By most accounts 90% of today’s car buyers will research their purchase on the internet prior to making a decision. The most recent industry studies show that these consumers will look on manufacturer’s sites, research sites, and dealer websites. Dealer websites are becoming the first stop in the process. However, the best dealer websites, while providing plenty of information, perform dismally when comes to converting visits to contacts. The best dealer sites are able to convince just 5% of visitors to click through. Why is the conversion ratio so poor?
Today’s dealer faces a myriad of choices when it comes to website tools. The vast majority of websites are template based which may then be customized with a variety of ‘bling’. However, manufacturers are increasingly putting pressure on dealers to standardize the look and feel, forcing many dealers to add a second (or third) website over which they have complete autonomy to differentiate themselves.
Website tools and Add-Ons:
There is video. Dealers often add a short clip of themselves on the lot, a video test drive or a view of the vehicle. YouTube clips, background music, car configurators, 360 degree pictures, allowing the user to reposition the photo with a movement of the mouse. Flash, moving images designed to draw the visitor in and engage. The talking ‘pawns’ that appear to emerge from the side of the screen and greet the visitor, inviting them to look closer. All of these visual add-ons seek to improve the browsing experience.
Online negotiation platforms are coming into vogue now. Is online negotiation good? Would any other industry consider selling products like that? No, but many old-skool retailers believe that customers want the haggle without the trip to the showroom. They don’t. Why duplicate the worst part of buying a car and port it to the internet?
Auction style format is a proven model when there are multiple buyers and sellers. But on an individual dealer site, it hardly makes any sense at all to bid against oneself up to the dealer’s minimum selling price, at which point the process ends. Other tools ask a customer to ‘name their price’ or ‘make an offer’, in these cases customers will either put in $1, or nothing at all. Why would anyone expect an online customer to ‘show their cards’? Just ask Priceline.com.
But what do these features do for the shopper? Not much. An internet car shopper is no different from other online shoppers; they want information quickly and completely. What information do they want? Price & Inventory. This is what drives the decision to contact or allow a dealer to contact. Price is disclosed and contact is made. However, this is simply Step 1. The internet brings the customer and dealers together; it doesn't create a buyer or sell a car. The car dealer that does that.
Joseph Antley
CEO RedNumbat
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