Car dealers must make better use of data and technology

Car dealers must make better use of data, technology and processes to underpin interaction with their customers and prospects if they are to succeed in the face of the current economic slowdown. That was the theme shared by the presentations and interactive workshop sessions at last week’s EurotaxGlass’s conference, entitled ‘Driving Business – opportunities for profit and growth in an uncertain market’. The event, held at the National Motorcycle Museum in Birmingham on 13 November, was attended by almost 300 delegates.

Adrian Joseph, Director, Automotive at Google, revealed new research into online buyer behaviour, commenting that the economic crisis – “the first downturn of the digital age” – would present dealers with opportunities, as well as challenges. He suggested ways that dealers should modify their approach to online marketing to reflect how consumers were now using the internet to “cut through the historically convoluted and time consuming process” of buying a car.

Chris Kent, Director, Motor Retail, at PricewaterhouseCoopers, forecasted further consolidation amongst manufacturers and retailers in 2009, and urged the motor trade to abandon the drive for volume over profit. Dealers of all sizes, he argued, must adapt their retailing strategies to the needs of better-informed customers.

Drayton Bird – widely acknowledged as the world authority on direct marketing – encouraged delegates to improve the accuracy of their customer databases, and to use them far more proactively. Dealers should analyse how they treat customers, and tailor their marketing activity more effectively. He suggested that, in the current economic climate, it is particularly important to optimise all elements of the customer experience, as well as increase the regularity of communication with customers and prospects – including those that previously chose to take their business elsewhere.

Other sessions, involving speakers from YouTube and Incentivated.com, outlined how consumers were researching potential vehicle purchases in new ways, and that dealers must consider SMS and online video marketing techniques to remain competitive.

Previewing new research examining how the credit crunch is influencing the needs and wants of potential car buyers, Frank McCaffrey, Managing Director, Exchange & Mart, highlighted the growing requirement for dealers to anticipate a rapid shift in demand towards fuel- and tax-efficient cars. The company’s research indicated that, in an effort to beat the downturn, 34 per cent of dealers are currently looking at new marketing methods, and 46 per cent are already retailing greater numbers of more affordable cars.

Martin Hill, Sales and Marketing Director at Codeweavers, explained how car buyers now expect dealer websites to offer an unparalleled level of information and interactivity. In order to convert and retain business, websites must offer significant breadth of detail relating to advertised stock, including interactive finance and insurance offers tailored to the vehicle and the customer.

Philip Jones, Managing Director of prestige-marque Halliwell Jones, gave a compelling insight into the various customer-centric sales and marketing techniques that have made his dealer group so successful.

Referencing recent customer research, Neil Addley, Marketing Director at Motors.co.uk explained that, in order to market vehicles competitively online, dealers must meet customers’ demanding requirements regarding price, images and depth of information.

The day’s proceedings concluded with a presentation from Adrian Rushmore, Managing Editor at EurotaxGlass’s, who pointed to factors that will influence sales patterns and changes in residual values into 2009.

Chair for the event, Kevin Gaskell, President of EurotaxGlass’s, commented afterwards, “This is the second major EurotaxGlass’s conference to be held in the UK and it has been another resounding success – both in terms of visitor numbers and delegate feedback.

“The range of high-quality speakers offered a wealth of practical advice so delegates could go back to their dealerships and immediately make tangible changes for the better. With trading conditions being so difficult, this kind of realistic and sensible best-practice insight will be crucial for helping dealers safeguard the competitiveness and profitability of their businesses,” he concluded.