Today, Kijiji Autos is Canada’s largest automotive listing site, providing private sellers and dealers a chance to get their vehicles in front of more potential shoppers than ever before. But more eyeballs also means more competition, so as a dealer, how do you make your listings stand apart? Additionally, how do you channel these consumers into your store instead of somebody elses? To help answer this and other key questions related to used car marketing, Canadian auto dealer interviewed Scott Neil, Managing Director, Autos and Housing, Kijiji.
HE: What do you think are some of the most important considerations for dealers in terms of getting more eyeballs to inventory and (potentially) more customers into the showroom?
SN: It sounds simple, but it really boils down to getting the basics right. And this applies equally to both dealers and private sellers. Your listing is an advertisement and you need to create a strong listing. Multiple images, complete details of the vehicle, such as the mileage and options, as well as customized subject lines for each vehicle in your inventory are key. Remember, you’re marketing a product in the hope that it entices somebody to fall in love with it, not just throwing information on the page. Each vehicle listing is designed to potentially draw a buyer to your dealership and into your showroom. At the end of the day it really is about allocating the time and attention to creating good, effective advertisements for your business.
HE: As Kijiji Autos has grown the dealer side of its business, have there been some aspects or features dealers have really liked or requested when it comes to promoting their inventories on the site?
SN: Among the services we provide, a key aspect for dealers has been the unparalleled traffic in the marketplace. We do have the most buyers and sellers but it’s also important to note that our marketplace is very diverse. Around one third of vehicles are purchased privately, while two thirds are purchased from dealerships. Our approach to providing simple to understand products that are priced reasonably has proved popular with dealers. Specific items such as feature packages that allow dealers to further promote their ads are proven strategies for driving traffic to VDPs, getting the phones to ring and ultimately bringing people through the showroom door.
HE: We hear it a lot that vehicle features and relevance to a consumer’s lifestyle are more important than price, even though a lot of auto retail marketing tends to emphasize the latter. What are your thoughts on that?
SN: Having personally purchased a vehicle in the last few months, requirements and suitability took a precedence over price. We’re a one vehicle family and have a big dog, so utility was an important consideration, as was fuel efficiency. Consumers tend to look at lifestyle elements first and then assess how the vehicle will fit into their budget, such as the monthly payment they can afford. Once you’ve found a vehicle that fits both your needs and your budget, then it really boils down to the retailer. Price is important but perhaps even more so from the consumer’s standpoint is having a sense of trust with the dealership. A store that provides a range of services, such as comprehensive warranties, courtesy vehicles and shuttle services, is seen as providing added value to a consumer when it comes to the vehicle ownership experience.
HE: Have you seen real correlations between those dealers that post lots of information and photos/videos on VDPs and a spike in views and conversions?
SN: We have seen that using feature packages, lots of photos and posting all of your inventory online using this approach are really key to driving traffic to dealers’ VDPs, especially via a large site like Kijiji Autos that gets frequently indexed by search engines. We have seen that dealers who follow these practices and put in the effort with more complete ads, are those that get better results. It’s as simple as that.
HE: Peace of mind is seen as paramount among consumers shopping for used vehicles. Based on your own experiences, have dealers seen effective results leveraging things like CPO programs on Kijiji Autos?
SN: Certified Pre-Owned programs are a good example and there are two OEMs on Kijiji Autos that have really done a good job of branding both the programs themselves and inventory associated with them. Outlining the benefits such as extended warranties, fully inspected vehicles and no hassle return policies can be very effective tools for enticing shoppers to do business with a particular dealership.
HE: Are financing options another area where dealers can really leverage their strengths when it comes to enticing consumers online?
SN: We’ve definitely seen a subset of dealers really utilizing their Kijiji advertising space to promote financing options, whether it’s prime, or sub-prime. Being able to provide different options to consumers and offering approvals that others don’t can really prove beneficial.
HE: Kijiji Autos has put together some interesting initiatives to promote its dealer business, one that readily comes to mind is the GTA Autos Campaign that coincided with the Canadian International AutoShow this past February. Do you think such campaigns have helped dealers move inventory during traditionally “slower” periods?
SN: The GTA Autos campaign was really the first time we overtly courted both print and television advertising. Although consumers have been aware of dealer vehicle listings on our site, the GTA Autos campaign was really designed to showcase dealer cars. We saw an increase in overall site traffic as well as page views and a correlated increase in the number of ads posted by both dealers and private sellers. It was good news for dealers who saw more people making inquiries, whether electronically or picking up the phone.
HE: Can you tell us a little about some of the other strategies you’ve been implementing in order to continue making Kijiji Autos a go-to resource for dealers?
SN: Through events such as DealerTalk and the various products and services we offer, our goal is to develop a prominent leadership position within the industry. More visibility means we can provide more services and value to our customers. Getting back to basics, at the end of the day it’s about helping dealers sell more cars.
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