What can Car Dealers adopt from Online Retailers?

The KPMG Australia 2024 Retail Outlook Report may not be the first place to go when trying to improve Automotive Dealership sales… but hear me out.

In many industries, there is a tendency to either stick with traditional methods or simply mimic what competitors are doing. This reflection comes not from a place of expertise, but from personal experience as someone who often defaults to the status quo.

In the e-commerce sector, adopting popular marketing strategies like reels and Meta ads is common practice. These methods are generally effective, but sometimes unexpected platforms can yield surprising results. For example, LinkedIn posts can drive significant sales, proving that even professional networks can be powerful channels for product promotion.

With fresh eyes, I now consider how automotive dealerships can adopt new digital strategies to drive growth. While my experience in the automotive sector is limited to washing cars during my studies, my expertise lies in digital sales and marketing strategy. This outsider perspective can provide unique insights. After all, who better to suggest changes than someone who once got more soap on himself than the cars?

Key Considerations for Dealership Growth & Digital Strategies

Online and Digital Buying Behaviours as the New Norm?

Online and digital purchasing behaviours have become standard, but automotive retailers need to catch up. While larger purchases like cars still often require a personal touch, there is significant room for incorporating advanced digital strategies.

Maintaining Personal Connections in Automotive Sales?

The automotive sales process often culminates in a handshake, reflecting the importance of personal connections. Therefore, integrating digital tactics must enhance rather than replace these human interactions. After all, a digital handshake just isn’t the same – and it's really hard to sanitise your screen afterwards.

Implementing Cutting-Edge Digital Strategies

To bridge the gap between traditional and digital sales methods, dealerships can adopt several innovative strategies, some of which we have already implemented at Digital Dealer:

1. Enhancing Customer Experience

• Personalisation and AI Integration: While AI might seem overwhelming, its application in automating personalisation and vehicle merchandising can save significant time. At Digital Dealer, we use AI to generate high-converting, on-brand descriptions quickly, freeing up valuable hours for sales staff to engage with customers directly. It’s like having a robot sidekick who doesn’t need a lunch break.
• Customer Service Excellence: As consumer preferences shift towards digital interactions, dealerships must train staff to excel both online and offline. Implementing omnichannel support ensures a seamless customer experience across all touchpoints. Remember, a happy customer is less likely to throw a wrench into your sales process – literally and figuratively.

2. Managing Costs and Improving Efficiency

• Operational Efficiency: Automation in inventory management, order processing, and supply chain operations can reduce costs and improve efficiency. For example, Digital Dealer automates the listing of ready-to-sell vehicles across various platforms, minimising delays and maximising visibility. Think of it as having a digital butler who never misplaces your car keys.
• Shrinkage Reduction: Technology can help manage inventory more effectively, reducing the time vehicles spend on the lot and depreciation against the wholesale finance costs. At Digital Dealer, our listing health score tool ensures vehicle listings are complete and accurate, enhancing their visibility and sale potential. It’s like giving each car its bodyguard – but without the sunglasses and earpiece.

3. Exploring Retail Media Opportunities

• Retail Media Networks: Similar to successful retail media strategies, dealerships can explore co-marketing opportunities with accessory and aftermarket suppliers. Given their prime locations, dealerships can monetise these spaces for additional revenue streams. Why not turn that waiting room into a goldmine??

4. Marketing and Customer Retention

Before you consider these two points, talk to us first, no joke, we’re probably the best Digital Marketing team in the Australian Automotive industry - our lead creation strategy is one of the highest I’ve ever seen, not just dealerships, I mean ever seen.?

But if you must go it alone…

• Loyalty Programs: Developing or enhancing loyalty programs can retain existing customers and encourage repeat purchases. Leveraging data analytics can refine these programs for maximum effectiveness.?
• Digital Marketing: Increasing investment in digital marketing channels, including social media and email marketing, can broaden reach and engage customers. Ensuring content features current inventory is crucial for attracting potential buyers. Just remember, no one ever bought a car because they saw a blurry photo of it on Instagram.

Understanding daily consumer behaviours and adapting to digital advancements can position the automotive industry to meet customer needs more effectively. By integrating these strategies, dealerships can enhance their operations and sales, ensuring they are ready when customers decide to make their next vehicle purchase. Because when it comes to buying a car, everyone wants the experience to be smooth, not like the last time you tried to parallel park under pressure.

Here is the report https://kpmg.com/au/en/home/insights/2024/02/australian-retail-outlook.html?