Category: Digital Retailing

Maximize Your Dealer.com Account: Unlock Enhanced Performance with VinSolutions Integrations

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Connect Cox Automotive’s full suite of dealership solutions to elevate customer experiences, improve sales, and exceed business goals.

  • Integrating Dealer.com Websites with VinSolutions CRM allows dealers to capture shopper intent earlier on in the buying journey. This helps to deliver more customized and relevant offers by tracking consumer behavior across Cox Automotive properties.
  • Dealers using both VinSolutions CRM and Automotive Marketing Platform (AMP) can create highly personalized landing pages that enhance customer engagement and dealership relevance.
  • The seamless connection between VinSolutions and Dealer.com Digital Retailing streamlines the sales process by providing real-time shopper activity, automated alerts, and uninterrupted deal workflows from online to in-store interactions.

Generate more online leads with exclusive, connected Cox Automotive proprietary data.

Interested in learning more? Download our infographic:

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Video | Delivering the Digital Promise to Today’s Automotive Consumer 

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Consumers are increasingly relying on digital channels to navigate the car-buying journey—and they’re doing it in a matter of minutes! From comparing financing options to cross-shopping different brands, your dealership can realize a huge portion of potential profits by partnering with a trusted third-party platform like Autotrader.  

In this WardAuto FastChat, industry pros Nancy Dunham, Principal Analyst at Wards Automotive, and Paul Paridy, Sr. Director of Product Marketing at Cox Automotive, discuss how Autotrader’s online marketplace provides a seamless car shopping experience that converts more shoppers to buyers. 

Reach the largest audience of in-market shoppers. Only with Autotrader. 

4 Digital Strategies for a Better Car Buying Experience

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For today’s consumers, few things matter more than experience. In fact, according to research from Dealertrack’s new guide, Build Shopper Trust with a New Approach to Retailing, more than 85 percent of shoppers say that experience matters at least as much as a company’s products or services.

That’s not great news for the automotive industry, where consumers have been unsatisfied with the car shopping experience for decades. Their levels of satisfaction have declined in recent years, with a 7 percent decrease among used car shoppers and a 1 percent decrease for new car buyers between the years 2021 and 2022.

Fortunately, you can reverse this trend and take the customer experience to new heights by digitizing processes to create a happier, hybrid car buying experience.

Adopt a New Digital Mindset

Digitization within a dealership begins with a simple, but essential mindset shift. Stop thinking of digitization as merely a way to close more deals in less time. Instead, view digitization as a way to deepen relationships with customers.

In 2023, 43 percent of dealers agreed that digital retailing creates a more personal connection with shoppers—up from just 25 percent the previous year. Just as significantly, fewer dealers view digital retailing as a barrier to forming personal connections with buyers.

Hot tip! Dealertrack’s digital tools actually encourage collaboration between your customers and your staff – initially online, then later in store.

Don’t Make the Consumer Choose

Given the benefits of online shopping, it could be tempting to force consumers through an all-digital path to purchase. But most car shoppers still want to complete some steps in person and in the dealership.

Even among shoppers that start the purchase process online, 75 percent are interested in working with a dealer to continue the purchasing process in person on a tablet. That blend of online and in-person shopping has become known as the hybrid approach to retailing, and it’s the preferred path of most car shoppers.

Hot tip! Dealertrack DMS facilitates connectivity between sales & marketing, fixed ops, inventory management, accounting, and more, so customer data carries across departments and across customer interactions.

Avoid Online-to-In-Store Repetition

For all its benefits, the hybrid approach has also introduced a new level of complication into the car buying process. As shoppers arrive in show rooms, dealers must now decipher which steps those customers have already completed online.

As much as 97 percent of dealers report having difficulty doing so, admitting that their customers who complete steps online end up repeating them in store. Among these dealers, 46 percent said that it decreases customer satisfaction. For those dealers that do figure it out, the rewards can be significant–93 percent of consumers say they are willing to spend more money with companies that don’t make them repeat themselves.

Hot tip! With Dealertrack, you can allow an in-store shopper to review the personal information they submitted online without having to ask them to repeat steps they already completed.

Implement Digital Processes and Powerful Tools

Prioritizing digital processes within a dealership can ensure a smooth, frictionless experience for customers. But, those processes must be paired with powerful tools that connect the entire car buying process, ensuring the continuity of data between dealership tools and departments. Digital tools can now help shoppers perform research and start deals online, figure out financing, review and sign contracts digitally, and even handle their registration and titling electronically.

Hot tip! Dealertrack’s digital tools, like online credit apps and remote signing, can help your dealership give customers the modern experience they want.

For today’s consumers, experience is everything. To meet the demand for a more frictionless experience, dealerships need to digitize their processes and provide a hybrid experience. To be successful, they will need to examine their workflows through a customer lens, then upgrade their digital tools to make sure every customer leaves the lot happy.

Want to learn more about the benefits of dealership digitization? Download the full guide: Build Shopper Trust with a New Approach to Retailing.

What Shoppers Want: Convenience, Choice and Flexibility 

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As the digital age continues to advance at lightning speed, consumer preferences are evolving just as quickly. Understanding these shifts is crucial in providing an excellent customer experience while driving business success. Based on insights from the Cox Automotive 2023 Digitization of Car Buying Study, it becomes evident that convenience, choice, and flexibility are paramount for today’s consumers, including in the automotive industry. 

Convenience: The Cornerstone of Modern Purchasing 

Consumers today are juggling busy schedules and expect brands to accommodate their need for convenience. In the realm of car buying, this means offering a seamless, end-to-end digital retailing experience. According to the Digitization of Car Buying study, nearly all dealers believe digital retailing positively impacts their business, particularly in customer experience and satisfaction. 

Key Insights: 

  • High Satisfaction: Consumers appreciate digital retailing solutions, with personal connections emerging as a significant benefit. 
  • Seamless Experience: Shoppers prefer a seamless transition from online to in-store without having to repeat information, emphasizing the need for integrated systems that facilitate this. 
  • Frictionless Process: Digital tools in-store enable a frictionless sales process, saving time for both customers and dealers. 

Providing a convenient shopping experience will keep your customers coming back. 

Choice: Empowering Consumers with Options 

In an era where personalization is king, offering a variety of options is not a luxury but a necessity. Consumers want to feel that their unique needs and preferences are being met, and this extends to their car-buying journey. 

Key Insights: 

  • Online Purchase Process: Forty-nine percent of dealers are offering customers the ability to complete each step of the deal online, providing the choice to engage with the buying process in a way that suits them best. 
  • Hybrid Environment: Many shoppers appreciate a hybrid shopping environment where they can start online and finish in-store. Dealers are embracing new tools to enhance this experience. 

When consumers have options, they feel empowered and valued, making them more likely to choose your dealership over others. 

Flexibility: Adapting to Consumer Needs 

Flexibility in purchasing options isn’t just about offering various channels; it’s about adapting to the consumer’s changing needs and preferences. The Cox Automotive report highlights the importance of digital interactions and the willingness of shoppers to provide personal information for a more tailored experience. 

Key Insights: 

  • Personalized Interactions: Shoppers are willing to share detailed information like income, credit score, and vehicle usage data to enable an ideal, personalized experience. 
  • Open Communication: Consumers often reach out to dealers with deal-related questions remotely while preferring to manage the later stages of the deal in person. It’s important be ready for how and when consumers want to engage. 

By being adaptable, you can meet your customers exactly where they are, making the entire buying process smoother and more enjoyable. 

The Value of Multi-Channel Purchasing Options 

Whether it’s through a robust e-commerce platform or digital tools in-store, multiple channels allow consumers to engage with your brand in the manner that suits them best, enhancing overall satisfaction. 

Ecommerce has revolutionized the car-buying process. Consumers can now browse inventory, compare prices, and even finalize deals from the comfort of their homes. This level of convenience and flexibility is invaluable, especially when dealing with high-ticket items like vehicles (read this blog about where we think automotive ecommerce is today). 

  • Enhanced Customer Experience: Ecommerce platforms streamline the buying process, reducing friction points and making it easier for consumers to make informed decisions. 
  • Consistency is Key: Ensuring price and inventory consistency across all channels is crucial. Discrepancies can lead to frustration and a negative customer experience. 
  • Data-Driven Insights: Online interactions provide valuable data that can help improve accuracy and the verification process, ultimately leading to higher customer satisfaction. 

Giving Car Buyers What They Want 

Today, consumers value convenience, choice, and flexibility more than ever. Leveraging these insights to enhance your digital retailing capabilities can lead to significant business benefits. By offering a seamless, multi-channel purchasing experience, you can meet the evolving needs of your customers and stay ahead of the competition. 

Making the buying process as smooth and enjoyable as possible will leave a lasting positive impression on your customers. 

Ready to take your dealership to the next level? Embrace multi-channel retailing and offer your customers the convenience, choice, and flexibility they crave. With Cox Automotive solutions, you enhance customer satisfaction and drive your business forward in this digital age. 

Where Convenience Meets Choice: The Power of Flexibility 

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The online shopping landscape has changed. The era of flexible car buying options is here and dealerships must adapt to meet evolving consumer preferences.  

Across the internet, today’s online shopping experience allows consumers to effortlessly add groceries to their online carts and pick them up at the store or have them delivered. It’s all about choice and convenience, and increasingly they expect a similar flexible retailing experience when shopping for cars. 

As a first step, embracing an omnichannel strategy can help encourage consumers to rethink their car shopping journey. 

At Cox, we define omnichannel as not limiting the shopper to choosing an online or offline experience. A consumer can begin their deal online, take it offline, and even go back online again, moving freely between the two to complete their deal. 

According to the 2022 Cox Automotive Digitization of End-to-End Retail Study, 92% of shoppers say they will complete their next vehicle purchase entirely online or through a combination of online and in-store. 

We see trends toward omnichannel because consumers still want the choice to talk with a person at the dealership to learn some of the cars’ features, do a test drive, and understand their finance options. Regardless of where the purchase starts (online or in-store) or where a deal is completed, retailers need to make the process as efficient, streamlined and fluid as possible.  

Our products and solutions at Cox Automotive allow you to offer the flexibility car shoppers expect. Streamlining the online to offline experience will be key, and preparing your dealership should start today.  

Implementing Flexible Retailing Experiences 

Achieving an effective flexible retailing experience requires careful planning and strategic implementation. Here are some key strategies to consider: 

  1. Use digital and AI-powered tools that provide a single view of the customer, predict what they like based on their behaviors, and extend a personalized experience if they transition into the store.  
  1. Keep shoppers’ information safe and let them know you take their privacy seriously.  
  1. Make shoppers feel more confident by using digital tools in the store. This makes it easier to go over information they’ve already given online and make sure everything is correct. 
  1. Tell shoppers to review financing options on your website. They can pick extras and send in their financial details to get a good idea of the total cost, including fees and taxes.  

Source: Cox Automotive 2023 Digitization of Car Buying 

Ecommerce is an Essential Ingredient 

Looking at retail flexibility as a spectrum, shoppers range from wanting to do everything in-store to wanting to do everything online.  

True automotive ecommerce is a full end-to-end online experience from vehicle selection through to the purchase and even delivery (read this blog about where we think automotive ecommerce is today.) 

The combination of ecommerce—which offers true online checkout—and a flexible shopping experience has created a new model of retail that combines the best of both worlds. In the shift toward ecommerce, it is vital to adapt to online shoppers’ needs, and implementing a flexible retail strategy will increase your chances of success.  

Ecommerce, powered by technology, automation, and machine learning, allows a consumer to complete their transaction at their own pace and to provide the relevant information as needed, whether that’s within the next week or the next month. 

Dealers who are ready to implement ecommerce today are at the forefront of industry innovation, catering to changing preferences, creating a customer-centric shopping experience, businesses can unlock new potential in retail and gain a competitive edge. 

For dealerships who are looking to thrive by offering flexible shopping experiences, an omnichannel approach with the integration of true ecommerce is essential. By partnering with Cox Automotive, dealers can launch advanced functionality to elevate the car buying experience and stay ahead of the curve in a rapidly evolving market. 

Delivering a Consumer Experience Online – The 5 Key Steps 

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

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

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

#1: Build a Strategy to Capture More Leads  

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

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

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

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

Autotrader sees 29 million unique visitors per month. 2 

#2: Measuring Quality in a Quantity Focused World 

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

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

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

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

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

#3: Connect with Digital Consumers with Powerful Personalization  

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

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

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

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

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

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

Are you leveraging your consumer data to uncover shopper insights?  

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

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

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

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

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

 Kelley Blue Book ® My Wallet Enhancements  

To lead more shoppers successfully through the early stages 

of the shopping funnel and into the buying funnel, 

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

including Payoff Quote, Credit Verification and Lease Configuration tools, 

which will allow shoppers to get more personalized, accurate payment 

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

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

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

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

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

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

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

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

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

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

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

For the Road Forward 

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

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

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

Sources: 

1 2023 Car and Buyer Journey Study 

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

TOP 5 TAKEAWAYS FROM THE 2023 CAR BUYER JOURNEY STUDY

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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.

The Cookieless Future has Arrived

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Close-up view on conceptual keyboard - Cookies (red key)

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.  

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

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

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

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

Buzzword #1: CDP (Customer Data Platform)

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

Actions to Take in 2024:

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

Buzzword #2: AI (Artificial Intelligence)

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

Actions to Take in 2024:

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

Buzzword #3: Virtual and Physical Lot

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

Actions to Take in 2024:

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

Buzzword #4: Extended Loan Terms

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

Actions to Take in 2024:

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

Buzzword #5: CPO (Certified Pre-Owned)

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

Actions to Take in 2024:

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

Buzzword #6: Hybrid Retailing

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

Actions to Take in 2024:

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

Buzzword #7: Distance Retailing

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

Actions to Take in 2024:

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

Buzzword #8: Revenue Stream Shifts

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

Actions to Take in 2024:

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

Buzzword #9: OEM Direct to Consumer

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

Actions to Take in 2024:

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

Buzzword #10: New Roles within Modern Dealerships

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

Actions to Take in 2024:

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

For the road forward

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

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

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

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

eBook: How to Increase Your Digital Presence to Drive Sales

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It’s here… The new eBook from Autotrader, Dealer.com and Esntial Commerce. 

In today’s times, it’s no longer enough to just collect data and use digital retailing tools. It’s time to make a step-by-step plan to activate and leverage them to empower your sales, retain customers and increase new business for the digital future. 

With a future of no third-party cookies on the near horizon, layered with a shifted consumer preference of completing more of the purchase process online… It’s no wonder why many auto dealers are struggling with how to stay a step ahead! 

But modernizing your marketing and business strategy doesn’t have to be as complicated as it may seem.  

Find out the new ways to connect with and activate your customer data in order to drive profits not just now, but for many years to come. The new speed of retail is here, and shoppers expect a streamlined, digital experience. Find out how inside our newest eBook. 

ACCESS NOW

By taking a deeper look at the importance of not just collecting data, but learning how to effectively interpret and activate your data, you’ll discover the step-by-step to increase your digital presence to get more deals done. 

Download your copy now.