Part III: The Naked Truth Exposed [Online Buying]

Online Buying...Should We Do It?

by the AutoHook Marketing Team

This particular blog will cover arguably the most controversial topic inundating dealer forums like DealerRefresh and other automotive digital communities. This is the question of the moment, and perhaps the largest generator of both debate and uncertainty creeping up our industry’s horizon.

After AutoHook’s nation-wide survey conducted over the last three months, the top five digital marketing topics dealers currently struggle with were exposed:

1. [Social]: Does Social sell cars?
2. [Video]: Video, video, video…tell me more.
3. [Paid Search, Retargeting & Budgeting]: What should we expect?
4. [Online Buying]: Should we do it?
5. [Data & Marketing Attribution]: Who has it and how do we get it?

The first three topics are covered in parts I & II of The Naked Truth Exposed Series. Check them out below:

• Part I: Social & Video Marketing
• Part II: Paid Search, Retargeting, & Budget Allocation

THE QUESTION OF THE MOMENT: Should I make my vehicles available to buy directly on my website? Is it necessary if I already have a successful brick and mortar store?

So, what did AutoHook’s Naked Truth defenders have to say about online buying at Digital Dealer 21? First, let’s reintroduce our expert panelists and reveal what they shared on this undecided topic.

Alex Jefferson (eCommerce Director, Proctor Dealerships)

“Where online buying is going I don’t necessarily know, but I do know that it did personally have an adverse effect on us when we integrated with the tool.”

The challenge with online buying is there are two very different perspectives on the topic: the consumer’s perspective, and the dealer’s perspective. Proctor Dealerships recently tested an integrated online buying model on their websites over a one-year time period. The tool gave customers the ability to formulate payments, value their trade-in, and complete most of the purchase process online - the overall goal, of course being to save the time consumers spend physically at the dealership. However, what Alex and his team found is that “people are lazy.” They don’t want to take the time (even in the comfort of their home) to navigate through this integrated, lengthy form.

Alex’s advice? What works best for his stores is integrating separate “get your price” buttons, trade-in tools, and finance or credit apps on their sites. It’s three separate forms, but they are quick and easy to fill out. This process also works better for non-tech-savvy customers, and it has been highly effective for Proctor stores specifically. A single buy online method may be too long and too time-consuming for a lot of people, and it can also negatively affect your conversion rates. As a rule of thumb, it's always best to keep online forms as short and straightforward as possible. The easier it is to complete, the higher your conversion rates will be. Alex tells our Naked Truth audience:

“I will tell you after a year of testing it, our lead volume went down by about 30-40%.”

On the contrary, DD21 interview between Chief Editor of DealerRefresh, Jeff Kershner, and CEO of Drive Motors, Aaron Krane disclosed opposing evidence.

DealerRefresh: What is the feedback like from dealership personnel at dealerships offering consumers this option?

Aaron Krane: Dealership staff love that customers who use online checkout will not only sell themselves but also upsell themselves, while the store is closed. That means orders through Drive Motors convert to a sale at over 10-times the rate of leads, and have a higher PVR than many stores’ averages. Moreover, in the words of one dealership, online checkout customers are “ecstatic.”

Kelly McNearney (Senior Automotive Retail Strategist, Google)

 “All I care about is online video.” 

Kelly allowed fellow panelists, Scott Empringham and Alex Jefferson to answer the bulk of this question. However, she made sure to emphasize the role video plays when it comes to showcasing your inventory digitally, as it can nurture the online buying process.

If (or when) buying online becomes mainstream, inventory-specific video will undoubtedly play a role in increasing “buy it now” conversion. Why? Because if customers can virtually touch, feel, see, experience, learn about, and test drive the vehicle in consideration, it’s possible they’ll obtain enough information on its specs and benefits to click that change-driving “buy it now” button.

During her 2-Minute Interview, live at #DD21 with Flash Point’s Scott Empringham, Kelly McNearney shared Google’s #1 tip to help dealers sell more cars, trucks, and SUVs right now. “If I was opening up a dealership today, the first thing I would do is start making YouTube videos, walkarounds, test drives, and features to show people the inventory on my lot.”

Customers aren’t visiting as many dealers as they used to. Google shows consumers visit 1-2 stores before making a purchase. People know what they want before walking into a dealership. New, inventory-focused video merchandising technologies will only further support that fact.

“People want to make decisions at home, on the couch.”

…And Kelly's right! When you think about it, people don’t want to feel pressure from a salesperson to make any life-altering decisions on the spot. A vehicle purchase is the second largest purchase consumers make after buying a home. There is a lot of emotion, stress, time, money, and energy that goes into their decision that dealers don’t always recognize or acknowledge.   

Scott Empringham (CEO/President, Flash Point Communications)

“I don’t think it’s a question of is it going to happen, it is happening. If you’ve got your fundamentals down, and that’s something you want to experiment with, I say go for it!”

Scott does caution if you haven’t first mastered the fundamentals (things like digital merchandising, relevant photos and videos, a high converting site, simple, high converting forms, etc.) jumping into online buying can be a waste.

Asbury Automotive Group for example, rolled out online buying across their stores, and other large progressive groups like AutoNation and Penske have done the same. Asbury is a Flash Point client with a huge digital marketing team, and they successfully participate in an online buying model today. However, the vast majority of Flash Point customers don’t necessarily have the resources Asbury and similar groups have to make this system work.

Brands like Honda, Toyota, Ford, Chevy – those are value-buy vehicles. People want and need to physically sit in the car to determine if it’s right for them. On the contrary, when it comes to aspirational brands like Maserati or Lamborghini, or someone who collects cars as a hobby, people would be more likely to buy these types of cars online. Obviously, Tesla has been doing it successfully for years.

At this time, the best answer experts can provide, when it comes to whether or not dealers need a buy it now button is…it depends. There are stores that have been successful with it, and there are stores that have not been successful with it. The key is to have your ducks in a row (or in other words, a website that converts at a high rate) before rolling out a nation-wide online buying program.

Bill Playford, VP & Partner of DealerKnows Consulting called out the topic in his June 2016 DealerRefresh article, Buy it NOW! The Button that Drives Change.

“I know this is giving some of you heart palpitations, but it’s once again that time to rethink the way we approach our customers. Not everyone will want to utilize a Buy It Now button. But, by not incorporating it into your process, you are disenfranchising a segment of your population who would click this and purchase almost 100% online.”

The key consideration with online buying, and with your dealer operations in general, is going above and beyond to make things convenient for your customers. Make your end model fast and easy. If you can manage one platform great! If not, do everything you can to make your process smoother on the customer's behalf. Build a loyal customer base now, because you never know - they could be buying their future car from you, right off your website.

A huge thank you goes out to DealerRefresh & Flash Point for capturing all the Naked Truth magic live on Facebook. Click here to watch the recording!

For additional resources or information from our panelists, visit DriveAutoHook.com/NakedTruth.

5 Digital Trends Sticking Around for 2016

By David Metter

As 2015 comes to a close, it’s time to examine trends in digital marketing and predict what dealers should be prepared to consider and focus on in the upcoming year. 2015 has seen so much innovation and change, there’s no doubt 2016 will see even more. However, which trends in 2015 will stick around for the year to come? 

Experts say these five are here to stay:

1.    Mobile – It wasn’t that long ago that marketers thought of mobile as a secondary access point for consumers. However, in 2015 mobile usage overtook desktop computers for accessing Internet information, and that trend is certain to continue. Consumers want information on demand, and increasingly they are out and about and not tethered to their computer. Mobile is much more convenient for today’s on-the-go consumer. Businesses will be forced to shift their focus and provide an excellent mobile experience in order to remain relevant. Those that do not will find customers seeking and finding that information from their competition and ultimately lose business.  

2.    Apps – Not only is the mobile experience itself becoming more important, we’re also seeing an increase in the importance of apps. When using smartphones, consumers spend upwards of 85% of that time within apps. Apps offer multiple marketing advantages including location-based marketing, push notifications, loyalty program integration, as well as dynamic and personalized offers and coupons. In addition, with its mobile-friendly algorithm change in April, Google introduced app indexing. If you’re not familiar with app indexing, in a nutshell it means that Google is now indexing content within apps and integrating that content into organic search results. This will become increasingly important for businesses’ SEO efforts.

3.    Personalization – Businesses will continue to migrate away from mass messages and better utilize their customer data to send more relevant and personalized messages. Segmentation, cookies, and retargeting, mixed with the massive amounts of consumer information now available, allows marketers to further refine messages. By doing so, businesses will see increased response rates and conversions as customers start receiving relevant messages at more opportune times.

4.    Content – Businesses are starting to realize that content is the new advertising. Pressure is being applied from all directions – search, social and consumers – and they all demand unique and relevant content as the price of admission. If you want to be noticed, it is important to understand that consumers respond much better to content that solves a problem, tells a story, or answers a question. By producing this content, you will be rewarded by increased web traffic through consumer search, and also by higher page rankings from search engines.  

5.    Video – If there’s any form of content that is exponentially exploding, it's video. Every platform in existence is making a push for video content and rewards businesses that produce it. With the new explosion and popularity of live streaming apps such as Periscope, Blab and Meerkat, along with live-streaming to all users that Facebook is rolling out, businesses who find innovative ways to integrate live streaming into their digital marketing efforts will see increased exposure and engagement.

While significant, these are just a few of the countless ways digital marketing is changing. Chances are that 2016 will see more innovative ways for businesses to market to and interact with customers. Paying attention to and adopting these five trends will certainly help your business gain a competitive advantage and position it for digital marketing success in 2016.

How to Stop Showrooming! (Recorded Webinar)

Click here to Watch the recorded video now.

FACT: Your customers are shopping your competitors right from your lot. 

It’s true! Over 60% of your dealership visitors are using their smartphones to compare your prices with your competition. When you see this, know that 2/3 of these car shoppers will leave your dealership to visit another store within a day.

This is called “showrooming” and over the last few years, as mobile usage has become an increasingly integral part of the car buying process, showrooming has also become an increasingly pervasive problem in our industry. More than ever, dealers need a comprehensive mobile strategy to stop showrooming and stay ahead of the competition.

DO YOU WANT TO KNOW HOW TO STOP SHOWROOMING AND SELL MORE CARS?

In this exciting 1 hour webinar, auto industry expert David Metter will discuss how to combat showrooming using readily available technology and proven mobile strategies. His unparalleled experience, insight and methodology are sure to bring swift and dramatic results for your dealership so that you can reduce the effects of showrooming immediately! 

Digital Summit @ Mountain View: Disclosures of an Auto Conference Virgin, Part 2

Dealers Doing it Right Panel

Last week, I shared a number of key learnings from the Digital Summit @ Mountain View, from my vantage point as someone new to the auto conference circuit. As promised, here are the last 4 of my top 8 takeaways from the Summit.

5. Look at search as only working part of a bigger, holistic strategy: “It’s not just about search anymore,” according to Jonika Hoomes of Google. Don’t get me wrong, search is still important. In fact, 71% of people find it useful while shopping for cars. The point here is that it has to be combined with other tactics to really make an impact. For example, search coupled with display really hits home. Some marketers may believe that display is just a branding tool (I, working for HookLogic, surely know otherwise!). Think again!  Display + Search = Sales.

6. Dealers MUST be online. The proof is in the numbers: So many great statistics were shared during the Summit that prove what most of you already know. Either way, here’s a pat on the back and some further validation that digital dealers RULE!

• People consult an average of 18.2 sources before buying a car. For choosing a president?  Only 14.
• 90% of car buyers start their research online
• 50% of car shoppers pick their dealership online
• 76% of today’s car shoppers who visit a manufacturer’s website, visit a dealer site within 30 minutes.

7. Make everything tangible and relatable: Both Guy Kawasaki and Grant Cardone both touched on something all marketers need to remember: Use salient points. Relate what you’re saying…and selling, to things your customers understand. For example, ask a car shopper, “How much did you spend on your last vacation?” and then, “How long did that last?” in relation to the price of a car and its longevity. It really puts things into perspective.

8. Video drives engagement: Our very own Jeff Kershner held a panel discussion entitled, ‘Dealers Doing it Right’ which touched on a number of innovative tactics, such as video, that car dealers are using to drive customer engagement and sales. According to panelists, using video in email leads to much higher open and engagement rates. Panelists also mentioned that inventory that is displayed on youtube tends to sell faster than inventory that is not. It seems like video is well worth doing. Lastly, I can’t help but give a shout out to our client, Capital Motors for creating this video  to promote their Trade and Upgrade program.  I highly encourage you to check it out!