Dealers Need To Grasp The Digital Age
In an age where communications and technology are second to none, many car dealers are still failing to use to maximize these outlets when trying to attract new customers. If these dealers are to survive they must grasp the technology so that they can make the most of their business warns EurotaxGlass’s.
Car dealers must make better use of data, technology and processes to underpin interaction with their customers and prospects if they are to succeed in the face of the current economic slowdown. That was the theme shared by the presentations and interactive workshop sessions at last week’s EurotaxGlass’s.
This view was voiced at the conference, entitled ‘Driving Business – opportunities for profit and growth in an uncertain market’ which was held in Birmingham and was attended by almost 300 delegates.
To highlight this Adrian Joseph, Director, Automotive at Google, revealed new research into online buyer behaviour, stated that the economic crisis – “the first downturn of the digital age” – would present dealers with opportunities, as well as challenges. He suggested ways that dealers should modify their approach to online marketing to reflect how consumers were now using the internet to “cut through the historically convoluted and time consuming process” of buying a car.
While a starker warning was given by Chris Kent, Director, Motor Retail, at PricewaterhouseCoopers, he forecasted further consolidation amongst manufacturers and retailers in 2009, and urged the motor trade to abandon the drive for volume over profit. Dealers of all sizes, he argued, must adapt their retailing strategies to the needs of better-informed customers.
Dealers were advised by Drayton Bird – widely acknowledged as the world authority on direct marketing – he encouraged delegates to improve the accuracy of their customer databases, and to use them far more proactively. Dealers should analyse how they treat customers, and tailor their marketing activity more effectively. He suggested that, in the current economic climate, it is particularly important to optimise all elements of the customer experience, as well as increase the regularity of communication with customers and prospects – including those that previously chose to take their business elsewhere.
Other sessions, involving speakers from YouTube and Incentivated.com, outlined how consumers were researching potential vehicle purchases in new ways, and that dealers must consider SMS and online video marketing techniques to remain competitive.
Previewing new research examining how the credit crunch is influencing the needs and wants of potential car buyers, Frank McCaffrey, Managing Director, Exchange & Mart, highlighted the growing requirement for dealers to anticipate a rapid shift in demand towards fuel- and tax-efficient cars. The company’s research indicated that, in an effort to beat the downturn, 34 per cent of dealers are currently looking at new marketing methods, and 46 per cent are already retailing greater numbers of more affordable cars.
The day’s proceedings concluded with a presentation from Adrian Rushmore, Managing Editor at EurotaxGlass’s, who pointed to factors that will influence sales patterns and changes in residual values into 2009.
Chair for the event, Kevin Gaskell, President of EurotaxGlass’s, commented afterwards, “This is the second major EurotaxGlass’s conference to be held in the UK and it has been another resounding success – both in terms of visitor numbers and delegate feedback.
“The range of high-quality speakers offered a wealth of practical advice so delegates could go back to their dealerships and immediately make tangible changes for the better. With trading conditions being so difficult, this kind of realistic and sensible best-practice insight will be crucial for helping dealers safeguard the competitiveness and profitability of their businesses,” he concluded.
Simon McBride
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