It's all around you, but have you taken the plunge? I'm willing to bet that your customers and many of your competitors have. If you haven't, you are missing leads and sales opportunities in one of the fastest growing segments of the auto industry.
I'm talking about the Internet, of course, and the rapidly growing number of car buyers who use online services to research and buy new and used cars, as well as order parts, schedule service appointments, and perform dozens of other dealership-related activities.
The size and potential of this market is staggering. A recent study by J.D. Power & Associates found that by the year 2001, more than 60 percent of all auto purchases will be initiated through the Internet. More than 50 percent of Americans have a computer and half of them regularly use e-mail.
Look around you at the mall, in a restaurant, or on an airplane. One out of every two people you see has access to a computer. Many use it as a shopping tool to research and buy things from books to homes. So how do you get your dealership into the digital marketplace?
Getting your dealership connected to the Internet is neither difficult nor prohibitively expensive. You'll need a computer--either a PC or a Macintosh will do--and a modem, which connects your computer to others via a telephone line.
You'll also need an Internet connection, which could be an online service, such as America Online or the Microsoft Network, or an "ISP"--an Internet Service Provider. These services enable you to connect to the Internet, send and receive e-mail, and set the foundation for a "web site."
The Web is the interactive part of the Internet, offering photos, video, and sound as well as text. Your web site is your dealership's online presence and will be a extension of your brand identity. It can offer your customers online access to nearly every facet of your brick-and-mortar store.
Once you have set up the hardware, connected to the online world through an ISP, and established several e-mail accounts for the dealership, it's time to build your own web site.
There's growing evidence that the majority of auto shoppers in the next five years will use the Web when they shop for a new or used car. It's crucial to begin thinking of your web site as a dynamic, interactive virtual showroom.
That doesn't mean you have to start big. One of the most attractive features of the Web is its flexibility. You can enhance and upgrade your web site from the most basic information to a full-fledged retail division, all at your own pace.
Begin with the construction and operation of a custom web site that encourages customer interaction. Internet car buyers are looking for current, searchable new and used inventory and special Internet deals. Good sites also feature an easy navigation system and e-mail request forms for parts, service, and financing.
Make your web site flexible enough so it can grow as your comfort level grows, adding features such as interactive maps and directions to guide shoppers to your door, or coupons and specials that reward customers for returning to the site.
Just as you keep your inventory current and your showroom fresh, the same should be true for your web site. It's important to regularly update your searchable inventory, Internet specials, and time-sensitive references. Reliable, current information will keep car buyers coming back.
Finally, find an experienced vendor who can help you build your web site. The Web is a quickly changing, ever-expanding field of expertise. You'll benefit from a company who knows how to make the most of the medium. Invest in someone who understands the needs of a dealership and will build a web site that will increase and enhance your business from the first day.
John Holt, co-CEO of the Cobalt Group is the nation's largest provider of Internet marketing solutions to automotive dealerships, currently serving more than 6,500 dealers nationwide. If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3. jholt@dealeronline.com