The auto industry has seen high interest rates and vehicle prices, but that’s not stopping deals from being made at the dealership. On today’s edition of Inside Automotive, we’re diving into a Digital Shopper Study from Shift Digital that focused on The Good, The Bad, and The Worthy Signs for Automotive Retailing In 2024. Matt VanDyke, President of Shift Digital, is here to break it all down for us.
Key Takeaways
1. Despite a 7% decrease in sales leads year over year, this trend was interpreted positively as it allowed for the emergence of more quality leads. This shift is attributed to changes in consumer behavior and market dynamics, where serious buyers are now more prevalent, leading to a 25% increase in dealers’ closing rate of leads.
2. The study found an 11% improvement in dealer response times to customer inquiries, crucial for meeting rising customer expectations. Additionally, a timely and quality response is emphasized as critical for dealers to focus on, with an optimal response time identified between 20 and 40 minutes.
3. With 70% of visitors to dealer websites coming through mobile devices, optimizing for mobile and understanding customer communication preferences, such as text and email over phone calls, is highlighted. This adjustment can significantly improve the quality of interactions between dealers and potential buyers.
4. There was a 38% increase in digital retailing leads on dealer websites, underscoring the growing consumer preference for online shopping experiences and e-commerce elements in the automotive buying process. Dealers without digital retailing tools on their websites miss out on valuable opportunities to engage with this segment of consumers.
5. The interview touches on the ongoing challenge of vehicle affordability, exacerbated by high interest rates and the cost of vehicles. Dealers are encouraged to find ways to convey value and engage customers effectively. Additionally, adopting and optimizing digital tools and technologies are crucial for dealers to remain competitive and meet evolving consumer expectations.
"Dealers were able to close rate leads almost 25% higher year over year." - Matt Van Dyke
