to the differences between digital retailing and eCommerce. While they both start online, that’s where the similarities both begin and end.  

Digital retailing helps guide the overall experience for your shopper and saves time for both you and the consumer. Your customers can easily navigate and engage with your website during different stages of their purchasing journey.  

Digital retailing: Largely supported by a person at your dealership: There are many steps that digital retailing can connect. For example, the consumer starts the deal online and can take it to a credit app submission, sometimes even a credit decision, but at that point dealership personnel will need to engage with the consumer to walk them through the deal. So, while technology plays a big role, the process is largely supported by a person in the dealership. 

eCommerce: A fully digital transaction: On the other hand, eCommerce also begins with the consumer starting the deal online. But the key difference is that a consumer can take a self-paced fashion, working through the deal all the way through digitally signing the contract package and scheduling the delivery of the vehicle. The process is also supported by F&I automation primarily, not dealership personnel. Most dealerships have dedicated eCommerce teams who solely focus on these end-to-end online transactions. 

If adding an eCommerce channel isn’t feasible in the near future, digital retailing can still satisfy those digitally savvy shoppers. Consumer research confirms that not every consumer wants the same results from their online experience. In fact, 9 out of 10* prefer a flexible, personalized buying experience. Make it simple for customers to explore the information they are comfortable researching (inventory, trade-in values, financing terms/payments, F&I products) and move the process to the dealership when they are ready. 

Aside from leveraging digital retail and eCommerce solutions to provide seamless transitions between digital and physical interactions, training your entire team (not just your BDC) on switching between online and offline interactions goes a long way. You’ll see increased confidence, improved satisfaction and the consumer will appreciate this more personalized and efficient way of doing business. 

For the road forward 

A cookieless future isn’t as worrisome when you put your first-party data to use. By revisiting your current marketing strategy, mixing-matching-modernizing your digital retailing tools to connect them to your data, and planning everything your dealership does from the top down on how you’ll grow your eCommerce business, you’ll stay a step ahead of your competitors and align your dealership for success in the future. 

As technology continues to evolve, activating first-party data is essential for every auto dealer, whether your business is brick-and-mortar or strictly eCommerce. You’ll gain insights into consumer behavior and preferences, improve customer experience, and optimize your marketing campaigns and dollars.  

It’s time to start shifting from just collecting first-party data to activating and connecting it. Because when you do, you’ll quickly see the difference it can make for your business to increase conversions and your profits. 

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.  

WWant to hear all the ways to fully activate your first party data? Catch the replay of a unique webinar opportunity with Automotive News hosted by Jade Terreberry and Noah Lee. They’ll share examples of actions you should take now, and outline strategies successful dealerships and OEMs are implementing to make the most of your marketing efforts and dollars. Sign up for the watch webinar.