Dealers Succeed With Focus on Customer Communication

Consumers love the convenience of online shopping, whether it’s from a desktop or by mobile phone. Access to online vehicle information has been a game changer for customer and dealer alike. But, there’s a storm brewing.

Customers feel their every online move is being watched, and they don’t like it. This combination of shopping convenience and privacy concerns will have serious implications for automotive retail marketing.

For dealers to win, they will need to cater to their customers’ individual communication preferences while at the same time working with their customers to protect their personal information.

Consumer Demand for Convenience Drives Online Shopping to New Heights

It’s no secret that online car shopping has upended automotive retailing. According to a 2019 Cox Automotive study, 83% of auto buyers want to shop online to save time. Overall, the global pandemic has pushed online shopping even higher.

Consumers spent $861.12 billion online with U.S. retailers in 2020, up 44.0% from $598.02 billion in 2019, according to the latest Digital Commerce 360 analysis.

The online shopping experience is clearly here to stay, driven by a proliferation of channels linking dealers to shoppers.

In fact, a December 2019 study by Deloitte showed the average American household owned 11 connected devices, including seven with screens to view streaming content.

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Despite the overwhelming shift to online shopping, consumers feel significant trepidation about who is watching and recording their online activity.

A recent study by the Pew Research Center showed 72% of people feel that almost all of what they do online is being tracked by advertisers, technology firms or other companies. In addition, 81% say the potential risks they face because of data collection outweigh the benefits.

In short, consumers love the convenience of shopping from anywhere anytime. But they also value their privacy. Dealers who can combine these two concepts will be successful. Communication Preference is Taking Precedence in the Shopping Experience

What do dealers need to do to capitalize on these seemingly diametrically opposed trends?

First, they must understand customer communication preferences: Does an individual customer want messages by text, by email or by phone? Communicating with customers using their preferred methods will significantly boost their satisfaction.

Dealers too often rely on mass marketing tactics at the expense of individual customer relationships. For example, a recent survey by Bankmycell.com showed 75% of Millenials prefer text over telephone.

Naturally, many automotive marketers and retailers are responding by shifting large swaths of their marketing budgets to text. But, in their zeal to capitalize on the latest trend, they might be over-investing in new technology while missing opportunities with much of their customer base.

After all, if 75% of Millenials prefer text, that still leaves 25% who prefer telephone. That’s a huge chunk of potential customers.

Imagine if that’s the strategy your local health club took. They know running is great exercise and that millions of Americans run. The club has space for literally hundreds of treadmills. To take advantage of running’s popularity, the marketer says, “Let’s fill this place with treadmills!”

But, wait, you say…what about people who like to lift weights or ride a stationary bike? Shouldn’t you cater to those people, too? Of course, you should! It would be a huge mistake to ignore the preferences of so many customers.

Dealers who use a similar strategy do so at their own peril.

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Customers want marketers to cater to their preferences, but in a manner that still protects their privacy. That’s a challenging balance for a marketer to find.

Today’s customers want to feel like they are in total control.

Dealers who can give customers what they want, when they want and how they want without violating their privacy will create stronger, lasting bonds with customers to drive lifetime sales and service appointments, ultimately driving higher revenue.

Steve Cottrell (pictured above, left) is CEO of Authenticom. a technology company specializing in data integration, enhancement, hygiene and management services.