What Data Can Improve Your Dealership’s Inventory Turnover?February 25th, 2016 by MAXDigital
Gone are the days where a catchy radio or television commercial is enough to get buyers to walk into your dealership ready to purchase a vehicle. Car buyers today distrust traditional marketing channels and prefer to be more in control of the car buying process. How can automobile marketers implement best practices for improving performance, managing fast inventory turnover, and building a network of satisfied customers in today’s digital age? When shopping for a car, buyers like to do independent research rather than rely solely on information dealerships provide. And when you’re trying to turnover inventory quickly, these factors can seem to work against one another. A study from McKinsey on the consumer decision journey found that two-thirds of the active research period involves consumer-driven marketing activities, such as Internet reviews and word-of-mouth recommendations from friends and family, as well as in-store interactions and past experiences. They like to curate content, ignoring those channels that do not resonate with them, in order to help their decision-making process. Because it is so easy to access prices, specifications, performance, and other factors, consumers have greater bargaining power. If car buyers are already so informed, what information can dealerships arm themselves with in order to counter shoppers who become part-time product experts?
3 Ways Dealerships Can Increase Inventory Turnover with DataKnow Your Customers’ Online Searching Habits Consumers now spend 12 hours online doing comparison shopping. And they’re not sitting at a desktop computer when they conduct research. In an Edmunds.com 2014 Car Shopping Trends Report, 100 percent of smartphone owners surveyed say they used their device to perform some sort of car-shopping activity, typically for vehicle and pricing information. It is clear your dealership needs to be accessible on a mobile platform to maximize user experience. Some factors that will turn off customers browsing your inventory on mobile platforms are:
- Failure to design a mobile-friendly site
- Pages taking too long to load
- Lack of information on what they’re searching for on your web pages
- Poor quality pictures
- Disorganized information
- Hard to navigate
- Lack of dealership contact information
- 90% of consumers read online reviews before visiting a business.
- 88% of them trust the online reviews as much as personal recommendations.
- 86% of customers will hesitate to purchase from a business that has negative reviews.
- The Leedom and Associates industry benchmark for inventory aging is to not have more than three vehicles on the lot more than 61 days.
- The average cost of used vehicles inventoried at franchised automobile dealerships today is nearly $14,000.
- 61 percent of a dealer's used car inventory comes from trade-ins.
- 71 percent of car buyers surveyed reported being likely to consider a late-model used car as an alternative to a new car.