An 8 step guide to align your
dealership marketing with
car shopper behavior
Table of Contents
1
The Consumer’s Perspective
2
The Shopper’s Process
3
The Dealer’s Opportunity
4
Technology to Rock the Funnel
5
Creating a Message
6
Commencing Research
7
Condensing Research
8
Confirming Research
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The Consumer’s
Perspective
Chapter 1
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Complex Buying
Behavior
The purchase of a new or used vehicle is one of the more
important decisions a person will make. Given the large
price tag, understanding shopping behavior can drive
more profitable business. So how do we interpret complex
buying behavior?
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Complex Buying Behavior comes into play when consumers exhibit
a high level of involvement in a purchase decision. Shoppers must
have some level of involvement to understand the product they are
seeking to purchase. A high level of involvement means that the
shopper goes to significant lengths to understand the product.
These “involved shoppers” are investing a great deal of time
researching the buying experiences of others. This can be online in
the form of ratings and reviews, or in person.
This behavior is no different for each person
who considers purchasing a vehicle from
your auto dealership. Why? It boils down to
a few, key reasons:
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WHAT MAKES A PURCHASE COMPLEX?
Complex purchases are
expensive.
Complex purchases are
emotional.
Complex purchases are
personal.
Complex purchases are
uncommon.
Complex purchases are
unfamiliar.
Complex purchases are
rarely made
alone.
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Whether the vehicle in consideration is $10K or $50K, it is far beyond what would be considered
as regular, voluntary spending. This prompts high involvement.
They require a deep sense of commitment. Regardless of whether the buying and owning
experience was good or bad, a multi-year commitment accompanies any vehicle purchase.
Because a vehicle purchase is expensive, shoppers dedicate a lot of time and effort
to the process. In fact, these decisions, and the products acquired through them, reflect
the specific buyer.
Meaning - in this case - infrequent. The average consumer thinks of most purchases in terms of
a monthly cadence, and these purchases don’t occur with every turn of the calendar page. In fact,
34% of sales are closed with a loan period of 72 months or more (JDPower AMR 2015). Even if a
shopper leans toward the short-term lease, it falls far outside the bounds of a common purchase.
Even for brand-loyal shoppers, the purchase often brings them into unfamiliar territory. Today’s
automotive shoppers spend months researching their next vehicle purchases in order to make the
unfamiliar, familiar.
Regardless of how much a new or used car dealership buys into the strategy of driving positive
ratings and reviews, auto shoppers are swimming in them throughout their research. The ease
with which a complex decision is made is related to the degree to which one is informed, often
based on the experiences of others.
The Bottom Line:
During the complex buying process online car shoppers not only understand,
but develop purchase perspectives on new or used cars. This is great news.
It means they are highly influenced during the process.
And if dealers can appreciate that, they can influence
consumer decision-making and
sell more cars.
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The Shopper’s
Process
Chapter 2
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Modern Day Sales Funnel
Now that you better understand the concepts of complex buying
decisions and consumer involvement, let’s turn to the process
consumers navigate on their way to the purchase. Marketing
and sales professionals have long charted this journey as a
“
funnel.
Marketing and sales
professionals have long
charted this journey as
a funnel.
“
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There are four stages a shopper travels
through before driving off in
their new vehicle:
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1.
The Pre-Awareness Stage
Shoppers begin here. There is no conscious need, or reason,
to consider a purchase. Any connection with your auto
dealership’s brand is remote and relatively inconsequential.
Automotive shoppers live here until a change agent, or
trigger, is introduced.
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2.
The Awareness Stage
The recognition of need, catalysed by a need trigger
draws car buyers down the funnel. Need triggers include
life or family events, a change in income or available
transportation, or a marketing message sent by your
dealership. In most cases, your dealership’s brand remains
unfamiliar at this point in the funnel.
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3.
The Research Stage
Automotive shoppers move further down the funnel after an
intent trigger. This is a shift from simply recognizing a need
to investing the time and energy to identify a solution. 89%
of shoppers want to be fully prepared with research prior
to a dealership visit (Edmunds.com).
The research stage of the modern
automotive sales funnel consists of
phases. We’ll identify three.
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3 RESEARCH STAGES OF THE AUTOMOTIVE SALES FUNNEL
1
2
3
Shoppers commence their
research. This phase includes
the initial online search of
vehicle makes and models on
3rd party sites. It is marked
more by the quantity of
data researched than by the
quality of the data consumed.
Once shoppers have enough
information, they condense
the options into a short list
to compare. This is a critical
point in the research stage of
the automotive sales funnel.
Shoppers move out of a data
gathering mode and into a
consideration phase. This
is where the risk-reward and
value propositions offered
by various dealers in the
preceding phases come into
play.
There are a few points to remember when discussing the research stages of the funnel:
Shoppers in these stages take their
time. In general, high-funnel shoppers
take 5.3 months to move through the
research stages of the funnel (Cars.com).
You can shorten this time by providing
the quality and quantity of information
that shoppers desire.
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This process is not always linear. In
these stages, car shoppers respond to
new information, new requirements,
and new experiences.
Shoppers in these stages aren’t just
online; they are actively online!
According to Google, shoppers
will consult 24 different sources of
information, 19 of which are digital,
and many via their mobile phone to get
their questions answered.
4.
The Purchase Stage
When a shopper makes a final decision to buy, your
goal is to WIN the sale. So what does the purchase
experience look like at your dealership?
66% of
consumers are much more likely to purchase from a
dealership offering a preferred experience
com).
Make the customer’s most memorable part of their
purchase journey the most delightful.
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(Autotrader.
Remember:
Car buyers will share their experiences with
their friends via social media and with
the larger online community via
ratings and reviews.
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The Dealer’s
Opportunity
Chapter 3
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The Dealer’s Process
Not only is there a process for the automotive consumer, but there is one
for the dealer as well. So far we’ve considered the customer’s perspective
while looking at complex buying behavior. We’ve also learned about the
customer’s process through a review of the modern sales funnel.
Now the questions become, “how do automotive dealership employees use
this funnel to their advantage?” and “how do they take this understanding
of what the customer is doing, thinking, and even feeling to drive more
business and generate more profits?” In summary, “what can be done to
the funnel to SELL MORE CARS?”
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WHAT CAN BE DONE TO THE FUNNEL TO SELL MORE CARS?
A
Increase the rate of intake.
If an auto dealership can draw a higher volume of car shoppers out of the preawareness stage, they will generate more sales.
Increase the rate of pass through.
B
This happens a few different ways. Focus on reducing friction within the automotive
purchase funnel by mastering the triggers needed to draw car shoppers downward,
especially as they commence, condense, and confirm their research. Turn those
5.3 months into four months or, better yet, two or three. Reduce funnel loss by
eliminating triggers that cause shopper defection.
C
Increase the points of entry.
Don’t settle for new or used car shoppers entering the funnel at the top. Break the
mold and disrupt the natural flow. If auto dealers increase the points of entry low in
the funnel and closer to the point of a purchase decision, throughput increases.
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As your auto dealership considers these opportunities,
ask yourself the following question:
“Given a renewed view of the customer’s perspective and
process, what adjustments should be made to your
marketing technology and the messages
it carries to push more shoppers into,
through, and out of the funnel?”
Get this right and your dealership will be among the 1.6 dealers that
consumers visit as they seek to confirm their research (McKinsey, 2014).
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Technology to
Rock the Funnel
Chapter 4
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The Dealer’s Tech
So far, we have mastered the automotive consumer’s buying behavior,
the sales funnel process, and the dealer’s opportunity. Now it is time to
examine the marketing technologies that push auto shoppers through the
funnel a little more swiftly. The technology options are very extensive.
Here is an overview of the next few chapters.
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The shopper begins in the pre-awareness stage, before
there is a conscious need to make a purchase. The reality
Here are some
channels to consider:
is that your automotive dealership is not top of mind. It’s of
no perceived value…yet. Do not underestimate the influence
your auto dealership may have on the pre-aware shopper.
This is the time to create a message that influences these
shoppers through passive absorption.
“
Organic social media posts
Do not underestimate
the influence your auto
dealership may have on
the pre-aware shopper.
“
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Traditional advertising
$
Social media advertising
Loyalty marketing
Following the pre-awareness stage, is the extensive length of time set
aside for research. This is a high dollar purchase. So shoppers want
to make sure they know almost everything before stepping into your
dealership’s showroom.
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During this stage,
shoppers use digital marketing technology to:
Commence
Condense
Confirm
Research
Research
Research
Turn these digital channels into one-stop-shops for today’s
shoppers and increase the chances these potential car
buyers will purchase from your dealership.
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Creating a
Message
Chapter 5
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You’ll recall that today’s
consumers begin in the preawareness stage before there
is a conscious purchase need. At this point,
your auto dealership is not top of mind…. yet.
Use this time to create messages that
influence these shoppers through
passive absorption.
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Many, if not most automotive dealers, should take a long,
hard look at traditional advertising spends. While TV and
radio offer some passive absorption, there are a number of
other channels where the pre-aware shopper is engaged in
this manner as well. One such channel is Social Media.
While your dealership’s pre-aware shoppers may not be subscribed
to your Facebook page or follow you on Twitter and Instagram, they
might be connected to 5-, 6-, 700 of their friends -- among whom
are scores of car shoppers at any given time. Twenty-five percent of
pre-aware automotive shoppers use social media in their quest for
a new or used vehicle (JDPower, AMR, 2015).
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Beyond simple branding, Social Media Advertising
According to Facebook, they have almost 1.2 billion daily
(the placement of Facebook ads) offers your dealership a
active users. So, regardless of why they are logging in --
strong opportunity when it comes to drawing pre-aware
there is a huge opportunity for dealers to reach this large
shoppers into the vehicle purchase funnel. Pre-aware
audience of potential automotive consumers.
shoppers don’t log in to Facebook to buy a car any more
than they turn on the TV for that same purpose.
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For existing customers, dealership-specific eNewsletters and
other forms of Loyalty Marketing are a no-brainer. Nearly every
dealership runs these, but the messaging is just BUY-BUY-BUY.
What about making it more suited to the pre-aware shopper?
No doubt, your auto dealership has email marketing set up
to connect with shoppers lower in the funnel, so check and
see what your loyalty marketing looks like. Is it interesting?
Is it helpful? If it is, your auto dealership is forming a positive
brand image in the mind of the pre-aware car shopper.
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Commencing
Research
Chapter 6
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As they begin their research, shoppers are swimming in
unfamiliar waters. They are arguably very emotional,
whether it be because of stress, excitement, or anxiety.
Meet these shoppers online and address these
points:
• Best make/model to meet their needs
• Side-by-side comparisons
• Best trade valuation
• Best price and payment structure
• Payment calculation tied
to inventory
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To you, this is your everyday business; to your
for progressive dealers:
“
“
shopper, it is a mountain to climb. Here’s a question
What can you do to meet them where they are
and help them through the process?
If you help them, shoppers are more likely to do
business with your dealership. Capture their search
and capture their attention.
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Capture the Search
This is accomplished through two key marketing
efforts:
search
engine
optimization
(SEO)
and
search engine marketing (SEM). SEO has changed
dramatically in the past few years. What used to be a
game of keyword optimizations and linking strategies
now has much more to do with frequent additions of
fresh, relevant content for which readers are searching.
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Reputation Management
With
Google’s
constant
changes,
reputation
management is not simple anymore. It is, however,
absolutely critical. The comprehensive management
of tracking and influencing online conversations
means capturing all negative sentiment before it goes
online. However, when the experience is positive, we
want them to quickly tell the world. Why?
88% of consumers trust online reviews as much as
personal recommendations (SearchEngineWatch Bright
Local Survey). Therefore, these higher funnel shoppers
are forming an opinion of your auto dealership’s brand
long before you know that they exist.
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Capture the Shopper
Once the search is captured, it’s time to capture
the shopper. It is at this step that dealers can
lose the most potential buyers by not thinking
like shoppers. Remember, they simply want to
move from the unfamiliar to the familiar, and your
auto dealership can help them do this. Provide an
experience that is fast, easy, and user-friendly. To
accomplish this Two technologies come to mind:
1) Your website; and 2) the inventory information
that populates it.
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1) Your Website
Are your online shoppers happy with your dealership’s website? 79% of shoppers rate ease of navigation
as the top attribute required for a positive online experience. Close behind: speed is at 73% (eMarketer).
A quick note on website load times: 40% of online visitors will abandon a site that takes more than
three seconds to load (Kissmetrics). Here’s a kicker: you could be driving all kinds of great traffic from
search marketing (after all, you want to capture the search), but if your dealership’s website doesn’t load
under 3 seconds, 40 cents of every dollar disappears.
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2) Your Inventory Information
The second aspect of capturing the attention of
automotive shoppers is engaging them on your Search
Results Pages (SRPs) and Vehicle Description Pages
(VDPs). First, use amazing photography. The right
photos trigger more VDP views and sell cars. Today’s
car buyers live in a high-resolution world, so vehicle
Custom photos improve lead generation
by over 300%. Such images out-perform
inconsistent dealer lot photos by 522%.
EVOX study
photos must be custom, high-resolution images.
Don’t be satisfied with just photography. Video is the
#1 format for driving car shopper consideration. Online
74% of consumers use video to learn
car shoppers want to get as close to “their next car” as
more about their vehicles of interest.
possible without stepping onto your dealership’s lot.
Google
Finally, and yet equally as important to our high funnel
shopper: comments. It’s important to provide engaging,
detailed, and accurate VIN-specific vehicle stories on
Inventory segments turn up to 34%
every VDP that online car shoppers research. To do this
faster on vehicles with automated
with the least amount of time, energy, and headache
invested, use artificial intelligence technology that
automatically creates custom VIN-specific comments
for each vehicle in stock.
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comments versus those without.
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Capture the Shopping Process
To appeal to higher funnel shoppers, the largest dealer groups
in the industry are pouring millions into recreating the Online
Shopping Experience, so that customers can find everything
they want, when they want, how they want. This opportunity is
no longer exclusive to the Top 25 dealer groups.
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Think about the typical auto shopper journey. Most
at the OEM site and Edmunds to review specs and
begin with a search on Google or on one of the
vehicle comments. They visit Consumer Reports and
major, third party marketplace sites to define vehicle
check out reviews. Once a possible car is found and
options that will meet their needs. Car buyers visit
vehicle trade information is established, these auto
Kelley Blue Book or TrueCar to value their trades and
shoppers go to their bank’s website to figure out how
check fair prices for new vehicles. They stop over
much they can afford.
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Keeping research stage shoppers on your site comes down to helping them enjoy the perfect
vehicle comparison, the perfect trade valuation, and the perfect payment structure.
The Perfect Vehicle Comparison
What if, on your dealership’s website, shoppers found helpful tools that assisted
them through a deep side-by-side comparison -- the exact kind of research 70%
of shoppers want at this stage in the funnel? Would they spend a longer time on
your site?
The Perfect Trade Valuation
What if, on your dealership’s website, these shoppers found helpful tools that
assisted them with a good faith trade valuation. More transparency. More
information. More trust.
The Perfect Payment
What if, on your dealership’s website, shoppers found helpful tools for an inventory
view based on the payment structure they set up? Would organic leads increase?
Our research says this can generate up to a 77% lift in organic leads. More
than 75% of these leads set an appointment and more than 80% of those
appointments show. Again, notice what happens when you appreciate what
shoppers are doing, thinking, feeling, and wanting.
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“
“
The percentage of shoppers seeking
vehicle research information from
auto dealership websites is up 73%
In the past decade, the percentage of online shoppers researching OEM sites
has grown by 14%, while third-party websites only increased 4%. The
percentage of shoppers seeking vehicle research information from
auto dealership websites is up 73% (JDPower AMR 2015).
Shoppers want to visit new and used car dealership sites for this data. They are
looking for that one-stop experience on the dealership website.
Are you ready to provide it for them?
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Condensing
Research
Chapter 7
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As
shoppers
begin
to
condense their research, they
have a better understanding of
their needs and are beginning to
educate themselves on available
options. The research, which up to
this point has been largely a gathering
activity with broad focus, now turns to
organizing activity with deep focus.
Automotive shoppers begin organizing information, forming
a short list of options and launching a deep comparison of the
products and providers that make the best sense. Their goal is to
eliminate options and narrow a short list to the few competing
dealers -- 1.6 to be exact -- that will be met in person.
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At this stage, work to remain front and center
and offer help to the online shopper.
Why?
The dealer who offers the most assistance is the
one who ultimately wins the shopper’s attention.
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How do you stay in front of digital shoppers and offer the
kind of assistance that builds relationships with them?
Model-level merchandising and digital target marketing are
a few strategies to consider, each of which is a disruptor
to the status quo of car research.
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Model-Level Merchandising
Only 19% of digital shoppers submit a lead (JD Power). You meet them the
day they step onto your dealership lot or into your showroom. So, if you
don’t know who they are, you won’t know where they are researching
online, or what they’re interested in - until they run a search.
Search tells us so much. Conceptually, you are pulling
low-funnel auto shoppers in when they are close to
the point of purchase. These shoppers spend double
the time on dealerships’ sites when compared to other
site traffic. That means double the page views, with a
50% lower bounce rate. How do you account for this
kind of engagement?
Simple. You got out in front of these auto shoppers and
assisted them with the information they wanted, at the
moment they were looking for it.
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Digital Target Marketing
But what if you do know who your shoppers are?
Let’s assume that these shoppers have previously
visited your auto dealership’s website. Or perhaps
they are service customers, or through some other
means, you have their email addresses. If so, you
want to hit their Inbox, through search and in social.
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Digital Target Marketing
Inbox
With every emerging way to contact shoppers, don’t give up on email. Be present
in the shopper’s inbox. Email is still 40 times better than Facebook and Twitter at
acquiring customers. 61% of shoppers say they like to receive promotional emails.
Only please ensure your email campaigns are built with responsive design. 53% of
emails are opened on mobile devices, but if an email doesn’t display correctly, 71%
of recipients will delete it immediately.
Search
Google captures well over one trillion searches each year. With Google’s Customer
Match, automotive dealers can target any number of shopper segments simply by
uploading a list of email addresses. This goes beyond the standard Google search
page. Your dealership can also drive specific ad content in the Gmail email client, as
well as on YouTube.
Social
With Facebook’s Custom Audiences, today’s automotive dealers can upload a list
of shoppers’ email addresses and/or phone numbers and deliver specific ad content
to that audience through Facebook. In the event that you don’t have an individual’s
email or phone number, your dealership can target real shoppers who have visited
your website.
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So whether online car shoppers are updating Facebook,
checking email, laughing at a video, or continuing
their research on Google, you can keep your
dealership’s brand and messaging
in front of them.
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Confirming
Research
Chapter 8
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Congratulations!
So far, you have not only built your brand through the Preawareness and Awareness stages, but you have successfully
captured the search, shopper, and shopping process through the
Research stage. Your dealership has provided helpful insight and
information. You have assisted your new or used vehicle shoppers.
Statistically, you are among the 1.6 dealers these shoppers will visit as
they confirm their research.
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While much could be said about your greeting, your discovery, your
test drive, and other auto dealership lot and showroom processes,
let’s tackle one, final disruptor that directly impacts the lower
funnel. This technology thrusts non-shopping buyers low into the
funnel without ever going through the 5.3 months of research.
How?
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EQUITY MINING
SALES
EQUITY MINING
SERVICE
If your dealership is using equity mining, you
From the service drive, equity mining now uses
know that you are discovering immense, new
soft credit pulls to identify current vehicle owners
business opportunities for the customer by
in an equity position even if they acquired their
already answering their key questions.
vehicles elsewhere.
From the sales desk, equity mining identifies
These soft credit pulls can be run in real-time
and targets all previous customers who are in a
-- so your dealership staff can sell right from the
position to trade their current vehicles and drive
home in new vehicles with no money down.
Again, these are non-shopping buyers. New
business with a huge gross.
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service drive -- and in overnight batches or in
groups to support your particular sales and BDC
set up.
Now you’re ready to rock your sales funnel.
Go evaluate your appreciation for the complex buying behavior of
and ask them to help you answer this question:
“
“
today’s digital shopper. Sit with your dealership’s sales staff
In what tangible ways do we show the
customer that we appreciate the journey
taken to find a new vehicle?
Collect the answers. Share with the entire team. And then ask
them to brainstorm on how they can go deeper and
further than ever before.
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Dominion Dealer Solutions helps car dealers attract, retain, and service customers for life. Dominion’s Progressive Retail Solutions include customer relationship (CRM)
and dealer management systems (DMS) with actionable intelligence from the Microsoft Dynamics platform. Dominion’s Progressive Retail Solutions also feature lead
management and equity mining technology, inventory management analytics, social media marketing and reputation management solutions. Dealers nationwide
purchase custom lead generation and digital marketing tools from Dominion including: responsive design websites, SEO, SEM, digital advertising, multi-channel
marketing, specialized data aggregation, mobile vapps and market reports. OEMs and auto dealers nationwide utilize Dominion Dealer Solutions’ technologies to
solve their marketing challenges. Dominion Dealer Solutions is redefining automotive retail by delivering first-class customer experiences for local car buyers. For more
information, visit our website, like us on Facebook, YouTube, or follow us on Twitter.
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