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:
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.
Keep shoppers’ information safe and let them know you take their privacy seriously.
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.
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.
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.
As the majority of us know, there are really big benefits to both having and collecting first-party data for your business. Think of your contacts, your customers, your leads, your website, your insights, your predictions… Everything that you have been collecting since the day your doors first opened and website went live at your dealership.
Your revenue sits in that first-party data. Or more importantly the strategy tied to it. And you can unlock many benefits and advantages by learning new ways of how to activate that data. Especially with a cookieless future quickly approaching on the horizon. In an ever-shifting automotive industry and world, your first-party data will help you stay a step ahead.
When it comes to your business and marketing goals, it’s essential to understand and map out where your dealership or brand is today, and where you’ve set your sites on going. Data can and should be a leading driver to help you successfully do this.
So together, let’s take a closer look at how your activated data can help you stand out to your ideal customer in your marketing efforts, mix-match-modernize your strategy, and help you map out your step by step as digital retailing and our industry bridges towards an eCommerce future.
It’s time to re-strategize how you’re activating your dealership’s data
Part of activating your data is interpreting and acting on the insights, especially when it comes to what your consumer wants, needs and prefers. However, your existing methods of activating your first-party data don’t quite work the same way anymore.
It’s time to revamp your strategy to accommodate the changing landscape of the industry and connect to new shopper insights.
Educate and Demonstrate: Remember, how we do business, where we do business and who we do business with has and will continue to shift. You need to make sure that your marketing strategy includes educating and demonstrating to the consumer you have the cars, service, experience and capabilities they want and are willing to show them how to use them.
Some of these consumers will be existing customers, but they might need reminders of how your business has evolved. And some of these consumers will be part of the heightened 56% of cross-shopping auto buyers who are open to and entertaining a different brand and type of car. Educate and demonstrate the advantages of doing business with you and what makes your brand the one they should choose. They’re new and haven’t had the first-hand experience yet, so give them the virtual experience and highlight hallmark values and experiences your brand offers.
Communicate the Way TheyPrefer: If you’re not communicating the way your consumer prefers, you are definitely missing out on business and probably losing some of your current customers. This year’s Cox Automotive annual Car Buyer Journey Study revealed that for the two growing segments of in-market auto shoppers, their preferences for communication steer them towards who they ultimately decide to do business with.
And what they prefer when it comes to communication is ease, a frictionless experience, and in their preferred method. For many that means texts, having chat available on your site, and instant buttons so they can quickly complete their desired actions.
Shifting Parts or All of the Car-Buying Process Online: Both of the growing segments of auto shoppers surveyed in the 2022 Car Buyer Journey Study said they prefer to buy online – with 75% of them saying within the next 5 years they would buy a vehicle entirely online. They’re a growing target, currently completing 10 out of 13 of the purchase steps online.
It’s an Amazon buying world. Consumers are open to and moving toward being more comfortable with buying high ticket items online, like cars, predominately online as well. Look at what you currently offer with your digital retailing tools and map out what steps you still need to go towards a fully eCommerce future. We have a few suggestions and items to consider when doing that below!
Rome was not built in a day, but it was built brick by brick. And so should your digital marketing strategy – lean the most on your first-party data to be your bedrock foundation and the digital retailing tools you have supporting, feeding and connecting your customers to what they want and need.
It’s time to gear up for the new speed of retail
Digital retailing tools continue to grow and expand how auto dealers do business and plan their marketing strategies. This digital foundation was laid in our industry during the pandemic with the goal of a better shopping experience. As satisfaction levels continue to likewise grow with the online experience, so should your focus on adding more digital retail solutions and capabilities as well as connecting them with your first-party data to help drive your business.
Did you know 70% of shoppers are more likely to buy
From a dealer if they can start the process online?
The new speed of retail is here, and shoppers expect a streamlined, digital experience. So, to help you meet them where they are, it’s important to take a look at where you are.
Whether your dealership is on the low end of the eCommerce spectrum only offering a few digital retailing tools, or are fully automated and full-spectrum eCommerce ready, there are distinct advantages to mixing, matching and modernizing your digital retail strategy. And first-party data should be the core pillar of how you’re connecting it all and moving forward, especially in a cookieless future.
As we touched on before, by alleviating your consumer’s pain points, and activating your first-party data with personalization, you’ll have the ability to not only stand out to your ideal customer and retain existing customers, but you’ll also have the ability to improve your customer’s experience in the following ways reported in the annual 2022 Car Buyer Journey Study. In a cookieless future this is where your revenue will have the ability to grow.
In-market auto shoppers and buyers reported the following satisfaction levels and advantages with transacting online:
88% – Save time at the dealership
86% – Save time with the buying / leasing process
83% – Seamlessness of continuing the online buying transaction in store where they left off
81% – Improved the overall buying experience
78% – Greater transparency with pricing
By connecting your first-party data to your existing and future digital retail tools, you’ll not only give your consumers what they’re looking for, but you’ll set yourself up for increased exposure and reach, the ability to turn vehicles more quickly, increase your opportunities for acquisition and inventory and close more deals. More specifically… profitable deals!
Automotive digital retailing vs. eCommerce: What’s the difference?
There is often confusion when it comes to the differences between digital retailing and eCommerce. While they both start online, that’s where the similarities both begin and end.
Digital retailing helps guide the overall experience for your shopper and saves time for both you and the consumer. Your customers can easily navigate and engage with your website during different stages of their purchasing journey.
Digital retailing: Largely supported by a person at your dealership: There are many steps that digital retailing can connect. For example, the consumer starts the deal online and can take it to a credit app submission, sometimes even a credit decision, but at that point dealership personnel will need to engage with the consumer to walk them through the deal. So, while technology plays a big role, the process is largely supported by a person in the dealership.
eCommerce: A fully digital transaction: On the other hand, eCommerce also begins with the consumer starting the deal online. But the key difference is that a consumer can take a self-paced fashion, working through the deal all the way through digitally signing the contract package and scheduling the delivery of the vehicle. The process is also supported by F&I automation primarily, not dealership personnel. Most dealerships have dedicated eCommerce teams who solely focus on these end-to-end online transactions.
If adding an eCommerce channel isn’t feasible in the near future, digital retailing can still satisfy those digitally savvy shoppers. Consumer research confirms that not every consumer wants the same results from their online experience. In fact, 9 out of 10* prefer a flexible, personalized buying experience. Make it simple for customers to explore the information they are comfortable researching (inventory, trade-in values, financing terms/payments, F&I products) and move the process to the dealership when they are ready.
Aside from leveraging digital retail and eCommerce solutions to provide seamless transitions between digital and physical interactions, training your entire team (not just your BDC) on switching between online and offline interactions goes a long way. You’ll see increased confidence, improved satisfaction and the consumer will appreciate this more personalized and efficient way of doing business.
For the road forward
A cookieless future isn’t as worrisome when you put your first-party data to use. By revisiting your current marketing strategy, mixing-matching-modernizing your digital retailing tools to connect them to your data, and planning everything your dealership does from the top down on how you’ll grow your eCommerce business, you’ll stay a step ahead of your competitors and align your dealership for success in the future.
As technology continues to evolve, activating first-party data is essential for every auto dealer, whether your business is brick-and-mortar or strictly eCommerce. You’ll gain insights into consumer behavior and preferences, improve customer experience, and optimize your marketing campaigns and dollars.
It’s time to start shifting from just collecting first-party data to activating and connecting it. Because when you do, you’ll quickly see the difference it can make for your business to increase conversions and your profits.
Cox Automotive has the most connected and comprehensive view of the automotive industry and offers unmatched data and insights into consumer behavior, automotive trends, and operational best practices. Whatever your goals, we can help you get there faster to stay a step ahead and successful in today’s marketplace.
WWant to hear all the ways to fully activate your first party data? Catch the replay of a unique webinar opportunity with Automotive News hosted by Jade Terreberry and Noah Lee. They’ll share examples of actions you should take now, and outline strategies successful dealerships and OEMs are implementing to make the most of your marketing efforts and dollars. Sign up for the watch webinar.
This month, Google recognized the achievements of top-performing digital marketing partners across the globe by awarding Premier Partner status as part of the Google Partners program.
As the industry’s leading automotive digital marketing agency for dealerships across the United States and Canada, Dealer.com has achieved 2023 Premier Partner status in the Google Partners program.
The Google Partners program underwent significant changes in 2022, including redefining what it means to be a Premier Partner, through advanced program requirements and offering Premier Partner benefits to promote growth and success with Google Ads. In 2023, the program continues to support its Premier Partners and their clients.
“Congratulations to our Premier Partners for 2023. These companies are among the top 3% of Google Partners in their respective countries – including the United States,” said Marcin Karnowski, Senior Director of Ads Marketing at Google. “It’s a true accomplishment, one that signals their leading expertise in Google Ads, in forging new client relationships, and in helping clients grow. We look forward to supporting them as they help their customers build smart online strategies and drive long-term success.”
Dealer.com, along with a select group of Premier Partners in the Google Partners program were awarded this achievement. This program is designed for advertising agencies and third parties that manage Google Ads accounts on behalf of other brands or businesses. Its mission is to empower companies by providing them with innovative tools, resources, and support to help their clients succeed and grow online.
And that’s a wrap for the NADA Show 2023! Thanks for stopping by the Dealer.com booth and demoing our latest innovations.
Dealer.com does more than provide websites, we’re the premier end-to-end digital marketing solution for your automotive dealership. And whether you are current or new Dealer.com customer, now is the time to get started on your digital marketing goals in 2023.
If you did not get a chance to visit our booth, no worries. There’s still an opportunity to demo the new products and enhancements we unveiled at the show. In the meantime, here’s a recap of what we debuted:
KBB My Wallet on Dealer.com Websites
Kelley Blue Book® My Wallet, a personalized shopper tool on Autotrader and KBB.com, will now be automatically integrated into all Dealer.com dealer websites. This means dealers will have even more information on consumers than ever before.
You can get everything from down payment, trade-in, and financing information – the data you need to speed up the deal-making process and get more accurate leads for your dealership.
Local SEO
Take complete control of Search Engine Results Page (SERP) beyond just your organic and paid listings as Google prioritizes local experiences when consumers search for cars. With Local SEO, dealers can promote their dealership and inventory to local car shoppers at exactly the time they are searching for your business.
New Car Customizer
With more consumers shopping online for cars than ever before, dealers must ensure their website has the tools consumers need for a seamless shopping experience while displaying a modernized web design.
Our new car customizer allows shoppers to find the vehicle they are searching for, even when dealers do not have the specific vehicle in inventory.
These are just a few of the solutions we got to share with dealers at the show. Be sure to sign up for a demo today!
To compete in today’s challenging automotive retail environment, you deserve a data-driven partner who helps create a successful digital marketing strategy with innovative tools and technology. With the NADA Show 2023 just around the corner, Dealer.com has been working hard to bring you new products and enhancements to the products you know and love.
Watch this video as Noah Lee shares a few new products and enhancements being unveiled at the NADA Show 2023, including:
• Accelerate My Deal — the industry’s most trusted and user-centric digital shopping experience.
• Local SEO – dominate the search engine results page and get improved dealer rankings for local search terms.
• Automotive Marketing Platform powered by VinSolutions–now available to Dealer.com customers to send personalized, automated marketing across the car-buying journey.
Visit the Dealer.com booth to get a full rundown of all the advanced digital marketing solutions we’ll be highlighting
Having a mobile-friendly website is one that correctly displays on mobile and handheld devices. This makes for a streamlined experience for your dealership staff and online car shoppers when viewing your website. According to Google, w hen web users visited a mobile-friendly site, 74% of people say they’re more likely to return to that site in the future.*
And as the automotive industry moves toward a more digital-first environment, many car shoppers use the internet to shop for cars, so you must make the experience as easy as possible.
Today, many businesses want their website to be fully responsive because it’s essential to have a mobile version of a website. This means the design and development of your website responds positively to the car shopper’s screen size, platform, and orientation.
But at Dealer.com, we use the latest, advanced, mobile-first technology to deliver a user-focused, search-engine-optimized experience when car shoppers visit your site with any device. We mobilize and optimize your site for any smart device.
But you might wonder what’s the difference between a fully responsive website and a mobile-first website.
A Fully Responsive Website
Today, almost everyone has a fully responsive website, meaning the browser will rescale itself to keep the user experience and look and feel across all devices — with no irritating zooming, scrolling, or resizing. Fully responsive websites are also the easiest to implement and maintain and to build a mobile experience at scale. But having a fully responsive website without having a mobile-first strategy does not fully optimize the user experience.
A responsive site only takes the desktop site and makes it mobile friendly. While it can be an adequate mobile platform, it doesn’t optimize for the best mobile experience like a hybrid platform. It also doesn’t account for behavioral differences going from a desktop to mobile device. Just because a desktop site can respond to a device and scale down, doesn’t mean the shopper wants to use a scaled down desktop site.
Additionally, responsive websites are likely to load slower on mobile devices with customized CSS (Cascading Style Sheets) because it loads the website in its entirety. Ideally, users want a mobile experience on mobile device which would require the web-developer to write additional CSS to hide/add elements to the responsive website causing search engines to crawl more code.
Dealer.com takes today’s web site experience a step further and uses a mobile-first approach that allows us to optimize every mobile experience so dealers can render a specific experience to any device.
Why Mobile-First?
Mobile devices are at the forefront of the digital revolution that has taken place in the last decade. According to Dealer.com, 62% of traffic to dealership websites comes from personal devices. That’s why it’s so essential to ensure the mobile experience for your website is uniquely optimized for each user.
We also know that as dealers, many of your sales and service staff use personal and handle-held devices to interact with customers daily.
Google announced that a website’s mobile friendliness would be a new ranking signal for grading websites. So, the more your website can adapt seamlessly from desktop to a specific personal or handheld device, the higher your website is ranked.
Mobile-first technology from Dealer.com works to deliver a superior user experience across every device while controlling each experience from an intuitive dashboard. This allows you to configure every aspect of your website, simplify site updates across devices, merchandise inventory with precision, and deliver digital deals through transparent automotive digital retailing.
Adapted to Every Car Shopper
We’re committed to using responsive technology to build mobile-first, adaptive websites for our clients— the industry’s most flexible website response capabilities. Our technology incorporates the essential parts of a fully responsive website with the ability for device-specific experiences, we are not just responsive or only responsive.
By optimizing each shopper’s experience for device-specific content and configuration, we give dealers more flexibility and customization opportunities than other providers. So, no matter if you’re shopping on an iPad Pro or Galaxy S22, we create a website specifically for each device.
At Dealer.com we believe that designing with a mobile-first mindset ensures every car shopper has the unique experience they deserve.
It’s no longer enough to simply implement digital retailing tools. To be competitive and close more deals, you have to understand the “why” of digital retailing. Why do consumers seek out these experiences? Why do they choose one dealership’s digital retailing over another? And, most importantly, why should you pay attention to consumers’ answers to these questions?
Amanda Hilerio, eCommerce Performance Manager at Dealer.com, recently spoke to dealers about how to take their digital retailing game to the next level. She discussed five talking points to help dealers attract more car sales leads and get the most out of their digital retailing investment.
Consumer behavior trends and the factors affecting consumer decisions
Why you should pay attention to these consumer trends
How to align your processes with consumer trends
Technology integrations that make your processes easier
How to connect your digital storefront to your physical dealership
Watch the webinar to see how your dealership can connect with more dealer leads through your digital retailing experience.
As the automotive sales industry shifts toward offering more digital buying experiences, dealerships need to do more to stand out from the increasing crowd of competition. It’s no longer enough to simply offer a digital buying experience. Your dealership needs to seriously consider how to be different. That means appealing to auto sales leads with a digital buying experience that’s appealing and gives them reason to choose your dealership over your competitors.
B. Malaczewski, manager of Performance Management at Dealer.com, recently spoke to dealers about the importance of differentiating the digital buying process. She offered valuable insight into what motivates car dealer leads to choose one digital shopping experience over another and how you can promote your brand to best appeal to buyers. Key takeaways from the presentation included:
A list of essential and optional steps for your digital shopping experience
How to decide which digital processes are right for your dealership and your customers
Branding considerations that will set you apart from the competition
How to maximize communication on your digital storefront for digital shopping
How to leverage connected Cox Automotive brands to differentiate your dealership online
Watch the webinar to see how your dealership can stand out from the crowd to offer a distinct digital buying experience.
By Katie Wilkins, Dealer.com Senior Director of Product Management
It’s a fact of dealership life today—vehicle inventory shortages will be with us for a while. As you adjust your business strategies, your shoppers are also likely adjusting their plans accordingly. According to a 2022 Cox Automotive UX research survey, 37% of consumers say they are postponing their next vehicle purchase.
That means your website now needs to be more than just VDPs, which today may be leading shoppers to the dead end of a no results page. Your website also needs to include ways for shoppers to educate themselves about alternative vehicle and buying options. Here are a few ways we recommend updating your Dealer.com website to optimize your shoppers’ experience.
Make the “Vehicle of Interest” form easy to find.
We recommend you provide opportunities on the search results page to easily get to a “Vehicle of Interest” form. Adding a banner to the content area on the bottom of the search results page that links to a “Custom Build” or “Find It for Me” form is a straightforward way to accomplish this. If limited results are returned or shoppers aren’t finding what they are looking for, you are giving them an obvious path to next steps.
We’ve seen that dealership websites that have multiple entrance points to the “Find It for Me” and “Custom Build” forms have a higher proportion of their visits reaching these forms. These forms often convert well, with 4% lead submission rates (2022 Cox Automotive UX Research Survey).
To support shopper requests for vehicles your dealership may not have in stock, a new “Vehicle of Interest” form allows shoppers to share details on the vehicle they are looking for. This gives you an opportunity to stay connected with that consumer while you wait for the right inventory to arrive.
Additionally, the Quick Quote tool allows your customers to select their preferred year, model, and color, and register their interest for new inventory. This is another way to generate new lead opportunities not attached to an in-stock vehicle. You can even edit content areas on this page to add frequently asked questions or details on next steps based on your dealership’s process such as the example here.
List vehicles before they arrive on your lot.
Be sure to include vehicles not yet on your lot in your inventory feed, presenting them on your website with an “in-transit” badge. You can also enable the new “in-transit” facet to allow shoppers to specifically filter searches for those vehicles.
Educate shoppers on their buying options.
Remember, you aren’t the only one who is unsure what to do with this low inventory situation. Your shoppers are likely to need some guidance too. Make sure they are aware of all of their buying options by building a page using Page Designer that explains them, like this one. We suggest linking to these pages in the navigation, as well as from the homepage and search results pages.
These paths-to-buy pages should include information on when to choose each path, FAQs addressing concerns (like timeline, price, and what to expect), a contact form, and a phone number. See examples here and here. If you use Dealer.com Managed Content and Creative services, talk to your Campaign Coordinator about campaigns targeted at this issue.
We also encourage you to consider adding chat functionality to your website if you haven’t already so shoppers have another path to contact you for help finding a vehicle. Dealer.com recently announced a new partnership with ActivEngage to give you industry-leading technology, whether you want to manage chat yourself or have ActivEngage’s team of customer engagement experts handle it. Most importantly, remind shoppers your team is there to assist them in finding their perfect vehicle.
