Dealerships understand the importance of digital merchandising — but they struggle with how to differentiate their dealership online, according to a HomeNet Automotive analysis.
The company’s analysis reveals that 83 per cent of dealers believe they can boost margins and reduce days-to-sell by giving consumers more information and access to inventory online, and improving how these vehicles are presented online.
“As the prevalence of shopping for and purchasing vehicles online continues to rise, how dealers merchandise their inventory and separate themselves from the competition will be vital to profitability long-term,” said Russ Daniels, director of product marketing for HomeNet and vAuto.
Daniels adds that the new meta-analysis “offers a consolidated look at key consumer habits contributing to the growing importance of digital merchandising and provides actionable insights and best practices to help dealers build a strong online presence that will win over shoppers.”
The analysis revealed five things that dealers can improve on, which will also help boost digital listings and promote more transparency and visibility into what is being offered and the overall car-buying process.
One of those things is to introduce “dynamic visual content” to listings: video is one method, but using 360 displays in listings can also prove beneficial. Based on the company’s HomeNet 360 Consumer Study 2019: “73 per cent of consumers who browsed and then either bought or leased a vehicle perceived 360 displays as being extremely or very helpful.”
Another thing dealers can do is to reduce their use of stock photos (or rather, stop using them altogether) and instead focus on custom photos. According to the meta-analysis, 64 per cent of car buyers want to see lots of vehicle data and photos when searching online.
“In fact, while a single custom photo earned 166 per cent more vehicle detail page (VDP) views per listing than a single stock photo, multiple custom photos earned 245 per cent more VDPs per listing than multiple stock photos,” said HomeNet Automotive.
The other key findings that dealers can implement include:
- Ensuring background images are clear and easy to digest (these receive up to 5 per cent more click conversions from the search results page, while also improving buyer appeal);
- Including more information and descriptions on digital listings; and
- Creating an integrated marketing strategy to extend the dealership’s reach and influence over consumers using third-party websites for shopping and research.
“Dealers should ensure they are featuring their listings on third-party websites and leveraging the growing popularity of Facebook Marketplace as a new destination for used car listings,” said HomeNet Automotive.
These are just a few of the things dealers can consider as they enter the New Year and plan ahead for 2020.
