I often ask dealers what they think their biggest assets are, and most often they tell me it's the iron on the lot. But with the Internet and the technology that is available today, you can turn your existing customer base into your strongest asset. The Internet can help you tap into this customer base to maximize future sales in entirely new ways.
Today's car buyers are turning to the Internet to make better purchase decisions. Your dealership can be the one to provide them with the targeted information they need.
Customers who shop for vehicles online: want information, want to build a positive relationship with the dealer so they can go back to that person if they have problems or questions or need other services, want to do business locally, and want to take as much of the risk out of their big purchase as possible.
Gaining the loyalty of these customers starts when they buy a new or used vehicle. Here's an example of how you can keep customers coming back for service and future sales.
As soon as your customers drive off your lot with their new car or truck, they get a URL (Internet address) to their own personal Web page sponsored by your dealership. They go home, log on and "register" by answering questions to help you gain a better understanding of their interests and lifestyle. Knowing more about what they like to do and how their car helps them do it will help you market your products and services to them more efficiently. Your online relationship with them has started.
For instance, ask them about their driving habits and typical conditions, do some calculations and post a recommended oil change schedule on their personal Web page. Offer to take that extra step and e-mail oil change reminders to them. This is an example of "push technology;" giving them the information they need easily and in a convenient way so they can make a purchase decision.
Find out their interests. If they like to ski or bike ride, you can post specials on accessories such as a bike rack or snow tires on their personal Web page. You can market the products and services of every profit center of your dealership.
The opportunities are endless. While it may seem a little "out there" for some of you, all it takes is the same kind of data you already use today for your direct mail marketing programs and some technical know-how. Your Internet manager or dealership Web site provider can help you use technology to provide your customers with useful information that will keep them coming back to your dealership again and again.
Study Says: Consumers Prefer Online Auto Financing, Many Still Want to Talk to a Sales Representative In Person.
CNW Marketing/Research's latest consumer study, released October 18, puts a fine point on answers to long-standing questions about the effectiveness of the Internet as an automotive shopping tool.
The two-year project resulted in 1.1 million respondents with more than 219,000 heavy Web users. Some of the findings of the 300-page "Computers, Cars and the Internet" report include:
About 41 percent of serious Internet new-vehicle shoppers sent an e-mail to a car dealer requesting information about price, product availability and other subjects. Of those, only 20 percent received a reply. "The low response rate clearly indicates most dealers aren't taking the Internet seriously enough," says CNW Vice President Art Spinella.
Satisfaction with the responses is equally telling. On a 10-point scale, satisfaction scores ranged from a low 3.1 for Mazda to a high of 9.1 for Jaguar.
Because of the large sample size, the study is able to break down responses by model of vehicle eventually purchased. For example, year-to-year Internet usage as a means of collecting information jumped 176 percent among Cadillac Escalade buyers. General Motors' Cadillac division was up 109.6 percent. Pontiac, on the other hand, was up barely 17 percent. The single greatest year-to-year increase was among buyers of the BMW 7-series at 318 percent.
In their search for a new vehicle, consumers searched:
· 4.3 different manufacturer sites
· 4.8 dealer sites
· 3.8 buying services (such as AutobyTel)
· 3.6 auto financing sites.
Fully 63 percent of those who used the Internet as a source of automotive information prior to making a purchase said they would prefer to apply for an auto loan online rather than at a dealership or bank.
As much as the Internet is touted by some as a means of eventually eliminating the "new car dealership hassle," or dealerships in general, the study shows resistance to doing too much of the auto-buying process electronically.
In seven new-vehicle intender focus groups held across the country, CNW M/R found that 43 percent felt on-line buying of a car was "too impersonal." About 41 percent said they wanted to drive a car first before buying and another 31 percent said it was simply more fun to shop "in real life at a dealership or auto show" than to simply search for a vehicle online. Nearly 20 percent even said they wanted to talk to a salesperson.
Better than 26 percent of all new-vehicle Internet searches occur at the office, with 59 percent occurring at home, 6 percent from a library and the rest at other locations such as dorm rooms and senior centers.
The vast majority of those who shop for a new vehicle on the Internet continue to use other media such as newspapers as information sources, but cut back significantly on dealership visits.
Most liked automaker Web site (as of October 3, 1999): Toyota followed by Lexus, Porsche and Audi.
Greatest point of dissatisfaction with automaker web sites: Slow download speed, followed by muddy photos.
Acceptable download speeds: For serious Internet shoppers, less than 20 seconds. A site that takes a minute to download results in a 60 percent defection of visitors.
Conclusions: The Internet may eventually be responsible for 27 to 30 percent of new vehicle sales and 65 percent of auto financing. Women, who currently make up only 18 percent of new-vehicle Internet shoppers will likely double that percentage within two years. Better than 25 percent of Internet new-vehicle shoppers do so with a spouse or friend. And a third of all Internet shoppers snack while on the web.
"For automakers, the Internet is an arrow in the marketing quiver, but diverting funds from other marketing areas could be dangerous," Spinella says. "This study clearly shows that the Internet doesn't add a single new vehicle sale to total volume. Rather, the Internet is best at convincing someone to select one make instead of another."