Last week I spent a few days at the 3rd annual Digital Dealer conference in Las Vegas, which is a assembly of a growing group of ISMs (Internet Sales Managers), dealership principles, and sales staff sprinkled by a group of speakers, industry vendors and other visitors. It has been suggested that the growing incidence of typical online activity surrounding the automotive transaction will further erode what was left of the traditional purchasing funnel and essentially redefine the way people handle several steps of the "sale."
There is no question that this particular group is somewhat biased as they are obviously the inidividuals and dealers who have already embraced online media, internet-generated leads, interactive sales strategy, but it is undeniable that 8 out of 10 people use the internet to purchase cars and that there are things every dealer in North America can do to help improve their internet-generated sales. Regardless if there is or isn't a purchase funnel anymore or some type of typical continuum as to how people purchase, at the end of the day, the vehicle is still a big ticket item and the means to conduct the entire purchase process online are limited. This means that there still very well be an opportunity for the automotive dealer to have a face-to-face chance at selling someone a vehicle.
While dealers are generally split on idea as to whether or not to provide quotes or specific pricing information to customers via email (for fear that the information will simply be used to negotiate a deal with a competitor), they do typically agree that the main purpose of their internet-based campaigns and investment is not to complete the transaction, but rather sell the merits of the dealership (experience, service, location, pricing policy, etc) and most importantly, get the appointment. That is when people purchase vehicles.
Because internet investment by dealers in online media and strategy is still in its early stages, it will still be some time (if ever?) before people are truly purchasing online without ever dealing with someone in person other than to pick up a car. If this is the case, however, and the goal of the dealer is to really just get them in the door (and you know that they have every bit as much information and research as your sales staff) then it is a wonder that they don't spend more time selling themselves and less time focusing simply on price. That is, until you consider that price (quick quote) is all the customer ever really wants.
So, if you are a car shopper, it is worthy to remember that you will eventually need service and that location should be factored into the plans on where you buy your next vehicle. The latest estimate suggests that the industry will only sell 15.8 million new cars this year, which is down from well over 16 million, and meaning almost all dealers will be feeling some pinch. Poor credit issues notwithstanding, with all of the available information on pricing and sales tactics, should you get taken to the cleaners (on price), there is a good chance you didn't do enough homework rather than you ran into the most effective salesman.
And if you are a car dealer, it pays to remember that people are not shopping for a vehicle online (they have already done that), they are really shopping for a place to buy one. Many dealership staff suggested that more than 50% of their sales were now internet-based/generated and if you think that number isn't going to continue to go up and/or you don't adjust your strategy accordingly, then you are setting yourself up for a career change.
Well, this has been aproblem lately with mnay manufacturere and seems to last more longer
Posted by: Car Dealer Finder | January 21, 2008 at 11:16 AM
Cars are like clothes--some fit, and some don't; you have to try them on. I spent some years in a car that looked OK, but the seat was too short (so my knees hurt), the trunk too high (hard for me to see out and judge my position when parallel parking)... I learned a lot from that car; there's nothing better than a really good bad example. I won't buy a car without spending some time in it
Posted by: Sam L. | October 09, 2007 at 10:05 AM