Cars Online 09/10

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Conclusions and Recommendations

This year’s Cars Online research offers both a quantitative and qualitative view of changing consumers needs and buying patterns. Following are recommendations to help companies better meet these needs and demands in today’s volatile market.

Turning these recommendations into reality is critical to future success for automotive companies. The good news is that the capabilities needed to achieve that – including streamlined processes, faster response mechanisms, online buying capabilities, greener vehicles and improved aftersales servicing – are entirely in the hands of manufacturers and dealers.

Eliminate the bureaucracy and inefficiency inherent in the current buying model.

Consumers want a faster, easier way to buy vehicles. Improved lead management systems, dealer optimization and online buying capabilities are among the tools that can be implemented to help achieve this objective.

Get serious about online selling.

Consumer interest in buying vehicles and parts and accessories over the Internet is real. Providing a viable online option will be a key to maintaining customer loyalty in the coming years. Models may vary – ranging from services operated by individual manufacturers or dealers, to sites run entirely by third-parties such as eBay, to joint ventures between the two – but online buying will become the preferred approach for a significant group of consumers.

Focus on the aftersales and servicing experience.

Keeping in-warranty consumers coming back to the purchasing dealership for servicing is imperative, particularly at a time when vehicle sales are slow. Service and spare parts operations typically offer a profit margin up to 10 times greater than that of the initial sale. In addition, the service experience can be a factor in securing customer loyalty and driving future repurchase decisions.

Manage your marketing mix according to each market.

A one-size-fits-all marketing approach won’t work in today’s diverse automotive marketplace. Understand where to spend on the web and where to continue to invest in traditional media. And be sure to incorporate new media channels such as blogs and discussion groups into the mix. Web-based discussion groups, in particular, are growing in popularity. Consider how you, as a manufacturer or dealer, can facilitate or participate in these kinds of discussion sites.

Communicate with consumers before they reach the showroom.

By the time vehicle buyers enter a dealership they are likely to have done a considerable amount of research and reduced their list of choices to one or two vehicles. The opportunity to influence them is nearly lost. Using new types of such as a Virtual Adviser, can help automotive companies grab consumers’ attention before it is too late.

Go green now.

Consumers, automotive companies, governments, utilities and other types of businesses will increasingly focus on alternative-fuel vehicles. In the near future, “CO2” will become as important as “mpg” in vehicle buying decisions. It is becoming clear that alternative-fuel vehicles have the potential to be a market-changing force. However, the continued development of this business will require collaboration both inside and, more importantly, beyond the automotive industry.