Professional Documents
Culture Documents
Abundant access to information has created a reality where the buying and selling process feels
so much less personal, and yet face-to-face interactions between buyers and dealers are more
important than ever. Understanding how customers find and buy cars in a digital age and creating
a marketing plan that caters to these new behavior patterns is almost as challenging as peeling
a banana with your feet.
REACHING TODAY’S CAR BUYERS HAS, IN MANY WAYS, BECOME A PROGRESSIVELY LESS
PERSONAL EXPERIENCE BECAUSE THERE ARE SO MANY MORE WEB-BASED RESEARCH
OPTIONS. HOW SIGNIFICANT IS THIS CHANGE? ACCORDING TO A 2015 REPORT FROM
AUTOTRADER AND BY POLK THE SHIFT HAS BEEN DYNAMIC.
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AND MOST INTERESTING OF ALL?
Consumers who made use of the Internet during their vehicle research process
spent 75% of their research time online (12.5 hours online of a total 16 hours
and 42 minutes spent researching the vehicle). That’s up from 62% in 2011!
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Today’s automotive shopping pre-sale process
involves DISTINCT AND PROGRESSIVE STAGES,
each involving a different focus/opportunity
for influencing the buyer. (Internet Dealer Marketing, 2011Dealer.com, 2012).
CONSIDER
This stage is where consumers begin to examine their options, and is where
EVALUATE
Online activity and research at this stage is often directed toward websites such
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as Autotrader.com, KBB.com and Cars.com, as well as dealer websites. This
phase may involve deeper dives into price comparisons and vehicle availability.
PURCHASE
3 When the customer arrives at the last part of the process, the purchase
of the vehicle nearly always occurs at the dealership.
Despite the online experience, the final stage remains critically important.
This is the opportunity to seal the deal – and make the sale.
(Of course, there is also an important fourth stage known as Interaction, but this is the post-
purchase phase that results in customer loyalty and can eventually become brand advocacy.)
Read on to learn how you can convert interested online shoppers to paying on-lot customers.
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UNDERSTAND THE INTERNET INTRODUCTION
With the intense growth of Internet research and shopping, an increasing proportion of the
$8 billion dollars allocated to advertising by franchised auto dealerships is rightfully being devoted
to Internet media venues (NADA, 2014). At this point, Internet marketing expenditures have
surpassed radio, newspaper and television allocation.
Today’s consumers are a brand new species. For any kind of purchase, 93% of user research online
begins with search engines like Google or Bing. Usually Google. From there, 68% of consumers
investigate companies on social networking sites such as Facebook or Twitter before buying
(Business2Community.com, 2013). In a Dealer.com study, 25% of respondents indicated they
would inform their decisions on car dealerships and other locations from which to purchase a car.
Having a dealership website, maintaining a social media presence and participating on aggregate
car shopping sites has become the lion’s share (an animal reference that isn’t a monkey pun!)
of a dealership’s marketing strategy. Dealers must adopt a philosophy that supports a powerful
online presence in order to become present in the mind of a consumer during the first two stages
of the buying process. However, that introduction is only the beginning of the customer journey.
While a potential buyer’s awareness of a dealership and its inventory may start in the early online
research stages, a much deeper connection is required to actually win their hard earned money.
The conclusions of the 2015 Polk study reveals that:
Interestingly, it seems the majority of automobile buyers do not communicate with a dealer in
any way - not through an internet link, via email, or over the phone - prior to visiting the dealership.
The implication here is that while digital marketing campaigns are extremely important
for capturing a buyer’s interest and awareness, direct interpersonal contact and the dealership
experience are still the most important parts of closing the deal.
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UNDERSTAND YOUR CUSTOMER
Relationship building and an understanding of a car buyer’s needs can make the difference
between a sale and a lost opportunity.
This should encourage dealerships to increase the volume of lot visitors, yes, but it also creates
a compelling reason to maximize each encounter with every potential buyer. Simply knowing
what your cars offer customers is not enough.
Does the car have a backup camera? Heated seats? Can it text your mom that you’re driving
so she’ll stop calling? Maybe.
It’s essential to connect technical knowledge with each customer’s individual needs. That first
interaction between a salesperson and a visitor demands an assessment of the perspective
customer’s research process and everything they think they’ve learned about you, the dealer and
the car they think they want. It also requires an in-depth examination of their actual wants and
needs based on extremely personal factors:.
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These characteristics, unique to each buyer, are the kinds of details that are missing from the
impersonal Internet research process. Only insightful questions and direct communication between
a salesperson and a buyer can really get to the heart of these kinds of details.
This emphasizes the importance of choosing the right people to speak on behalf of your brand.
Everyone on staff, from your salespeople to your service team to the people greeting shoppers
as they come through the door, all affect the overall impression a buyer will take away from
an encounter.
It’s no surprise that the interpersonal component is wildly influential, but there are numerous other
factors that impact the on-lot experience and determine whether or not a customer will transition
from visitor to buyer.
One key insight is that while car BUYERS ARE NOW SPENDING ROUGHLY 75% OF THEIR
SHOPPING TIME ONLINE, this time is not devoted to an individual dealership – it is spent
researching vehicles and comparing prices via third party websites. Websites which do not have
the goals of a dealership as a priority.
So while a dealership can absolutely benefit from advertising their inventory on third party sites,
those sites will not promote the dealer’s brand or emphasize the unique selling propositions
of any individual dealer.
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Foresight Research illustrates the importance of this third dealership-based stage of the car buying
process in a comprehensive 2010 study of consumer behavior in the automotive industry.
This data clearly supports the fact that “no single aspect of the automotive sales and marketing
spectrum is more influential than what happens at the dealership” (Wards Dealer Business, 2011).
The Foresight researchers also concluded that “customers are won, and brand equity is built,
at the level of the dealership experience.”
So what is the dealer experience? Is it amenities like child care and a coffee bar? Is it the
friendliness and approachability of your salespeople? Is it your banners, decals and the total
consistency of your message from your website to the lot?
In short, the main challenge to automotive retailers today is one of logical, yet misguided, focus.
Advertising budgets that are built with larger digital components are smart. But a closer look
at the finer details of today’s car shopping process indicates that dealers would also be well
served by investing significantly more energy into bridging the gap between the online and on-lot
shopping experience.
So how do you even begin building that bridge? For starters, a clear, strong vision of your brand
with no monkey business (unless it’s our type of monkey business).
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BUILD YOUR BRAND RECOGNITION
For customers to become familiar with your brand, they need to see it repeatedly, wherever they
are. Your website, billboards, print and audio visual advertising should present a consistent theme
and voice.
PERSONALITY – A brand’s
personality is the culmination of
all the aforementioned brand characteristics.
Humor vs. sophistication, accessibility
vs. exclusivity, a family-run dealership vs.
a corporate franchise. These attributes
characterize a business in any vertical
and are reflected in all other aspects
of branding.
Beyond an effective online presence, a strong brand identity and an effective visual merchandising
strategy, dealerships can also make meaningful customer connections by engaging in their
communities. As with other forms of marketing it is possible to look at “community” in two
separate contexts.
There is an online community represented largely by social media platforms and blogs, as well
as the physical local community.
38% 23%
of consumers say they will of car buyers say they use
consult social media in social media to communicate
making their next car their purchase experience
purchase (econsultancy, 2014)
Participation and sponsorship of local events can show a commitment to supporting the growth
and well-being of the lives and livelihoods of those that are in close proximity to the business,
inspiring your potential customers to learn more about you – online and in-person. Contributing
to cultural, athletic and charitable community initiatives can offer brand visibility and create
powerful network connections, while social media efforts can help drive engagement with
potential customers before they step on your lot.
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MERCHANDISE MORE EFFECTIVELY
Retail industries of all varieties and the advertising trade press are abuzz with new concepts such
as “shopper marketing” and “customer-centric environments.” As such, retailer in-store visual
merchandising investments continues to rise, more than doubling since 2004 (Forbes, 2007).
A research-driven system of in-store branding can influence the unconscious motivation and
perceptions of consumers regarding both the dealership and the shopping process – from beliefs
that the dealer is trustworthy and professional, to the desire to approach a salesperson, to a feeling
of certainty that they will “get a good deal” at the dealership (OnSight, 2008-2011).
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VISUALIZE YOUR SUCCESS
Visual merchandising involves the presentation of products and services in a retail environment
that encourages customer purchases. It is a combination of artistry and science, involving
an understanding of retail design and marketing, as well as a strategic focus on creating
an environment centered on the customer.
Studies have shown that buyer decisions can be meaningfully affected by in-store branding.
As we’ve mentioned, strong visual merchandising can impact buyer perceptions of trust
and value. In a survey conducted by OnSight Solutions, participants were asked to respond
to a series of perception-based statements on a “Strongly Disagree” to “Strongly Agree” scale.
Those statements included:
DEALER APPEARS
TO BE HONEST OnSight Solutions
Visual
Merchandising
DEALER APPEARS
TO BE PROFESSIONAL
Other on-lot
DEALER APPEARS
merchandising
TO BE TRUSTWORTHY
methods
STRONGLY STRONGLY
DISAGREE AGREE
The survey concluded that customers responded in the affirmative far more often for dealerships
utilizing a strong visual merchandising system. The implication of this research is that brand
marketing strategies can be a decisive factor. A dealership’s approach to branding can strongly
influence a car customer to engage in that all important final stage of the buying process,
the actual lot visit.
In parallel with online marketing, successful visual merchandising engages customers in the
shopping process and influences their buying decisions by providing a cohesive environment
that is easy to navigate and enjoyable to shop.
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ENLIST THE RIGHT PARTNERS
There are advantages to working with a professional dealership merchandising partner. This
approach focuses on using a research-based, strategic visual merchandising system to influence
the customer experience at the final and most accessible stage in the car buying process –
the dealership.
Companies which specialize in this work are able to offer versatility and speed that allow for
refreshed and easily-expanded messaging and promotions all while minimizing design, research
and turnaround times. Essentially, partners like us will get the monkey off your back so you can
focus on what you do best (ok, that’s the last one, we swear).
Persuasive and cohesive creative allows dealers to set themselves apart in a saturated market,
to establish a unique dealership identity using a distinct and differentiated approach to the retail
environment, maintaining consistency in the dealership/corporate branding process. This kind
of integrated approach to in-store marketing provides additional benefits to customers and staff
including:
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A strong marketing program allows dealers to highlight important vehicle specific information
as well as offers and incentives that customers have come to expect based on current and
emerging shopping channels.
Effective marketing solutions focus on influencing the customer’s consideration set by helping
dealers organize and present strategic information in an easily accessible and aesthetically
pleasing way. The right brand messaging informs shopper selections through deliberate
messaging choices and employing call-to-action merchandising at strategic positions throughout
the dealership.
Today’s car buying consumers are accessing information via the Internet in unprecedented ways,
changing the game for how dealerships acquire new customers. There is no greater way to position
yourself for success in the changing environment than creating a unified online and offline presence.
Dealers must utilize all of the tools at their disposal, including websites, social media, community
involvement and high impact in-store visual merchandising, to solidify their brand awareness.
By connecting all of these efforts behind powerful universal marketing themes, dealerships
can achieve optimal visibility and increase overall sales and profitability, with more efficiency,
at a lower cost, with fewer headaches.
LotMonkey.com
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