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:
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.
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.
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.
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:
Better vehicle selection. Fewer consumers felt that there was limited inventory to choose from—39% in 2023 compared to 56% in 2022.
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.
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.
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.
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.
Digital retailing is the way of the future for the automotive industry. If your dealership is not implementing digital retailing capabilities during some part of the consumer journey, you could be missing out on leads, and taking money from your own pocket. But not every customer wants the same things from their online experience—they all want options. Our research shows that customers don’t want to follow a prescribed sales process. In fact, 9 of 10 customers prefer a flexible, personalized car buying experience.
However, as the consumer landscape continues shifting, consumers want to do more shopping online. This means dealers must expand their digital retailing offerings to ensure they are not missing out on potential sales. 89% of franchise dealers added at least one digital step in 2020.¹ So if your competition down the road is already adopting digital retailing tools, you’re already missing out.
Whether you are selling cars fully online as the industry bridges towards an eCommerce future or somewhere in between, we have technology at Cox Automotive to help you create a seamless online shopping experience for your consumers.
Digital Retailing VS Ecommerce
There is often confusion when people think about digital retailing and eCommerce. While most people might think they are the same thing, they are different.
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.
The digital retailing process is mostly supported by a member of your dealership staff. 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. Digital retailing can help your dealership:
Increase exposure and reach
Give you the ability to turn vehicles quicker
Increase acquisition and inventory capabilities
Close deals faster – and more profitable deals
Improve customer satisfaction – and referrals
eCommerce involves a fully digital transaction where the consumer begins the deal online. But the main differentiator is that consumers can complete their purchase steps at their own pace while working through the deal all the way through a digital sign for the vehicle to actual delivery to their front door. This fully digital transaction heavily involves automated F&I automation, not dealership staff. In fact, most dealerships have a sole eCommerce team focused on end-to-end digital transactions.
Dealer.com Digital Retailing Capabilities
When it comes to digital retailing, Kelley Blue Book® My Wallet is the first digital retailing touchpoint consumers can have with your Dealer.com site. Dealers can integrate Kelley Blue Book My Wallet, an intuitive tool designed to improve the shopping to buying journey and drive more quality connections between buyers and sellers, directly on your website. My Wallet gives dealers access to everything from down payment, trade-in, and financing information – the data needed to speed up the deal-making process and get more accurate leads.
1.1 MILLION VISITORS HAVE SYNCED THEIR MY WALLET PROFILE ON DEALER.COM2
80% of consumers think it is a good or great idea to buy entirely online.³ And with Accelerate My Deal, consumers can complete even more steps online, speeding up the deal for everyone. When shoppers enter their information into Kelley Blue Book® My Wallet it’s automatically transferred into the Accelerate My Deal experience. Accelerate My Deal leads on average close at a 48% higher close rate compared to other internet leads helping dealers get more highly qualified leads and boost their profits.⁴ My Wallet gives shoppers a personalized shopping journey and Accelerate My Deal moves the shopper from journey to purchase. To learn more about Accelerate My Deal, check out this guide.
“Digital retailing tools maximize a dealership’s marketing strategy by offering a personalized shopping journey to car buyers who want choices on how they shop with dealerships. Over the past few years this digital transformation really gained momentum as consumers searched for more digital tools that help them shop from the comfort of their home by locating vehicles during our inventory shortage, or providing real-time interest rates which dictate what they can afford. The results of the last few years support the fact that you want a multi-channel approach to be competitive, you can attract a broader range of consumers by offering more ways to start their purchase – and you need to have the right tools for your sales team to create the most convenient way to purchase no matter where your customer started. What I would underscore here is that innovative “tools” are part of the formula, but to avoid restarting the customer you need well-trained people and processes to execute and drive the right outcomes.” Brett Pomerantz, Sr. Director – Enterprise Solutions, Cox Automotive
DID YOU KNOW 70% OF SHOPPERS ARE MORE LIKELY TO BUY FROM A DEALER IF THEY CAN START THE PROCESS ONLINE? ⁵
The new age of automotive retail is here, and consumers desire 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 you are slow to adopt digital retailing or at full-force adoption, there’s still advantages. And step by step you can shift to the ecommerce future that’s already staring down dealers and pushing them in that direction.
¹ 2020 Digitization of End-to-End Retail-Study
² 1.1 million visitors sync their My Wallet profile
³ 2022 Car Buying Journey Study
⁴ Cox Automotive Product Analytics. Accelerate My Deal Lead to Close Analysis using VinSolutions sales data. Data from Jan 2020-Nov 2020. Analysis performed January 2021
As more consumers shop online for cars, dealers must maintain a consistent online presence at every touch point of the car buying journey to drive engagement and sales. Dealer.com, combined with Kelley Blue Book and Autotrader, provide unified access to the industry’s most visited consumer shopping site, most trusted vehicle research site, and the premier dealer digital marketing platform.
Nuan Openshaw-Dion and Jessica Stafford share how Dealer.com, combined with Kelley Blue Book and Autotrader is the only connected, end-to-end set of solutions designed to help dealers reach more in-market shoppers and engage them at every stage of the car buying process.
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.
