As you know, most vehicle purchases in today’s times start out with a single click. And whether that click comes from an email, popup ad, or a vehicle listing – you have the opportunity to capture their attention at first click – the gateway to their vehicle shopping journey.
We invite you to join us for a NEW three-part learning series hosted by the experts at Autotrader and Dealer.com that will show you the new ways to have more success in converting a shopper from CLICK to CLOSE, and the crucial steps you need to take in between.
Every dealer wants to fast-track a close, and when you sign up to hear about the modern ways to create a personalized, connected, and seamless omnichannel shopping experience, you’ll hear about the five key steps:CLICK, FIND, FOLLOW, DRIVE, and CLOSE.
We’ll share examples of what we see working over our tens of thousands of dealer partners and vast Cox Automotive eco-system when it comes to things like:
How to get shoppers to CLICK on your ads to see your vehicles,
FIND shoppers who are ready-to-buy and target them with relevant messaging they’ll react to,
FOLLOW shopper activity and make the most of that valuable data to create a tailored shopping experience they’ll seamlessly go through,
DRIVE them to purchase by creating a shopping journey that caters to how they want to buy,
And finally, how to lead them to purchase – CLOSE the deal – which is what we ALL want!
So, register today and be one of the FIRST to learn the winning online digital marketing strategy needed to stay competitive and drive more sales, From Click to Close!
As a founding member of the Automotive Standards Council (ASC), Cox Automotive is committed to helping set a standard groundwork for the ongoing implementation and adoption of Google Analytics 4 (GA4) into the industry. For the latest updates, additional training material and a network of supporting companies, please visit the Automotive Standards Council website.
With the official retirement of Universal Analytics by Google, all your data should have been successfully migrated from your Google Universal account to Google Analytics 4.
For dealers that have made the transition but are still not sure how to set up their dashboard, we developed a quick reference guide on how to create Custom Dimensions and Metrics for GA4 Properties.
If you would like immediate assistance configuring Custom Dimensions and Metrics for your GA4 property, please contact your Performance Manager or the Dealer.com Technical Support team.
The electric vehicle surge has been steadily rising. Over one million EVs were sold in 2023, a monumental achievement for EVs in the automotive industry. Fast forward to January 2024, and now there are more than 3.2 million EVs in the U.S. 1 More OEMs are entering the market and different models are being made available to consumers, which means pricing is getting more competitive and more people can afford them.
While EV sales have hit record highs, the growth rate seems to be decreasing. To keep up with the changing demands of the industry, the annual Cox Automotive Path to EV Adoption study allows dealers and OEMs to stay informed about the state of EVs.
This study reveals that an increase in supply and more available models have outpaced consumer demand. EV consideration among car shoppers has begun to wane and inventory is sitting on dealership lots longer.
So, what’s on the horizon for the EV market? Here are our top takeaways.
Shoppers Are Skeptical About Making the EV switch…for Now
An EV Skeptic is defined as a car shopper who is only considering vehicles powered by traditional internal combustion engines (ICE). According to the 2024 Path to EV Adoption Study by Cox Automotive, nearly half of vehicle shoppers in the market today are Skeptics. These shoppers are hesitant about the idea of switching to an electric vehicle.
Why aren’t most car buyers ready to take the leap into the electric vehicle segment? There are multiple barriers to adoption that dealers and OEMs will need to overcome to move Skeptics into a consideration and purchase mindset:
Driving Range and Lack of Infrastructure: Consumers worry about the range of electric vehicles (EVs) and the availability of charging stations, especially if these issues impact their travel plans.
Battery Fears: Concerns about battery capacity and charging time deter some buyers.
Affordability: While EV purchase prices are decreasing, consumers still perceive ownership costs as higher than comparable ICEs and hybrids.
OPPORTUNITY: Incorporate More EV Content
EV buyers actively seek information online, consuming more content than their (ICE) counterparts.3 Since the concept of EVs is still new to some shoppers, they rely heavily on content, especially videos, when researching online. Expert reviews and ratings, vehicle awards, and more help consumers better understand the new world of electric vehicles.
Your EV content should highlight the different types of EV vehicles manufactures are making. With different models entering the market, shoppers need to identify key differentiators with different makes and models. EV considerers also tend to be technology driven. Focusing on tech enhancements and features in your vehicle descriptions is a critical way to move shoppers closer to purchase.
Call out the key benefits of electric (EV) versus internal combustion (ICE) vehicles as well. As EV shopper demographics are skewing younger, lower income and multicultural, helping these audiences understand the benefits of EV will move them closer to their purchase.
Additionally, 74% of new EV buyers took action after viewing an online auto video ad compared to 65% of new ICE buyers.4 Incorporating more video advertising can encourage EV shoppers to browse more website pages, submit a lead or even visit your dealership for a test drive.
EV Shopper Demographics Becoming More Mainstream
One finding in the study reveals that the EV market is slowly becoming more mainstream. While current EV ownership is heavily tilted toward luxury and high-earning households, the study shows the EV market is casting a wider net, attracting Gen Z, multicultural, and less-affluent shoppers.
OPPORTUNITY: Expand Your Advertising and Marketing Reach
With a more diverse set of consumers considering EVs, dealers must adjust some of their advertising budget and strategy to include these new sets of shoppers. Use data to your advantage and work with your digital marketing partner to ensure your EV advertising is getting in front of more consumers that are interested in EVs.
The market is also seeing a notable uptick in used EV consideration. In 2021, 62% of EV Considerers were looking at used EVs. Today, 77% are considering used electric vehicles.
While Tesla remains the most considered EV manufacturer, several mainstream brands are gaining traction. The new report highlights that electric vehicles from Toyota, Hyundai, and Kia have seen significant increases in awareness and consideration since 2021. However, Ford continues to be the most-considered non-Tesla EV brand. The study also reveals that most shoppers are unaware of EV options from other major automakers, indicating a lack of research into EV products. For instance, only 33% of consumers in the market are aware of Nissan’s EV offerings, despite the brand being an early pioneer in U.S. EV sales.
OPPORTUNITY: Provide More Education Around EVs
In addition to increasing your advertising reach, consider incorporating educational content about non-Tesla EVs. If it’s one thing the study reveals, perception seems to be a high deterrent for some EV skeptics. Getting ahead of the curve and providing education on not only what manufacturers sell EVs, but the different models and varying price ranges can help with awareness. This awareness could attract shoppers who are more likely to buy from a manufacturer they are loyal to if they knew they sold EVs. It can also ease apprehension as consumers see more manufacturers believe EV adoption is the way forward and will steadily increase over the next few years.
EV consideration will notably increase with 54% of current Skeptics saying that 3-5 years from now will be the right time to purchase an EV. By 2033, 90% of vehicle shoppers will be considering an electric vehicle.2This shift will be driven by continued advances in technology, more EV charging infrastructure and consumer education. More models and price reductions will cast a wider net attracting Gen Z, multicultural and less-affluent shoppers.
Increasing Dealer Confidence to Sell EVs
The new EV study highlights the importance of dealers and OEMs fostering a balanced, more strategic relationship to accelerate EV adoption.
Since 2019, dealerships have benefited from their OEM partners with enhanced support in marketing, sales, and service. However, dealers indicate a need for more resources beyond EV sales training, including increased EV incentives, free maintenance programs, and additional advertising funds. Additionally, 65% of dealers report feeling increased pressure from automakers to meet EV sales targets, a significant rise from 39% in 2019, with luxury dealers experiencing the most pressure.
OPPORTUNITY: Ensure Support from OEM Partners
Getting support is crucial as dealers enter this new space of selling EVs. 67% of franchise dealers prefer that OEMs share in the responsibilities for upper funnel activities, while they take charge of the lower funnel steps.2 As a dealer, ensure you are reaching out to your OEMs to help educate consumers on their line-up, on the key differences and benefits of EV vs. ICE, as well as provide information on EVs listed for sale.
Being proactive about the specific support you need—whether more advertising, sales incentives, lead generation—is important so OEMs know how to assist. The shift to EVs is imminent and as the industry addresses barriers to EV adoption, your dealership does not want to be left behind.
What Else Can I Do as a Dealer?
Entice EV shoppers and skeptics with key offers. Offering free charging and maintenance could encourage both EV Considerers and Skeptics to make a purchase. Providing incentives such as a complimentary at-home charger, a free maintenance or service plan, and free charging at public stations would likely boost EV sales. According to survey respondents, an ideal trial period includes six months of free maintenance and free charging.2
Prepare for the EV Surge
Automotive shoppers are gradually embracing electric vehicles. While maybe not as quickly as dealers and OEMs would like, there’s an opportunity to accelerate this transition. It is important to understand and address why Skeptics and Considerers are not ready to switch and fill the gaps by incorporating more EV content, expanding your advertising and marketing reach, and collaborating with your OEMs for more specific support.
For more insights from the Cox Automotive Path to EV Adoption study, CLICK HERE.
Cox Automotive has been conducting the Car Buyer Journey Study for the past 14 years to determine the key changes in consumer buying behavior. The study was conducted from August to September of 2023, with nearly 3,000 respondents who purchased or leased their vehicles within the previous year.
CLICK HERE to read our top 5 takeaways from the study and actions you can take to enhance your digital marketing strategy in 2024.
As NADA 2024 approaches, Noah Lee, Director of Product Consulting for Dealer.com shares a preview of what to expect at the “auto industry event of the year”—plus some tips for networking while you’re at the show. Want to know what else to expect at NADA this year? Check out the new First Look Guide from Cox Automotive.
1. Why Dealer.com? What’s the biggest differentiator?
a. I think the connectivity to the Cox Automotive immense data network is a huge Dealer.com differentiator. I’d also say the integration to the Accelerate My Deal (AMD) digital retailing tool because it allows shoppers to complete more steps of the buying process online.
2. Why should dealers beef up their advertising strategies into today’s competitive market?
a. Advertising allows dealers to target the right people at the right time and land them on pages with information that is relevant to them, so they are more likely to call, click, or start their deal online.
3. What new products are you excited about/can you preview that are in the Dealer.com pipeline?
a. The new product I am most excited about is Retail 360 because it is going to truly revolutionize the way shoppers buy cars. A dealer can come into the store and buy the car, complete some steps of the buying process and finish in-store, or even buy completely online.
4. Why should dealers be focused on digital retailing?
a. With digital retailing, dealers can get shoppers to complete more steps online which saves them time in the dealership and makes them more likely to buy a car from your dealership.
5. Anything you want the dealers to know going into NADA 2024?
a. Dealers need to start thinking about personalization, first-party data, and integration across their solutions as they prepare for NADA 2024.
Favorite TV Show: Better Call Saul
Favorite Thing about NADA: Seeing all the people and the amazing marching band at the show kickoff.
Favorite Vegas Restaurant: Mamafoku and Mr. Chow
Top Industry Buzz Words: AI, CDP, and Personalization
How many NADA’s have you attended: 4
Visit us at NADA to learn how Dealer.com can make every contact an opportunity. Secure your demo today.
Author: Paulo da Silva, VP of Ecommerce Operations
In the first installment of our two-part ecommerce blog series, we examined the overarching focus areas that dealers must prioritize to be successful in embracing automotive ecommerce. Let’s take a closer look at what dealers can do today to better position themselves for ecommerce success.
The process of purchasing a car online can be daunting for consumers. This is a huge financial decision that involves emotion, research (According to the Cox Automotive 2023 Car Buyer Journey, third-party sites are their go-to source and usage have ramped up since 2021), and a ton of consideration. But what can alleviate customer concerns with buying online? The answer is TRUST – both in the dealership and the condition and quality of the vehicles you’re selling. Establishing trust and transparency is paramount, considering the significant commitment involved in buying a car online. Unlike adding items to an Amazon cart, purchasing a car is a huge investment for most and holds profound meaning, demanding confidence that the purchase will be smooth, and that the dealership will take care of the customer.
There are three tangible ways to build that needed trust: credible vehicle content, a mature review program, and preparation for a data-intensive future.
As a dealer, you may realize you’re already on the right track, finding success in your current efforts with trust building. Alternatively, this blog might inspire you to accelerate your implementation, discovering that you’re positioning yourself for ecommerce on a smaller scale sooner than expected.
1. Building Trust and Transparency Through Vehicle Content
Emphasize the Crucial Role of Vehicle Condition: Beyond standard photos, consumers are increasingly expecting walk-around and 360 videos to gain a comprehensive view of your vehicles. As it allows customers to view and explore the product in more detail, resulting in a more informed buying decision. In fact, we’ve heard directly from our ecommerce dealers that adding 360 views for vehicles has increased the likelihood of the vehicle being added to their cart.
The dealers leading this charge are taking trust a step further and disclosing all (or most) vehicle blemishes, and detailed vehicle inspections.
Provide robust blemish disclosures: Highlight minor imperfections like dings, dents, and scratches, whether through 360 videos or distinct photos. Customers are demanding this, which further supports the fact that complete transparency builds trust and preempts confusion during test drives or even vehicle delivery.
Complete an inspection checklist: Ensure all your vehicles undergo a thorough inspection process. Customers want to know as much as they can about the vehicle they are purchasing. For example, you can include that the vehicle passed engine testing, muffler testing, etc. The important thing to note is that you must share this information directly on your website because customers want to see it.
List reconditioning completed: Proactively share steps taken to make the car retail-ready after the initial inspection has been done. Provide consumers with a final vehicle report card. For example, let’s say your dealership performed the 100-point checklist of a particular vehicle. Share what your dealership did to address any issues in the report like putting on new tires, replacing the air filter replacement, installing new brake pads, changing the oil, etc. It’s important to communicate any fixes you make so the customer feels confident knowing that their vehicle is in good condition because of your diligence.
But to reveal the findings of your vehicle inspection or reconditioning work, you must make this information consumer-facing. Navigating the disclosure of data to consumers can be challenging, especially when reconditioning information uses industry acronyms and shorthand that might be unfamiliar to customers. Overcoming this hurdle requires creative thinking. Managing data transparency poses a notable challenge. One approach is to cautiously reveal essential report aspects without inundating consumers with exhaustive details. Experiment with phased testing to secure smaller victories and assess positive outcomes. For instance, consider initially releasing this information for certain cars or disclosing specific details, like the installation of new tires, rather than all inspection/reconditioning data. The aim is to strike a balance that conveys transparency without sacrificing clarity.
2. Developing a Robust Review Program
When it comes to consumer decision-making, online reviews have evolved into a cornerstone of research, influencing the choices of 88% of online shoppers.
Harnessing the power of positive customer reviews (Read this blog for a deeper dive on how to generate more positive reviews) is integral to increasing traffic and attracting leads to your dealership. Without a structured system for cultivating reviews and amplifying the voices of satisfied customers, negative reviews may create an inaccurate online portrayal of your dealership.
Make online reviews a priority. And ensure your reviews come from verified customers, as this increases your credibility and further fosters trust with shoppers. Take the time to research the right technology and technology partner to realize the benefits of this resource. Doing so can help you generate more positive reviews and turn those reviews into a viable auto dealer marketing tool to build your brand and boost sales.
Here are a few things you should consider as you get started:
Review Collection Approach: Evaluate your current review collection methods. Ensure customers have adequate time to provide feedback within a relevant timeframe.
Enhance Vehicle Content Quality: Encourage customers to share engaging, detailed reviews. Emphasize the importance of specific details, photos, and videos to provide valuable insights that are attractive to potential customers. You can even simplify the feedback process by offering guidance and tools on how customers can submit reviews and the best approach to doing it.
Feedback Loop Implementation: Encourage customers to write reviews on Google, Facebook and Autotrader for example, and leverage these reviews by posting them on your website. Customers can also opt for third-party review services or apps like BazaarVoice or TrustPilot.
Publicly Respond to Reviews: Establish a process for addressing reviews with 3 stars or below. While you may not resolve all issues, addressing them publicly demonstrates a commitment to customer satisfaction and issue resolution, fostering customer confidence that you care about reaching a positive outcome.
Incentivize Reviews: Some dealers opt for incentives, but caution is advised. Instead of a direct offer, consider incorporating incentives thoughtfully into your strategy, such as through sweepstakes, avoiding a quid pro quo scenario.
Establishing a solid review process can mean more money in your pocket, serving as a valuable foundation, especially in the ecommerce landscape. When a consumer decides to purchase a car via a distance dealer, having the confidence that they are buying a vehicle from a reputable dealership that is going to take care of them throughout the entire car buying process is critical.
3. Preparing for a Data-Intense World
The automotive industry is undergoing significant transformations, with new technologies enhancing efficiency in daily workflows. Customer expectations for quicker transactions are on the rise, as highlighted by the Cox Automotive Future of Digital Retailing Study, where less than half of consumers express satisfaction with the car buying process duration. And dealerships are consolidating like never before; the top five dealer groups in the U.S. are made up of a combined 979 dealerships, according to the 2017 WardsAuto Megadealer 100.
Despite these revolutionary shifts, numerous dealerships continue to operate in outdated ways. Many still maintain a segmented approach to customers, where sales lacks awareness of service interactions, and Store A remains oblivious to a customer’s engagement with Store B nearby.
The most successful dealerships today are those that have overhauled their operations, viewing each customer as an individual rather than a disconnected entity. Shifting operations to adopt a unified customer view is driven by three things: data hygiene, streamlined workflows, and the quality of customer connections.
I challenge dealers to envision a future where the integration of solutions is a requirement. Establishing a comprehensive and connected view of the consumer becomes extremely necessary in navigating the data-intensive landscape of the automotive industry.
In conclusion, by focusing on vehicle content transparency, mature review practices, and preparing for a data-intense future, automotive dealers can build a foundation of trust that resonates with consumers and position them for success in the evolving ecommerce landscape.
As a leading provider of digital marketing solutions for the automotive industry, Cox Automotive has been closely watching and keeping our partners apprised of developments that affect their ability to reach consumers and grow their business.
For nearly two years, we have been anticipating a time when consumers’ desire for web browsing privacy – and regulators’ intention to mandate it – would come together to kill the tracking cookie as we’ve known it. With the September 2023 release of Google’s Chrome browser update, we’re seeing that moment inching closer.
Until recently, any website could add a cookie to a user’s browser and track them wherever they went online, storing the information on the site’s server. Often companies would partner to exchange this data to get more insights into a user’s behaviors and preferences. This allowed them to target their marketing more effectively to consumers who had demonstrated their interests.
With the Chrome update, Google now stores user behavior and activity data within the browser where advertisers cannot access it. The Google Chrome developers’ site says it is phasing out support for third-party cookies beginning in mid-2024.
Wondering what this could mean for your business? We addressed some focus areas and most asked questions that Cox is prioritizing to stay abreast of the cookieless future so our dealers can continue having success.
AUDIENCE SEGMENTATION AND ACTIVATION
To address ongoing cookie loss when using third-party pixels, Cox is moving to Server-Side Data connections and APIs. This will allow us to have more durable data signals while remaining privacy compliant. We will also consider Clean Room solutions to provide a secure environment to bring data from different places together for joint analysis. Adhering to privacy parameters and creating the safest place for data sharing and transfer will be extremely important.
For first-party pixels, we’ll continue using Cox Automotive Identity Graph to help us track and use specific IDs or personal consumer information. To maximize this approach, we want to help ensure your dealer websites are focused on collecting identifiable information, like consumer email addresses or logins during browsing sessions.
CAMPAIGN AND CONSUMER ANALYTICS AND TRACKING
Campaign Performance and Tracking
We expect to see fewer conversions being tracked overall. We also expect to see increases in discrepancies from our data verification partners since some data points that are monitored rely on cookies. (e.g., Our verification partner may see the user as being outside their geography when the delivery platform does not.)
Server-side will be able to handle signal resiliency issues for the platforms that have Conversions APIs available (mostly social platforms). For other platforms, curated solutions are in developed.
Consumer Journey Analytics
Some blocking solutions on browsers will strip some of our tracking mechanisms by default. This would impact some reporting elements for dealers. Since the consumer journey will rely more heavily on identifiable information collected during website visits such as email address or logins, it’s more important than ever to focus on first-party data activation. Read this Dealer.com article on how to collect, connect, and activate your first-party data as you prepare for the cookieless future.
Additionally, Chrome released an article in August 2023 about Related Website Sets. This may be a solution to customer journey breakage that relies on first-party cookies.
At Cox, we are committed to helping our dealers throughout the deprecation of third-party cookies. We will continue working on ways to ensure our dealers feel confident with this industry shift and will be there every step of the way to ensure maximum success. We will continue releasing information about the approach we are taking to tackle the future with no third-party cookies.
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.
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.
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.
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.
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.
Kelley Blue Book® My Wallet on Dealer.com websites received the Enterprise Retailing award during the 2023 AWA Awards. Presented by Brian Pasch Enterprises, the AWAs have been a benchmark in the auto industry for recognizing innovative products in technology, design, search marketing, social media, and digital retailing.
Pictured L-R: Mike Wulfe, Katie Wilkins, and Paul Paridy.
Kelley Blue Book® My Wallet is an intuitive tool designed to improve the shopping to buying journey and drive more quality connections between buyers and sellers.
Debuted at the NADA Show 2023, Kelley Blue Book® My Wallet automatically integrates into Dealer.com dealer websites who have Accelerate My Deal. This means dealers will have access to everything from down payment, trade-in, and financing information – the data needed to speed up the deal-making process and get more accurate leads.
When My Wallet meets Dealer.com websites, consumers will have the most comprehensive and consistent power of Digital Retailing at their fingertips.
How Does Kelley Blue Book My Wallet Work?
If a shopper engages with Kelley Blue Book My Wallet on Autotrader, they’ll be prompted to enter a desired monthly payment, trade-in, down payment, credit range and term length. This gives consumers more accurate “all-in” pricing.
From there, their entire search will be customized. Consumers gain budget guidance to help them better understand purchase power and can shop by payment which opens a whole new world of possibility. Dealers Get insights into the consumers financial profile on more leads to provide a personalized sales process with less friction.
Kelley Blue Book My Wallet + Accelerate My Deal
80% of consumers think it is a good or great idea to buy entirely online. And with Accelerate My Deal, consumers can complete even more steps online, speeding up the deal for everyone.*
When shoppers enter their information into Kelley Blue Book® My Wallet it’s automatically transferred into the Accelerate My Deal experience. Accelerate My Deal leads on average close at a 48% higher close rate compared to other internet leads helping dealers get more highly qualified leads and boost their profits.** My Wallet gives shoppers a personalized shopping journey and Accelerate My Deal moves the shopper from journey to purchase.
Want to transform digital retailing with a truly connected, end-to-end experience for consumers? Click here to learn more about My Wallet today.
*2022 Car Buying Journey Study
** Cox Automotive Product Analytics. Accelerate My Deal Lead to Close Analysis using VinSolutions sales data. Data from Jan 2020-Nov 2020. Analysis performed January 2021
Summary: Kelley Blue Book® My Wallet, a personalized shopper tool on Autotrader US and Kelley Blue Book, will now be automatically integrated into all Dealer.com dealer websites. Learn more about this exclusive lead-driving tool.
