As the automotive industry enters the fourth quarter, dealers are forming new strategies to navigate the ever-evolving landscapes of new car sales, particularly in the electric vehicle segment. Despite the rise in EV adoption, the market appears to be reaching a saturation point, with supply heavily outweighing demand. Inventory fluctuations and technological advancements are also compelling retailers to consider different approaches to business optimization.
On this episode of Driving Solutions, host Jim Fitzpatrick sits down with Aaron Baldwin, chief product officer at marketing and sales platform automotiveMastermind. Like its clients, automotiveMastermind is looking to make the final months of 2023 count. Baldwin and his team have been closely monitoring new car sales, inventory levels, and shifts in the automotive industry landscape to determine the best paths forward for car dealers. Now, he shares some of the biggest takeaways from the previous quarter, along with strategies to achieve success in the next.
1. New car sales are still healthy, with ICE volume increasing 18% year-over-year and 3% month-over-month in August. Still, automotiveMastermind expects to see a slowdown in the coming weeks due to economic pressures.
2. Technological innovations, such as artificial intelligence, are helping dealers predict their used and new car sales with more accuracy.
3. In September, automotiveMastermind released a new API, allowing automakers, dealership groups, digital retailers and consumer data platforms to integrate with the company’s automated sales and marketing platform, Mastermind.
4. Omnichannel marketing is becoming an increasingly vital strategy to drive new car sales. Baldwin notes that response rates increase 71% for auto dealers who use both email and direct mail to conduct outreach.
5. Car dealers improve customer retention and satisfaction by ensuring their service teams are equipped with the most effective technology, software and marketing tools.
6. Be sure to visit automotiveMastermind near the Hosted Dealer Program at the upcoming 2023 Digital Dealer conference, starting October 17 in Las Vegas.
"With data analytics and AI, it's helping dealers predict their demand better, and as they continue to predict their demand, that continues to move upstream into the production pipeline." — Aaron Baldwin