In 2017, we saw a 16 percent year-over-year increase in online purchases, the highest growth rate since 2011. With stories about Amazon moving grocery shopping online while big box stores shutter across the country, the influence of online retail won’t come as a surprise. However, what this means for the auto industry isn’t clear yet. There are already digital retailing sites for the used market. New car sales laws may mean Amazon, and others like it, aren’t selling new cars yet, but that hasn’t stopped them from creating VDP pages. CDK Global wanted to better understand what shoppers want out of online auto retailing so dealers can stay ahead of the curve. We wanted to know how far online retailing could go, what the role of the dealership is in the car-buying process and how to best blend the online and in-store experience. We surveyed vehicle shoppers across demographics that bought a car within two months or intend to buy a car in the next two months. Below are some of our most interesting findings.

Shoppers prefer to make their finance decisions online.

Financing a vehicle can be one of the most stressful aspects of the car-buying experience. Committing to such a large dollar amount can be intimidating for anyone, but factor in an unfamiliar, long, and often confusing buying process and it’s a recipe for anxiety. When asked about choosing a loan, service package, warranty, and accessories, a majority of shoppers said they preferred making all the choices online. Tools that allow customers to fully understand what they qualify for and what add-on choices they have clarifies the decision-making process. These types of tools make information easy to access and allows consumers to fully evaluate their choices from the comfort of their own home. In addition to convenience, some customers said they appreciated avoiding the potential embarrassment of being denied a loan at the dealership, an experience that can quickly sour a customer/dealer relationship. This can also help increase back-end profits. Seven out of 10 respondents said they would choose add-on accessories from an online menu, a profit point that might be a harder sell in the pressure of the finance office. While they prefer this activity to take place online, the dealer and in-store experience is still important.

66 percent of shoppers feel comfortable having their trade-in evaluated online.

The trade-in is another point of contention between customer and dealer. People become emotionally attached to their cars and attribute value that doesn’t translate to a trade-in valuation. This can lead to a deal falling apart when the offer doesn’t match the customer’s expectations. It’s easy for a customer to overlook a few dings when their vehicle brought their newborn baby home safely, but dealers realize that despite that fact, damage will matter to a potential buyer. Starting the trade-in process online allows consumers to set expectations up front and saves time when they get on the lot. How might dealers start evaluating trade-ins online? Submitting photos and videos of their trade-in was the top choice for shoppers.

Millennials prefer spending more time at the dealership evaluating vehicles over a quick and convenient online process.

In our 2017 study of Millennials we found that 63 percent had an overall negative perception of the auto industry, a nearly 40 percent divide from the much more positive Baby Boomer generation. As this generation of digital natives has become increasingly influential on the market, e-commerce has grown immensely. Yet, when respondents were asked whether they would prefer more time at the dealership learning about and evaluating vehicles or a quick and convenient online process, Millennials preferred the former while 35-65 year-olds preferred the latter. The preference was particularly strong for 18-25 year olds, 70 percent of whom preferred in-store. Their age, more than their generation, might be the reason why. Being younger means they lack experience with cars and the vehicle purchase process. They need more time to get to know the cars, ideally with a salesman acting as a guide to highlight features and help them make the best choice based on their needs. That doesn’t mean online doesn’t matter as well. Our previous Millennial study revealed 77 percent of Millennials prefer starting their deal structuring online.

When shoppers were asked what vehicle shopping methods they would use in the future, 80 percent said online and 78 percent said in-store. Both matter and are likely to be part of the shopping process. Allowing customers to do more online provides the time, convenience and information customers crave from online retailing. It also gives the dealers the power to choose what to display, learn more details about their customers, and help with back-end finance sales. On the lot, it should be all about the vehicle. Shoppers’ biggest concern about starting the process online was not seeing the vehicle in-person first. Even the best virtual displays can’t simulate what it feels like to sit in and drive the car. With the stressful finance and trade-in parts moved online, customers can focus on their excitement about getting a new car – which ultimately means happier customers and dealers.

Maybe you’ve heard the news: men and women are different (Shocker!). But the differences between men and women don’t end with their biology.

In fact, women and men have different needs and approaches to car buying.  And whether you realize it or not, women influence 85 percent of purchasing decisions, they have more driver’s licenses then men, and they’re the largest emerging market. So it makes sense that dealers would try to better understand women and adjust their approaches to selling to them, right?

But, the truth is that most dealerships are afraid to acknowledge gender. They’re scared that treating women differently will signal that they’re not treating them equally.

So how does a dealer ultimately treat their customers best? They treat each customer as an individual and cater to their specific needs.  When it comes to selling cars to women, this means acknowledging that the experiences they generally seek in a dealership or a vehicle are different than men. And a good dealer will take these differences into consideration when trying to create a great customer experience.

So what’s the difference?

For starters, men and women base their decisions on different criteria. When looking for a vehicle, men are more inclined to make emotional decisions, where women are more likely to focus on practical factors (which is particularly interesting given that in other purchasing decision, these are flipped). A recent eMarketer study found that women are much more likely than men to prioritize reliability, safety, and fuel economy. Men are more interested in whether a car is fun to drive, has a powerful engine or is seen as prestigious.

But practical doesn’t mean technical. Men tend to connect with more technical descriptions about the vehicle than women. CDK Global’s Language of Closers research found that technical words like “transmission” were less engaging to women in vehicle reviews. In addition, we found that women are more focused on reviews that tell them something about the vehicle they can’t learn from a list of specs. They engaged more with words like “driven,” “trip,” “comfortable” and “handling” because they described the experience of driving a vehicle in a relatable way.

However, when women are considering where to purchase their vehicle, they consider more than just the vehicle itself. Using natural language processing, we recently studied 64,000 customer reviews of sales and service experiences at dealerships and separated them by gender. We found that many women are quick to self-identify as women, usually because they believe their gender will affect how they are treated at a dealership. One review represented their apprehension about going into a dealership, saying “As a woman purchasing a new car, you always worry that sales people won’t treat you or respect you as much as they would a man making the same purchase.”

We also found that women used words like “compassion,” and “smiles” more often than men, indicating that a positive connection between dealership personnel and the shopper was extremely important.

So if you’re trying to reach women — and you should be based on their buying power — it’s important to acknowledge that they have different expectations and needs than men. Understand the intricacies of selling to men and women, both as groups and as individuals. Women are more apprehensive about buying a car, but they are more focused on practical needs. The best experiences for them revolve around dealerships that are understanding, compassionate and helpful.

But remember, while men and women trend towards different wants and needs, everyone is unique and wants to be treated as such. Don’t give in to stereotypes. Instead, use our findings to arm yourselves with additional knowledge to better understand and serve your customers.  

Want to learn more about CDK Global’s research on women? Visit our Language of Closers website or browse our insights on women shoppers.

The vehicle display page (VDP) is often the last page a customer sees before contacting a dealer. By the time they’ve arrived there, they’ve likely done their research and narrowed their focus down to one or two vehicles. This page can be the difference between a lead and a missed opportunity.

There are three major elements that influence customers at this stage: price, vehicle images, and vehicle description. It’s easy enough to meet the first two customer wants — provide a competitive price with quality pictures and videos. The latter isn’t as clear. Instead of using the VDP to grab the customer’s attention, it’s usually a wall of SEO text, a few dealer slogans or omitted in favor of a long spec list. Instead of exciting the customer, it confuses and overwhelms them. But the VDP shouldn’t be such an afterthought. Sixty-three percent of online shoppers said the product description was a major influencer in their purchase decision. The description should validate the customer’s decision by connecting with their wants, but how do you do that?

Science of course.

As it turns out, most dealers don’t have the time or resources to conduct a study on which descriptions resonate with customers. But,don't worry — CDK Global has already done the legwork. If you haven’t heard, we’ve created a tool to identify the language that converts customers. We previously used this tool to find the language of email lead closers. This time we applied it to customer vehicle reviews. CDK partnered with a third-party vehicle retail site to find the reviews that were most likely to convert customers (meaning a user read the review and immediately went to a dealer site as a result). We then put those reviews through our natural language processing tool to find the terms they had in common. Using this method, we were able to find words that seem to resonate most with sedan, mid-size sedan and SUV shoppers.

Here’s what we found. 

Sedan Shoppers Like Simplicity

Sedan shoppers seem relatively easy to please. They want a car that’s good at passing others on the road. They want to be comfortable. The car should both handle well in harsh climates and have good climate control. Finally, they want their friends’ input during the shopping process and their approval after purchase.

Mid-size Sedan Shoppers Like Luxury

Mid-size sedan shoppers seem to have more refined tastes than shoppers of other vehicle types. They want a vehicle that impresses them with luxury-like features and style. In keeping with a higher-end experience, the vehicle should provide a quiet ride and get up to speed quickly on the freeway.

SUVs Are All About Family

Unsurprisingly, SUV shoppers are all about more space. They need room for the whole family and anything they might bring with them. Space in the back shouldn’t mean sacrificing leg room in the front. Row options also proved important, whether it was third-row seating or an adjustable second row.

The vehicle description is all about getting customers to imagine themselves in the car. Obviously the words can’t function alone, but with a bit of context, they can paint a persuasive picture for a shopper. Next time you write a sedan description, explain how the “powerful engine coupled with the side blind spot alert makes passing a breeze” or that the “smooth quiet ride” offered by your mid-size sedan “provides a luxury-like experience” or how your SUV’s “adjustable rows mean plenty of room for the whole family.” Descriptions like this will resonate with customers far more than a list of features. It can be that final little push that gets the customer to submit that lead, making your VDP the real MVP.

Check out the webpage to learn more about the Language of Closers.

It’s that time of year again: lights line the houses, the air is brisk, and luxury manufacturers are trying to make sure their vehicles are the best gift wrapped in a bow. The shopping season has already begun. November saw year over year sales growth for Audi, Cadillac, Infiniti, Lincoln and Mercedes. While manufacturers and dealers are looking to make that final push to beat last year’s record breaking sales, luxury shoppers are online researching. Here are three things dealers should be doing to be at the top of their shopping list:

1. Highlight the experience

High quality build and design aren’t the only reason affluent shoppers buy luxury cars. Sixty-four percent of shoppers with a household income over $150,000 said the in-store experience was part of their motivation for purchasing luxury brands. When competing against other luxury dealers in market, dealership benefits can be a major differentiator. Use your website to highlight why customers should buy from your store. From putting greens and massages to technology training centers, dealerships are elevating the luxury experience. Your staff also plays a big role: Eighty-seven percent of all shoppers said in-store associates influenced their purchase decision. Make it clear why your sales and support team have the knowledge, experience and personal touch to provide a superior purchasing process. Highlighting the investments you’ve made for your customers will make shoppers want to invest in you.

2. Customization

The ability to customize and personalize is another appeal of purchasing luxury according to half of affluent shoppers. It makes an already exclusive product even more unique to the buyer. Tools like “Build my Vehicle” should be prominent on your website and easily tied to the customer’s identity when they come in your store. Promote the different package options available. Accessories are also important to customization and should be especially prominent during the gift-giving season.

3. Convenience

One of the simplest things you can do to attract customers is provide convenience in both your digital and dealership experience. Your hours and directions should be easy to find on your website, particularly on mobile. Some of the top Google searches by luxury shoppers included “what time do car dealerships close” and “where is the nearest dealership.” “Why aren’t dealerships open on Sundays” was also a top search, proving the importance of providing convenient shopping windows for customers. If the customer can’t come to you on your schedule, bring the car to them. Vehicle delivery is a convenient feature that can be especially helpful in pulling off that big gift-giving surprise.

Whether luxury customers are looking to give an unforgettable present or simply take advantage of the great year-end deals, you want to make sure they’re looking to you to buy. Highlighting the experience, customization and convenience will help attract these shoppers, making it the most wonderful time of the year for you and your customers.

Hispanic Heritage Month sets aside time to underline the important contributions the Hispanic community has made to the U.S. From an automotive perspective, it’s worth noting that their contribution goes beyond cultural — it’s also economic. In 2015, Hispanics alone accounted for 35 percent of new vehicle sales growth, and it was the biggest sales year to date.

The U.S. Hispanic population has a significant economic influence — 1.38 trillion dollars to be exact. But their economic influence doesn’t stop there. The current Hispanic population rests at about 17 percent of the total U.S. population, but it’s projected to reach 31 percent by 2060. As the population grows, their economic impact, and their impact on the automotive market, will continue to grow as well.

But it’s not just a growing population that should make us take notice. Their median household income continues to grow closer in parity to the general population. This trend translates into expectation for Hispanic populations: 81 percent said they expect their family’s financial situation to improve in the next year.

Needless to say, Hispanic shoppers should be a priority for dealers. Luxury dealers specifically need to hone in on this demographic. A quarter of Hispanic vehicle intenders have a luxury vehicle in their consideration set. Since 2000, there has been a 188 percent growth in Hispanic households earning $75,000 or more. With the increased opportunity to spend, Hispanics are increasingly buying luxury vehicles – luxury vehicle purchases have risen 16 percent from 2013 to 2015, compared to 5 percent for non-Hispanics.

The Hispanic population is also unique in that the median age is 30, a full decade younger than the national age average. This means that a majority of them are also Millennials, another group with significant buying power. As a result, many of the observations about Millennials’ buying habits also apply to Hispanics. Most noticeably, the importance of a strong digital presence is key to connecting with potential customers. Hispanic Millennials are also more likely to be married, have a child and have purchased their first home, putting them in a perfect position to move on to their next significant life event — buying a car.

Dealers who want to position themselves for success in the future need to align to the preferences and habits of their Hispanic shoppers. To read more about how to reach Hispanic shoppers, check out the white paper “Hispanic Car Buyers Matter — Now More Than Ever Before.”

When you take your place at the end of the seemingly endless morning line at the coffee shop, what’s the first thing you do? Like many of your fellow line-dwellers, you probably reach for your phone. From news to games to shopping, your phone can make a long wait much less daunting. We are living in an increasingly mobile-first world. More than three-fourths of the U.S. population has a smartphone. They’re bigger, faster and more functional than ever before, making them vital in our everyday lives. If a customer is in need of a tune-up or a new car, that wait time might be spent on your site. However, if your mobile experience doesn’t meet the customer’s needs efficiently, they’ll quickly abandon your site. Our Retail Insights team has done extensive research on digital best practices that will engage and delight customers. Our 2015 national study evaluated hundreds of mobile sites across brands to better understand what the industry is doing and what areas need improvement.

Mobile is a visual medium.

The heavily visual Instagram and Snapchat were built for and proliferated on smartphones. The smaller displays on smartphones make them optimal for images over text. Sixty-two percent of mobile shoppers rated the ability to see pictures as the most important factor when shopping on a smartphone — 18 percent more than product descriptions. Yet nearly half of dealers are missing inventory pictures from their mobile site. It’s important to have pictures of the actual vehicle because the heavily airbrushed OEM stock photos of a vehicle floating on a white background are not easily relatable. Pictures of the car on the ground of your lot is something that the customer can imagine themselves driving off in. It’s also important to keep in mind that customers may be on mobile when reading your lead responses. Be as succinct as possible while still providing all necessary information. Walls of text can be difficult to read on mobile and customers aren’t likely to swipe more than two pages.

Functionality is key.

This may seem obvious, but many people forget how crucial an easy, functional user experience is on mobile. First and foremost, this means a mobile-optimized site. Most dealers seem to know this, with only five percent lacking a mobile-specific site. But this alone won’t keep customers engaged. Seventy-six percent of shoppers won’t wait more than five seconds for a mobile site to load. All of the images that customers want must be formatted correctly or shoppers will give up before they ever see them. It’s also important to make key features easy to find. Mobile shoppers have less patience than desktop shoppers when searching for contact information on a company site, maxing out at just under two minutes. Unlike other types of retail where mobile shoppers can just as easily purchase online, a vast majority of auto shoppers will go into the store to complete their purchase. Inventory should be prominent, but easy access to directions (with a link to open in a map app for easy navigation) and contact information (especially click to call/text) are just as vital.

Pay attention to service.

When it comes to mobile, Sales is clearly favored by dealerships. While 96 percent of dealers have sales hours listed and click-to-call numbers for sales, the same can’t be said for their Service department. According to our research, 14 percent of dealers don’t list their service hours and more than a quarter of dealer mobile sites were missing a functioning service number. The small windows of time where we pull out our phones are perfect for accomplishing small tasks like scheduling an oil change. Yet one in 10 dealers are missing service scheduling and less than half have automated scheduling. Non-automated scheduling requires the customer to wait for a response to confirm a service time, eliminating the time saving measure of using mobile. This opens up the customer to seeking service elsewhere, where they can get a quick confirmation, especially for same day service. Automated service scheduling gives customers the immediate satisfaction of checking something off the to-do list.

By 2020, nearly nine out of 10 people any age in the U.S. will own a smartphone. They will use them throughout the day to communicate, entertain themselves and get things like car shopping research and service scheduling done. Dealers should pay equal attention to their mobile and desktop sites. Following these best practices will give customers a solid user experience that will grow your customer base.

There are a whole slew of articles and books created with the purpose of teaching you how to write the perfect email to get customers to pay attention and take action. They’ll tell you to be prompt, include a strong call to action, use catchy subject lines or include fun graphics. However, when it comes to the meat of what you should say, you have nowhere to turn.

But that’s not the case anymore. As it turns out, the words you use DO matter. In fact, dealerships who have a high email close rate communicate differently than dealerships who have a low close rate. Using sentiment analysis and a cool new field of research called Natural Language Processing, we were able to determine which words contributed to the high or low email close rates.

Those we determined to be “high closers” had an average close rate of 10.9 percent. Those with a low close rate had an average close rate of 1.6 percent.

Double-check your words

So which words matter? Words like “provide” and “phone number” indicated a high close rate while phrases like “give me a” and “to ensure that” failed to indicate a high close. Go through some of your most common emails and start replacing some of those “low closer” words with some of the “high closer” words.

While it’s great to know the specific words that you can use to build strong emails, it’s also important to understand WHY these words helped drive sales – and use those concepts to further your success.

Guide your customers

Many of the strongest words occur because they are giving the customer good information and an easy, actionable next step. They ask simple questions like “would you like to come in and test drive the Sportage?” or say they’ll “provide details about the vehicles you’re interested in.” When you leave the next step in their hands, like saying “feel free to come in when you have a chance,” you lose the urgency and will often lose the lead.

Speak their language

Low-closing words like “body style” indicate that your customers can get lost when you’re speaking dealership language instead of speaking to the customer in their language. Instead, sharing the benefits of a vehicle in a way they would understand, like offering up that the vehicle has “heated seats” or is “comfortable” helps them imagine themselves driving (and buying) that specific car.

Meet them where they’re at

Your customers emailed you, so email them back. Don’t force them to call or come into the dealership before they’re ready. “Give me a call” was the highest indicator that an email would be left in the dust. Instead, provide them information they need via email and slowly nudge them through the process. If you’re meeting them at every step, you’ll also be the one to meet them in your dealership when they’re ready to buy.

While words are important, it’s important to remember that context matters too. If you’re still curious about how to use the language of closers, check out our white paper.