The trickle effect in new and used car sales
June 4, 2008 by admin
The meat of this article by Arianne Walker in Online Automotive Review is iterated in the final paragraph:
Even though OEMs and dealers have been shifting their marketing budgets online, the data shows that most should probably be accelerating that transition, putting even more money where shoppers - new and used alike - are increasingly going.
These trends are consistent with the recent Cobalt-Polk-Yahoo! study on new vehicle buyer behavior in how it directly and indirectly influences used vehicle purchases.
When I think of car sales, I think of long-term retention. But immediate sales are important to. While you need to invest into new and used car advertising, a primary benefit with investing in to new vehicle advertising is that the investment not only trickles down into used car sales, but it even influences used car sales. That is what the study suggests at least.
This is a key topic today for dealers and providers. Dealers today are cautious of where and how they shift their marketing dollars. It is widely known that the Internet offers the greatest ROI, however establishing your online brand recognition is not an event, it is an establishment that requires years of vision, commitment, and dedication from dealers and their providers.
Dealers must be prepared to take risks and to embrace long-term change in order to meet auto shoppers in advance, but it can be done with the right tools and techniques.
One Dealership of infinite possibilties
April 28, 2008 by admin
Wanted to take advantage of message by Seth Godin in one of his recent blogs. The blog touches on the subject of how Search, or search engines, makes the infinite more finite. It’s a valid point. The masses have come to rely on search engines for helping to initiate or at least narrow down a person’s infinite number of choices. But what does this mean for businesses?
Businesses, Car Dealerships included, can not be everywhere in Search and so you must be selective about where you position your website. If you focus entirely on where your competition is then you are missing out on opportunities to reach market share where you competition is not. By the same token, if you focus solely on where your competition is not then you will miss out on a lot of your market share. Alas, you need a balanced strategy for both.
This is where data and research become important. There is data available and there are tools that are accessible for determining where and how to position your website. For instance, Axandra and Web CEO which are two of the more popular software programs for researching and managing SEO (and to some extent your PPC efforts). There are also good online tools such as Webmaster Toolkit which are good for researching Search Markets too.
Car Dealerships have two choices…they can invest time and training into utilizing these tools effectively, or else they can rely on trusting providers to assist with or even manage these things on their behalf. Regardless, someone needs to be on top of these things in order for dealerships to thrive in today’s online marketplaces. For Dealers that do rely on providers to do this, which is the majority, they still need to be responsible for where and how these providers do position their dealer customer websites.
It’s all about supply and demand and while you do want to position your site where there is an abundance of demand, you also want to position yourself where there is little supply. You can obtain a lot of market share by positioning your site in spaces that are frequented and not saturated with suppliers.
So when it comes to Search Engine Marketing for Car Dealers, remember that you do not need to be everywhere for everyone. You do need however, a well-balanced mixture of visibility within your competitor markets and the market spaces where you can be the bright and shiny star in a galaxy of infinite possibilities.
Shouts out to Andy at Vinart for forwarding the Godin article.
Car buyers demand competitive pricing and dealer transparency
April 21, 2008 by admin
If you ask customers what they want from the companies from whom they buy, you probably won’t be surprised by their responses. Studies show that Customers primarily want two things:
- Competitive pricing, and
- Auto Dealers to be transparent with information in a timely and professional manner
According to a recent study by Cobalt, Yahoo!, and Polk, the advent and advancement of the internet have made it possible for customers to demand this from all of the companies with whom they do business. No businesses are more affected by this than Car Dealerships. For most people, their vehicles are more expensive than anything they’ll ever buy but not live in, and saving money and hearing the truth are especially important in the car buying process.
The study reveals that the impact of a customer’s online brand marketing experience in the car buying process cannot be overstated. In every area of their lives, customers are going online to research, to learn, and even to shop, and the purchase of an automobile is no different.
The study found that one of the most crucial aspects of the online brand marketing process is responding to customer inquiries. People are spending an incredible sum of money on their car, and they’re bound to have questions. Customers are taking the dealer responses to their questions very seriously, and for good reason.
A recent article in Dealer magazine on the study says “simply initiating a response is not enough to build customer loyalty. Rather, dealers must respond as consumers request, factoring in content, speed and method of response, in order to increase the chance of selling a vehicle.” It should be obvious, but when a customer wants an email instead of a phone call, or they would prefer to be phoned before 5 o’clock, it makes sense to take heed and communicate with them in the manner they choose.
The concept of sharing experiences with personal networks is not a new one — we’re all familiar with one person telling two friends and those friends telling two more. Existing and potential customers now have access to methods of group communication previously inconceivable to marketing departments. With the rise of internet usage, those two friends are still being told, but they’re being told publicly and there are a whole lot more than two of them.
With forums, blogs, rating sites and social media becoming the fastest growing methods of information transfer, giving customers a professional and helpful experience is more vital than ever before. Automobile dealers have the opportunity to capitalize on good customer relationships and experience growth at exponential rates.
K.i.T
