Online Shopping to Online Buying

[Chris Cachor]

The fact remains that most (not all, most) dealerships want no part of online retail. They want the buyer in the store. Everything is geared towards getting the customer into the showroom and then into the box. That may change, but that is the fact on the ground today...

Absolutely. That's why I don't think digital retail will ever succeed in this business in it's current form. I think efforts can be made to smooth out the path to the sale that benefit both parties, but that's really it at this point. And I think that's what vendors should be working on (right now) for their dealers. While dealer websites are meant to bring in showroom customers, I think offering a smoother transition from online to offline sale is where the magic is.

 

[JamieS]

The big question remains, does it help sell more cars? Moving a number from one column to another without adding the total sales volume does nothing. Does It Sell Cars?

I think the question just might be would the first column start to decline if chosen not to adopt this and would a dealer be able to maintain or grow by adding the second column? Maybe not over night, but like some others have said, over time (whether it be months or years). Especially with competitors who are adopting. The younger demos are only getting older. The early adopters of Amazon/iphones/netfilx are 10 years older than when they started and they were most likely in their what, mid-twenties? That smack in the middle of prime demo real estate.

Based on my own experience, the problems with these programs lie internally with the us, the dealers. The average person in this industry doesn't want to change (Can you imagine?). And when I say industry I mean everyone else as we've already begun moving in this direction. They want to do the same as usual because it's easier. From my perspective as a Marketing Director the demand is there, no question. Are we going to capitalize on it early and often or jump on when everyone else jumps on? If you haven't already at least considered some sort of online purchasing/negotiating platform you're well behind.

 

[Alexander Lau]

Absolutely. That's why I don't think digital retail will ever succeed in this business in it's current form. I think efforts can be made to smooth out the path to the sale that benefit both parties, but that's really it at this point. And I think that's what vendors should be working on (right now) for their dealers. While dealer websites are meant to bring in showroom customers, I think offering a smoother transition from online to offline sale is where the magic is.

Exactly, they benefit each other. Your comment "at this point", is key. That goes back to usability / user experience comments made by @craigh and I in a different thread.

 

[BillPlayford]

I think the question just might be would the first column start to decline if chosen not to adopt this and would a dealer be able to maintain or grow by adding the second column? Maybe not over night, but like some others have said, over time (whether it be months or years). Especially with competitors who are adopting. The younger demos are only getting older. The early adopters of Amazon/iphones/netfilx are 10 years older than when they started and they were most likely in their what, mid-twenties? That smack in the middle of prime demo real estate.

Based on my own experience, the problems with these programs lie internally with the us, the dealers. The average person in this industry doesn't want to change (Can you imagine?). And when I say industry I mean everyone else as we've already begun moving in this direction. They want to do the same as usual because it's easier. From my perspective as a Marketing Director the demand is there, no question. Are we going to capitalize on it early and often or jump on when everyone else jumps on? If you haven't already at least considered some sort of online purchasing/negotiating platform you're well behind.

Bingo. Treat ecomm as its own channel, AND man it properly. Instead of building dams of Jello to protect themselves from the rising tides of change, dealerships should be rebuilding themselves to accommodate tomorrow's customer.

 

[Chris Cachor]

Bingo. Treat ecomm as its own channel, AND man it properly. Instead of building dams of Jello to protect themselves from the rising tides of change, dealerships should be rebuilding themselves to accommodate tomorrow's customer.

I agree with this to a point. I think many people assume consumers will be comfortable with buying a car online, but they're not. They're comfortable with choosing a car and a dealer online, and making the purchase in the store. Look at how primitive traditional retail transactions are: Exchange money, get a receipt for the transaction. That's it! There's no contracts to sign, no license plate transfers, doc fees, etc.

In the eCommerce model, not only would consumers abandon their online buying process - they'd probably hold off on purchasing a car altogether!

 

[Eric Miltsch]

So if you simply put a "buy online" button on your website you'll close 3-4 times as many leads? Ya think? No?
This is quest for Venture Capital. The big question remains; Did the dealers sell one more car?

Bingo Ed.

A Buy online button doesn't create an eCommerce strategy. Especially when there is a button next to it telling the user to get the ePrice. Why would I buy it online when I have the possibility of getting a better price by requesting the ePrice?! (That's the perception of the button)

If I was buying a pair of shoes or a TV online and I had the option of hitting a buy now or get ePrice, I'm going with the latter to try and get a better price.

Flawed study based on the UX/UI in my opinion. Plus, I'm not aware of how this was presented to the dealer with regards to the content marketing - was the process explained with a how-it-works video? A step-by-step instruction?

 

[Alexander Lau]

Selling cars online is the reality. The big players know it, Buffett knows it and so do many of the smaller players.
It comes down to process, implementation, legality and follow-through.

IMHO of course.
This is a much larger discussion.

Precisely and eloquently stated my friend. Dealers can ignore it at their own risk and peril.

I think the question just might be would the first column start to decline if chosen not to adopt this and would a dealer be able to maintain or grow by adding the second column? Maybe not over night, but like some others have said, over time (whether it be months or years). Especially with competitors who are adopting. The younger demos are only getting older. The early adopters of Amazon/iphones/netfilx are 10 years older than when they started and they were most likely in their what, mid-twenties? That smack in the middle of prime demo real estate.

Based on my own experience, the problems with these programs lie internally with the us, the dealers. The average person in this industry doesn't want to change (Can you imagine?). And when I say industry I mean everyone else as we've already begun moving in this direction. They want to do the same as usual because it's easier. From my perspective as a Marketing Director the demand is there, no question. Are we going to capitalize on it early and often or jump on when everyone else jumps on? If you haven't already at least considered some sort of online purchasing/negotiating platform you're well behind.

Well stated.

www.carvana.com
www.beepi.com

Yes, and they are popular. I'm probably going to use Beepi to sell my 2014 Jeep Wrangler, actually. Real user here, why would I go into a local dealership and haggle with some guy?!

 

[ed.brooks]

Bingo Ed.

A Buy online button doesn't create an eCommerce strategy. Especially when there is a button next to it telling the user to get the ePrice. Why would I buy it online when I have the possibility of getting a better price by requesting the ePrice?! (That's the perception of the button)

If I was buying a pair of shoes or a TV online and I had the option of hitting a buy now or get ePrice, I'm going with the latter to try and get a better price.

Flawed study based on the UX/UI in my opinion. Plus, I'm not aware of how this was presented to the dealer with regards to the content marketing - was the process explained with a how-it-works video? A step-by-step instruction?

Changing the words on a button isn't evolution. This actually sounds like the same old lead generation and conversion crap that we've been talking about for 10 years. You can't paint stripes on a mule and call it a zebra, all you have is a mule with paint on it.... <copy and pasted over from a Facebook conversation - one where @Jeff Kershner was talking some smack >

The bullshit Jeff Kershner was saying, "Ed Brooks so what you're saying is.. We (dealer industry) should continue doing the same thing, using he same lead forms, offering the same experience to consumers that we have been for over the last 15 years? If the dealer industry continues to take that approach, then they're sitting ducks. Dealers need to EVOLVE. Wasn't too long ago you were training dealers how to acquire the right inventory and price used cars based on smart data from "new technologies". And now...."

 

[ed.brooks]

And lest you think I'm for the status quo -

And you thought Internet shopping was disruptive...

Over the past 15 years or so the Internet has profoundly changed the automotive shopping process, I’m predicting that the changes to the automotive buying process will occur twice as rapidly and will be twice as disruptive to the industry.

The shopping process takes the majority of your customer’s time, while the buying process is actually much more important – to both the customer and the dealership. Now major industry players like AutoNation, Sonic, and CarMax are rapidly moving to a more “transactional” web presence. In short, the major players are moving from mere shopping on the web to buying on the web. That doesn't mean buying a car 100% online, it means allowing the customer to choose which functions of the sales process they want to complete online.

My sense is the winners and losers in the business, five years from now, will be predicated by how well they assist buyers slipping from the online experience into the physical experience – and perhaps back again. For instance, one buyer may have a question about his credit; traditionally a dealership will do everything in their power to get him in to the store and start them down the “Road to the Sale”. The winning stores five years from now (or sooner), will be able to step in to not just answer the question, but to also the update the customer’s deal information online, allowing the customer more control over their individual process.

I can hear the naysayers out there; the car sale is incredibly complex, trades, credit problems, negotiation and the like will stand in the way of this. But I say to the naysayers, you’ll be judged on how well you solve these issues, not on how much you defend the practices of today.​

 

[Rick Buffkin]

All these things pretty much lead up to one main item in my opinion.

The In-Store process is broken!!
There's a reason why they research 18 - 25 websites.
The customer doesn't freaking trust the dealership!!!
In most cases they are shopping like this to keep the dealer honest!!

Think about this...

With all the cyber security breaches and hacks that are happening now a days. Customers hate the dealership process so bad they are willing to take a gamble and try to complete this process online to keep from going to the dealership and going through what they did the last time they bought a car.

What does that tell ya???