After taking in the results to Cox Automotive’s annual 2022 Car Buyer Journey Study, it was clear that the impacts of digitalization were not only being felt by today’s consumers, but should ring a loud sounding bell for dealerships and OEMs alike to reexamine and reinvent how they do business online.  

Some of the results from the over 10,000 auto shoppers surveyed were a surprise, while others were something our industry had predicted to see continue to trend. But whether a surprise or a given, the undercurrent sentiment of today’s consumers’ wants, needs and preferences all pointed to 3 specifics things.  

Together, let’s take a different look at your business and marketing plans, and consider the 3 ways successful auto dealers are reshaping their current and future digital strategies to stay profitable and stand out to their ideal customer as the one to do business with. 

#1:  Online research – An opportunity to capture and recapture 

With inventory shortages being a headline last year in our industry, it probably isn’t a surprise that auto shoppers had to spend more time online researching when it came to purchasing their car.  

Thankfully, inventory challenges have started to ease, but we’re still seeing fluctuations within the industry. Some dealerships still have little to no inventory, while on the other hand others with a flip of a switch suddenly had a full lot at the end of last year. And still, many dealers are struggling to keep a consistent inventory of cars that have the packages and features their consumers actually want.  

One other important thing to note is that the number of vehicles available, especially new vehicles, is still much lower compared to this time just a few years ago. For that reason, cross-shopping activity has grown within the last year and brand defection is happening at heightened rates.    

This presents an opportunity to gain and stand out to new customers, especially if competitors aren’t putting the needed focus and investment into retaining their customers.   

  64% of buyers considered both new and used vehicles, 

which is up significantly from 55% in 2021  

Today’s auto shopping experience has become less about finding the perfect vehicle, and more about finding any vehicle that ticks some of the boxes and fits within a consumer’s budget with increased interest rates and reduced manufacturer incentives.    

It’s time to reset your CRM 

Seeing that consumers showed less loyalty to dealerships and brands in 2022, especially new vehicle buyers, moving forward this will be an important segment of car buyers dealers should focus on and win-back. Staying alongside and in-front of them will take on an even more important role at the dealership over the next few years. 

Traditional cadence vs. Needed cadence: Take the time within your CRM system to really look at what cadence and automations you currently have set up. Timelines have shifted due to inventory fluctuations, interest rates and doing more of the deal online – so the old ways of mapping things out in 7 day, 10 day, 30 day, 60 day, 90 day and so on may no longer be relevant.    

You’ll have to set different timelines and different funnels depending on the shopper’s or previous customer’s situation, and you should be fast-tracking and educating the ones that are actively communicating with you what the possibilities are.   

Lease Customers: In your CRM, don’t just rely on the OEMs automated lease notifications to your customers. It’s important to elevate your spotlight on these customers. They might need a different interval and set of communications based on if your brand isn’t really offering attractive lease incentives or if you know that you’ll probably still be facing some inventory challenges when that customer comes off lease. Remember, many lease customers were originally captured due to the attractive pricing, or having a new car every few years that is worry free.  

Activate your CRM by reaching out to them well ahead of the normal curve, say 9 months before, educating them on the situation now, what they’d most likely face, and remind them of the advantages your brand and dealership offers. That way if they’d like to stay in a lease – great! You can pre-order a car or ensure one will be available for them. Or… if they want to buy but need help planning for financing options – you can help facilitate and ensure you keep them as a lifetime value client.   

Remember – there is extreme financial value in lifetime value clients, and you don’t want to lose their loyalty or have them cross-shopping if you can be proactive with your CRM and stay alongside and in front of those clients.  

Content influences vehicle choice 

Let’s face it, customers are less likely to find their first-choice vehicle, so they do have to look for alternatives. With more cross-shopping, consumers are more reliant on content to help influence their vehicle selection.   

69% of new car buyers who changed their mind 

during shopping cited content as the most important factor 

for learning about other brands and vehicles   

For example, a Honda loyalist may be searching for a Honda Accord. If Honda currently has a lean inventory level, a Honda loyalist may have to cross-shop. Let’s say online content appears for a Hyundai Sonata during their research. They would have to gain more familiarity of the other brand, make and model, and determine if a Sonata is the right choice.   

This is why content is crucial to cross shopping. You should be frequently evaluating not just how you show up to your current customers or consumers that already know about your brand, but also the frequency and way you show up to your competitors’ customers. Make sure you know the wants, needs and preferences of today’s auto shoppers, and tailor your content accordingly. 

Videos: There have been significant shifts over the last 2 years. And it’s not surprising to see online videos move up in the rankings, now in the top 3. In particular, we found online test drive videos from an expert to be significantly more influential. Content like a test drive video allows consumers to engage in immersive digital experiences, especially as the purchase process moves more online.   

Testimonials: Consumer ratings and reviews remain at the top of the list as well. Gen Z and Millennial buyers like to see and hear what others think, and let that help shape their interest and opinion. Remember, in an “Amazon” world we’re used to leaning on what another consumer experiences after the purchase, and you should be frequently highlighting this is your digital content. 

 

#2 – Car shoppers prefer online purchasing – have options  

In today’s digital world, it also probably doesn’t come as a shock that there is continued growth in consumer preference for completing most, or all, of the auto purchase experience online with the dealer or retailer. 

 68% Say they will do most or all 

of their vehicle purchase process online in the future

80% Think it’s a good or great idea 

to buy entirely online  

Where they are vs. where they want to be: Today, shoppers continue to show enthusiasm towards doing more parts of their shopping journey online, and they are still indicating that they want to do even more online in the future.   

68% of shoppers say they would do most, or all of their purchase process online in the future, which is higher than ever before. But even more important to note is that 4-in-5 consumers think it’s a good or great idea to buy entirely online. It’s time for you, as well as our industry, to prepare to meet consumers where they are today and where they plan to be in the future, which is online.  

Look at what digital retailing capabilities you have today and map out which ones you will need to adopt over the next few years. And remember, just because you build a “Field of Dreams” does not mean the consumer will just naturally come. You have to make sure that your marketing strategy includes educating and demonstrating to the consumer you have the capabilities they want and are willing to show them how to use them. 

Highlight the benefits of online car shopping: The good news is that transacting digitally is a win-win for both consumers and dealers. The benefits recognized by consumers are largely time spent on a whole purchasing a car and pricing.   

But it’s important to remember that although consumers recognize time saved at the dealership and overall efficiency as the top benefits of digital retailing, it’s still a newer process for them. Buying a $25 item online is quite different than buying a $40,000 car in their mind.  

So be sure to highlight that the differences aren’t as big as they think and that purchasing a vehicle online has the same benefits they’re looking for in their other digital interactions: seamlessness, less friction, saving time and better price transparency.  

A better car- buying experience and higher customer satisfaction: Digital retailing can and should lead to a better buying experience overall for the consumer, and you should be making sure your customer knows this with your marketing strategy as well as in-store experience.   

A recent Cox Automotive study compared “Mostly Digital” buyers (those who did at least 50% of their purchase process online) to “Light Digital” buyers (those who did 20% or less of their purchase process online). The results found that “Mostly Digital” buyers are more likely to be satisfied with price, time spent, and overall experience.  

Most importantly, it uncovered that “Mostly Digital” buyers tend to be more loyal to the dealership and brand. So make sure that your strategy includes options and optimizations for these customers as the segment will only continue to grow. 

Bridging the online experience into an in-person dealership experience should not only include a strategy, but at this point be a consistent pillar of focus on how you do business. Make sure the experience online seamlessly blends into that same amazing experience they get in-person, and that they everyone is able to pick-up the deal wherever it was left online.  

#3 – Connect and reimagine your dealership’s digital retailing capabilities 

Consumers recognize the benefits of digital retailing… and it’s safe to say that dealers do too.   

In the annual Car Buyer Journey study, we asked dealers what they’ve been doing with their digital retailing solutions since 2020, Many of them remain happy with their investments, with 87% saying that digital retailing has had a positive impact in at least one area of their business – time, ease and efficiency being the top areas, but also sales, profit and their relationships with their customers.   

H3: A closer look and self-audit: All dealers evaluate how they would rank the top reported positive impacts listed on the graphic above, especially noting the consumer and dealer advantages of: time spent on deal, ease of completing the deal, staff efficiency, and customer relationships. 

If you were to have your new sales staff, or some of the other newer staff, run a 360-degree audit for you going through all the steps of the online purchase your dealership offers using what digital retailing tools you have, how would they report back to you on time spent, ease, efficiency, and the relationship / experience on a whole?   

How to audit your dealership’s online car-buying process: 

– Have your sales staff initiate a purchase process and time how long it takes from beginning to end. 

– Ask them to note what was hard to do, and what was easy to do online. 

– Make sure to ask them to be aware if they were retargeted at all when visiting other sites, if you have those capabilities enabled.   

 – Have them test the ease or uncover any bottlenecks you might not be aware exist during the end-to-end purchase process: research, discovery, scheduling a test drive, financing, etc. 

– Ask them to do part of it online and see if one of your existing sales staff knew exactly where to pick up in-store – rate congruency and if the experiences matched. 

 – Remember, the advantage of having newer employees complete this audit is they still have a bit of a zoomed-out lens and will spot things that the older staff are just “used to” as a way of doing business. Lean on them to give suggestions and offer examples that work on other sites. 

 By consistently doing this 360-degree online audit monthly, or quarterly, and looking at your competitors in these same categories, you’ll have a proactive strategy to capture more of your ideal customers’ attention online. You’ll also be able to funnel them faster through the deal increasing satisfaction and improving your odds of gaining or retaining the sale. 

Additionally, you’ll be able to form a blueprint of the capabilities of your current online digital retailing tools and strategize the tools you’ll need to add in order to provide the full eCommerce experience in the future. According to our research, when it comes to deal-making capabilities, consumers have high expectations of what they can accomplish on dealer websites in terms of digital retailing milestones. So make sure yours are mapped out and easy to find.    

Know what your customer wants, needs and prefers digitally: In today’s times, you need to know your customer, know your business, know the experience you offer your customer, and make sure that your digital retailing tools are working for you!  

This should be aligned with your business and regional goals. For example, a dealership in rural Iowa will have different consumers than that of Laguna Beach, California.  Take a deeper look at what your customers and consumers want when it comes to an omnichannel and an ecommerce experience. Then make sure you build and work around what their preferences are today, as well as plan to build it for the future when it comes to your digital retailing and online capabilities. 

New car pre-order: Dealers and OEMs should also be focused on a consumer’s interest in, and increasing appetite for, new car pre-order. By reevaluating how your brand and dealership not only handle it but promote and educate around it online during the entire car buyer journey, you can reinvent your marketing strategy to include this growing capability and demand. 

With today’s continued fluctuating inventory, coupled with the rise in consumers saying they want to and are willing to complete new car pre-order now, and in the future, it should be a larger focus of your online and digital retailing strategy for years to come. But remember, this is still “new” to many consumers, and you must educate and assure them of the benefits, as well as show them how it’s successfully done online. 

For the road forward 

By understanding what today’s car shoppers’ wants, needs and prefers are, you’ll be able to strategize and capitalize on the digital opportunity for growth. It’s time for dealerships to re-examine their marketing and business strategy to connect and extend their capabilities to attract in-market auto shoppers as well as retain their existing customers. 

By implementing the 3 ways listed above into your strategy, you will not only have reimagined a more profitable way to run and operate your business, but you will be aligned with where consumers are headed currently and in the future. 

Autotrader provides you with qualified leads for people that want cars. We have the data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads and delivering a 35% higher gross profit on average. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine. 

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 and to stay a step ahead and successful in today’s marketplace.  

Everyone in the auto industry knows that the past year presented several hurdles for auto dealers to jump over, one after another. Inventory was low, buyer behaviors and our industry were still rapidly shifting, and the world was dealing with some pretty big macro-economic challenges. 

In order to continue to drive profits and growth, even with all of the recent twists and turns, today’s successful dealers have learned that it’s time to leverage the brand you’ve already worked hard to build, the traffic you already have, and the reputation you’ve created in your community, state and possibly nationwide.  

How can you take a fresh approach to maximize what you’ve worked hard for not just over the last few years, but for as long as your business has been in business? By getting back to the foundational elements we’ve outlined in the 4 ways below to help you expand your business and drive more sales in the coming year. 

Build off your existing brand strength 

Many dealers think that in order to stand out to their ideal customer, especially in a heavily online digital world, they need to make or create a new brand – specifically when it comes to eCommerce.  

But they don’t… And you don’t have to!

The more that you can leverage the strength 

 of what you’ve been doing for years – 

the more you have a chance for success in connecting 

with your ideal customer and driving sales. 

Did you know, on average it takes 2 – 5 years to establish a business and branding according to Forbes, and the cost can be anywhere from $40,000 to $500,000 depending on your brand and the upfront costs you will have? And that’s just typically the sticker price in the first year.  

So instead of spending that money to build a “new” brand, why not build the brand you already have? 

Examples of this would be Disney + or Discovery +. Both kept the brand, kept the name, kept the recognition, kept the strength and offered an ecommerce product. There is strength in your brand – you’ve spent a lot of time and money on your brand – the key is to modernize it. 

Build off the traffic you drive from the whole experience 

Next let’s look at the traffic you already generate…  

Website Traffic: You already have a website, there is no need to scrap it and build an entirely new one. The key to modernizing it is to make it more robust!  

Things like UI and UX design for ease of use and user functionality, SEO optimization, CRM / database integrations and solutions, chat bots or AI assistant automations, and easy to search and find inventory with updated, comprehensive and transparent vehicle listings… And the list goes on!  

Start the year off right by taking a 360 degree look at how you can modernize and maximize your existing website and traffic. 

Local Traffic: You have spent ad dollars over the years to generate traffic to your business and to be recognized within your community. Whether you’ve been in business for just a short while, or for decades, it’s important to capitalize on that traffic as well.  

Chances are, you are most likely well known in your community and region as the “local” dealership. You’ve invested in and sponsored everything from print and web ads, radio spots, little league teams, fundraisers, and so on over the years within your community. And with that recognition you have, it can drive even more traffic.   

Optimize and build a modern strategy around your community traffic and look at how you are positioning yourself both in your showroom and service center as well as online as your community go-to. 

By building off the website and local traffic you’ve built since your dealership first opened its doors and first used your website to drive business, you’ve already paved the way for giving the consumer the whole experience.  

The Whole Experience: What do we mean by whole experience? We mean that even before car shoppers step foot in your dealership, they know what your brand stands for and they know what kind of experience they can expect to have by doing business with you. This not only will lead to higher consumer satisfaction, but also increased traffic and sales. 

In order to drive traffic and bridge a seamless experience both online and in-person, be sure to ask yourself the following questions and make sure you have a plan aligned within your dealership for each car shopper you connect with: 

– Did you make the online / ecommerce experience easy for them?  

– Were you transparent in your current offerings for new and/or used as well as sale and service specials or incentives?  

– Did you stay in front of them with personalized content based on what they showed you online they wanted and preferred?  

– Did you make it easy for them to find you, connect with you, and know what steps to take next? 

– Did you make it clear why they should do, or continue to do, business with you? 

– Once they showed up, did you show that based on data from their online research or interactions captured, you knew what their preferences were?  

– Do you offer them something they can’t get somewhere else, and is that differentiator clear to them?  

– Did you save them time and truly understand and shape their buying experience around what they wanted and preferred? 

– Do you make the experience you offer a notch above any competitors, so that they wanted to not only buy or service a car, but to only do business with you both now and in the future?  

As you see, it’s important to take another look at the traffic you’re already driving and build off of those foundational elements it in order to drive sales. Look for new ways to give potential and existing customers an experience online, as well as in person. And by optimizing and modernizing what you have worked hard to already build, you ensure a more seamless whole experience we know today’s car buyer is looking for.  

Build off the reputation you’ve worked hard to establish and protect 

Most dealerships not only work hard to establish a reputation, but also spend countless hours protecting it. And when you have a mapped out digital retailing and eCommerce strategy in play, it can help you build off that reputation and both protect and preserve it as well.  

With digital retailing tools you have the ability to stay in front of and alongside your ideal customer and existing customers. You can show and remind them why they should do business with you, or why they should still do business with you. You can show what makes your auto dealership stand apart to give better service and put their best interests first. You can show them why you have the reputation you are known for. 

By getting your operations in line and building a strategy from the top down on what your brand reputation stands for, you’ll have the ability to let that shine through online in your eCommerce marketing digital retailing efforts. When you do this, you’ve just leveraged a winning formula for building off of your hard earned and preserved reputation. 

Especially if that unified messaging and experience extends to when they first walk on your lot. The pre-existing or perceived reputation, combined with their online and in-person experience, builds and adds to your reputation, as well as your profits when they are the same. 

Build a brand between sales, service and operations  

By focusing on getting your dealership in-line from the top down, you’ll enable your sales – service – and operations to work in sync towards a unified goal. 

That goal should include what your brand stands for and how each department works alongside and with each other to drive sales and repeat business. This may seem obvious, but it often gets overlooked. There’s a big difference between only addressing it when reacting to a situation that could affect your brand negatively vs. being pro-active to build. 

When you connect all of the departments on over-arching goals, you’ll also have the opportunity to optimize your existing digital retailing and eCommerce abilities, online paperwork, test drives, and delivery. Everything that goes into a sale, gaining or retaining a customer, or winning back a previously defecting customer. When these dots are connected for everyone at the dealership, it ultimately helps your brand stand out as the one to use. 

Remember the more you offer, the more you educate, the more unified you are in your dealership experience and brand, the more you can make deals happen earlier in the car purchasing funnel.  

Your dealership should also decide what you can do beyond the purchase in order to drive loyalty. Truthfully look at how you differentiate yourself from your competitors in terms of what you do and offer, items such as warranty and service and your unique offerings. Make sure everyone at your dealership knows what those differentiators are and include them in your eCommerce strategy core messaging to help your brand stand out. 

You should also take the time to honestly think about and assess how your staff from each department are trained and informed / updated on your current marketing strategy and goals. By doing this on a regular basis, your in-store experience has a greater possibility of matching your online experience, and customer satisfaction and sales will benefit. 

If that doesn’t match, the customer is not likely going to be happy. And your brand will suffer, as discord and disconnect will be felt. You don’t want to lose the chance you worked hard for.  

A good place to start with your teams is with education and training on current and trending customer shopping behaviors and expectations, as well as ensuring the experience you gave online is the same experience a consumer receives in person as well, if not better.  

When you make sure your sales – service – and operations are all leveraging your brand, traffic and reputation in your online digital retailing and eCommerce marketing strategy, and map out how that bridges into your dealership, you’ll not only drive more quality leads, but you’ll close more deals. 

For the road forward 

In this transformed automotive industry world, Cox Automotive truly has the complete tech stack you need based on where your dealership and brand are both at and headed without the overwhelm. Whatever your goals, we can help you get there faster and to stay a step ahead and successful in today’s marketplace.  

Autotrader provides you with qualified leads for people that want cars. We have the data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners. Because in today’s times, a trusted partner like Cox Automotive can help your brand stand out to your ideal customers. 

Autotrader not only drives quality leads but delivers a 35% higher gross profit on average. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine. 

All of us at Cox Automotive are here to not only here to help you succeed, but we’re here to help you for the drive forward, especially when it comes to developing your winning marketing strategy in the coming year. We invite you to connect with us to take a deeper look into ways to capture, connect and activate your data to make it more efficient and effective to drive both leads and business, to help you build upon what you have already worked hard to build.