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.
Author: Paulo da Silva, VP of Ecommerce Operations
In the first installment of our two-part ecommerce blog series, we examined the overarching focus areas that dealers must prioritize to be successful in embracing automotive ecommerce. Let’s take a closer look at what dealers can do today to better position themselves for ecommerce success.
The process of purchasing a car online can be daunting for consumers. This is a huge financial decision that involves emotion, research (According to the Cox Automotive 2023 Car Buyer Journey, third-party sites are their go-to source and usage have ramped up since 2021), and a ton of consideration. But what can alleviate customer concerns with buying online? The answer is TRUST – both in the dealership and the condition and quality of the vehicles you’re selling. Establishing trust and transparency is paramount, considering the significant commitment involved in buying a car online. Unlike adding items to an Amazon cart, purchasing a car is a huge investment for most and holds profound meaning, demanding confidence that the purchase will be smooth, and that the dealership will take care of the customer.
There are three tangible ways to build that needed trust: credible vehicle content, a mature review program, and preparation for a data-intensive future.
As a dealer, you may realize you’re already on the right track, finding success in your current efforts with trust building. Alternatively, this blog might inspire you to accelerate your implementation, discovering that you’re positioning yourself for ecommerce on a smaller scale sooner than expected.
1. Building Trust and Transparency Through Vehicle Content
Emphasize the Crucial Role of Vehicle Condition: Beyond standard photos, consumers are increasingly expecting walk-around and 360 videos to gain a comprehensive view of your vehicles. As it allows customers to view and explore the product in more detail, resulting in a more informed buying decision. In fact, we’ve heard directly from our ecommerce dealers that adding 360 views for vehicles has increased the likelihood of the vehicle being added to their cart.
The dealers leading this charge are taking trust a step further and disclosing all (or most) vehicle blemishes, and detailed vehicle inspections.
Provide robust blemish disclosures: Highlight minor imperfections like dings, dents, and scratches, whether through 360 videos or distinct photos. Customers are demanding this, which further supports the fact that complete transparency builds trust and preempts confusion during test drives or even vehicle delivery.
Complete an inspection checklist: Ensure all your vehicles undergo a thorough inspection process. Customers want to know as much as they can about the vehicle they are purchasing. For example, you can include that the vehicle passed engine testing, muffler testing, etc. The important thing to note is that you must share this information directly on your website because customers want to see it.
List reconditioning completed: Proactively share steps taken to make the car retail-ready after the initial inspection has been done. Provide consumers with a final vehicle report card. For example, let’s say your dealership performed the 100-point checklist of a particular vehicle. Share what your dealership did to address any issues in the report like putting on new tires, replacing the air filter replacement, installing new brake pads, changing the oil, etc. It’s important to communicate any fixes you make so the customer feels confident knowing that their vehicle is in good condition because of your diligence.
But to reveal the findings of your vehicle inspection or reconditioning work, you must make this information consumer-facing. Navigating the disclosure of data to consumers can be challenging, especially when reconditioning information uses industry acronyms and shorthand that might be unfamiliar to customers. Overcoming this hurdle requires creative thinking. Managing data transparency poses a notable challenge. One approach is to cautiously reveal essential report aspects without inundating consumers with exhaustive details. Experiment with phased testing to secure smaller victories and assess positive outcomes. For instance, consider initially releasing this information for certain cars or disclosing specific details, like the installation of new tires, rather than all inspection/reconditioning data. The aim is to strike a balance that conveys transparency without sacrificing clarity.
2. Developing a Robust Review Program
When it comes to consumer decision-making, online reviews have evolved into a cornerstone of research, influencing the choices of 88% of online shoppers.
Harnessing the power of positive customer reviews (Read this blog for a deeper dive on how to generate more positive reviews) is integral to increasing traffic and attracting leads to your dealership. Without a structured system for cultivating reviews and amplifying the voices of satisfied customers, negative reviews may create an inaccurate online portrayal of your dealership.
Make online reviews a priority. And ensure your reviews come from verified customers, as this increases your credibility and further fosters trust with shoppers. Take the time to research the right technology and technology partner to realize the benefits of this resource. Doing so can help you generate more positive reviews and turn those reviews into a viable auto dealer marketing tool to build your brand and boost sales.
Here are a few things you should consider as you get started:
Review Collection Approach: Evaluate your current review collection methods. Ensure customers have adequate time to provide feedback within a relevant timeframe.
Enhance Vehicle Content Quality: Encourage customers to share engaging, detailed reviews. Emphasize the importance of specific details, photos, and videos to provide valuable insights that are attractive to potential customers. You can even simplify the feedback process by offering guidance and tools on how customers can submit reviews and the best approach to doing it.
Feedback Loop Implementation: Encourage customers to write reviews on Google, Facebook and Autotrader for example, and leverage these reviews by posting them on your website. Customers can also opt for third-party review services or apps like BazaarVoice or TrustPilot.
Publicly Respond to Reviews: Establish a process for addressing reviews with 3 stars or below. While you may not resolve all issues, addressing them publicly demonstrates a commitment to customer satisfaction and issue resolution, fostering customer confidence that you care about reaching a positive outcome.
Incentivize Reviews: Some dealers opt for incentives, but caution is advised. Instead of a direct offer, consider incorporating incentives thoughtfully into your strategy, such as through sweepstakes, avoiding a quid pro quo scenario.
Establishing a solid review process can mean more money in your pocket, serving as a valuable foundation, especially in the ecommerce landscape. When a consumer decides to purchase a car via a distance dealer, having the confidence that they are buying a vehicle from a reputable dealership that is going to take care of them throughout the entire car buying process is critical.
3. Preparing for a Data-Intense World
The automotive industry is undergoing significant transformations, with new technologies enhancing efficiency in daily workflows. Customer expectations for quicker transactions are on the rise, as highlighted by the Cox Automotive Future of Digital Retailing Study, where less than half of consumers express satisfaction with the car buying process duration. And dealerships are consolidating like never before; the top five dealer groups in the U.S. are made up of a combined 979 dealerships, according to the 2017 WardsAuto Megadealer 100.
Despite these revolutionary shifts, numerous dealerships continue to operate in outdated ways. Many still maintain a segmented approach to customers, where sales lacks awareness of service interactions, and Store A remains oblivious to a customer’s engagement with Store B nearby.
The most successful dealerships today are those that have overhauled their operations, viewing each customer as an individual rather than a disconnected entity. Shifting operations to adopt a unified customer view is driven by three things: data hygiene, streamlined workflows, and the quality of customer connections.
I challenge dealers to envision a future where the integration of solutions is a requirement. Establishing a comprehensive and connected view of the consumer becomes extremely necessary in navigating the data-intensive landscape of the automotive industry.
In conclusion, by focusing on vehicle content transparency, mature review practices, and preparing for a data-intense future, automotive dealers can build a foundation of trust that resonates with consumers and position them for success in the evolving ecommerce landscape.
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.
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.
Author: Paulo da Silva, VP of Ecommerce Operations
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:
Building trust and rapport through content: Provide content about cars that answers consumers’ questions before they ask.
Establish a mature review program: Proactively collect reviews, and showcase high-quality, detailed reviews—providing incentives where it makes sense.
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.
