The practice of buyers researching prospective car purchases online has been commonplace for almost as long as the Internet has been in widespread use. What has changed in more recent times, however, is just how much web-based research buyers want to do and how much information they expect to be able to see.
A big part of this recent change can be attributed to the pandemic. Customers have not been able to visit dealerships, view cars in person and ask questions of sales executives, so they have been forced to conduct research through digital means instead. However, far from being a short-term response to COVID-19, the trend towards greater digitisation has been happening for some time – and isn’t likely to slow down once everything returns to normal.
In this blog, we’ll examine the pace of change, explore why quality information in every listing is now a dealer essential as a result, and highlight the key steps to take in response.
Emerging online trends
In November 2020, Google conducted detailed research into the British public’s car buying habits – and the trends it has uncovered show that significant change is already happening. For example, more than 60% of car buyers say that they will consider online options and delivery for their next car. A similar number also expect a wider range of online buying choices being made available to them in the years to come.
A deeper look at the findings show that this trend isn’t just impacting the end of the journey. Respondents to the survey suggested that they wanted greater access to “self-serve” information at the beginning of the car buying process.
- 63% of new car buyers said they would look for even more information online
- 50% want answers to questions about finance options and features before they visit a dealership
- 53% say they are comfortable experiencing the vehicle (feature highlights, walkarounds) completely online or with a mix of online and offline
So from doing basic research, detailed assessment with a view to making a purchase, to the action of buying itself, it’s clear that buyers want control of the process. And that has major implications for the role of dealerships and sales executives.
The consequences for dealers
Dealers will still be expected to provide information and support the customer through this reshaped buying journey, but how they do so will be very different.
Out goes a series of visits to the dealership to progress to a purchase. Our research showed that while a visit to the dealership is still valued as part of the purchase process, the average shopper now only makes 1.5 dealer visits before buying – 36% less than in 2015. 45% of customers are now researching through classified websites, compared with 33% in 2017, alongside dealer websites and online user reviews.
With this comes an expectation to provide a comprehensive array of information online – in a combination of written, photographic and video formats – that customers can view and assess at their leisure. In a competitive marketplace, the quality of this information will be just as important as the quantity of it: a basic listing with a quick video, a few snaps or the dreaded ‘awaiting image’ placeholder and a tech-spec table just won’t cut it. Customers will be looking for detailed video walkarounds, finance quotations, car history reports, insurance information, running cost estimates, car history (in the case of used cars) and much more. At face value, this sounds like a laborious and time-consuming process, but it is an essential one – and in any case, tools like CitNOW Web can make things quicker and easier.
Key takeaways
To move forward and embrace the opportunity of digitally-driven customers, dealerships should put a coordinated approach in place, one to which managers, marketers and sales executives all have a valid contribution to make:
Managers and marketers should make sure that every vehicle listing features a complete set of information and content before it’s listed, and continually think of new ways to bring greater quantities and qualities of information to the customers.
Try to ensure every listing includes good quality images showing all angles of the car, and don’t forget to take pictures of the inside – particularly the dashboard and mileage. An iPhone or equivalent device in conjunction with a tool like CitNOW Web, which includes simple guides and wireframes, will provide all you need to achieve this.
A 360° view of the car’s interior adds another content rich asset to your online listings, giving the customer a better look at the vehicle from the driver’s seat – something particularly important when they can’t view the car in person while restrictions are in place.
Lastly a 90-second, silent walkaround video is vital to bring the vehicle to life and show it in a way that images alone can’t show – adding even more value to your listing assets.
Once you have engaged the customer with your online ad it’s then down to how the sales team engages with the customer. We’ll explore this in more detail in our next blog.
Ultimately, the role of the dealership as a whole is to enable the customer to make the most informed decision possible, and to make them feel as if they’re in charge of the buying process. Accessible, professional information delivery is the key to making that happen.
A new year gives you new motivation to take your CitNOW experiences and videos to the next level. We run free Getting Good with CitNOW Web webinars every Friday at 12pm, and also have a wealth of tips and advice in our How2CitNOW video series on YouTube.
