What Customer Data Can Do For Dealerships

data

The dealership is the final stop on the purchase journey for an automotive customer but the experience usually begins in a third-party environment. Most customers aren’t willing to endure the long purchase process dealerships offer on the ground. A study by Cox Automotive found that dealerships scored a 46% satisfaction rate for how long the final purchase process takes.

“Despite billions spent by OEMs (brands) and dealers on modern showrooms, slick mobile apps, and armies of social media managers, the human element —the last mile of the customer experience—is keeping consumers away from dealerships and crippling the auto industry,” writes Lior Arussy, CEO of Strativity Group for Dealer Marketing Magazine.

Aligning the human workforce with the digital experience comes down to how the scores of customer data streaming in and out of dealership management systems are utilised and how ready sales teams are to use this to their advantage.
Dealerships have a lot on their plate, often one dealer is managing multiple car brands, leads can get lost in the ruckus. At times customers walk in unannounced and dealerships are ill-equipped to meet expectations.

Therefore the human element can be improved by auto brands both acknowledging the needs of an empowered customer and equipping their teams to handle multiple interactions. It’s not just about gut instinct and talent anymore, data is there to be used and the dealerships that fail to modernise will fall behind.

This is where a data-driven (pardon the pun) approach comes in handy. Here are a few ways to apply customer data to improve the dealership experience.

Collect data!

Gauging a potential buyer’s digital context is the first step to a more complete understanding. How did they get there? Was it a dealership group landing page, a PPC ad via Google or a banner ad on a news centre like the Guardian website. Round up the context with the product itself, i.e., the car make and features. When all this data is collected, the context is complete. Customers that call or arrive from online forums are the easiest to track with the right technology, walk-ins can also be recorded into the CRM using registration forms or geofencing.

Profile and segment

After data is organised into profiles, it can be segmented and prioritised. Say one particular caller is interested in a luxury model, they would be placed in a higher value segment due to their increased CPA (cost per acquisition). Prioritising these callers based on aspects such as; location and car brand helps dealerships utilise their time and expertise better, in addition to improving customer experience and pick up rates. This kind of process is important for dealerships that sell more than one car brand because callers are assigned to a specific salesperson who has extensive knowledge of a particular model.

Dealerships Solution

Finally, data doesn’t have to be scary

For dealerships who are wary of the huge undertaking that comes with overhauling a legacy system, there is a silver lining. Integrations! These are useful because they are able to pass incoming data into an existing DMS (dealership management system) and make the process of change less jarring for auto brands and their vendors.

Via: Dealer Marketing Magazine 

The Future Of Marketplaces: Vik Barodia, eBay/Gumtree

Vik Barodia has been Head of Motors at eBay/Gumtree for close to three years, with this position he has garnered a front row seat to the current digital revolution hitting both marketplaces and the automotive industry. We had a few questions for Vik before his panel appearance at Freespee’s upcoming May 23rd event, “Do we really want to talk to robots?” in London. 


How has the buyer/seller relationship evolved in the last five years?

Gumtree and eBay are all about introductions. By that, we mean introducing buyer and seller so that they can agree on a transaction. That is the basic premise of marketplaces like ours. In the last years, what we have seen is that trust is now the single most important things deciding factor between the two parties. In fact, the “trust-drive” is so strong; buyers would rather pay more to buy an item from a trusted seller than a cheaper, identical item from a “weaker” seller. Trust is formed in many ways – experience reviews, ratings and a verified status all play a significant part.

Gumtree is focusing more on personalising the user experience, do you think the advent of AI will help or hinder this for marketplaces?

Artificial intelligence will play a very important role in the future of classified marketplaces. From booking tickets, buying and selling cars parts, and delivery – all facets of the buyer and seller chains can be impacted by AI. The challenge for marketplaces will be in our ability to use AI to build seamless experiences. Imagine a car part – AI can help the seller accurately list the part correctly for all the relevant vehicles it could be fitted into. The buyer gets the correct part every time. The use of AI can then help the buyer to fit the part themselves with DIY help or book the car into a service centre. All done seamlessly. Or a user buying a dress – AI can help them match that dress to a pair of shoes, handbag and even nail varnish colour – displaying all combinations for the user to choose from and buy. The options are endless – ultimately always driving success for seller and buyer which is what our platforms are all about. Personalising the entire value of any purchase is very much our focus in the coming years.

What part of the auto marketplace environment can be improved by the right technology?

For me, data is the secret to all success, and any technology, whether it be AI or predictive tools for users – dealers and private sellers – needs to sit on reliable and structured data. The auto sector has fantastic structured data, but the industry as a whole is not good enough at generating maximum value from it.

When its a high value purchase like a car, how do you build trust?

Trust on high-value items like a car must be built up for sure, both for buyer and seller, but also on the vehicle itself. Notwithstanding reviews and ratings for interested parties, we at Gumtree and eBay also help build trust in the vehicle itself by screening vehicles before they are listed. Every car listed with a number plate is checked in the background for four key things: Has the car been stolen, scrapped, exported or involved in a serious incident? That means that car is not sellable.
If at least one of these checks is positive, then the vehicle is blocked from being listed on the website. As a result, we ensure two things. Buyers on the platform can be sure that they have a choice of vehicles that are legal to sell that have a sound history. And by making this check visible, we remove inertia from the contact process, i.e. potential buyers do not need to go elsewhere to do this check – we keep the buyer on site and in front of the seller’s vehicle. This is great news for buyer and seller alike.

Do you see a collaboration between auto brands and marketplaces like eBay in the future?

Very much so. We can already see that the huge parts and accessory category on eBay drives vibrancy in the car selling category. We are not far from a world where car manufacturers use platforms like ours (because of the huge amount of traffic that we generate) to provide services to car buyers and car owners alike. The impact of eBay and Gumtree in helping auto brands to drive engagement beyond the car purchase/disposal should not be underestimated as they seek to find a new way to lengthen their relationship with those customers.

What is your view on the increase in car rental via marketplaces especially among millennials?

We are fast becoming a rental economy, and the industry is morphing into rental on demand. Disposable income is low, and millennials, with their funds fragmented in location and only in supply on a gig-to-gig basis, will make car ownership for this category difficult.
Enter CaaS –cars-as-a-service if you like, or any other fad name that can be applied. There are already start-ups with this model – today I need a small town car for a city meeting (renting for function), at the weekend, I need a convertible to go top down to the beach (renting for experience). How these early adopters fare will be interesting to watch as pricing is still quite premium. However as more come to market, and the choice is widened, prices should come down. I fully expect this sector to grow, alongside the more entrepreneurial car owners who use platforms to rent out their cars. It will be stronger as a proposition in cities where car picks up and drop off locations are more readily available as opposed to an out-of-town location. My thought is that it will take some time to become a standard mode of “ownership”, mainly because private leasing is still booming and is very affordable.

What part of the Freespee platform transformed your business? How?

The most significant impact across eBay and Gumtree has been our ability to demonstrate value to our dealers. This is not just about saying how many calls we generate for them as a return on their investment, but also to add value to the process too. The most loved feature we have is that of missed call notifications – telling dealers what number they have missed, but also linking that to the car they have listed. Notwithstanding the benefit of helping them sell more cars, we have been amazed to see how vibrant our Gumtree and eBay motors categories are. We can now claim that in any working day, between our platforms, we generate a call to a dealer every five seconds!
Find out more about Freespee’s May 23rd event here: https://lnkd.in/eeNiZZ8 

How To Ensure A Smooth Brand to Dealer Experience

brand to dealer

Possibly one of the best times to buy a car is during the festive season, due partly to discount-happy dealers aiming to make their end-of-quarter sales. However, the journey from beginning to end can be tenuous for brands.
By the time a consumer has clicked on the test drive button, the connection between brand and caller is broken, after that, the dealer takes over the process. With such a large pool of engaged clientele congregating online, the ability to follow a lead into an acquisition is arguably facilitated by the digital communication channel.

A Little Background

The automotive model has remained steady for the last century, the entire research and buying process standardly occurred at brick and mortar dealerships, but with the advent of digital marketplaces like eBay, mobile.de, Car Giant, and AutoTrader the market has expanded significantly. According to AutoTrader, “car buyers now spend 59 per cent of their time online,” researching a future purchase.
Other stats illustrate that 23 per cent of these customers are enduring a full customer journey online up until buying the car at a dealer.

The problem is that the dealership interaction can sometimes negate the relationship created between brand and caller up to that point since 88% of consumers refuse to buy a car without a test drive, multi-location businesses need to consider ways to bridge this gap. Additionally, there is a feeling of disconnect felt by consumers once they’ve left the cushy, streamlined world of online branding.

“My experience was that the dealer was remarkably unaware of the steps I had already taken to get this far. When I arrived at the dealership, the car I had requested was available to be driven, but the dealer didn’t know if I had configured the car, what my criteria were in buying a car, or why I had chosen the make, model, and options that I had,” writes Adobe Digital Experience blogger Axel G. Heyenga.

Despite the fact that dealerships operate as independent entities, consumers remain connected with the brand’s website during their time on the ground.

A Car Buyer Journey study commissioned by Autotrader and conducted by IHS Automotive found that the top five uses of a mobile at a dealership include, “comparing prices for vehicles at other dealerships (59 per cent); finding prices for vehicles at the dealership where the consumer was (41 percent); comparing inventory at other dealerships (38 percent); check inventory at the dealership where the consumer was (36 per cent); and research trade-in pricing (33 percent).”

The evidence more than suggests that the buyer is less comfortable breaking ties with their online data pool, they are also arriving at a dealer sometimes more educated than their salesman.

A Smooth Continuation

Many auto brands and marketplaces have found novel ways to connect the dots; Audi City is one example of an attempt at digitising the showroom culture, BMW also seeks to make their on-the-ground experience less informative and more transitional. Still, the ability to follow a lead may require a more structured and transparent set up that lays the brickwork for brands to monitor the entire car buyer’s journey from research to purchase.

As technology continues its rocket towards a fully automated existence, eventually brands won’t have to worry about such a separation — test drives may even be conducted from the comfort of a living room, and all coveted customer data will be collected under one digital roof.
Until then,“ the overarching lesson here is the need to view the automotive customer journey as a whole,” states Oliver.

Via: Oliver, AutoTrader