The automotive world is undergoing, in recent times, important changes on many fronts. In addition to the development of electric vehicles, connected car technologies, mobility services, and autonomous driving, new business models around the sale of cars in the online world are on the agenda of all brands. Unlike other industries in which eCommerce is in a process of high evolution, in the automotive industry everything remains to be decided and done. Do you want to delve into one of the motor industries of any economy and how to increase sales and reduce costs through online sales? In this post I will tell you.

Just as any brand listens to the consumer in order to develop the company’s new model, the colors and finishes that will make that vehicle the best-seller in its category, how is it that consumer demand is not met in terms of to the sales channel?

The reality is that, according to data from the Oliver Wyman consultancy , 87% of Internet users say that The Internet is the most reliable source for collecting information on their future purchase . Taken to the industry that concerns us, of all those who browsed looking for a car, 40% of them assured that through this means they discovered a new model that they did not know about.

However, despite the fact that everything seems to be in favor of online sales, there is a barrier that has stopped, until now, all brands in their online sales adventure . And it is that, it is a product with a much higher price than that of any product that is sold on the internet, requiring a much longer purchase decision-making process.

Another barrier is the emotional effect of going to visit the vehicle dealership, feeling the materials with which it is made, the new smell of the upholstery, the sound of its engine…

However, these two barriers have much less influence on young consumers , who year after year are occupying a greater part of the brands’ target audience, making this online sale a great opportunity for any car company.

Over time, these young people with a great digital shopping experience will shape the car buyer profile more and more. And as the technology applied to sales develops, the shopping experience will also evolve , something that these consumers will value.

But this technology can not only help sales, but can also determine if the purchase does not materialize, when interest in the model or brand was lost, and can act to improve the process.

The sale of vehicles in the online environment

If you had told anyone 20 years ago that you had bought a car online, they would probably have told you that you were crazy. The truth is that the automobile industry has been using the same sales model since the 1980s , incorporating very small changes. However, this is changing.

Online Sales

As I have mentioned before, the consumer is looking for information in real time, to see possibilities and compare when it comes to mind, without waiting to define a day to go to the nearest dealer.

It is true that all brands have their website structured precisely for that, but are they really looking for a complete digital experience for the potential customer? I strongly affirm that it is not. And the problem is that the digital consumer, faced with a static website, will go to another place where they truly offer that digital experience that they are looking for, and where, why not… they can close the sales cycle with an acquisition.

This digital customer has grown up on social networks, has moved with smartphones and bought online on impulse. And this type of client is the one that today represents the largest demographic group of car purchases.

Still want more proof? According to various studies by consultants, both Millennials and Generation Z express their desire for autonomy and independence when buying, when and how they want. But at the same time, they want closer and more meaningful relationships with brands. Today, in the midst of the COVID-19 health crisis, they are demanding this fact in that same online environment, requesting a real person behind the web.

Therefore, forcing a customer to go to a brick-and-mortar dealership multiple times throughout the buying cycle will not suit brands. In this traditional method, this group of consumers affirm that the lack of trust and transparency is what stands out the most about buying at the dealership. However, these professionals continue to be the ones who know how to sell cars the most and best.

According to a North American study, 56% of the interviewed Millennials prefer to clean their house than negotiate with a car dealer . Meaningful, right?

Just as the brands knew how to realize that the brochures of their models were no longer so important, since buyers have a digital one with much more information in their pockets, it is time for them to attend to the need for online shopping.

Market Research Future forecasts a 6.87% annual growth rate by 2023 in the global automotive e-commerce market, driven by the overall digital transformation of the industry.

Manufacturers will go yes or yes towards electronic commerce, but dealers, as great experts in vehicle sales, will also be able to take advantage of this technology to continue being the leaders in sales, but also through the online channel.

Benefits of electronic commerce in the automotive sector

Automotive e-commerce offers great and important benefits, both from the point of view of the customer and the manufacturer. Let’s see them.

Benefits from the customer’s point of view:

#1. E-commerce provides the functionality for the personalized, engaging, and easy shopping experience that customers crave.

#two. It allows customers to quickly dive between sales channels, both digital and physical, whenever they want. And if there’s one thing we know about today’s consumers, it’s that they want the flexibility to shop and interact with your brand on their own terms, regardless of location or time.

#3. It allows a perfect combination of the online and offline world, being able to create a perfect omnichannel experience for those who know how to do it.

#4. Eliminate travel, being a comfortable and even safe method today due to the necessary social distancing.

Benefits from the manufacturer’s point of view:

#1. Now manufacturers can not only give their customers exactly what they want, but it also allows them to build stronger relationships with their customers.

#two. By going direct to consumer (D2C), the manufacturer has much more control over their brand/price and can have more control over the brand experience they want to convey.

#3. The manufacturer has any model in real time. A situation that used to happen and that was completely frustrating was when the buyer went to the dealer looking for a specific model, and they did not have it at that dealer. This fact facilitates the purchase and increases the experience and satisfaction of the buyer.

Surely, after reading these advantages, you can think of many others, since really selling cars online is a method with infinite benefits for both parties.

However, it can go against the brands if it is not done properly, taking into account the buyer, the user and shopping experience in the online environment, and the technology necessary to bring it to reality.

Next, I show you some of the technologies that will facilitate the landing of any car manufacturer in the area of ​​online sales.

5 Tips to be successful in online car sales

Some manufacturers such as Tesla, BMW in the United Kingdom and Japan, Volvo with the launch of the limited edition XC90, as well as SAIC and Changan in China, have tried selling online, through multi-channel sales initiatives in their own channels. direct. More recently in the Italian market, Fiat Chrysler has partnered with Amazon offering customers price incentives to buy online. Similarly, the Italian group is leading Internet car sales in Spain, betting on this channel as one more way to reach sales leadership.

Next, I am going to offer you some of the tips or advice on eCommerce in cars, extracted from Inquisitive Technology ‘s long experience in the sector and in the online sale of vehicles. Are these:

#1. Promote personalized customer service through Live Video Marketing.

This system is based on a specialized agent located in a brand showroom, where he answers all the questions of the online buyer, showing the vehicle he has in the virtual store live, through a second camera. Just as you would at the dealership, this agent can also share the catalog and even a commercial proposal for the vehicle with him.

2.Includes private sale, but online.

Private selling is a marketing campaign that has been carried out for a long time in dealerships and encouraged by manufacturers. This consists of creating an event that lasts between 2 and 3 days in which they invite the people they have in their database, so that they come to the dealership to see, test drive and buy a vehicle, generally stock, at very low prices. competitive.

With social distancing, these types of campaigns get quite complicated, but why not do them online? This has exactly the same mechanics, however, the duration of the campaign can be somewhat longer, and logically, all through the digital sphere, although a mix can be made and the client can choose whether to do it in a different way. physically at the dealership or through the web.

Take your database and carry out a telephone, SMS and email communication, inviting your clients to said private event. Set up a microsite within your site where you can show the vehicles you want to promote in great detail, and keep in mind at all times the possibility of contacting a customer service person who resolves all possible doubts, and a call to action for the online purchase of the opportunity.

3.Hyper-personalize through data.

According to the latest report on electronic commerce carried out by the ONTSI (Spanish Observatory of the economy and digital society), 96.7% of Internet users search for information online before making purchases , whether they are online or offline purchases.

All this movement generates data, both 1st party and 2nd and 3rd party data that helps feed the brand’s Customer Data platform, generating unique customer files, in which we know what they have searched for, when, how many times, if they are a customer , your socio-demographic data, your interests, geolocation, motivations, habits… This level of precision is only possible through this type of CDP platform ( What is a CDP ), which allow you, through automated processes, to personalize the web page when that potential client enters it. Let’s not forget that customization is one of the features most in demand by today’s vehicle buyer.

4. Streamlines the qualification of leads, through data.

Any automotive manufacturer has diversified its lead collection channels. The moment the lead arrives, a process called Lead Management begins , in which the generated lead must be qualified as soon as possible, to send it to sales if it is hot. In this process, if you already have information thanks to your CDP (Customer Data Platform), the qualification becomes much faster and with much more information for the salesperson, who will be able to fine-tune and personalize in a better way the offer that you make. to the potential customer.

At Inquisitive Technology we have been working on Lead Management for many years for some of the automotive companies in Spain, and we have been able to verify that lead response time is critical when it comes to increasing the conversion rate. If, in addition, we add greater knowledge of the potential customer by the sales agent, this conversion is multiplied even more.

5. Try to make the sale 100% online.

The user wants to buy a car online and wants to do it as quickly as possible and with the fewest surprises. Nothing to finish the process at the nearest dealer; one of our commercials will contact you… etc. If you sell online, it has to be 100% online and with as few steps as possible.

At Inquisitive Technology , we have reduced this process to just three simple steps, in the case of contracting leasing for our client Fiat , the entire sales process being online. After entering personal data, the customer selects the chosen model, terms and mileage. Once the approval of the leasing operation is received, sign the contract digitally and choose the dealer where you want to pick up the vehicle. It’s that simple.