James Broadhead, CEO at Close Brothers Motor Finance highlights the importance of digital interaction
Online purchases continue to prove popular among consumers keen to take advantage of the convenience that online shopping brings with sales growing by 16.2% in 2015 compared to the previous year. The increasingly digital environment in which we now operate has changed the way consumers shop, both in general and when it comes to purchasing a vehicle. Motorists no longer have to visit bricks-and-mortar dealerships to find out about suitable vehicles, good deals and available finance; instead they go online to do their research and then find a dealership that suits their needs. Dealers therefore must make the most of digital platforms to capture the interest of consumers.
Indeed in a recent survey we conducted with our dealers, 91% said that they felt it was important for dealers to have an online presence in order to drive business and generate positive growth, with 64% of those surveyed currently marketing their business on social media channels. Surprisingly, however, dealers are failing to realise the opportunities that these digital channels can provide to interact and create a relationship with the online motorist. Over half (55%) of the dealers we surveyed said they are not interacting with their consumers on social media channels such as Facebook and Twitter. Many dealers are turning away from adopting these social channels due to a lack of digital knowledge, with 40% of dealers expressing a need for commercial digital/online sales skills to help develop their business. As an industry, it’s critical that we work together to help dealers gain skills so that they can take advantage of all the sales avenues that are available to them.
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The online-savvy consumer is used to interactive experiences in their everyday life, engaging with brands and businesses online or on social media, therefore they want to feel like they are part of a conversation. If dealers want to capture the interest of these buyers then they need to make sure that they not only have a digital presence but that they are ready and willing to develop a rapport with prospective buyers.
One of the steps dealers have taken towards this is incorporating the online and offline car-buying experience. Over the past few years we’ve seen a significant rise in digital car showrooms, with many dealers placing digital devices such as interactive screens and tablets in-store, to create a seamless and digital car-buying experience. This is something that we expect to see more of in the coming years as the traditional showroom experience takes on new elements.
Dealers also need to be aware that consumers are now arriving at dealerships more informed than ever, with many turning to digital platforms to research their vehicle and the different finance options available before visiting the forecourt. For dealers, it’s vital that they are able to take advantage of this and establish a relationship with these customers at the start of their buying process, or face missing out on crucial sales.
The digital landscape is changing the face of the motor industry, offering both challenges and opportunities for dealers. As an industry, we need to work together to help dealers understand the potential offered by digital channels and show them how they can use these to grow their businesses.
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