Merchandising is a crucial component of any retail operation, especially in the age of digital commerce, where customers often have little to no access to a product before purchasing. However, many car dealers are unaware of this essential marketing strategy, unwittingly cutting themselves off from better profit margins and sales.
To learn more about merchandising and its utility in the car business, CBT News anchor Jim Fitzpatrick met with Nathan Fox, senior director of business development at Cox Automotive, during this year’s Digital Dealer conference. Fox has been a long-time advocate of data-driven marketing and retail strategies, helping businesses incorporate effective tactics into their branding efforts. During his time at Cox Automotive, he has connected thousands of dealers with critical software solutions and industry insights, ensuring the automotive sector is prepared to meet the needs of today’s customers.
1. Merchandising is the process of conveying the full value or “story” of a product. By telling the whole story and giving as much background information as possible, dealers can convert more leads and generate more sales.
2. Dealers often neglect to merchandise their non-vehicle offerings. From service to tires, most dealership products can benefit from effective storytelling.
3. Most consumers now research their vehicle online prior to visiting a dealership. To attract these buyers, dealers should make sure to implement merchandising tactics on their website, offering comprehensive and accurate details on every model.
"Dealers are leaving billions of dollars on the table by not telling a story that tells the whole value of the car." — Nathan Fox