The omnichannel buying experience customers expect is gaining adoption in automotive.  Implementing omnichannel strategies such as digital retailing can be a dealership differentiator. One of the downsides, however, is that omnichannel is easy to break.  Just think back to a time where you ordered something from a big box retailer online and picked it up in-store. Chances are you have an experience where your expectations were not met.

Today, rapid technology advancements have brought us more computing power, an endless amount of data, A.I. to help us understand it all, and devices to help us obtain and process all of the information around us. Automotive is poised for a digital retailing revolution.

The future is only going to get more digital. The next era of digital retail will be more seamless. There will be less scrolls and taps and more voice and recognition. Everything will have the ability to be a store. With the rise in AI and data analytics it will be more apparent than ever that providing experiences will the best way to provide value to customers. Making the transition from app, to site, to store will need to be as seamless as ever.

Make no mistake about it.  For your dealership to implement a winning omnichannel strategy, it must be seamless.

If your omnichannel experience is not fluid then customers will inevitably jump ship and do their business elsewhere. Consumers will do their discovery and determine pricing and what type of car they want. They will then research and determine which exact model they want, the ins and outs of transitioning from their current vehicle into a newer one, and they will also price match. After that they will wait for the right time and then buy their vehicle. If your omnichannel experience is not providing value during each step of the process you are losing buyers.

Our next webinar, presented by MotoInsight, will help your store gain insight into the role of the physical storefront in the world of digital retailing. Register for Digital Retailing: Separating the Facts from Fiction today.

Messaging is quickly becoming integrated into the communication channels of dealerships.  It’s quick and efficient, and customers can interact at their convenience with a representative from your dealership. What are customers using it for? One of the places that messaging is gaining traction is Google My Business.

LivePerson Automotive analyzed over 25,000 Google My Business messages from 300 different car dealers in North America. The top 25 conversation topics are a healthy mix of discovery questions as well as intent to purchase questions. While some people may look for parts (3.3%) and others just want to know their hours of operations (5.5%) it is clear that the modern car buyer is very much informed when they begin communications with a dealership.

Messaging can create challenges for dealerships.  Who handles the interaction? Does your receptionist have the ability to send over more pictures and look for parts for their vehicle?  Are the chats handled by the BDC? How do you make sure that they are providing the level of experience that you want your customers to receive? There is a ton of insight to be gained from the top 25 conversation topics. The top 5 questions are customers with the intent to purchase. The way your dealership responds and the amount of time it takes to respond can determine if you get the sale or not.

How equipped is your dealership to answer these questions? Train your staff to provide your customers with an amazing experience by keeping them as informed as possible in regards to these common customer inquiries.

Trade-in conversations can be trickier than most due to the many nuances of trading in a car. They made up 11% of all chats. If your customer is upside down, still financing, or looking for a lower monthly payment that can be difficult to determine over the phone or through online messaging. The end goal of online communication is to bring customers into the dealership.

Providing customers with a consistent experience across all communication channels is important for today’s buyer. Using the messaging on Google My Business to respond to customer inquiries is providing significant experience and value to your customers.

Check out this study by LivePerson Automotive to see more insight into Google My Business Messaging.

In 2019 we are seeing upwards of 3,000 ads per day. Between the audio, visual, and social platform ads we consume everyday it has become easy for us to gloss over ads because we see so many of them, and 3,000 ads per day is only going to go up. With certain companies like Netflix and Spotify offering ad free subscription services, people can choose to not see ads for certain platforms they are using.   How can you cut through all this noise?

Ads need to be created for specific audience sectors. An ad needs to be created for those who are interested as much as an ad needs to be created for those who have already purchased from you.

Targeting and retargeting as well as demographic focused advertising has changed the way we advertise. Serving up an ad to a specific audience is easier than ever. The problem lies in the amount of ads we see everyday. You can be serving up an ad to someone who is going to be buying a car in the next couple of months, but having your ad stand out is now the biggest challenge. Your competitors may be serving ads based on a consumers buying intention as well.

Creating an ad in 2019 is no longer about crafting the right messaging with the right design. Messaging and design are still integral to the success of an ad, but it requires understanding consumer behavior for an ad to be as successful as it can be in 2019. This requires you to be in the right place at the right time. Depending on where a shopper is in your sales funnel will determine the type of advertising that you want to serve them. Someone who is close to purchasing a vehicle may prefer something more specific and dedicated, like a test or personalized email, whereas a person who is just beginning to shop may only need to be served ads on social platforms to increase brand awareness.

In order to compete in 2019, you need a targeted ad strategy that delivers the right message to the right customer at the right time.

To help influence buyer behavior make sure to understand your consumers purchasing power, personal preferences, and current economic conditions so you can tailor your marketing campaign effectively.

We will be discussing this further on our upcoming webinar with Outsell will go over how to influence buyer behavior so you can target in-market shoppers.

The automotive industry is a crazy place to be right now. The disruptive Uber-isation of the industry has presented itself with many challenges and rewards. It is now easier than ever to get from point A to point B, with more choices available.  As with other industries, disruption will lead to obsolescence (for example, taxi drivers are leaving in droves).

Electric vehicles, subscriptions, self-driving cars, companies threatening the dealer model, and more, we’re going to be seeing changes in the way vehicles are owned, sold, and serviced.  

In a recent interview with Jeff Bezos, he said, "If you think about the auto industry right now, there are so many things going on with Uber-isation, electrification, the connected car — so it's a fascinating industry,"It's going to be something very interesting to watch and participate in, and I'm very excited about that whole industry."  The Amazon CEO is investing 700 million dollars in automotive technology.

Warren Buffet sees opportunity as well.  He’s actively acquiring dealerships.

Adapting to change will be the biggest differentiator for success in the industry. Subscription services haven’t taken off like some thought they would years ago, but if or when they do are you prepared to adapt and go full steam ahead with a subscription model for your customers?

Regardless of the changes that will impact this industry, relationships has been a constant.  People want to trust the sales person and the dealership they are purchasing a car from, and this is a good place to invest your resources.  Developing a strong CX strategy and executing on it will help you bolster your organization against dealership threats.

As we have seen with the evolution of the internet it is as important as ever to train and develop best practices to take your dealership to the next level in sales, marketing, and customer service. If you are lacking in one of these areas you will struggle to obtain a large portion of any market. Constantly be adapting and changing how these operations are interacting with each other as well as the customer and you will set your dealership up to be successful now and in the future. The best businesses, and industries, are ready to respond to change as soon as they see it.

With Jeff Bezos and Warren Buffett being so optimistic about the future of automotive it is only appropriate that we do the same and embrace the change we are about to see in the industry.