Selling and Marketing Cars Online – 5 Most Important Trends

People may not be (yet) buying new cars online but they sure spend a lot of time and energy researching their future purchases online. Remember the old cars salesman stereotype? Forget it. The new cars salesmen is the guy with the most positive online reviews, a stellar social media presence, hired by the friendliest dealership in town and quick to respond to his customers’ questions.

new-cars-online-stats1. Car buyers are in the market for 5.3 months. Mostly researching online.

Speaking of customers – those looking into buying a new car are in the market for roughly 5.3 months, as shown in this Cars.com research. During these months they check out:

  • information regarding manufacturers
  • information on car models
  • dealership information

Now when it comes to dealerships – you can be sure that by the time a customer sets foot in one he has probably read everything available online on:

  • company website
  • social media profiles
  • online reviews

Sometimes potential customers don’t even bother visiting their local dealerships if online reviews are not good enough. A curated online presence can do miracles for dealers as long as their service matches their marketing. Good service and reliability are still the most important factors when deciding what and where to buy. Recent online developments just make it easy for customers to find out the good and the bad about dealers and cars.

2. Photos sell cars. Reliable cars.

decision-to-buy-carWe all know how important photos are when buying cars. 63% of potential car buyers make their first steps towards a purchasing decision based on photos and other media. However, no dealer is going to make them pay unless esthetics are backed up by great reviews on reliability (52% new car buyers showed interest), features/colors (51%) and safety information (49%).

3. Mobile is used before, while and after purchasing a car

As mobile is quickly revolutionizing every aspect of our lives we were bound to use them on the spot, in dealerships, when making our final decisions. If you’ve used your smartphone in the dealership you can rest assured you are not alone – 43% of customers visiting dealers use their mobile device. Most frequent uses during dealership visits are targeted at:

  • pricing information (57%)
  • general information (22%)
  • vehicle information (14%)

So price checking really matters when visiting the dealer. It’s not a secret that any dealership will try to maximize its margin but that seems to be harder and harder with everconnected consumers.

Much more than this – customers will also check for user generated content on the spot. 79% of new car buyers value user generated reviews , as this CapGemini report shows.

The same report outlines some of the media channels buyers will scan to form an opinion. The big take away from the info below is that social media outlets (for both manufacturers and dealers) really matter when forming an opinion. Make sure that they are well set up and properly maintained.

infomation-checking

4. Customers connect to connected cars

options-connected-cars

Connected users need connected cars

There is a growing need for connected cars. I wrote about it a couple of months ago and now, with the new iOS 7 and recent developments in smartphone manufacturing customers seem to be getting what they want, when it comes to in-car smartphone support:

  • driving support
  • care information
  • remote support
  • communication
  • vehicle information

5. Women feel empowered when it comes to buying cars online

A big shift in car buying, especially when it comes to online-related purchases is the fact that women seem to be more and more engaged.

What has been looked at as a traditionally male influenced industry is shifting by the day and internet plays a large part in this shift. Women are big spenders when it comes to auto: they spend more than $200 billion yearly on new cars and car – care. They also influence over 80% of all new car purchases and account for almost 65% of all car service work done on dealerships.

These are some really, really big numbers and they just keep on increasing as women feel empowered to negotiate their prices behind a computer screen. Once a somewhat biased industry, the auto dealerships are leveled fields for both men and women and purchasing can now be fun and engaging for women. Feel like reading a little more about it? Check out Libby Copeland’s experience with buying a car online here.

In the end remember that:

  1. customers will research online their car options long before visiting a car dealership
  2. dealerships are (still) the ones to finalize the car sale
  3. unreliable car salesmen will soon be a thing of the past
  4. mobile is changing the way we buy cars
  5. women are quickly becoming the most important segment in car sales

 

 

Internet in my car?

The internet connected car has been a great concept for quite some time now. As 3G connections  become more and more popular and 3G coverage extends to even the most remote areas car manufacturers have seriously taken into account adding internet to your car.

iSuppli’s telematics analyst Richard Robinson expects 25% of all cars to be internet connected in the next 5 years. Changes in auto industry in-car entertainment are expected to be as great as changes in entertainment post and pre dial-up internet connections.

audi connect

Audi Connect will be available to the 2012 luxurious models Audi A6, A7, A8

Intel expects the internet connected car to be the third fastest growing technology, after smartphones and tablets. Audi, Ford, Kia and Nissan are among the first to adopt such technology. Audi has equipped the A7 with a Wi-Fi system callled Audi Connect that turns the car into a hotspot able to host 8 connections at a time.

Ford has also jumped the wagon with its Microsoft powered Sync My Ride and has solved the connectivity issue with a simple internet stick solution.

In car internet killed the radio star

In car internet radio is now an option with MyFord Touch as drivers can tune in to their Pandora accounts and listen to their favorite stations.

Google, Apple, Samsung, Microsoft and LG are already testing connected cars concepts and gadgets. Google has recently confirmed that their self-driving cars have passed the 300.000 miles threshold incident free.

In car internet is surely to develop into a huge industry that will benefit car makers, entertainment and media companies, telecom operators, mobile device producers and of course – the buyers.

How does internet change the auto industry?

As consumers get more attached to their mobile devices and start expecting everywhere connectivity the auto industry will start monetizing on this trend. But that’s not all. What else should we expect? Here are a few consequences of increasing in car internet adoption:

  1. Increase in popularity and subscriptions to internet radios: there is a 52 minutes daily timeframe when 44% of all Americans listen to in-car radio. That margin will turn into revenue streams for internet radios and other internet music streaming providers.
  2. Location-based advertising will lead to a decrease in outdoor advertising: as advertisers will find it easier and more efficient to target consumers on their daily routes, by estimated income and purchase intents, billboards will become obsolete.
  3. Car traffic and mileage optimization: having large data available car manufacturers or internet services providers can offer the best real-time routes for faster navigation and better mileage.
  4. A new class  of in-car entertainment devices: GPS devices had a huge increase in popularity and sales as they were fitted to cars. So will the internet ready entertainment devices.
  5. Increase in driving safety: as more and more cars will get connected they will be able to pair and increase safety by automated collaboration.
  6. Increase in audio books sales. Audio books streaming. So far we got accustomed to listening to audio books on CD’s. With in car internet we will see more and more subscriptions to audio books streaming service. Amazon will surely benefit from this.
  7. Car hacking.  Car software security software. We don’t really expect our car to be “hacked” but this will surely happen. Where there is a connection, there is a potential breach of security. Software security companies will have offers specifically targeted to internet-connected car owners.

Key takeaways:

  • in car internet will happen. get ready
  • in 5 years 25% of all cars will have internet connections
  • there is a great business opportunity in providing connected car owners with car specific internet services