A Look at 2022 and What Your Dealership Should be Doing in 2023!

Particularly in terms of the marketing strategies used by car dealerships, the times they are a-changing. The marketing of retail automobiles in this day and age is characterized by its high speed and intense competition. What's the upbeat report? You can gain an advantage over the competition and be in a better position to weather variations in the market if you put into practice the digital marketing techniques for auto dealerships that are covered in this article. But before we get into that, let's take a look at the present expectations that people have regarding the process of purchasing and selling cars. After all, marketing is only a small portion of the overall journey!

The Reasons Why the Digital Experience Is More Important Than It Has Ever Been

In comparison to the previous year, twice as many car dealers who were surveyed for the 2022 Capital One Car Buying Outlook believe that their customers are conducting nearly every aspect of the car-buying process online. These aspects include researching vehicles and selecting preferred makes and models, as well as researching local inventories and understanding pricing, financing, and monthly payment options.

They are not entirely incorrect. According to the findings of a survey conducted by Cars.com among consumers, 38 percent of buyers intend to complete the entire process of purchasing a vehicle online, while another 38 percent plan to purchase a vehicle in person but complete all paperwork online, thereby saving themselves a number of hours at the dealership.

How Important Is It to Have a Presence on the Internet for Customers?

When customer evaluations became available online, some companies made an effort to boost their number of good ratings while simultaneously eliminating any negative feedback (or at least tried to drown them out with positive ones). Some companies even went so far as to pay for positive evaluations or have their staff write the reviews themselves.

Consumers are much more savvy these days; they have a propensity to overlook reviews rated one star and reviews rated five stars in favor of reading reviews rated two, three, and four stars. If a company has nothing but positive reviews, or at least the majority of them are positive, then customers are likely to question whether or not those reviews are genuine. There is no company that can ever satisfy all of their clients at all times. Therefore, they anticipate seeing a balanced proportion of good and negative ratings. A brand is seen as more trustworthy by 68% of consumers when it has a combination of positive and negative evaluations. Nevertheless, there is an optimal point. A poll conducted in 2021 found that only 3% of respondents said that they would consider patronizing a company with an average star rating of two stars or fewer. As a result of this percentage's increase to 14% in 2020, maintaining a healthy mix of positive and negative internet reviews is becoming an even more important factor. In addition, the results of a poll conducted by Fan & Fuel indicate that written reviews carry greater weight than star ratings or numerical ratings. And how companies react to the criticisms expressed in those evaluations is also important.

Not only do 68% of people who buy cars rely on reviews to help them make an informed decision, but also 50% of people who leave reviews anticipate receiving a response to their review within the next week. Consumers have a tendency to consider brands who respond to every review as being 1.7 times more trustworthy than firms that don't respond to reviews at all. As can be seen, customer expectations are rising in relation to the manner in which a company operates their internet presence, and automobile dealerships are not exempt from this trend.

The Buying Process of a Car Comprises These 4 Steps

The process of acquiring a consumer good such as a car may appear to the end user to be very similar to the process of purchasing other retail products and services. However, the process of purchasing a car may need more study and take place over a longer length of time. This is mostly caused by the limited availability of inventory as well as the substantial cost of the transaction. Not to mention the fact that there is a lot of rivalry among automobile purchasers today!

Even though the business world has been turned upside down by the advent of digital marketing in recent years, the fundamentals of the process of purchasing a car have not changed. They could only require a slightly different approach to management. It is crucial, while developing a marketing plan for a dealership, to take into account pandemic-accelerated customer preferences, a longer sales cycle, and the competition. Additionally, it is important to address all aspects of the automobile buyer's experience, including the following:

The Stage of Being Aware

The prospective buyer of an automobile encounters a "issue" at the phase of the sales cycle known as "awareness." This doesn't have to be a problem at all; it can just be something you want. Therefore, it's possible that the issue is a yearning for a car that's more dependable or more modern. It could also be a must, such as when a family needs a bigger car to accommodate their expanding numbers. After that, the buyer will initiate the process of gathering information in order to better comprehend their wants and needs.

At this point, car dealerships should concentrate their efforts on the production of content that is geared at those who are searching for information such as answers, resources, education, research data, opinions, and insights.

The stage of Consideration

The prospective buyer of an automobile has by this time identified what they refer to as their "issue," and they are actively searching for a solution to such problem. They have come to the conclusion that they require a car that is larger, more dependable, and more up to date, and they are currently exploring their available possibilities. Consider providing dealership information that compares different makes and models of comparable vehicles in order to attract prospective auto buyers at this point.

The stage of decision-making

In this stage of the process, the buyer has narrowed down their options and is ready to make a definitive purchase decision. To put it another way, the moment has come for the prospective car purchaser to submit an application for financing or go to the dealership for a test drive. It should come as no surprise that this stage is one of the most important. In point of fact, according to a study conducted by Cox Automotive titled "Car Buyer Financing Journey," almost a third of the time that customers invest in the process of shopping for a car is spent on activities related to financing the vehicle. Additionally, at this point in the process, the sales team will often begin relationship management with the client.

The Phase of Pure Pleasure

The standard buyer's journey map frequently omits this stage of the process. Additionally, one may consider this to be the stage of cultivating consumer loyalty and retention. Although the consumer has already acquired a car, the process is not yet complete. At this point in time, it is important to prolong the relationship by maintaining follow-up communications and making continual attempts to encourage service and repeat business. It can be understood quite easily. If you go above and beyond the expectations of your clients, they will be more likely to become your dealership's ambassadors and shout your dealership's praises through online reviews, social media, and good old-fashioned word of mouth.

5 Digital Marketing Strategies for Automobile Dealerships to Implement in 2022 and Beyond

The only thing that is changing in the retail automotive sector is not how automobiles are bought and sold, but other things are. The way in which customers think about and respond to the information they encounter online while they are in the process of making a purchase is changing, and the digital marketing methods used by auto dealerships need to change accordingly:

Transparency 

Holograms are not what we have in mind when we discuss the concept of transparency. We are discussing maintaining honesty with one's clientele as well as keeping the promises made by one's brand. For instance, how you gather and utilize information about your customers. Their faith in you will fall, and so will the value of your brand, if you declare you aren't going to sell their information but then prospects start getting random calls from third-party companies.

The use of digital retail technology can assist retailers in becoming more honest about their pricing while also expediting the generation of leads. A good digital retail system should replicate the navigation and procedures that are already familiar to customers in industries other than automotive. For instance, implementing no-haggle pricing and offering detailed payment and financing terms before requesting prospects to submit substantial personal information is one strategy to establish trust with customers through transparency. Other examples include no-haggle pricing and no-haggle pricing. Instead of saying "here's your price, here's your payment, now fill out the credit application," providing clients with several lending options gives them the impression that they have choices and puts control in their hands.

The single-point-of-contact sales model, which is gaining popular among customers and new entrants to the automotive industry, can also be easily integrated with automotive digital retailing thanks to its seamless compatibility with the model. Because only one person is responsible for guiding consumers through the entirety of the purchasing process with this approach, dealers are able to provide a more personalized and open experience.

Real transparency can initially make some people feel uneasy because it requires flinging open the doors to the inner workings of the business and disclosing a dealership's genuine goals, values, and prices. This can be unsettling for some people. On the other hand, dealers who have embraced openness, particularly price transparency, are the ones who are currently benefiting from it.

Omni-Present

The pandemic has helped speed a movement known as digital-forward buying and selling, which has recently moved from the cutting edge to the mainstream. In order to generate sales at a dealership, visibility in the digital sphere is an absolute necessity, particularly given the fact that an increasing number of prospective auto buyers begin their investigation online.

Internet search engine (SEO & SEM)

Claim and establish a profile with Google Business Profile as soon as possible; doing so is in the best interest of every dealership (GBP). In point of fact, a study that was conducted by BrightLocal titled "Insights" found that dealerships for automobiles receive the largest number of calls and website visitors via GBP of any industry. The most exciting part? GBP is completely free, and it allows you to manage your profile directly from Google Search and Maps, expanding the number of potential leads and customers you may contact.

We are all aware that search engines provide users with a means through which they can look for practically anything. However, search engine marketing is an additional useful tool for dealerships, as it helps drive visitors to their websites and, ultimately, foot traffic to their actual locations. Dealers have the option of either creating web content in order to rank organically or paying to have their listings appear at the top of the search results. There is also a wide variety of search engine optimization (SEO) tactics that car dealerships can implement in order to rank higher in these organic search results.

Reviews

As was mentioned earlier, every dealership needs to ensure that they have a healthy mix of positive and constructive internet reviews. Google comes in first, followed by social media and then Dealer Rater in terms of importance. According to Search Engine Journal, Google seems to favor businesses that have a high volume of positive reviews by placing them in the coveted Map Pack positions at the top of the organic local search results. This favoritism is based on the fact that Google places businesses that have a high volume of positive reviews higher in its rankings. These Map Pack positions appear in search results more than thirty percent of the time, and traffic to their links comes from organic search more than seventy percent of the time.

Get Social on Social Media

Many prospective automobile buyers conduct research online before making a purchase in order to get a better idea of what options are available at various dealerships. This covers business profiles on review sites, as well as profiles on social media platforms and websites. These platforms give you the ability to upload video, which is a great marketing tool for dealers to have. The use of video enables the establishment of a connection with consumers. It makes it possible to highlight the attributes of a vehicle in a way that simply taking a picture cannot do. You can also reach folks who would prefer see or listen to something than read about it, which is another benefit of using this method. Video lets you cover your bases. 65 percent of people are able to learn best by visual means, 30 percent through aural means, and 5 percent through kinesthetic means.

Native advertisements

Material that is written to fit the editorial content in a newspaper is referred to as a "native ad." It frequently takes the form of an article, but it is commissioned and paid for by an advertising. Your dealership's sales can benefit from native advertising in publications geared at automotive enthusiasts.

Display Ads

You should make sure that you are utilizing the full potential of Google, which should include the Google Display Network. It gives dealers access to millions of potential customers as they use websites, applications, and other domains controlled by Google like YouTube and Gmail, which can genuinely open up new opportunities for those businesses. When you are setting up Google Ads, one of the options available to you is a display campaign. There are a number of interesting opportunities for dealerships to investigate on Google, including Google Vehicle Ads and a new test program for Google Vehicle Listings.
The use of global positioning system (GPS) or radio frequency identification (RFID) technologies to generate a virtual geographic boundary is referred to as geofencing. This form of digital advertising is also gaining popularity. When mobile device users enter or exit a predefined area, specialized software is designed to react appropriately. This might be especially helpful for gathering leads in the area immediately surrounding your business.

OTT Commercials

It's crazy how things always seem to circle back around. Commercials are making a comeback, which may come as a surprise to anyone who thought they had gone the way of Blockbuster and were no longer relevant. Consumers are becoming more accustomed to and receptive of the practice of watching ads in exchange for free access to television programming. People have more options available to them as new forms of online streaming entertainment become available on the internet. This might be a positive thing, but when there are so many different options, each of which charges a fee, the prices can quickly pile up. Advertising using over-the-top (OTT) platforms such as Roku, Hulu, Amazon Video and Fire TV, and Sling, amongst others, is another option to communicate with people who are interested in purchasing automobiles.

Podcasts

It's always a good idea to take advantage of any chance you get to establish yourself as an expert in your field. Reach out to local podcasts about the possibility of making guest appearances or look into opportunities for sponsorship to reach the best and most focused audience possible. If you are not currently a listener of local podcasts, a fast search will help you discover which podcasts have the greatest ratings and how to sponsor an episode of one of those podcasts.

Mobile Phones

Every day, prospective customers are driving by your dealership while carrying their mobile phones with them. They are using mobile applications such as Waze and Google Maps for turn-by-turn navigation guidance and real-time notifications regarding traffic, hazardous road conditions, and the presence of police. More than 90 million people in the United States make use of Waze on a monthly basis. Google Maps currently has 154.4 million active users on a monthly basis. Therefore, adding advertisements on Waze and Google Maps to your marketing toolset might be an extremely fruitful move on your part.

Get to Chatting

The addition of a chat tool makes it possible for customers and sales teams to engage in conversation with one another in real time, increasing the likelihood that leads will be collected. And even if the website is the center of the digital universe, some dealers are deciding to forego the completion of internet forms for the purpose of lead acquisition in favor of managed chat or messaging sessions. When this is done, salespeople are able to immediately follow up with leads. mostly due to the fact that nobody like having to fill out papers and wait for a call. In our fast-paced and digital day, you can't get away with something like that.

Email

You won't believe it, but email is still around, and it still functions. Plus, it's cost effective. The implementation of the appropriate plan will, in the long run, prove to be more successful than even the most innovative and cutting-edge email marketing campaign. Consider, for instance, this email marketing case study conducted for a dealership that sells Ford and CDJR vehicles. Email interaction was responsible for the sale of over 150 vehicles and resulted in the sending of nine follow-up emails spread out over a period of fourteen months. Be sure to use the first-party information provided by your dealership, otherwise you run the risk of causing damage to both your email deliverability and your IP reputation.

Prepare Yourself to Follow Up

Keeping up with all of the online business and leads can easily become a full-time job in and of itself. Every dealership needs to have a specialized group to perform these important responsibilities, such as a robust Business Development Center (BDC) or salesforce that is capable of streamlining the process.

Demonstrate a Willingness to Listen
Your consumers are rich sources of information that you may mine. If you want to strengthen your company and acquire insights into how you may develop, don't be afraid to send out surveys and ask for testimonials from satisfied customers.

Be Flexible in the Face of Uncertainty
A new industry environment has emerged as a result of shortages and increased prices, which all dealers will need to handle in order to maintain their level of competitiveness. If you are prepared with these crucial digital marketing techniques for auto dealerships, it will be easier for you to negotiate the ebbs and flows of the industry and come out on top.