Consumers have been showrooming in retail stores for quite some time now and, while many retailers don’t like it, they’ve pretty much resigned themselves to the fact that it’s going to happen.  However, one surprising argument posted in an article by speaker, trainer and consultant, Bob Phibbs, went so far as to make the claim that showrooming is akin to stealing.

In his article, he explained that while consumers conduct a large part of their research online, they still love to touch, feel and physically look at products, which they cannot do on the Internet. His viewpoint is that retailers spend tons of money to have nice stores, great product displays, staff and inventory. Then they see consumers come in with the express intent to research the product they are interested in, just to leave and buy it for a better price elsewhere, or online.

Along the same line of thought, one disgruntled retailer chose to take this route in attempt to combat showrooming:

Isn’t this being a little small minded about where commerce is truly headed? To be successful in business we must all be willing to change and adapt with the times to some degree, or get left behind.  This extreme measure by the retailer will probably serve to deter more business than it gains. Can you imagine having this in your car dealership? 

Wouldn’t it be better to provide free Wi-Fi, and a great shopping experience and win customers over while they are at your dealership, rather than drive them away with unfriendly business practices?

The fact is that showrooming is here to stay -- it has become a natural part of consumer shopping behavior. Rather than trying to fight it, it perhaps makes more sense to explore ways to embrace it and use it to our advantage.  Think about it, the bottom line is that this practice could actually be driving MORE leads into your dealership, if you’re competitive in the marketplace. Perhaps the point is how you handle these leads once they arrive!

A 2014 study by Autotrader showed that consumers are visiting fewer dealers in their car shopping than ever before. This is certainly a by-product of the availability of information. No longer do consumers have to visit multiple dealerships to find the right vehicle. They simply sit in front of their computers and browse a dealer’s inventory on their website or, more commonly, a car buying portal site. In fact, the same Autotrader study showed that 79 percent of consumers are using the Internet in their car-buying process.

When the consumer has completed their research, decided upon a vehicle and visited a dealership to view and/or test drive it, many don’t actually end up buying the vehicle they came in to look at. They end up finding something more suitable to their lifestyle, or one that is a better fit for their budget.

They arrive at the dealership, armed with all their Internet research -- ready to do battle should they experience anything less than a frictionless experience. However, many find themselves in a situation whereby they are perhaps not quite as ready for battle. Perhaps they now feel they will be at a disadvantage at the negotiating table.

So what does THIS consumer do now?

They whip out the one thing most consumers never leave home without -- their smartphone, right in the dealership’s showroom, and start shopping the competition. A 2014 survey by J.D. Power and Associates revealed that 34 percent of new-car buyers who research online use a smartphone or tablet while shopping at a dealership, up from 29 percent in 2013. Vehicle pricing is the most frequently accessed content while at a dealership (61 percent), followed by model information (42 percent), searching inventory (40 percent) and special offers/incentives (36 percent).

If consumers are so armed to the teeth with information, why do 61 percent access information on vehicle pricing while at a dealership? Most likely because they changed their minds while viewing the vehicle and landed on a car other than the one they came to look at. This use of smartphones by dealership customers to research the inventory of other competing dealerships may well lead to an increase in dealership visits.

You can’t buy a car from the Internet – not yet, at least – so it might be wise to consider that the buyer that walks through their door with the MOST information is the one that you should ensure gets the BEST customer experience. As they, according to the J.D. Power study, are the ones likely to visit more dealers.

When consumers are shopping for a vehicle, they may think they know what car they want to buy. However, studies show that they can easily change their minds while at your dealership. And, if they are shopping your competitor’s inventory right from your lot, they may also change their minds about if they want to buy a car from YOU.  Give your customers a good reason to buy from you versus any competition, and perhaps you’ll find less resistance, happier customers and more sales.

In the end, the Internet is not a dealership’s enemy.  It provides us all with much needed information and services that can be much harder to find elsewhere. Consumers will use it whether you want them to or not. Embrace technology and find a way to use it to your advantage. If you still don’t agree, just remember the old saying:

Keep your friends close and your enemies closer.

According to Dataium's most recent benchmark study, the average number of monthly unique visitors to a dealership's website is 6,509. Of those, an average 1.7 percent submit a lead form. Combine that with an average half percent conversion rate for chat, along with phone calls and walk-ins (which are harder to track), and the average website conversion rate for most dealerships falls in the two to four percent range. Yet, there are dealerships that are converting upwards of eight percent on a regular basis. That's DOUBLE the average.

Why the big disparity?

Dealers spend a lot of money on SEO/SEM, and the reason why is clear: more visitors = more leads. Yet SEO/SEM is just one part of the equation. An equally important factor in the equation is conversion rate optimization (CRO). For some reason, many dealers spend a tiny fraction of their SEO/SEM spend on CRO. Maybe because they believe CRO is the sole responsibility of their website provider, and there's not much they can do about it.

This mistaken belief could be costing your dealership thousands of dollars every month. It is true that your website vendor can do a lot to increase conversion rates. It is also true that your dealership can do a lot to increase conversion rates. Dealerships with conversion rates higher than six percent aren't doing it by accident. They have taken ownership of their CRO. As a result, they are outperforming their competitors.  How do they do this?  Instead of playing the same old game, the progressive dealerships CHANGE THE GAME. 

Who is responsible for what?

You can say that your website provider is responsible for the design and technical elements of conversion but ultimately you are in control of your own destiny.  Shake things up on your site including:

• Change the design elements on the website; i.e. colors, ease of navigation, headlines and font options
• Change the design and usability of inventory pages
• Change the conversion tool design and placement; i.e. chat forms, email submission forms, phone numbers
• Change the call to action button design and placement
• Optimize your site and all the above design elements for mobile devices

Your dealership is responsible for the majority of the messaging that is proven to convert, including:

• Brand messaging
• Creating a value proposition and unique differentiator; i.e. why buy from you?
• Social proof: customer testimonials and reputation/review management
• Messaging that earns and builds your customers' trust and loyalty
• Providing website vendors with awesome images, videos and inventory descriptions
• Giving your customers a reason to stay on your website; i.e. a blog with educational and entertaining articles that help customers in their purchase process
• Really change the game by giving your customers an incentive to come in and take a test drive

Steps your dealership can take right now to increase conversion rates.

1) Set your bar higher. Since when is it okay to be average? If your website conversion rate is in the "average" range of two to four percent, set a new goal. Aim to double that conversion rate to four or eight percent, or to double the amount of leads you get, in six months to a year. Announce the goal and try to get buy-in for the support you will need to get there. Then go after the goal with tenacity.

2) Expect more from your website provider. Tell your website provider your goal is to double your conversion rate and ask them for suggestions. After all, they may think you're happy with average conversion rates. Ask them to try A/B testing on different conversion elements such as your email submission forms, call to action buttons, headline styles and more.

3) Take ownership of your content. Sure, most website providers will write copy for your website, social media platforms and even your blog. But they don't know your business like you do. People buy from businesses they like and trust. Does your website and social messaging give customers a reason to like and trust you?  Or does it look like many other cookie-cutter dealership websites?

Before increasing the spend on your next SEM campaign, take a look at your website CRO. Is your dealership doing its part? Is your website provide doing theirs? Ultimately, the dealer is responsible for tracking and managing the CRO responsibilities of both parties. So set a new goal, aim high and you never know; this time next year your website conversion rate could be double what it is now.

As a husband and father to 5 daughters, the cartoon above is, at times, a pretty accurate description of my life. I’m sure all men in similar situations have found that couch or chair they inevitably get placed in while the females in their lives try on shoes, clothes or whatever they may need.  In reality, I shop more than my wife and kids… they just don't go with me. 

But the real reason it caught my attention is that it is such a great illustration of a somewhat new “challenge” that has hit the retail world, and one that I work to help many dealers with – showrooming. I talk about showrooming and how it is affecting dealerships a lot – but sometimes the concept itself doesn’t sink in. Perhaps it’s because customers aren’t as direct as the lady in the cartoon. Maybe some dealers just don’t see customers using their smartphones to compare prices while still sitting right in the showroom, or out on the lot. But I guarantee you it is happening all the time. In fact, over 60 percent of customers visiting an auto dealer's lot will use their smartphones to simultaneously shop the competition. And two thirds of those will leave that dealership and visit another store within a day. This is showrooming

This cartoon perfectly illustrates the concept. No doubt you’ve comparison priced items at one point – whether that was a television, refrigerator, or even just a book. All of us want a good deal. Amazon makes it very easy with their app. All you have to do is scan a bar code and you’ll have the online price. There are other apps that will even show you the prices at multiple stores.

I have no doubt that some entrepreneur will someday create an app that will allow car shoppers to accomplish a similar result simply by using their phone to scan a VIN. Heck, we have already built our solution to incentivize  a customer  and allow them to text our dealer while sitting in a competitive dealership. 

This is what’s happening in retail on a daily basis – and has been for a while now. Consumers are realizing that they can price shop a car dealership just as easily as can shop for anything else. And that’s why it’s important to find ways to keep that customer in your dealership. And, if you feel even more enterprising, find an effective way to lure the customer shopping your inventory while at your competitor, into YOUR showroom, and away from theirs.

Our marketing universe is quickly becoming untethered as smartphones and tablets gain a broader share of web access to information and entertainment.  The mobile marketing world is still new to many dealers and we’re experiencing a learning curve about how to market, manage, and leverage this new landscape.  Here are 6 Quick Info Insights to help dealers get a quick course in Mobile 101.

1.     Mobile is Exploding

29% of web traffic page views are from mobile phones and tablets, and 71% from desktop or laptop computers.  Remember, smartphones are just mini-computers and shoppers are using them to obtain information on product availability via a streamlined process. Photos, videos, and pricing info need to be easily accessible on mobile platforms.  Dealership window stickers offering QR or Barcodes that provide more information than is shown on vehicle stickers helps connect shoppers to the dealership and provides a way for dealers to track these prospects.

With mobile users spending more than two hours a day on their devices, dealers have ample opportunities to connect with and advertise to these consumers and potential buyers. Remember, these mobile viewers are down the funnel in their car buying decision-making.  Make sure that you are prepared to convert them. 

http://www.slideshare.net/wearesocialsg/social-digital-mobile-in-the-americas? (Slide 209)

The rule for mobile:  Make it simple for shoppers to connect with auto dealership team members, either via an instant call process or text messaging.

2.     What your Competition is doing in the Mobile Space

Dealers who have been operating in the mobile space for a while have focused on text messaging as a primary way to engage mobile shoppers.  The response time is quicker, and more users (68%+) use text messaging regularly on their cell phones.

Dealers in the digital ad space still purchase keywords, and Google, Yahoo and other network mobile ads are also gaining traction. This is helping to establish brands and drive traffic to dealership sites.   Ads on social media channels are also gaining traction. However, it’s important to have a laser focus on the ad and not a generic vehicle ad with a payment.  Promote a specific event and offer a “call to action” or incentive to drive more traffic from ads.

3.     Mobile website or App: The choice is Yours

This is not an either/or proposition, as you can have both a mobile-friendly website and an app. With fast 3G or 4G data networks both sites or apps work fine. Since many mobile users delete “one-time shopping” apps after the task is completed, a dealership app should provide other functionality for the customer after a purchase is completed.  This could mean offering online service appointment scheduling, coupon updates and offers, etc. 

Virtually all the major website providers offer mobile solutions that meet the needs of the dealership and online shoppers.  Navigation on smartphones should be simple and provide visitors with an easy “click to call” button to contact sales or service teams, view inventory, or get simple directions. 

When considering building an “app,” remember developers have to create three separate apps for iPhone, Android and Windows phone users.  In addition to the cost of app development consider the changing platforms, required tech upgrades to accommodate changes in the various operating systems, and the cost of a project manager on the team to guide all these initiatives. 

4.     Social Media Channels Drive Mobile Traffic

154 million Americans are active monthly on social channels using mobile devices. And through these social channels consumers are finding their way to businesses where they buy products and services.

Every social channel offers ad programs and content posting opportunities where you can engage channel members.  Connecting with auto shoppers by posting videos, service advice and tips, updates on parts and accessories, is a great way to drive more showroom traffic and generate calls to the dealership. Be a good neighbor. Nothing turns a potential customer off more than having a load of ads shoved their way on Facebook, Twitter or Pinterest. When you provide value, prospects and customers recognize and appreciate those efforts, and very often they will share that content with their online friends.

5.     Track Mobile Conversion Rates

Tracking conversion rates in auto retail means measuring how many visitors generated a lead, a sale, or further in-depth visits to the site.   You can track when a mobile visitor uses the click-to-call or text feature from within the mobile site. And, once that info is in the CRM system, that prospect can be tracked to the end of engagement.  It’s also important to have detailed analytics for both the traditional and mobile websites to measure visits, page views and of course vehicle detail page (VDP) visits.   Many companies use Google Analytics. But if you do not want “big brother” watching, you might want to consider Clicky Web Analytics (getclicky.com), or the free W3 Counter Analytics (w3counter.com). 

6.     Use Incentives on Mobile Devices to Close the Sale

No matter how a shopper finds a dealership, consumers still respond to calls to action and incentives when considering or making buying decisions.  Be prepared and offer an incentive when a prospect is on the fence and deciding to visit your dealership versus dealership B. 

Coupons can easily be pushed to smartphones, tablets, and PCs offering gift cards, rebates, discounts, or other value added items.  Give your sales team an edge to closing the sale with an attractive incentive for your customers.