Google’s ThinkAuto 2012 event offers insights into automotive retailing
Michelle Morris, Google’s Automotive Industry director for the U.S.
Many dealers are finding that the very business model on which they built their reputations either no longer applies, or if it does, is becoming barely recognizable. But how do you make sense of all this talk of digital retailing and social media, as well as the changing tastes and values of vehicle shoppers?
Well, part of the answer might come from Internet search engine giant Google, which puts on its own ThinkAuto seminars across North America, designed to help dealers find strategies to grow their business and satisfy customers.
Canadian auto dealer recently attended the latest ThinkAuto in Toronto, which included a lineup of some fairly heavy hitters in the industry, including Michelle Morris, Google’s Automotive Industry director for the U.S. as well as Tim Wilson, head of Google Canada’s automotive team and noted Canadian automotive analyst Dennis DesRosiers who engaged in a discussion panel with Google’s Jeff Morris.
Some interesting observations provided during the event, were that among OEMs, their perception and actual market reality are different things. Although researching on the web is becoming more and more prevalent for both new and used vehicles, the test drive is becoming increasingly important.
Tim Wilson, head of Google Canada’s automotive team
Michelle Morris noted that certainly in the U.S., dealers need to understand the concept of multi-screen behaviour and that a growing number of leads are coming through smartphones and particularly tablets. Tim Wilson stressed that dealers also need to focus increasingly on after sales service, as well as being able to provide the concept of convenience to customers, such as a day and specific hour when the customer can drop by the dealership for a test drive, or service appointment — an aspect many dealers are still grasping with. “We need to give our customers a reason to come back,” he said “and really focus on time sensitivity.”
Dennis DesRosiers painted an interesting picture of where the industry is likely headed in the next 10 years, including the rise of the European brands as Canadians purchase more luxury vehicles. He also said there is a possibility that we could see at least one of the Detroit three facing bankruptcy again, with less, if any, chance of receiving bailout funds.
Maritz Research’s Chris Travell also provided some interesting insight into the habits of the Canadian automotive consumer. While automakers might think that catering to young, environmentally conscious buyers is the way to go, numbers paint a different picture. The average age of the first time vehicle buyer in Canada is 38.2 years he said, while even despite higher fuel prices, trucks still account for 50 per cent of the market. He also said that in urban markets the big growth is not in small car sales, but through Car Sharing programs such as the successful program developed between Car2Go and Smart.
