Category: Blog

Top Ten Tips for Effective Automotive Desking 

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An effective automotive desking process creates a win-win scenario for both customers and the business. Advanced automotive desking software continues to improve the process of structuring car deals. And when you invest in the software, the processes, and your people, your dealership will see the results faster than you’d think. Here, we unveil the top ten tips for effective automotive desking. 

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Know Your Customer 

Great deals for your customers cannot happen without delivering details that matter to their unique situation.  When you’re better able to ive deep into their financial situation, preferences, and buying history via car desking technology that delivers this data, you’re anble to tailor proposals that resonate with their needs and desires. When customers feel understood, they are more likely to trust your dealership, leading to smoother negotiations and higher satisfaction rates. Advanced automotive desking software should help gather and analyze this data, providing a comprehensive view of each customer. 

Leverage Technology 

As you’ve likely seen in your role at the dealership, digital transformation is making advanced automotive desking software a ‘must-have’. This technology streamlines the proposal process, ensuring accuracy and efficiency. By automating calculations and integrating with other dealership systems, desking software reduces errors and saves valuable time. This not only enhances the customer experience but also boosts the dealership’s operational efficiency. Imagine presenting a customer with multiple financing options in minutes, all thanks to sophisticated desking solutions. 

Be Transparent 

Transparency is a powerful trust-builder. Present clear, detailed offers that outline all costs and terms. Customers appreciate honesty and are more likely to commit when they understand every aspect of the deal. Transparency also minimizes the risk of disputes and fosters long-term relationships. Use automotive desking tools to generate transparent proposals that leave no room for ambiguity. Clear communication is the key to customer loyalty. 

Stay Updated 

The automotive market is dynamic, with manufacturer incentives and bank rates constantly changing. Staying updated on these fluctuations is crucial for offering competitive deals. Advanced desking solutions integrate real-time data, ensuring you always have the latest information at your fingertips. This allows you to craft deals that are not only attractive to customers but also profitable for the dealership. Staying informed is a strategic advantage in the fast-paced world of automotive sales. 

Train Your Team 

Although often intuitive, if you have not made training and education a top priority for your personnel, you may regret it. Ensure your sales team is proficient in using desking tools and understands the importance of customer-centric proposals. Regular training sessions can keep the team updated on new features and best practices. A knowledgeable team can leverage desking software to its full potential, enhancing both customer satisfaction and dealership performance. Investing in your team’s skills is investing in your dealership’s success. 

Customize Proposals 

Advanced car desking software delivers personal data that allows you to customize proposals that fit individual needs and preferences for your consumers. With the creation of tailored deals, considering factors like trade-ins, loan terms, and incentives, you have more to offer each individual who walks into your business. This personalized approach not only meets customer expectations but also sets your dealership apart from competitors. Customization is the key to winning customer loyalty in a competitive market. 

Utilize Data Analytics 

Data is the new gold in automotive sales. Utilize data analytics to gain insights into customer behavior, market trends, and dealership performance. Desking software equipped with analytics capabilities can provide valuable information that helps in making informed decisions. By understanding patterns and trends, you can optimize your desking strategies to maximize profitability and customer satisfaction. Data-driven decisions are the cornerstone of modern automotive sales. 

Streamline Processes 

When you’re able to deliver a deal that checks all the boxes for your consumer, you save them time, streamlining the sales process and deal structuring. Advanced desking tools automate various tasks, from calculations to document generation, ensuring a smooth workflow. This not only speeds up the process but also minimizes errors, leading to a seamless customer experience. Streamlined processes translate to higher productivity and better customer service. 

Foster Team Collaboration 

Encourage open communication and teamwork among sales, finance, and management. Desking software with collaborative features can facilitate this by providing a unified platform for all stakeholders. When the team works together harmoniously, it results in cohesive and well-structured deals.   

Prioritize Customer Experience 

At the heart of desking lies the customer experience. Prioritize customer satisfaction by offering a seamless and enjoyable buying journey. Use desking tools to provide quick and accurate proposals, transparent communication, and personalized deals. A positive customer experience not only leads to successful deals but also fosters long-term loyalty and referrals. In the end, a happy customer is the best ambassador for your dealership. 

Advanced automotive desking software like VinSolutions Connect Desking empowers dealerships to master these tips, ensuring a balance between customer satisfaction and dealership profitability. By integrating technology, data, and customer-centric strategies, dealerships can navigate the complexities of desking with confidence and finesse. 

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.  

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

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

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

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

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

Increased Focus on Co-Op Advertising by Dealers 

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

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

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

Shifts in Co-Op Advertising Post-Pandemic 

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

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

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

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

How Autotrader Can Help Dealers Maximize Co-Op Dollars 

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

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

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

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

The Results Speak for Themselves  

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

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

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

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

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

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

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

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

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

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

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

For the Road Forward: 

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

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

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

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

Delivering a Consumer Experience Online – The 5 Key Steps 

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

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

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

#1: Build a Strategy to Capture More Leads  

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

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

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

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

Autotrader sees 29 million unique visitors per month. 2 

#2: Measuring Quality in a Quantity Focused World 

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

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

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

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

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

#3: Connect with Digital Consumers with Powerful Personalization  

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

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

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

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

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

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

Are you leveraging your consumer data to uncover shopper insights?  

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

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

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

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

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

 Kelley Blue Book ® My Wallet Enhancements  

To lead more shoppers successfully through the early stages 

of the shopping funnel and into the buying funnel, 

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

including Payoff Quote, Credit Verification and Lease Configuration tools, 

which will allow shoppers to get more personalized, accurate payment 

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

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

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

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

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

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

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

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

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

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

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

For the Road Forward 

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

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

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

Sources: 

1 2023 Car and Buyer Journey Study 

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