As the race for market share continues, more car dealerships are becoming aware of the need to get online. A 1998 J.D. Powers & Associates study stated that "one-fourth of all new vehicle buyers used the Internet in some way to help them with their automotive purchase." Initially, dealer sites took on the look of a billboard or a Yellow Page ad. With an increasing number of consumers using the Internet to shop for their new or used vehicle, the biggest challenge to dealers is not just getting on the Web, but making the site work for the dealership and the customer.
What makes a web site work?
Interactivity. The customer needs to be able to shop your inventory and be directed toward the purchase. Get your inventory online with as much detailed information on the vehicle as possible. A well-developed inventory search allows the customer to select a vehicle that meets his or her needs. Once the customer has the perfect car located, help the customer to the next step: financing. An online credit application helps commit the customer to your dealership.
What can you do to make your site more successful?
Stay on top of it. Keep control of features that you can change. Customers look for deals. Put special incentives on your site. Service specials, inspections, and oil change coupons all work well. Include a section with special news and listings of your newest vehicles or great savings on your slower-moving inventory. Include pictures of your new and used inventory.
Are you interacting with your Digital Shoppers?
If a customer sends your dealership a question via e-mail, how quickly will he or she receive a response? J.D. Powers & Associates says that by the end of the year 2001, 66% of all new car purchases could be initiated on the Internet. If your salespeople aren't responding quickly, that's like ignoring an up that has walked on your lot. Shoppers who feel you aren't being attentive or aren't disclosing enough information will go elsewhere in short order. Responding to Internet customers promptly is key, as it initiates dialogue and builds rapport. Industry leaders will tell you that responding within a two-hour time frame is optimum.
Have you prepared your Internet team?
In a recent study, 87% of dealerships said they spent no time training for the Internet customer. Internet customers are atypical. They are better informed, expect faster service, and are anonymous until they decide they want to work with you. Delegate responsibilities and have an action plan. Determine how leads will be distributed and who will respond to ensure those leads have been worked thoroughly. A good Business Development Center (BDC) platform will work wonders in keeping leads organized. Make sure response forms and/or e-mails go to an individual who is responsible for getting a quick quality response back to your customers.
The key to building a profitable "Internet Dealership" is devoting the effort to making it a success. Provide customers with the information and tools they need to build a relationship with your dealership. The Internet customer is using your web site to avoid the "conventional hassles" involved in purchasing a vehicle. If your site is informative, easily navigable, and your online buying process is customer friendly, both the customer and the dealer will benefit.
Chuck Lewis is Founder and Director of Operations for Interactive Dealer Solutions, iTRiBE,INC, a frontrunner in developing interactive dealer web sites, interactive showroom sales technologies, lead management, and business development platforms. 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.# clewis@dealeronline