Tag: Best Practices

Elevate Your Digital Marketing With Five Essential Insights From Cox Automotive’s Car Buyer Journey 

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Gaining insights into auto industry best practices is crucial. Understanding the car buyer’s journey is an essential step for automotive marketing professionals looking to drive engagement and boost sales. The 2023 Cox Automotive Car Buyer Journey study has provided a wealth of information that can significantly enhance your digital marketing strategy. Here, we distill the top five insights and actionable steps you can take to elevate your efforts. 

1. Vehicle Ownership is Not Going Anywhere 

One of the most eye-opening findings from the study is that vehicle ownership remains a priority for most consumers. An impressive 91% of consumers intend to use their own vehicle as their primary mode of transportation in the future, a significant increase from 77% in 2018. Additionally, fewer consumers believe ownership is unnecessary, with this belief dropping from 43% in 2018 to 35% in 2023. 

Actionable Steps: 

  • Highlight the benefits of vehicle ownership in your marketing campaigns. Emphasize the control, convenience, and safety personal transportation provides. 
  • Create content that reassures potential buyers about the value of owning a vehicle, especially in a post-pandemic world where safety and personal space have become paramount. 

2. Satisfaction with the Shopping Journey Increased 

Consumers are increasingly satisfied with their car-buying journey, both for new and used vehicles. Satisfaction for new car buyers has risen to 73%, up from 70% in 2022. Similarly, satisfaction for used car buyers has improved to 68%, up from 58% in 2022. 

Three key factors contributed to this rise: better vehicle selection, with only 39% feeling there was limited inventory in 2023 compared to 56% in 2022; better prices, as although prices remain high, dissatisfaction decreased slightly from 54% in 2022 to 49% in 2023; and increased dealer outreach, with more consumers reporting being contacted by dealers with appealing incentives or deals (17%, up from 14% in 2022). 

Actionable Steps: 

  • Ensure your inventory is well-stocked and diverse to meet various customer needs. 
  • Train your sales team to reach out proactively with personalized deals and incentives. 
  • Enhance your digital presence by showcasing your inventory online with detailed descriptions and competitive pricing. 

3. Improved Online Efficiency 

Shoppers are spending less time overall on the car-buying process. The time spent shopping decreased by 1 hour and 8 minutes, from 14:39 in 2022 to 13:31 in 2023. This shorter window means you must be more strategic and targeted in your interactions. 

Actionable Steps: 

  • Optimize your website for quick, efficient browsing. Ensure it’s mobile-friendly, fast-loading, and easy to navigate. 
  • Use personalized marketing to keep shoppers engaged throughout their journey. Leverage data to deliver relevant content and offers at each touchpoint. 
  • Utilize third-party sites: Consumers trust these sites for unbiased information. Make sure your listings and reviews on these platforms are up-to-date and positive. 

4. The Retailing Experience was Top Notch 

Satisfaction with the overall shopping journey surged in 2023, with overall satisfaction jumping from 61% to 69%. Satisfaction with dealerships increased by 10%, and 21% rated their experience as better than their last purchase. Several factors contributed to this improvement, including heightened vehicle availability, the return of incentives, and a shift toward a more digital process. 

Actionable Steps: 

  • Encourage enhanced lead submissions: The more detailed the information you gather from potential buyers, the better you can personalize their experience. 
  • Invest in digital retailing tools: Provide a seamless experience between your online platform and in-person dealership interactions. 
  • Promote your inventory effectively through digital channels, ensuring that high-demand vehicles and deals are prominently featured. 

5. Digital Retailing Continues to be Highly Beneficial 

Consumers are increasingly leaning towards an omnichannel experience, seamlessly blending online and in-person steps to create a more cohesive and integrated shopping journey. This approach allows for greater convenience, flexibility, and personalization, catering to the diverse needs and preferences of modern consumers. 

Actionable Steps: 

  • Offer multiple buying pathways: Allow consumers to choose how they want to interact—whether online, in-person, or a mix of both. 
  • Ensure seamless transitions: Make sure the deal carries forward smoothly, regardless of whether the customer starts their journey online or in-person. 
  • Focus on customer satisfaction: Modern dealers who prioritize a seamless, omnichannel experience see significant payoffs in consumer satisfaction and profitability. 

Ready to Take Your Digital Marketing to the Next Level? 

The insights from the 2023 Cox Automotive Car Buyer Journey study provide a roadmap for automotive marketing professionals to enhance their strategies. By implementing these top five takeaways, you can ensure your digital marketing efforts are more effective, engaging, and ultimately, profitable. 

For a deeper dive into these insights, download our top five takeaways and start transforming your digital marketing strategy today.

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. 

Dealer.com + ActivEngage Partnership

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Integrated Messaging Software for Unparalleled Customer Experiences

ActivEngage Messaging Software revolutionizes your website by effortlessly integrating live messaging, providing endless opportunities for customer engagement. This integration goes beyond the surface, as it is intricately woven into the entire Cox Automotive suite of web applications and services, ensuring a comprehensive approach to digital customer experiences.

Imagine your website visitors being warmly welcomed by well-trained experts around the clock, offering personalized assistance and guidance. With ActivEngage, there’s no need to worry about frustrating chatbots or impersonal automated responses. Each interaction is managed by highly skilled professionals, guaranteeing a fulfilling interaction experience for every shopper. Get ready for unmatched engagement possibilities!

Interested in learning more? Contact us: www.dealer.com/contact/

Enhance Your Digital Marketing Strategy: Key Insights from the 2023 Car Buyer Journey 

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The automotive industry is constantly evolving. To keep up with the changing demands of the industry, the annual Cox Automotive Car Buyer Journey (CBJ) allows dealers and OEMs to stay informed about the state of car buyer satisfaction with the overall vehicle shopping and buying experience.  

The 14th annual Car Buyer Journey study was released earlier this year, based on nearly 3,000 respondents who purchased or leased vehicles in the previous year. It sheds light on two significant points: 1.) The industry is NORMALIZING, and 2.) Dealers and third-party aggregators are RESILIENT.  

While we all might define ‘normal’ differently, particularly because of inflation, record profits, inventory fluctuations, and rapid digitization, we may finally be transitioning from those not so ideal times into a more stable place. The CBJ findings mark a turning point. 

Let’s explore the top 5 takeaways from the study and how they can contribute to enhancing your digital marketing strategy.  

#1: Vehicle Ownership is Not Going Anywhere  

91% of consumers told us they intend to use their own vehicle as their primary mode of transportation in the future, up significantly from 2018 (77%). With ride sharing and vehicle subscription trending in the last 5-8 years, there were predictions that consumers were moving away from personal ownership. However, we’re seeing the opposite.   

With personal transportation needs rising due to personal safety concerns since the pandemic, we see personal vehicle ownership is here to stay.  

Fewer consumers agree that ownership is NOT necessary (down from 43% in 2018 to 35%). And, nearly all consumers tell us they intend to leverage their own vehicle as their primary mode of transportation in the future (91% vs. just 9% who plan to use an alternative).    

WHAT TO DO: It’s more important than ever to enhance the customer experience – with personal vehicle usage up and the desire to own more than one car. In fact, there was a 36% increase in the number of buyers motivated to own more than one car in their household from 2022 to 2023. Ask yourself: 

  • What re-targeting campaigns are in place to retain your existing customers?  
  • What advertising strategy do you have in place to attract new customers? 

Leverage your CRM and activate your first-party data. Reach out to consumers in their preferred method and follow up with past customers to ensure they know how much you appreciate their business.  

#2: Satisfaction with the Shopping Journey Increased  

Overall satisfaction with the shopping experience is higher for both new and used car buyers: 73% for new (70% in 2022), and 68% for used (58% in 2022). The increase was influenced by three factors: 

  1. Better vehicle selection. Fewer consumers felt that there was limited inventory to choose from—39% in 2023 compared to 56% in 2022. 
  1. Better prices. 49% of consumers said prices were higher than expected in 2023 compared to 54% in 2022. However, these numbers are still significantly higher than they were in 2021. This indicates that affordability is still a pain point and even more so among the price-sensitive used buyers.  
  1. More dealer outreach with good deals. There’s been a significant increase in the number of consumers who mentioned that a dealer contacted them with some appealing incentives or some type of deal – 17% compared to 14% in 2022 and 12% in 2021.   

WHAT TO DO: It’s no secret that as inventory rebounded, so did shopper satisfaction with the overall purchase journey – now, with incentives rolling back in, ensure you are getting the right message in front of the right customer at the right time and in the right way. 

This starts with taking an in-depth look at your digital marketing strategy and focusing on your:  

  • Website: Ensure your website showcases relevant information your shoppers want to see. You have a short window to grab their attention, so your website should be personalized, easy-to-navigate, and data-driven.  
  • Advertising: Ensure you are utilizing the correct channels to target your in-market shoppers and serve them the information they want to see. Dealer.com’s Machine Learning and Real-time Bidding platform can analyze prior ad performance, vehicle detail page engagement, and browsing trends in real-time to ensure your ads are served to the most relevant buyers in your market. 

#3: Improved Online Efficiency 

Shoppers spent 1 hour and 8 minutes less when shopping in 2023 (13:31) than 2022 (14:39) as the experience became more efficient. This time spent means you have a shorter window to influence shoppers during their journey, so you must be more strategic and targeted. Delivering personalized content during the entire purchase process to keep shoppers engaged is crucial.  

Third-party sites have been resilient throughout the pandemic and chip shortage – consumers find them to be trustworthy, reliable, and unbiased. We found in our data that buyers are 57% more likely to visit third-party sites exclusively without having to visit the OEM sites especially among used buyers. 

WHAT TO DO: Take the data and insights you receive from third-party sites such as Autotrader and Kelley Blue Book™ and ACTIVATE them. These insights can be used to personalize messaging to stand out as the one to do business with because you know the shoppers wants and needs and can provide them with the experience they’re seeking. 

#4: The Retailing Experience was Top Notch 

Overall satisfaction with the shopping journey surged in 2023 from 61% to 69%. With inventory levels returning to pre-pandemic levels, your buyers are back heavily shopping your vehicle inventory. Contributing factors include heightened vehicle availability, the return of incentives, and a continued shift toward a more digital process. 

Encouraging shoppers to submit an enhanced lead yields higher satisfaction than a basic lead. In fact, satisfaction with the dealership was 10% higher AND 21% more rated their experience as better than their last purchase in 2023. The more you know about your shoppers, the more you can provide a personalized experience, and in turn, shoppers will be more satisfied with their interactions. 

WHAT TO DO: Elevate customer satisfaction to new levels by promoting enhanced lead submissions from your shoppers. The more shopper information you have means you can foster a more personalized experience that ultimately results in higher satisfaction throughout the buying journey.  

#5: Digital Retailing Continues to be Highly Beneficial 

Buyers are moving toward an omnichannel experience—a mix of both in-person and online steps. The key is to have different ways to buy based on the shopper’s preference, then ensure that the deal carries forward no matter online or in-person. Seamlessness is the name of the game, and the modern dealers that make this the focus of their strategy are seeing some pretty big payoffs in both consumer satisfaction and driving profits. 

WHAT TO DO: There’s ongoing opportunity for improvement in dealmaking processes, particularly with the ongoing shift towards digital retailing. 81% of shoppers surveyed said digital retailing improved the overall buying experience. Consider mapping out the necessary steps for your dealership to embrace a more digital future, while addressing current gaps such as financing. This includes integrating digital retailing solutions seamlessly onto your website and providing comprehensive content to educate customers on utilizing the available tools effectively. 

Adapting to consumer behavior, regardless of economic challenges or industry shifts, is key to staying ahead. By aligning your dealership and digital marketing approach with the desires, needs, and preferences of today’s shoppers, you can provide a customer experience that not only attracts their attention but also leads to successful sales. 

Utilize these insights to elevate your digital marketing efforts and access our latest infographic for a bite-sized overview of the top five takeaways. 

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. 

NADA 2024: A Sneak Peek into Dealer.com’s Website Enhancements  

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DDC_NADA 2023_Digital Storefront

At Dealer.com, we firmly believe the quality of your leads is directly tied to the effectiveness of your website. We are committed to continued enhancement our core solution, ensuring that your digital storefront is: 

  • Designed to deliver results. 
  • Personalized with elements that shoppers expect. 
  • Developed with a mobile-first mindset and optimized for any smart device. 
  • Data-driven, activating shopper insights to enhance the consumer experience. 

At the 2024 NADA show, we’re excited to unveil four enhancements that will significantly boost your website’s performance: 

1. A Modern Shopping Experience  

Consumers crave a smoother online shopping journey when looking for vehicles online. Our new enhancements and updates ensure your website has the latest and greatest technology:  

  • Site Speed Upgrades: Enhancing loading speed for large images and text blogs, ensuring a faster and more satisfying experience. 
  • Simplified Search Results Page: Decluttering the Search Results Page (SRP) for easier vehicle discovery and the ability to scan through more inventory.  
  • ADA Compliance: Improving accessibility to cater to users of all abilities or unique needs. 

2. Recommended Vehicles Widget  

Our recommended vehicles widget uses the Consumer Vehicle Recommendation Engine (CVRE) for a more modernized approach to viewing vehicles. Rather than relying on third-party cookies, our widget identifies a higher percentage of visitors and personalizes displayed vehicles based on their shopping preferences. In cases where vehicle recommendations can’t be personalized for the consumer, the widget shows your featured inventory or new vehicle arrivals.  

Dealers are experiencing a 170% increase in click-through rate by displaying more relevant vehicles.* 

3. New Homepage Designs

Your homepage is usually the first place a shopper will land when accessing your website. With seven new stylistic enhancements, our new home page options will incorporate a modern and effective path for solving their automotive shopping needs.  

4. Mobile Lot Capture Tool

Mobile Lot Capture, a modernized scanning tool, allows dealers to take and upload photos directly from the lot. The mobile-friendly experience includes features like dropdowns for clarity, optimized filters, manual vehicle addition, and sorting functionality. Additionally, the integration of Mobile Lot Capture into Inventory Manager ensures a seamless and streamlined workflow. 

Includes built-in VIN Scanner to enter new vehicles, shoot consistent imagery using the Shot Profile tool and quickly identify and address vehicles missing important information from your Dealer.com website. 

Creating more engaging websites with the dealer and consumer in mind is at the core of what we do best. Visit the Dealer.com booth at the 2024 NADA Show to explore how our new and enhanced solutions can elevate your website metrics and help you achieve more success.  

DDC23-0193_NADA_2024_B_2000x400_ANIMATED_v1_4da04a

*LookerStudio/Google Analytics, VDP Click through rate comparing 5/15 -6/7/23 to after 6/29/23 

See What’s New for NADA 2024

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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 2024 just around the corner, Dealer.com has been working hard to bring you new products and enhancements to the products you know and love. 

Bringing new solutions to our dealers is something we strive for every single year. Here’s a sneak peek of what’s NEW being unveiled at this year’s NADA show:  

  • Homepage Design and Configuration: Modernize your website by presenting shoppers with an updated, modern look and feel to create a more effective buying path. 
  • Mobile Lot Capture: A new scanning tool that allows you to take and upload photos of inventory directly from the lot. 
  • Local SEO Packages: Drive your dealership to the top of the search engine results page to drive more traffic to your website. 

We’ve also made some meaningful enhancements to our foundational tools this year. By updating your processes to incorporate these capabilities, you’ll get the opportunity to deliver the best possible consumer experiences. Some of the enhanced solutions include:  

  • Kelley Blue Book My Wallet + Accelerate My Deal: Deliver a connected, personalized shopping journey for your consumers that allows them to complete more steps online with our digital retail solutions activated across Autotrader and KBB.com listings and Dealer.com websites.  
  • Simplified Dealer.com Search Results Page (SRP): Prioritize the most relevant data points for shoppers to make it easier for them to find and review search results. 

Dealer.com is the only full-service digital marketing partner backed by the power of Cox Automotive—the largest data pool of automotive shopper behaviors in the industry. Our mission is to help dealers create a successful digital marketing strategy, personalize the consumer shopping journey, and maximize marketing ROI. 

These new and enhanced technologies can help dealers like you increase your consumer knowledge and sustain an advantage over the competition to win more deals in 2024.  

Schedule your demo for an in-depth look at these new solutions only being unveiled at this year’s NADA show.  

Where is Automotive Ecommerce Today? 

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Author: Paulo da Silva, VP of Ecommerce Operations

finger touches digital tablet showing car website on screen

The idea of consumers buying their vehicle completely online used to sound like a crazy idea, right? As the automotive industry has evolved—and quite frankly online shopping in general—the desire and capability to buy vehicles completely online has taken the automotive industry by storm. Let’s take Mark. He saw an ad for his dream car, started searching online and found it at his local Honda dealer website. After he personalized his payment, he was able to start the financing process, provided required personal documents, signed a contract, and now his dream car is being delivered to his front door. All this is being done in the comfort of his home without having to engage with dealership staff via phone, email, text, or in person. During this online shopping process, however, support is still always available should the consumer decide to engage with a salesperson from the dealership.  

With this shift in the car buying process, there’s an amazing opportunity for dealers who are ready to supplement and transform their business by implementing true ecommerce into their operations to stand out from the competition. As we define true ecommerce today, it provides time savings for consumers and dealers through automation capabilities, allowing them to complete a full transaction from end-to-end. 

Through research at Cox Automotive, we discovered two growing segments of car shoppers:

  • Efficient Independents: Mostly open to buying completely online in the future and prefer test drives and purchase delivery.
  • Guided Innovators: Have an increased want to start the car buying process online and seek website that allow them to complete more purchase steps online.

75% of these of these two fastest-growing car shopper segments said within the next five years they would buy ENTIRELY online. The shoppers in these segments are forward-thinking and already – do 10 out of the typical 13 car-buying steps online. Preparing for these consumers who will make up most of future car shoppers is crucial to ensuring your dealership is not left behind. 

In this two-part blog series, you will get a glimpse of what we think the current state of automotive ecommerce is, and what dealers should know about what the road forward could look like for consumers buying cars completely online.  

Where is automotive ecommerce today?

Ecommerce is an emerging channel, and we are seeing consumers who want to go through the car buying process entirely online, from end-to-end, with minimal handholding from retailers. The convenience and flexibility that it offers is an attractive option for consumers.

But while industry ecommerce adoption is still in the beginning stages, dealers who want to get ahead of the curve can be strategic by investing where consumers are going to be in the mid to long-term.

Dealers who are ready to embark on this journey need to commit to the long game, so their ecommerce business is built in a way that’s sustainable. If a dealer is expecting 30% of their sales to come from full ecommerce straight out the gate, those dealers are probably not in the position to really start seriously investing. Dealers should strive to be trusted sources as this ecommerce journey continues to ramp up, but need to recognize that the economics of this are going to improve over time. Thus, understanding the importance of getting into the ecommerce space sooner, rather than later, will make the difference between the dealerships who come out on top. 

Why is it important for dealers to execute an omnichannel approach that still involves the in-store experience?

There will be a growing segment of your business that’s going to be truly 100% online and this segment will continue to grow over time. However, through our learnings in 2023 the majority of consumers prefer an omnichannel approach to car buying. Omnichannel is considered that idea of back and forth during different points in the transaction from online to in-store, and often back online again. Omnichannel ecommerce can be a bridge that dealers could use to get more and more experience at guiding consumers from online to in-store at different parts of the journey.    

But omnichannel is also the destination itself. Even when ecommerce is at maturity, we expect the majority of transactions to still involve the in-store experience in some way. This means that the majority of consumers are still omnichannel, and dealers still need to focus on the in-store experience and creating a seamless journey no matter where the consumer finalizes the deal. 

What role do digital retailing tools play in becoming ecommerce ready?

Digital retailing allows dealers to help consumers do pieces of the car buying experience online. Through this process the consumer starts the deal online and can take the deal from a credit app submission to sometimes even a credit decision, but at that point, dealership personnel will need to engage with the consumer to usher him or her through the deal​. So, while technology plays a big role, the digital retailing process is largely supported by a person in the dealership. While digital retailing is not true/full ecommerce, implementing DR tools is a step in the direction of ecommerce. which is just pulling in more and more pieces of the transaction online. 

Digital retailing helps lay the groundwork without requiring major channel strategy shifts because at the end of the day, the consumer still wants to come in to complete the deal so it can mirror the existing in-store approach.  

What other things should dealers be focused on to prepare for the ecommerce road forward?

We will dive deeper into these focus areas in the next blog, but there are three areas dealers should focus on:  

  1. Building trust and rapport through content: Provide content about cars that answers consumers’ questions before they ask.  
  2. Establish a mature review program: Proactively collect reviews, and showcase high-quality, detailed reviews—providing incentives where it makes sense.  
  3. Prepare for a data-intense world: Partnering with companies like Cox Automotive that help uncover the full picture of the consumer.  

These three focus areas will lay the foundation dealers need to fully adopt an automotive ecommerce world. And there are so many benefits of being an early adopter in this space versus taking a backseat approach. These are things that you must start doing today to be ready for what will be an expectation down the road.  

In our next blog, we will walk through the key focus areas. We will explain the value of building an extensive set of positive reviews online, creating relevant content and maximizing your data so you can start working out the process kinks while scale is relatively small. This will ultimately help you appeal to a new segment of customers and reach new markets.  

In conclusion, ecommerce is a preferred pathway for a growing group of car shoppers and dealers should be thoughtful and patient with their implementation of these new tools. It’s important to remember that ecommerce shouldn’t be a siloed part of your strategy. It should be integrated into your existing channels to work cohesively, not with separate teams, brand and inventory. This shift will not happen overnight but is a long-term strategy that will pay off with diligent preparations and consistency.

To find out more about Cox Automotive eCommerce, visit our website here: https://www.coxautoinc.com/solutions/ecommerce/   

Progress, not Perfection. How to Take Your Advertising Up a Notch.  

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Author: Shane Unrein

Advertising SME Blog

Listen, I get it! Staying on top of all-things advertising can be a daunting task. This is a fast-moving space that seemingly evolves daily. From Google rolling out new campaign-types each quarter, like pMax+, to Meta offering verified business checkmarks that help customers feel confident they’re dealing with a legit brand, all these changes affect your advertising in very real ways. We constantly see new advertising capabilities surface that can help dealers reach their customers in what can feel like an endless space.  

However, taking your advertising to the next level does not have to be a massive, time-consuming evolution. It is worth remembering that there is no such thing as “perfection” in this sometimes-confusing space – that is an illusion – we aim for progress! 

Something I’ve learned in my years as Director of Advertising at Dealer.com is that many dealers are only on the cusp of what their advertising strategy can do. Excuse me for taking advantage of a few overused clichés, but there is almost certainly some low-hanging fruit that could mean more traffic on your website and your showroom floor. I’m not talking about reinventing the wheel here or buying a whole social media platform just to change the name to a single letter for the sake of headlines.   

A stale strategy is paramount to failure. But there are steps you can take to beef up your advertising strategy, small things that we can do today can have an impact. 

As we have known for decades, most organisms will grow to the size of their environment, reaching out towards the limits of their domain and then slowing their expansive growth at the edges, becoming rigid – a marketing campaign is no different. Like most successful species, innovative advertising strategies need to be elastic, have room to flex, and be ready to push your boundaries with a diversified media plan.   

Allocating just 8-12% of your monthly advertising budget to evolving your marketing and communications channels can reveal a lot about the topography of your space. You’ll get a better view of what works for you – and what doesn’t – and how much room you have to grow.  Try something new for 45 to 60 days, assess the results, and pivot accordingly.  Avenues that you wrote off a few years ago may prove fruitful, or perhaps a channel you hadn’t considered is now blowing up because of technological strides in targeting or audience capabilities.  

 

Ip targeting

While doing channel discovery testing (which is distinctly different than traditional A/B asset testing) it is important to note that what works for some advertisers doesn’t always work for everyone. And what worked in the past won’t always work in the future!  So many external factors affect the market and buzzy trends tend to capture industry headlines.  But continued and repeated channel testing can often lead to breakthroughs, even on a seasonal basis.  

Why are you not using data?       

In today’s ecosystem, the key to staying in front of high-value car shoppers is with first-party data and audience targeting is the keystone. First-party data allow you to: 

  • Predict Auto Shopper and Consumer Behaviors 
  • Gain Audience Insights 
  • Personalize Content and Advertisements 
  • Define and Map Out the Customer Journey 

First-party data also gives you valuable insights into audience demographics, product-interest engagement metrics, lease or financing options, and service specials, just to name a few. This data also informs us on what customer behaviors are prevalent within an individual’s web activity, which gives you the ability to not only understand more about your consumer but have a clearer picture of how you can effectively reach them at the right time.  These are insights that third-party cookies or purchased list data just can’t compete with. 

 

3rd party data

How many of you are using your own data?  

There are three areas that immediately come to mind when thinking about how to activate the first-party data that you probably already have at your dealership, information you’ve been collecting since the first day you opened your doors.  

Your CRM – This is direct access to your customers’ behavior and can help you with lead management and marketing. Your CRM can be a treasure trove of information on your customers that you can harness to get your message in front of the right people.  

Your Website – Uncover the pages that shoppers have visited on your website, what specific offerings or vehicles they’ve looked at, when they signed up for email specials or price alert notifications, or any of the other ways they’ve engaged with your site.  

Your Email Engagement Strategy – Your consumer emails give you insights into what your target audience engages with. You’d be shocked if I told you most dealers don’t focus on analyzing and activating these insights. You can have a clear picture of what that consumer is interested in so you can use it to tailor your marketing to them and create those critical personalized experiences.  

If you’re already advertising with Cox then you have access to our huge dataset, hyper IP targeting, and cookie-less household addresses. But setting aside just an hour per month to format and upload the info you already have, which we layer onto our own data, can help give a more accurate picture of your customer’s path to purchase, and that’s something we can really use! 

We live in a visual world, now more than ever. 

 

Gosling meme

You heard about Barbenheimer, right? 

Here’s a secret; every agency uses the same providers. Google, Facebook, Instagram, CTV/OTT, etc. are essentially the same platform no matter who is at the wheel. What sets agencies apart is their data – which we talked about above – and the ability to manage creative, especially when it comes to visual mediums like CTV/OTT and Display ads, and creative collaboration is a big part of any successful equation. Fresh, professional-looking creative can make or break the success of a campaign.   

One thing we’ve seen over the years is that, despite best intentions, visual assets often become an afterthought for many clients.  The focus of strategy discussions invariably drifts to campaign budget allocations, search ad copy, or keywords, but these things are slowly disappearing as our world increasingly becomes more bite-sized and visually oriented.  Google’s Performance Max campaign type relies heavily on custom static creative and video messaging, as does CTV/OTT, and Cox’s proprietary audience-targeted display and dynamic remarketing.   

Evergreen Visual Assets – In this new world, it has become imperative that dealers have evergreen assets that act as an anchor for these newer, visually engaging channels.  Crafting an overarching message about your business, that speaks to the customer not about individual products but branding of the buying process, must be the core of these campaigns.  From there, we can build on the message for more seasonal messaging that is more surgical in nature; monthly specials, limited-time deals, or rare inventory, to name just a handful. 

Whether you supply your own custom assets or have our Content and Creative teams build them out, it is important not to let this slip through the cracks. 

Build on momentum.  Finding what works for your business can be uniquely individual. We can analyze broad consumer data to get the broad strokes, but identifying what has worked for your dealership, in your market, is the key to unlocking the inertia within the data.  Using the Email Engagement Strategy above as an example, we can see what types of imagery and verbiage worked well to guide our digital strategy.  Did people respond to a specific deal or phrasing, did they respond to a specific product image or color, or is the market culture focused on a specific topic that is locally relevant?  

Our Barbie meme above show just how much outside “momentum” can affect outcomes. 

With a little coordination, the momentum you get from a well-crafted marketing blast, physical mailer, or even signage can all be reproduced in your digital campaigns, especially as the industry moves quickly towards a more-visual mindset. 

At the end of the day, though, the best way to find success is to test, fail, and test again.  And make no mistake, just because an idea isn’t a homerun this time doesn’t mean we can’t learn from it!  Frequent testing and refinement, combined with continually evolving audience data, is the new normal for digital advertising.