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The Future of The Dealership’s Web Presence

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Guest Poster

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When I first joined the auto industry, I was shocked to learn that some dealers had yet to solidify their web presence with a full-featured web site. After all, the Internet is the most utilized research tool in the vehicle purchase process and the easiest way to garner attention toward your vehicles from those who are in the market. Fast forward a few years and we’re now at a point where the vast majority of dealers use a third party website provider to manage their web presence. It was a slowly adopted change that was necessary for the advancement of the industry, but now that all dealers have their own website, what’s the next step?

What will it take to adopt the latest trends and break free from the pack of like- minded web properties?

One Sided Experience

As it stands, the function of the “dealer website” that we’ve all come to know so well is highly one sided. The experience of the vehicle shopper is similar to that of a classified site whereby the content is dominated by specials, promotions, and inventory that the dealer thinks the user will appreciate. We’re guilty of this as well. We tag vehicles as specials that we believe will attract attention in the hopes of generating quality leads, but do users really care what the dealer thinks is important?

Innovation From Netflix

Netflix has an amazing website that tailors the experience to the interests and browsing patterns of each visitor. They do all of this with the help of some fairly robust infrastructure & engineering teams, but the principles remain relevant -- give users what they want so they’ll spend more time on your site & come back more frequently to utilize your tool.

Every visit to the Netflix website is different, providing a sense of identity for an individual user that is unmatched on other platforms. Furthermore, Netflix makes use of prediction models to suggest content on the site that will be relevant to an individual user. The more accurate the prediction model, the easier it is for users to find what they’re looking for and the higher the likelihood that they will return in the future.

Application on Dealer Sites

Modern dealer sites are a great tool for taking a selection of inventory and filtering down options to ultimately reach a match that suits the user’s tastes. From a macro perspective though, this process requires a fair amount of work on the user’s behalf before any tangible decision can be made and there is no tool available to bypass this process during a return visit. We can start utilizing modern web technologies to create a new breed of dealer sites – sites that function as more of a smart web app than a standalone classified tool.

Prediction Models

The average dealer does not have the resources available to implement complex prediction algorithms in the same fashion as Netflix. Luckily, there are third party tools and APIs available for developers to utilize these functions without having to invest in the entire infrastructure necessary to predict content. As time goes on, these tools will become increasingly accessible to the forward-thinking dealers – the question is whether or not this is of any priority to website vendors (or dealers for that matter) in the industry and who will make the first move in adopting the technology.

Once implemented, the experience on a dealer site quickly turns toward a user-centered shopping experience similar to that of Amazon where the site is not only a listing of all available inventory, but also a tool for helping the user find what they’re looking for based upon their unique interests.

Favorites

For the first 4 months of 2012, 30% of our web traffic consisted of returning visitors. Many of these visitors will have undoubtedly viewed our inventory and gone through the process of filtering our vehicles multiple times before eventually moving elsewhere. Is it in our best interests to force them through this same monotonous process each time they visit?

User favorites are a current trend being under-utilized in the auto industry. I recently noticed Edmunds.com added a tool for saving vehicles (without requiring registration), but I have yet to see a widespread adoption of this idea across individual dealer sites. When users save vehicles, they have an increased incentive to return to your dealership’s website because they have already shown interest in something and they’ve made it easy to locate. Smart websites like Amazon use this data to offer increased incentives for returning visitors to convert online and increase revenue. With so many dealers being involved in a single shopper’s buying decision, every additional tool counts.

Browsing Activity

Prediction models make use of browsing activity in their algorithms, but when I refer to browsing activity, I’m talking exclusively about tracking the pages that users view via cookies. Keep in mind this doesn’t mean that some webmaster is sitting in a room looking at every single page that you’ve viewed on your computer at 2am. This is merely a method of tracking browsing history in order to create a tool for users to access information that they’ve already seen on your site.

We’re aiming to make the experience on a dealer site as easy and painless as possible, so if I have to go back to a search page and repeatedly input filters to find vehicles, then we’re doing it wrong. Giving users access to vehicles they’ve already viewed is a great way to easily get them back to that vehicle details page to convert and start working with your sales team.

What do you think? Are these features important enough to your dealership/group to implement?

What challenges do we need to overcome as an industry to make it happen?
 
As a Website / CRM vendor I am very interested to hear feedback on this.  Our website platform has supported these types of "Personalization" features for many years, but we've had limited success in getting dealers excited about this ability.  I suspect it's because there isn't a clear short term ROI that they can sink their teeth into.  Our view is that Personalization is one of the most important aspects to offering a great User Experience on a dealers Website.
 
 @DealerPeak Hello. First question that comes to mind is are you charging extra for these features, or do they come standard with all of your websites?
 
Also something that I believe is important is the target demographic for the website. For a younger audience, these features will soon be a must on a website, but will the 60 year old Chevy Impala buyer care about them? I doubt it.
 
This is the first time I'm hearing of DealerPeak (no insult intended), but I don't see very much in terms of marketing regarding the dealer sites on your own website. I don't want to have to 'request a demo' to see what you offer. Show me why I should get excited about it with well constructed landing pages that appeal to my emotions. Show me photos of the features in use. Show me stats that show how user engagement & time on site increases w/ new tools such as these. 1 website example isn't going to cut it (to get me excited at least).
 
I believe the features themselves are not the only piece to the puzzle -- the implementation is also very important. I notice you have to register to save vehicles on DealerPeak sites (which you don't have to do on Edmunds) and the 'save vehicle' feature is not promoted heavily save for the vehicle detail pages. If you're going to require registration, show me why it's of value to me and promote the tool! I should be seeing a link to "Your Saved Vehicles" on every page of the site in the navigation so I can easily get there on a return visit or so that I know your sites are different if I'm getting there for the first time.
 
Just my .02. Hopefully you found this to be constructive.
 
I have also been a supporter of personalizing the users experience on our group's sites but is it feasible to develop right now with the onset of the "Do Not Track" options being built into all of the major browsers and the W3C, Center For Digital Democracy, Interactive Advertisers Bureau and who knows who else all trying to decide what the correct behavior or response a web site should be to it? 
 
 
 @lgoering Hadn't heard of Do Not Track until now; however, I just read an article that said:
 
"Once finalized, these standards won't be enforced by the W3C. Rather, enforcement would likely involve advertising industry associations, who could require their members to comply with Do Not Track. In addition, any U.S. advertiser that said it complied would be held to account by the FTC, as well as by privacy monitoring organizations, such as TRUSTe--also part of the Tracking Protection working group--and the Better Business Bureau."
 
Doesn't seem like it would really affect a dealership website just yet unless browsers implement something for privacy. If a user opts-out, what exactly would Do Not Track prevent from happening?
 
Nice post Kyle.
 
The key in my mind to getting this kind of tool working as intended would be to allow anonymous user feedback along with extensive A/B testing (which requires the ability to change quickly). Like you mention in your post both dealers and us as vendors have assumed what the customer wants to some degree. Of course there are focus groups and testing involved to come up with these assumptions on the vendor side, but it is within the traditional dealer marketing "box".  
 
To really make a change and evolve the tools we need to take bold steps and let the users honestly tell us what they want.  With this kind of feedback/change loop we may all be surprised as to where the users take us, and it will probably be WAY outside the current "box" we are currently in.
 
 @Kyle Suss  @lgoering From what I understand, the Do Not Track button would prevent the cookies from being stored so there would be no information for your proposed tool to personalize a return visit based up the history from the previous visit(s).  However, at this point, most people do not know about this button existing in their browser settings so unless it becomes more widely known through media coverage, the average user may never use it anyway.  
 
 @lgoering Gotcha. Yeah, I feel like it would have to be more well known to gain traction. That being said, I know a lot of people value their online privacy, so we shall see how this pans out.
 
It is possible to customize site content based upon whether or not a session cookie exists though. So theoretically, these tools can be turned on/off with ease. I don't really see it being an issue.
 
 @NetBizCoach Thanks, Mike. I tried to avoid implying that these tools were the responsibility of the vendors after our previous conversation. I understand the vendor business model is to appeal to dealer wants & expectations, so I think it's important to only offer these items if they are tools that dealers request.
 
We ran some multivariate testing on our website a while back regarding calls to action on our vehicle detail pages. I believe I may have chosen too many variations, but I found that we don't get enough conversions to generate a statistically significant winner in a reasonable amount of time. I think the data you suggest would be much easier to gather if it were done by a vendor with access to a portfolio of dealer sites to test. But then they probably wouldn't want to just hand it over, now would they ;)
 
I agree though -- let's have the users tell us what they want. I imagine different markets will yield different results as well. I'd like to see dealer sites turn into more of a smart 'web app' than an online classified tool, but who cares what I think! Let's ask the people that matter.