How Marketers Are Responding to Connectivity and Transformation in the Automotive Industry

Connectivity and digitalization are the number one key trends disrupting the automotive business in 2016.  According to KPMG’s Global Executive Survey 2016, executives ranked connectivity and digitalization as the #1 key disrupter for the industry until 2025, up from the #10 spot last year.

OEMS will need to get far savvier in understanding a consumer’s behaviors and what motivates them in choosing connected devices for their vehicles. Business models for both OEMs dealerships will need to reflect these changes in order target consumers with the right offers and features, and at the right price point.

An Overview of What Consumers Expect in Connected Vehicles

Drivers are demanding more access to connected services for their vehicles. An Accenture Connected Vehicle Survey asked survey participants to rate a variety of connected vehicle device features. Some key highlights from the report include:

Question: Rate the importance of having the following connected services in your vehicle:

Question: Which of the information technologies/driving support systems listed below would you like to use in your car?

Question: On a scale of 1 to 10 (10 meaning that in-car technology has the greatest influence over the car purchase decision and 1 meaning that the car’s driving performance has the greatest impact on the car purchase decision), what score would you assign for your view?

Click here to download Accenture’s full report.

Which Demographics Do Connected Cars Appeal to?

Connected car features are having more and more influence in the type of vehicle a consumer ultimately chooses. But which consumer demographics are most attracted to these features and how can automotive marketers target these demographics.

Consumers today are more connected and connected cars will ultimately appeal to a wide variety of demographics.  However, a wide range of studies show that demand skews towards younger demographics.

A report by automotive research company, SBD provides evidence that these connected systems are important to younger, more digitally oriented consumers and will likely impact their next vehicle brand purchase decision.  Cars play a key role in supporting Millennials’ need to stay connected, and in a study by Autotrader.com, 72% of younger millennials indicated that a car is important to their social life. Style and features, especially technology, are critically important to them. For example, more than 70% of younger millennials cite technology and infotainment features as “must-haves” when purchasing a car. The top 5 desired features include:

1. Navigation system
2. Satellite radio
3. Bluetooth
4. MP3 Player
5. Mobile Integration

Another study by technology and strategy company Lochbridge identified an age threshold of 45 years, above which receptivity to automotive connectivity drops off. Demand for “more apps” in the car is 36 percentage points higher among the under-45 crowd.

Overall, a study by McKinsey shows a clear trend that connectivity features are becoming more and more important to customers. According to the report, “The number of people who would switch from their current OEM to another manufacturer they trust if it was the only one that offered a car with full access to apps, data, and media, rose from 20 to 37 percent across all geographies within just one year. The fact that – within just one year – the number of people willing to switch car brands for connectivity has almost doubled shows that connectivity is evolving from a should-have to a must-have feature for every OEM.

At the same time, consumers’ willingness to pay for connectivity is increasing. We saw a positive trend in the number of people who would be willing to pay for connected services in their car, with approval rates for subscription-based payment models increasing from 21 to 32 percent globally in the past year.”

Target Connected Drivers Online and With Personalized Offers

In a recent JD Power study, 43% of premium brand drivers and 28% of non-premium brand drivers cite their vehicle’s latest technology features as one of the reasons they purchased their vehicle. But technology is not only a requirement of their cars, it’s a part of their lifestyle.

Connected consumers go online more on tablets (54%) and phones (69%) than the non-connected consumer, and by 2020 80% of consumers are expected to shop for vehicles across multiple devices. Accenture found that 75% of connected consumers would even consider conducting the entire purchase process online.

To reach these digitally-savvy consumers, dealerships and OEMs must target across a broad mix of digital channels, offer online scheduling of service appointments and promote the technical features of their vehicles on the channels thee consumers use. Arianne Walker, senior director, automotive media & marketing at J.D. Power said, “Targeting these technology seekers with the right messaging is critical to using marketing dollars efficiently to reach consumers who will actually buy new vehicles because of new technology.”

We still have the luxury of differentiating “connected customers” with “regular customers,” but this won’t last for long. Soon the tactics to attracting the modern consumer will be the only way to attract or retain customers at all, and automotive companies can’t waste any more time implementing a plan for when that day comes.

To learn how to target the connected car shopper across the entire customer journey with data and customer insights, download this free guide on Data-Driven Marketing for Automotive.

3 Ways the Automotive Industry Can Reach Mobile-First Consumers

Choosing to ignore the mobile consumer is not an option for brands that want to thrive in the modern landscape. Mobile now represents 65% of all digital media time according to a 2016 study by comScore, so it should come as no surprise that smartphones have become a key component in the vehicle-purchasing process. A study by J.D. Power found that 51% of new-vehicle Internet shoppers use a mobile device—tablet or smartphone—to conduct research to help them find the vehicle they want at the best price. Nearly one-third (30%) of new-vehicle shoppers find the vehicle they purchase on either a manufacturer website, third-party website, or their dealer’s website.

According to the J.D. Power study, “Outside of the home, the location where new-vehicle shoppers most frequently use their smartphone to conduct auto research prior to purchase is at a dealership,” said Arianne Walker, senior director, automotive media & marketing at J.D. Power. “Nearly half—48%—of new-vehicle buyers that shop on a mobile device use their smartphone, and 13% use a tablet for information gathering while at the dealership: primarily to access vehicle pricing as well as model information, inventory searches, and special offers and incentives.”

Who Are Mobile-First Auto Consumers?

According to a research study commissioned by Facebook and done by Ipsos Media, 71% of all respondents use mobile at some point during the purchase process. (Other studies place this number even higher at up to 81%). Other notable findings include an overview of “Mobile-First Auto Consumers,” the people who use mobile almost exclusively in their path to purchase a new automobile.

• 45% of Millennials (ages 18–34)
• 48% of Hispanics
• 41% of people with household incomes greater than $200K
• 24% have requested a quote online.
• 71% prefer to do all their vehicle research online and go to the dealer for the final transaction
• 76% know the exact vehicle they want before going to the dealer

Top reasons why mobile-first auto consumers say they use mobile for auto shopping:

• 44% use it to reach out to a dealership or salesperson
• 38% use it to book a test drive
• 34% use it to look up details about the nearest dealer

Mobile-first auto consumers are just as concerned about vehicle price, type, make, style, size, features and reviews as desktop-first auto consumers, however mobile-first consumes are further along the path to purchase.

• 44% of mobile-first auto consumers plan to purchase in less than 3 months (compared to 21% of desktop-first)
• 50% of mobile-first auto consumers shop during the day

Mobile-first auto consumers also use both mobile sites and apps to do their vehicle research.

What Does this Mean for Automotive Marketers?

One: Take Inventory of Your Mobile Strategies

This is of course obvious when seeking to engage mobile auto shoppers but as technologies quickly evolve, it is worth taking inventory of your mobile strategies. Your messages, content, emails, website, videos, and other digital marketing resources are all being viewed on mobile devices so keep this in mind and infuse mobile-friendly design into all your branding efforts.Optimize your website for smartphone browsing to make it easy for shoppers to find information on the vehicles they want quickly, including up-to-date pricing and availability. Use mobile-friendly design in your email and marketing messages. Consider screen size and connection speeds when optimizing for display and performance. Be sure your landing pages are optimal for mobile viewing with streamlined content and easily accessible Call-to-Action buttons.

Two: Mobile Users Seek Video Content

61% of mobile-first consumers say that video is playing a more important role in their shopping experience. And according to a report by Unruly, consumers who watch video campaigns on their smartphone or tablet are close to three times more likely to click through to a brand’s website than those on their laptop or desktop. Automotive marketers have immense opportunities to engage consumers through mobile video advertising.

Three: Remember Mobile Users Still Use Their Phones to Make Calls

According to JD Power, phone calls are one of the most popular ways new-vehicle shoppers contact dealers. Auto shoppers researching vehicles on their mobile devices are more even more apt to call a dealership. Yes – smartphones are still phones and consumers often prefer to quickly connect through a phone call versus completing a “contact us” form from a smartphone screen.  Be sure your phone number is always front and center and that a phone call can be quickly made by simply tapping on a click-to-call button.

58% of mobile-first auto consumers say that in the future, their smartphone is likely to be the ONLY device they use for all their vehicle research. And 62% say that if they could complete the entire vehicle purchase process online, they definitely would.  Automotive marketers need to start planning for the future as consumers shift from the showroom to the “online mobile room.”

What Does a Connected Car Driver Expect from Their Dealership?

Vehicles are evolving to meet consistently increasing consumer demands for convenience, interactivity, and connectivity. In 2015, 15% of new vehicles were considered connected and by 2020 research expects that 75% of new vehicles and 22% of all cars on the road will be equipped with connectivity tec. PWC estimates in that same time frame the connected car industry will grow from $34 billion to $123 billion. With connected cars becoming the overall norm in the next 5 years, many dealerships need to look at their sales and service center strategies to ensure they’re meeting the demands of the consumers who will be attracted to their new high-tech inventory.

The Connected Car Shopper

When tailoring their marketing and sales campaigns to the modern consumer, dealerships should stop and consider the reasons that a consumer would be interested in purchasing a connected vehicle.  A Business Insider study on “The Connected Car Market” found that the biggest draws to consumers are entertainment and safety features. The ability to stream music ranked most important (69%) while surfing the internet came in at 57% and the ability to identify traffic and hazardous conditions was ranked by 52% of respondents.

Although smartphone integration is expected to become a standard feature in the next 3-5 years, consumers searching for connected vehicles today expect a seamless experience across all of their technological channels. Dealers should take care to optimize websites and emails for mobile and assimilate their online and offline consumer data to provide exceptional customer experiences.

A consumer who doesn’t want to wait to send a text but would instead rather speak to their vehicle is a consumer that will be turned off by inaccurate data or outdated processes. Sites that aren’t optimized for mobile or sales people who aren’t trained to use tech for more efficient processes can end up frustrating, and possibly even losing, modern consumers with heightened expectations for immediate gratification and expedited procedures.

Dealers must keep in mind that these are many of the same 72% of consumers who said they would prefer to do all paperwork concerned with purchasing a car online, and the 75% who have said they would consider completing the entire auto purchase process online.

The Owner

On the other side of dealership revenue, dealer service centers need to step up their game to meet the expectations of their service center customers who bring their connected vehicles in for maintenance. Under the same premise as the sales center, service centers should take steps to expedite procedures by allowing customers to schedule maintenance, make payments, and check on service status both on the web and on their smartphones.

Status updates via text message are a great way to reassure customers that their vehicles status is moving along. Service reps can have customers keep profiles of themselves and their vehicles online and then access those profiles to speed vehicle intake. And now with the most smartphones being equipped with geo-location systems, service center mobile applications can request permission to be notified when the vehicle or smartphone user is within a certain range. For example, a customer could pull their vehicle up and by the time they park a representative is already waiting with their information queued up and ready.

Dealerships that want to remain competitive must adapt to the modern consumer’s purchase journey and expectations. For connected car owners this means expedited processes, efficient use of time, and seamless online to offline experiences.

To learn more about targeted today’s digitally savvy and connected car consumer, download our Automotive and Dealership Marketing Solutions Guide.

Email marketing continues to be one of the most effective online marketing strategies that dealerships can conduct. In fact, nearly 75% of adults say that email is their preferred method of communication (Apogee Results).

According to research by Naked Lime, emails yields about 39% of dealership leads and fetch more than three times as many leads as direct mail (12%), paid search (11%) and organic search (9%). Traditional media, such as TV and radio, account for 4% and social media 2%. Additional statistics gathered from automotive dealerships nationwide show that those who use email marketing are seeing tangible results – increased ROI, sales and customer bases. According to the research, “Email campaigns have on average a 9%-to-12% open rate, and of those, as much as a 14% click through.”

As a dealership, you need to make sure your email marketing strategies are paying off. Here are some tips to creating successful email campaigns to drive new and repeat car consumers into your dealership.

1. Start with a quality list

First and foremost, you need to make sure your list is up to date with accurate and relevant customer and prospect details. According to Kevin Root of Dealer Marketing Magazine, “the average dealership has less than ten percent accurate email addresses for their total customer base.” Email lists need to be maintained on an on-going basis. Emails quickly become outdated, with data decaying by about 22.5% every year as people move, switch email providers, abandon old email addresses, or opt out of your email lists.

In order to comply with CAN SPAM laws, reduce spam complaints, increase deliverability, and ultimately get more customers and prospects engaging with your dealership, you need to maintain a healthy email database.

Unfortunately, not all email providers or list brokers are created equally. Numerous email lists are available for purchase but be sure to do your due diligence before you spend your marketing dollars on bad data. A third -party email provider should use strict quality controls to maintain high quality email addresses, use sourcing strategies to aggregate and compile data from multiple sources, and use validation process to identify addresses known to be associated with spam traps, invalid emails and domains, complainers, known hard-bounces, and more.

2. Add specialty auto data to your records

As is often the case, email records contain bits and pieces of who your customers and prospects actually are. You may have a name, phone number, and if you have been diligent about maintaining your CRM system, some records may include make and model of the car being driven. But more often than not, you are missing quite a bit of data to really make your emails effective.

Consumers expect emails that are highly personalized and will quickly delete those that aren’t, or worse yet, will unsubscribe from your lists altogether if they receive an email that isn’t relevant. You don’t necessarily want to send an email for a high-end sport car to a family with three children. You are more likely to get a much higher response by targeting them with an email promotion for a larger family vehicle such as an SUV or mini-van.

In order to segment your email list to this level, you need to have the right data on who your customers and prospects are. What is the make, model, and year of the vehicle they currently drive? Are they in positive equity? What is their age, gender, occupation, lifestyle, and estimated income? What is the Kelley Blue Book and Black Book value of the vehicle they are driving? What other vehicles are in the household? With the right data, you can create highly segmented and targeted email campaigns that will drive the highest conversion.

3. Make sure your emails are mobile responsive

An estimated 65% of all emails are now opened on a mobile device. When emails don’t render correctly on mobile, 42% of consumers will simply delete them. Emails that aren’t optimized for mobile devices don’t look good on the small screen of a smartphone or tablet and your customers and prospects won’t stick around to find out what you have to say. In fact, 89% of marketers lose leads because their emails aren’t mobile optimized. You cannot expect a customer to save your message and reopen on their desktop at a later time.

Not only should you use mobile responsive templates for your dealership’s emails — but you should test the email to make sure they display correctly across all email platforms before you send it to make sure it actually works.

4. Use triggered email and marketing automation to boost results

Using email campaign automation will streamline the process of engaging and converting customers. Emails triggered by customer behavior can increase retention, revenue per email, customer lifetime value, and program ROI.

Using dynamic content (content that automatically adapts to the interests of the subscriber), emails can be developed to feature specific makes and models or customer information, such as names and birth dates, that allow dealers to connect with their customers on a personal level.

According to Cynthia Price, the Director of Marketing for email service provider Emma, “triggered email messages average 70.5% higher open rates and 152% higher click-through rates than traditional bulk messages.”

However, many brands are not implementing triggered email programs. Research by The Relevancy Group discovered that only about 50% of companies send a welcome message to new customers, 30% of enterprise brands and 16% of mid-market companies send a post-purchase offer, and less than one-quarter of all companies make any attempt to re-engage inactive subscribers.

5. Respond to each and every email inquiry

Research from Cobalt Group’s National Automotive eShopper Experience Study revealed that dealers do not respond in any way to nearly 25% of all email generated leads and of the ones who do, 30% never follow up.

According to an article by Benchmark Email, “Of the dealers surveyed in the Cobalt study, only 46.2% replied to an email within an hour, with the majority leaving the email reply for much later. A great number of these emails were rather scant in the important details that the consumer seeks. 63.8% did not quote a price of any kind, 56.2% did not address availability of the desired vehicle, and 87% did not provide any information as to the value of the brand or the vehicle they were interested in. 23% of all customers that switched brands claimed poor dealer interaction for their decision, thus it can be concluded that lack of proper and thorough responsiveness to email queries is primarily to blame for this considerable number of lost sales.”

When it comes to driving consumers to your dealership, email works. Local Automotive Dealerships: The Role Of Interactive Media In The Local Car Shopping Process found that 23% of all visits to dealership websites were triggered through an email link. Receiving an email from the dealership was the number one action that convinced prospects to visit the showroom. And fully 59% of all motorists stated that it was the dealer’s email that got them to travel to the lot.

Key Insights into Understanding the 2016 Car Buyer’s Journey

Car shoppers today are online before they ever step onto your dealership’s lot. And while this trend is not new news, a study commissioned by Cox Automotive through IHS Automotive confirmed that this is new normal for car shopping. Although dealerships may understand this, many have not made the switch from traditional marketing strategies to those that target digitally savvy consumers.

Car Shopping by the Numbers

The study revealed some important insights for dealerships:

• 59% – The percentage of time buyers are spending online before they purchase a vehicle
• 2% – The time consumers spend shopping for cars through print materials, such as newspapers
• 88% – The percentage of customers using the internet to shop for car
• 46% are using multiple devices to get to your dealer website. 14% used a mobile device ONLY
• 30% – The percentage of people who knew exactly what vehicle they plan to purchase
• 70% of people are undecided. Customers may have an idea, but will change their minds once they’re at your dealership and test drive a vehicle
• 56% – Percentage of customers visit walk onto your showroom floor without making any prior contact
• 63% already have an idea on what their trade-in is worth
• Top online sources consumers used to shop for both new and used vehicles include 3rd party sites (78%),dealership sites (57%), and OEM sites (36% total with 54% of consumers using OEM sites for new vehicle research)

Most Car Buyers Are Undecided When They First Start Car Shopping

When car buyers first begin their research for a vehicle, 6 out of 10 them are undecided and open to multiple vehicle options. They consider different makes and models as well as different purchasing options during this initial phase of research. Additionally, consumers are often open to considering either a new car or used vehicle.

However, by the time they have actually reached the dealership, they often know the vehicle they want to purchase. In fact, 38% of car buyers only visit one dealership and 52% only test drive one vehicle.

There is certainly a window of opportunity for car dealerships to influence consumers before they get to this final decision process – however this must happen online. When consumers are considering a variety of options, dealerships that use both mobile and digital channels to target in-market consumers can have a large influence over the type of vehicle and the dealership the consumers actually decided on.

Which Online Sites Have the Most Influence in the Purchased Journey?

Car buyers use a variety of sources to conduct their research, but there are certain channels that have more influence over others. Most consumers use 3rd party websites more so than any other site with 56% of car buyers say that 3rdparty sites are the most useful sites.

Additional research by LeadiD examined the top 3rd party sites consumers tend to use. Kelley Blue Book, AutoTrader, Cars.com, and Edmunds appear on both consumer and dealers’ lists. Automotive marketers must double down on their efforts and ensure they have a strong presence in the online inventory marketplace to reach and influence shoppers wherever they are shopping online.

What Are the Top Online Activities During the Shopping Process?

By understanding what consumers are looking for during their online shopping and research process, dealerships can make sure they have the right strategies in place to target consumers with the right messages across the purchase journey.

Content marketing plays an essential role throughout the car buying journey. Many dealerships utilize top of the funnel content strategies such as blog posts and article to improve search engine rankings. However, it is increasingly important for automotive dealerships to integrate other types of content to drive conversions. Based on the Cox Automotive research, consumers are looking for content that will ultimately drive them further down the funnel and into your dealership:

• 71% – Research car pricing
• 68% – Find actual vehicles listed for sale
• 64% – Compare different models
• 63% – Find out what current car is worth
• 46% – Locate a dealer or get dealer info

Types of Content to Drive Conversions

Dominion Dealer solution published a great article featuring the top types of content that drive results for dealerships. Key highlights include:

Photos: Ten photos on a Vehicle Detail Page (VDP) can increase page views by 142% and increase dealer contacts by 117%. The more photos displayed of each vehicle, the better the car shopper’s experience. (NIADA)

Prices: The top reason car buyers use online sources to shop for vehicles is to research pricing (62% in 2015, up from 61% in 2014). (IHS/Polk)

Videos: 25% of all new shoppers spend one hour or more watching videos while researching cars, 49% of shoppers visited a dealership after watching an online video, and 72% of auto purchases indicate that YouTube influenced purchasing by providing “in-action” videos of vehicles that shoppers were considering.  (Millward Brown/Google)

Service department details: 83% of consumers are likely to look online for vehicle service and repair information making it extremely important to market your services service department specials and services online. (C+R Research)

Reviews: 70% of Gen Y shoppers trusts car reviews on independent websites while only 53% trust manufacturer websites and 40% trust salespeople at the dealership. With reviews on dealership websites – both on vehicle pages and service pages – online shoppers validate dealers’ quality and service levels. (Deloitte)

Social media: 33.5% of recent car buyers find social networks equally as helpful as dealership websites. Engage your customers and prospects via your social networks. (Automotive News)

Auto Shoppers Use Multiple Devices Throughout the Purchase Journey

While 88% of car buyers use the Internet to shop, they also use multiple devices to shop. According to the study, 46% use multiple devices when shopping for a car which breaks down as follows:

• 83% – Desktop/Laptop
• 46% – Smartphone
• 31% – Tablet

Dealerships must focus on ways to deliver a consistent message across devices. Be sure your website and email messages are responsive and mobile-friendly. If not, consumers will simply visit another site or dealership that can provide a good online experience. Also create targeted and timely message for multiple devices. A laptop or desktop has much more real estate for words and images than a smartphone. Today’s shoppers have come to expect a fully immersive digital and mobile experience that offers easy access to vehicle information, pricing, reviews,  and inventory on any device.

Car shoppers are researching online and using multiple devices to do so. During this critical stage of research – before these shoppers make their final decision – be sure to get your digital presence established using multi-channel and targeted engagement strategies. By doing so, your presence will bring new customer to your lot, more cars driving off the lot, and more revenue for your dealership.

To learn more about targeting and winning with today’s multi-channel automobile shopper, download theAutomotive Marketing Data Success Kit.

Mobile is Skyrocketing for Dealership Marketing  – How to Get on Board

Mobile devices are rapidly changing the way that consumers research, shop and make purchases. According to the J.D. Power 2015 New Autoshopper Study, 51% of respondents said they used a smartphone or tablet to help find the make, model, price and dealership that best suited their needs.

And once a consumer arrives at the dealership, they continue to use their mobile devices for additional research. Did you know that consumers using a mobile device are 72% more likely to visit another dealership than those who were without a smartphone or tablet while car shopping? And 33% of customers went to another dealership based on a mobile ad they saw while shopping for a car. (Source: Placed, Inc. and Cars.com)

In 2015, the auto sector spent $3.43 billion on mobile ads in the U.S., representing 47% of the industry’s total digital ad spending, according to eMarketer. Beyond ads, consumers interact with mobile in other ways on a daily basis. For example, dealerships who say they are not investing in mobile and prefer to stick to a channel such as email, the reality is that 45% of these emails are opened on mobile.

Mobile usage by consumers is skyrocketing and automotive marketers must respond in like with mobile messaging. Here are some ways your car dealership mobile marketing can get started:

1. Fast-Loading Websites are a Must

The design of your website should be mobile-responsive, but be sure to also pay attention to the loading time of your pages. According to Gartner, 43% of customers are unlikely to return to a mobile site that loads slowly and 74% of mobile site visitors wait up to 5 seconds, but 60% wait less than 3 seconds and never return.

2. Optimize Mobile Landing Pages

The goal of landing pages is to get a quick conversion. Many dealerships spend a large portion of their budgets creating great ads. Once a consumer clicks on an offer, coupon, or ad, the landing page must be designed to convert mobile users. While a landing page viewed on desktop can include more text and visuals, a mobile landing page will need to follow different design protocols.

Some great tips to follow according to research by AutoHook include:

• Keep headlines very short, no more than four or five words
•  Is the text large enough? Zooming should not be necessary
•  Make sure everything is visible on one screen so the user doesn’t have to scroll down
•  Call to action (CTA) must be the first thing the user sees
•  CTA goal is to get the user to perform one action, typically to click a link or a button
•  One objective per landing page
•  User should know exactly what they get when they perform the CTA

3. 80% of Consumers Redeem Mobile Coupons

Eighty percent of shoppers say their perception of a retailer improves when the retailer offers mobile deals and coupons, according to Mobile Commerce Daily. In 2016, an estimated 104+ million consumers will redeem mobile coupons, reportsStatistica.

In addition to emailing coupon offers, other channels for promoting mobile coupons include Facebook, Twitter, and mobile texting campaigns. Several dealerships are also using Mobile wallets to promote coupons. 70% of consumers will save an offer to a mobile wallet when presented with the option. These offers have a 64% higher conversion rate over static mobile web coupons. (Source: Vibes)

With Apple Wallet and Android Pay mobile wallets, a customer can click on a mobile offer such as a coupon or ad and store it.Once the offer is inside the mobile wallet, a dealer can easily update the digital passcode and can send customers push notifications offering them new coupons or specials.

4. Add Personalization to Your Mobile Email Messages

Personalized emails improve click-through rate by an average of 14% and conversions by 10% (Aberdeen). When sending email campaigns (mobile-optimized messages of course), use personalization as a key tactic to increase engagement and encourage more visits to your dealership.

According to a report by the Relevancy Group, when consumers were asked about they disliked most about receiving email messages on their phones, 39% responded that the emails were not relevant. (And keeping in line with the importance of being mobile optimized, 32% stated that the email was too small to read and interact with and 26% states that, “when I click through it’s too hard to see their full web-site on my mobile phone).

If you don’t have the data you need to send personalized email offers, consider using a third-party data source to append your prospect records. Common types of data that can be added for personalization include:

• Demographics: full name, age, home ownership, occupation, gender, estimated income, credit card, language spoken, hobbies, purchase behavior, and lifestyle interests.
• VIN Data: Make, model and year of the car currently being driven, Kelley Blue Book and Black Book data, or even very specific data including engine size, fuel type, drive train, engine block, and engine cylinders.
• Auto Equity Model: Data available on specific vehicle owned, trade-in value of the vehicle, actual amount owed on car loan, monthly payment and credit score

In nearly every industry, shoppers have come to expect a fully interactive mobile experience that offers easy access to product information on any device. This means mobile-first design and mobile optimized experiences for dealerships who want to maintain and enhance their competitive advantage.

To learn how to target today’s auto consumers with multi-channel engagement strategies, download this free guide on Data-Driven Marketing for Automotive Marketers.

Women are one of the fastest growing groups of auto consumers. While marketing to both men and women is key, dealerships who look for new ways to attract and target female consumers can gain a big advantage.

Here is a look at some interesting statistics compiled by Auto Alert about marketing to female consumers in the automotive industry:

• CNW Marketing Research found that 47.3% of women car shoppers prefer women dealers
• In 2010, women made up 44.1% of primary vehicle buyers, and the number only continues to increase; now, women buy 68% of all new vehicles. That’s almost a 24% increase in less than five years
• Women are estimated to influence up to 85% of all vehicle purchases
• Women spend approximately $300 billion yearly on vehicles and accessories
• As of 2012, the amount of women who have driver’s licenses outnumbered men
• Studies show that three quarters of women feel misunderstood by carmakers
• Women are the fastest growing consumer group

Last year, Lexus made improvements in how the brand appealed to its female customer through the launch of the Lexus Difference. Peggy Turner, Vice President of Customer Experience at Lexus, became the champion of this program when she became aware that in order to attract more women into Lexus dealerships, they needed to feel more welcome and comfortable. According to Peggy, “I became aware of customers saying ‘as a woman I’m afraid to go into a dealer,’ or saying, ‘I don’t want to haggle,’ ‘I don’t want to get my car serviced there because they’ll rip me off,’ ‘I have to bring my husband or another male’ to the dealership.”

Read more about how Lexus is catering to female consumers at SheBuysCars.com.

To make improvements at your dealership, here are 3 tips to cater to your female customers:

1. Deliver an Exceptional Purchase Experience

Delivering an exceptional experience is of course true for both genders but reports indicate that 50% of women are dissatisfied with the car they ultimately buy, which ties back to the sales experience.  77% of women also feel that they need to bring a male with them during their car buying process, and women generally end up paying about $500 more per car than men. Dealerships must address these issues to deliver better communication and an easier purchase process.

Make women feel comfortable at your dealership. Lexus of Massapequa recently held a “Cars & Cupcakes” event for women with an emphasis on car financing. Lexus implemented some favorable changes such as working with a Japanese perfumery to develop signature scents and offering yoga and spa treatments at several dealerships. Other dealerships are offering fresh fruit in addition to the donuts and popcorn, or more women-friendly magazines placed in the waiting area.These should be subtle differences – after all, you don’t want to alienate your male customers.However a few small tweaks can go a long way to let women know they are valued customers.

2. Don’t Neglect the Service Experience

Customer retention is of course critical to dealerships. Once the car is sold, getting a customer back in for service is a huge revenue opportunity for dealers. Recent findings by the Automotive Aftermarket Industry Association show 9 out of 10 women are involved in their household’s vehicle maintenance and repair decision‐making process and 65‐70% of the customers who take their vehicles in for service and repair are women. Women seek a trusted advisor in their dealership aftermarket experience. For example, 70% of women will buy tires when told they need them. The focus here is on building customer relationships. Provide service alerts, service scheduling and follow-up calls.

Women‐Drivers.com recently released a report on the top 10 dealers excelling at service and maintenance experiences. The top rated women-friendly brands included Mercedes‐Benz, Honda, BMW, Acura, Lexus, Buick and GMC, Jeep, Toyota, and Chrysler. Paying attention to their customer satisfaction is paying off with the report showing:

• 73% of women said they will service their car at the dealership in the future
• 53% said they have their car service work completed at the same dealership where they purchased their car
• 66% of the women received follow‐up communication from the dealership after the work was completed

3. Know Your Customers – And Treat Them as Individuals

Research suggests that women want small, safe, maneuverable, fuel-efficient cars. However there is also a huge majority of female drives who prefer trucks or minivans. While generalities can be loosely made for both male and female drivers, don’t assume. Develop marketing approaches that appeal to different segments and get the facts when marketing to your individual prospects.

The best way to do this is to use a third-party data source to append your prospect records. Common types of data that can be added to develop targeted campaigns for both men and women include:

• Demographics: full name, age, home ownership, occupation, gender, estimated income, credit card, language spoken, hobbies, purchase behavior, and lifestyle interests.
• VIN Data: Make, model and year of the car currently being driven, Kelley Blue Book and Black Book data, or even very specific data including engine size, fuel type, drive train, engine block, and engine cylinders.

With a better understanding of who your individual female customers and prospects are, the right messages can be developed to appeal to the luxury-minded professional, the soccer mom, the avid outdoor enthusiast, the family with 4 children, or perhaps the female segment that fits all of these roles.

Without question, women represent an important segment for dealerships. While all dealerships should implement strategies to appeal to different audiences, striving to be a dealership that women trust will capture loyal new customers who will keep coming back.

To learn how dealerships are providing exceptional customer experiences to bring in new car shoppers and drive customer loyalty, download this free data-driven automotive guide.

3 Steps to Win Big With Today’s Auto Consumers

According to Autotrader’s recent Car Buyer of the Future study, only 17 out of 4,002 people prefer the current car-buying process. And the rest? They want some major changes. For those dealers who take the time to appeal to today’s auto consumers, the wins will quickly add up.

Autotrader uncovered some interesting facts in the study:

• The lowest price does not always win. Although price will always continue to be an important factor, 54% of shoppers say they would buy from a dealership that offered a great experience as compared to a lower price. Additionally, 73% were willing to drive further to a dealership who provides a positive experience.
   
• Salespeople continue to play an important role. The notion of online car shopping may be appealing to some consumers. Although most consumers begin their research on a website, 84% prefer to purchase a car in person, however.
   
• New options for financing paperwork. Once the purchase decision has been made, the average time for completing paperwork is 61 minutes, according to a study by Cox Automotive. Meanwhile, 72% of consumers would favor the opportunity to complete credit applications and financing paperwork online.

Clearly, in the age of the consumer, providing a great customer experience provides huge benefits for dealerships. Additional statistics from the Autotrader study indicate:

• 72% of consumers say they would visit dealerships more often if the buying process were improved.
   
• 66% of consumers say that they would be much more likely to buy from a dealership that offers their preferred experience.
   
• 53% of consumers would buy a vehicle more often if the buying process were improved.
   

The following are three steps to winning big with today’s car buyer.

1. Know customers and prospects

Consumers are increasingly choosing dealerships that cater to their needs and preferences, often over dealerships that offer a lower price.

To provide a positive customer experience, you must have a thorough understanding of your customers and prospects—demographics, preferences, contacts information, and lifestyle. Most dealerships have pieces of this information sitting in multiple systems.

For example, a prospect may have completed a form on your website, so you have the contact information in a CRM system. This same person may have also contacted your customer service department, so additional details are sitting in another system. Data is often stored in multiple systems such as billing systems, marketing programs, customer service departments, maintenance records, and other sources.

Each of these customer data sources must be integrated into a single database to achieve a 360-degree customer view. By understanding what your customers want, who they are, their channel preferences, and other important details, dealerships can create truly tailored customer experiences based on individual preferences.

2. Append your data

In addition to internal sources of customer data, specialized auto data should be appended for richer insights and more targeted offers. Examples of third-party data solutions include:

• Follow the car. Identifies cars that you sold or performed regular service on after they are sold to a new owner, so you can bring the vehicle back in for service.
   
• In-market modeling. Statistically modeled values that indicate a household’s inclination to purchase a vehicle within the next five months. Allows you to target prospects most likely to be in market for a new or used vehicle.
   
• Digital ad targeting. Focus on in-market buyers by brand, category, and more by accessing consumer data information, such as vehicle make, model, year, intent to purchase, geographic locations, and other consumer demographics like age, income, profession, ethnicity, and known interests.
   
• New mover data. Allows you to know when your customers move, so you can retain them at another location, and to welcome new prospects who have just moved to your area, before they go somewhere else.

3. Implement change

Today’s consumers gravitate toward dealerships that provide the best experiences and streamlined processes. Get a head start over your competitors and implement some of these changes.

For example, a large percentage of consumers see a dealership as a place to learn and gain information on warranties, specials, safety ratings, and service. Consider creating informational videos and resource centers, or have a product specialist on hand, and then promote and advertise these resources so consumers know that your dealership is a great resource for learning.

Another major change consumers want when purchasing a vehicle is an improved buying process. Is your financing paperwork online and easily accessible? Do you have easy-to-understand instructions and knowledgeable customer representatives available if someone has questions when completing this paperwork?

Today’s auto consumers are savvier and expect a great customer experience. A rich understanding of your customers combined with better customer service, easier processes, and robust educational resources will get more customers into your dealership. And remember: Consumers are willing to pay more and drive further to dealerships that can deliver what they’re looking for.

Did you know that car shoppers are 90% more likely to visit your website and 5.3 more likely to visit your dealership if you have positive dealership reviews online? The study, conducted by DealerRater and Dataium, clearly reveals that dealer reviews have a strong impact on shopper behaviors.

Industry statistics also reveal that 7 out of 10 auto shoppers believe that online dealership reviews are either a “very” or “extremely” important part of their research process. Consumers will read an average of 10 reviews about your dealership and online reviews are almost essential to attract the millennial consumer. 81% of consumers age 18-34 say they seek opinions through online reviews before purchasing any product or service, according to a recent report from Mintel.

As auto shoppers do more online research and engage with social peers before making a decision to head into your dealership, online reviews can be gold. Dealerships are utilizing digital channels such as email marketing, digital advertising, social marketing, and online content to build brand awareness. But when it comes to the final decision of which dealership to actually visit, positive online reviews can be the deciding factor in tipping the scale in your favor.

Here are 5 tips to improve your dealership’s online reviews.

1. Deliver Amazing Customer Experiences

This is of course is the ultimate rule to receiving positive reviews. Consumers are using more digital connections when shopping for products and services. Because human interactions are occurring less frequently, be sure to optimize the experience across digital channels. Consumers expect a seamless experience across, whether they are online, calling your customer service department, or visiting your dealership. When you do get a consumer into your dealership, make sure your customer service is a five-star experience that your customers will rave about. When you deliver a great experience, a survey by American Express found that happy customers tell an average of nine people about their experience.

2. Ask For Reviews When Consumers Are Most Likely to Leave Them

While unhappy customers can’t wait to leave a negative review, your satisfied customers may need a bit of encouragement. According to a survey by Cars.com, consumers leave reviews most frequently during business hours. 52% of dealer reviews were posted on Cars.com on Tuesdays, Wednesdays, and Thursdays, between the hours of 10 AM to 4 PM. Since consumers are more inclined to leave reviews during these time frames, send out requests for reviews to correlate with these peak hours. Happy consumers are also less likely to leave a review than dissatisfied consumers so a friendly request during these times will increase the chances of getting more reviews.

3. Respond to Reviews

The Cars.com survey revealed that only 33% of dealerships respond to reviews. Companies that do take the time to respond have higher response rates and better levels of engagement. According to the research, “Dealerships in Delaware have an average response rate of over 60 percent (the highest in the US) – and enjoy aggregated ratings of 4.7 of 5; while South Dakota dealerships, which collectively only respond to reviews at a rate of less than 10 percent, have lower ratings with an average of 3.9 of 5.”

4. ALWAYS Respond to Negative Reviews

You won’t be able to please all of your customers all of the time so be ready to follow up on negative reviews. Consumers who have had a bad experience want to be heard and swift attention will mitigate damage. Be sure you are monitoring review sites and social channels, especially during weekend hours. Negative reviews are 19% more likely to be written on a Saturday, Sunday, or Monday after a bad weekend experience and you don’t want these complaints to slip through the cracks. Remember, consumers will pay attention to positive reviews but will also pay close attention to negative reviews to see how the problem was handled.

5. Implement an Online Review Management Process

Consumers have easy access to dealership review sites so be sure you have a process in place to monitor these third party sites. There are a host of sites that you must continually monitor, such as Cars.com, DealerRater.com, Edmunds.com, and Google+ to name a few. Dealer review monitoring services can also be implemented to help you keep tabs on each of these sites. Just be sure to keep on top of what consumers are saying to protect your reputation.

Auto dealerships can fail or succeed based on customer satisfaction. Online reviews and ratings have a great impact on your dealership. Be sure you aren’t ignoring this valuable strategy to nurture your business and grow your customer base. And by doing so, you can promote your good work by marketing your reviews to gain more appointments and future sales.

To learn how to close more deals and create lasting customer relationships with a positive customer experience, download this free Data-Driven Automotive Marketing guide.