The Huge Buzz In Digital Retail: Final Milestones For Retailers
Everyone in the auto business is talking, writing, and podcasting about digital retail. The list of associated virtual events is complete. The dynamics of popularity can be seen when planning a Google Ads campaign with keywords such as “digital retail for the automotive industry”, “digital retail” and “modern retail”. Google’s Keyword Planner shows an increase in these keyword searches in the last 24 months compared to the previous month. When forecasting your Google Ads budget, expect to pay more than $ 35 per click for an average ad position of 1.5. Digital retail in the automotive sector is absolutely on everyone’s lips.
Transparency, trust and time savings
As you weed through the mass of content, several ideals dominate:
- build up trust
- An optimized sales process
- A seamless online experience in the showroom
First and foremost, it’s about giving consumers more control over the car buying experience. The ability to search for vehicles by year, make, model and type on a dealer’s website and explore different configurations is a given. It is important to accurately view vehicle prices, factory discounts and incentives, special offers, dealer fees, financing options, a credit estimator and application, and a tool for formulating payment scenarios. Multi-channel options for soliciting information, getting a guaranteed cash offer on a trade, and scheduling a test drive, while allowing consumers to complete their entire car purchase online with flexible pickup and delivery options, are all essential components of any digital device retail strategy. It makes sense that this level of transparency builds customer confidence, leads to significant time savings, reduces friction and leads to a cheaper car purchase.
Why achieving COMPLETE transparency is the ultimate milestone for traders
Let’s think about what “transparency” really means … full visibility, crystal clear, open to observation, no obscuration.
While components of digital retail play a vital role in creating a transparent online shopping environment, Full transparency is achieved when dealers openly display ALL vehicle and dealer information as part of digital retailThis saves the customer even more time and creates a higher level of trust.
As consumers move towards buying a car, there are hundreds of digital interactions through social channels, video platforms, search engines, industry portals, manufacturer websites and online review sites. Digital Air Strike’s 8th Annual Consumer Trend Study for Automotive Digital Retail found that more than 7,500 car buyers and service customers are:
- 60% + selected a dealership based on online reviews alone
- 54% said that community involvement influenced their decision to buy from a retailer
- 51% used Google to find dealer reviews
- Only 5% of the dealers bought in sent videos in response to customer requests
- 27% preferred the online selection of vehicle warranties and add-ons
- 93% of car buyers have spent a few days or more researching which dealer to buy from
When it comes to achieving transparency in digital automotive retail, it’s about more than just integrating a digital retail solution into dealer vehicle detail pages (VDPs).
Imagine car buyers landing on VDPs that contain all of the information they are looking for – not just vehicle photos and specifications, financial instruments, contact forms, and prices. What if buyers could watch videos introducing the service department and general manager, read Google and DealerRater reviews, read about a VIP program, and learn about the dealer’s involvement in the community? Why are shoppers forced to search for reviews on search engines and crawl the web pages to learn more about the service department, community service, or special programs that are on offer? With most of a dealer’s digital budget being used to route traffic to VDPs, the last thing a dealer should want when car buyers are looking for the information they need.
Think about the process you would go through to buy a used vehicle. Before you need financial instruments to create payment scenarios or get funding, take the time to figure out whether a particular vehicle is the right choice by looking at vehicle photos and specifications AND asking questions:
- Is the vehicle factory certified?
- What are the results of the inspection?
- What repairs or maintenance has the dealership carried out?
- Does it need to be fixed?
- Is the history report clean?
- What information can you find on the OEM window sticker?
- What guarantee does it have?
- Is there a return policy?
- Is there a live video walkaround?
How difficult would it be for an online car buyer to get answers to these questions? How many calls would have to be made? How many forms were filled out? How long would the consumer have to wait at the dealership for a seller to collect this information?
A truly transparent VDP website contains ALL the information customers need in one place – not just vehicle photos, technical data and financial instruments. An effective VDP includes a vehicle’s refurbishment records, an inspection report, a factory window sticker, a vehicle history report, dealer reviews, a video walkaround, a brochure, and videos and documents that illustrate the dealer’s reputation.
Providing a “portfolio” of online buyers for the dealership, vehicle and components of digital retail is the ultimate milestone for transparency and trust. This saves customers hours of research, reduces painful price negotiations, streamlines the process and makes the transition to the dealer seamless.
The value benefits
Full transparency also offers merchants enormous advantages, e. B. Increase the value of a vehicle by openly talking about the dealer’s investment in overhaul or by having an inspection carried out by a certified technician. Value-oriented discussions with buyers about vehicle quality and safety, as well as lower operating costs over time, help justify pricing and show that the dealer is genuinely interested in helping the buyer make a smart purchase decision.
In the end, it’s a win-win situation for both the dealership and the car buyer – by focusing on sales value, the dealership keeps its gross profit. At the same time, full transparency creates trust and promotes customer loyalty.
With almost 15 years of experience in digital marketing and business development in the automotive sector for variable and fixed processes, Karla has developed and implemented tactics and processes to achieve efficiency gains and increase the profitability of dealers. She is currently Marketing Director for Velocity Automotive Solutions.