FORGET DESKTOPS. THE WAY CONSUMERS USE THEIR MOBILE DEVICES IS CHANGING BY THE DAY
J.D. Power reported that between 2012 and 2013, the number of vehicle shoppers who used an automotive website or app on a smartphone grew by 73 per cent. That’s astounding! As dealers, you must embrace this huge shift in behaviour and, not only be aware of what this means to your business, but learn how to navigate in this new sales environment. According to a joint study by Cars.com and Placed Inc., 59 per cent of customers are researching on a smartphone even before entering the dealership. Not only does this mean Internet leads will continue to steadily increase (something we all know is happening) but more and more customers will submit leads from their mobile devices — possibly on the way to your showroom!
THE “NEW NORM”
So we know customers are using their mobile devices for research before they leave home, but did you know they are also starting to use their mobile devices while in your showroom? This trend, called “mobile showrooming,” is becoming the new norm in automotive retail. Shoppers are comparing notes and prices on vehicles of interest, checking references and reviews, and asking their friends on Facebook for input — all while you’re fetching them a coffee. Recent research revealed that 63 per cent of auto shoppers are doing some form of “mobile showrooming” and the number is steadily growing.
According to the study, the majority of “mobile showroomers” (51 per cent) are surfing for information on price, payments and offers. Twenty nine per cent are searching for inventory, 17 per cent are looking at reviews and finally, 16 per cent are checking in with friends and family looking for advice.
These collective insights mean that even though customers are nearing the end of the sales cycle, they are still looking for a bit more information, which leaves the door open for you to close the deal. Here are a few strategies that can help you close the sales cycle and retain those prospective customers.
• Value proposition: If the majority of mobile users are searching for information on price, payments and offers, make sure you are effectively communicating the reasons and value for your price (dealership value proposition). Here is where your customer service can shine! Also try price-matching the competition and being transparent with your sales process;
• Current and accessible inventory: Make sure your inventory is current and easily accessible on your mobile site or application, and clearly visible on a mobile device. This will keep “showroomers” looking at your virtual lot rather than those of other dealers;
• Positive image: Ensure your reviews, advice forums, and social media all present a healthy reputation. This is key to ensuring mobile showroomers are confident in choosing you.
Mobile is where you need to be since 72 per cent of shoppers who use a mobile device are still more likely to visit another dealership. As a result, your mobile strategy must be thought through and planned accordingly. The top two reasons for mobile users visiting other dealerships are “better price” and “found vehicle at other dealerships” so make sure your dealership information is easily accessible through mobile devices. Mobile advertisements are also a key factor in persuading mobile users to explore other dealerships, so make sure you talk to your marketing team about going mobile. An engaging marketing plan will help you catch the eye of mobile showroomers at other dealerships, and prevent them from leaving yours.
MOBILE TIP: BUILD TRUST
Being transparent can create value, build trust and show the customer that they’re getting a fair deal. Encourage your sales team to work with their customers throughout their mobile research process, showcasing the benefits of your dealership’s mobile presence.
SLOW THE PRESS
According to the Kleiner, Perkins, Caufield and Byers (KBCP) Internet Trends 2014 report by Mary Meeker, consumers spend only five per cent of their time reading print media, yet dealerships are still putting 19 per cent of their ad dollars in print. Now is the time to do a little spending analysis. If you find that you’re still pouring money into print advertising, pump the brakes.
Similarly, you may have a great website for your dealership, but if it’s not optimized for mobile you’ll be losing customers before they even get to your virtual showroom.
While a lot of customers are using mobile smartphones for research, they’re still using additional devices, such as tablets or desktop computers to do some heavy lifting — 37 per cent of customers said they used more than one device prior to a dealer visit. This indicates that you need to take a multi-pronged approach and design your digital presence according to the device. For example, desktops have more visual real estate, and are good for comparing vehicles side-by-side. On the other hand, mobile devices are good for mapping, locating and communicating with your dealership’s customers so make sure you have these features easy to find and navigate for mobile users.
WHAT THE FUTURE HOLDS
Although most customers may not be purchasing vehicles online, the Internet still has an enormous impact on the purchasing decision. Before creating a mobile strategy, we must understand what is happening. The mobile trend is clearly still evolving, but one thing is clear — we are communicating and ingesting more information than ever before through our mobile devices. Your future customers will make purchase decisions based more on information gathered in the digital space than anywhere else. Regardless of its size, your company has a vested interest in knowing how to use and capitalize on the mobile trend. Now if I can only get my kids off the darned things.
FURTHER READING
• Mobile Device Use At The Dealership: How Smartphone Shopping is Impacting Automotive Retailing, January 2014. Cars.com Insights, Placed Inc. – http://dealeradvantage.cars.com/da/wp-content/uploads/2014/01/Placed-Mobile-Device-Use-Study-Jan-2014.pdf
• Mary Meeker, Internet Trends 2014 – Code Conference, KPCB
http://www.kpcb.com/internet-trends
