<p>When Covid came crashing onto the scene at the start of 2020, it brought disruption across almost every industry, including automotive. Dealerships were forced to close their doors to in-person visits, OEM plants shut down, auctions moved online, and consumers stayed home.&nbsp;</p><p>Nine months later, dealers have shown incredible resilience and flexibility in adapting their marketing and retailing tactics for success. The&nbsp;<a href="https://dealercenter.cargurus.com/blog/3-covid-car-shopping-trends-and-what-they-mean-for-your-dealership" rel="noopener noreferrer" target="_blank">most recent update</a>&nbsp;of our ongoing CarGurus COVID-19 Sentiment Study shows dealers aren't the only ones acclimating during this challenging time, though. Here, we break down our latest consumer sentiment data — and what it means for dealers.</p><h4>Car sales are lagging, not lost</h4><p>While the pandemic's reality has caused some to delay their vehicle purchases, 71% of people who plan to purchase by the end of 2021 are already actively researching vehicles online, according to CarGurus' November study. Of those who bought during the pandemic, half said they purchased when planned because they had an immediate need for a vehicle. For other purchasers, necessity wasn't the issue: 27% said they were motivated to buy because they wanted a vehicle for personal travel, leisure, hobbies, or projects.</p><p>Vehicles offer a sense of escape and fun during this challenging time, which may be one reason why 30% of those who bought in 2020&nbsp;<em>weren't</em>&nbsp;planning to do so before the pandemic. For dealers, it's important to remember that consumers' need and desire for vehicles aren't likely to go away any time soon.&nbsp;</p><h4>Limited vehicle selection is driving consumers to be more open</h4><p>Shoppers had felt the pandemic's impact on both selection and price, though the impact varies depending on when they bought. Those who purchased a vehicle during the early months of the pandemic — March through June, when dealers were trying to offload vehicles — were nearly 2x more likely to say prices were much lower than normal, compared to those who bought from July through November (31% vs. 16%) when many dealers are experiencing a shortage of quality inventory.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/12/shutterstock_705661123-1024x1024.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" height="411" width="411"></figure><p><br></p><p>Like consumers, dealers have also started to feel an inventory crunch in recent months. The good news for dealers is that shoppers are staying more open-minded about what vehicles to consider: 62% are considering more than one brand, and 42% are considering more than one type of vehicle. This leaves room for dealers to sway shoppers toward their available vehicles. Still, dealers will have to get creative and use tools and data to ensure their lots are stocked with in-demand vehicles that will sell.&nbsp;</p><h4>Demand for financing continues to grow</h4><p>Affordability remains a concern, with 44% of shoppers saying they're less confident in their ability to afford a vehicle due to the pandemic (down slightly from 48% in June). Consequently, demand for financing has grown. Before the pandemic, 48% of shoppers were planning to finance — now, 62% plan to (or did).&nbsp;</p><p>With affordability a concern, now isn't the time to pressure shoppers into a purchase decision. Instead, dealers should nurture shoppers down the funnel, keeping them engaged and answering their questions as they get closer to a decision.&nbsp;</p><p>Since 52% of shoppers would prefer online financing, letting buyers get pre-qualified online and then prioritizing those leads is another way dealers can get ahead. For example, CarGurus shoppers can submit a lead on a dealer's VDP and get pre-approved for financing by at least one of the lenders a dealer works with. All that's left for a dealer to do is customize and finalize the financing. This makes for both a happy customer and dealer, with less time wasted on the in-person deal.&nbsp;</p><h4>Interest in digital retail remains steady</h4><p>November's study found 88% say it'll be quite a while, if ever, before shopping habits return to normal. As a result, more car shoppers than ever are open to — and even prefer — buying online. Only 35% of shoppers were open to buying online before the pandemic. Today, 60% are, and that number hasn't waned since June (60%) or April (61%) — despite dealership re-openings.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/12/dreamstimemedium_139477663-1024x680.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" height="226" width="339"></figure><p>With consumers' preferences changing and digital retailing strategies advancing, savvy dealers should look to tactics like online price negotiation, trade-in valuation, and financing, as well as home delivery to win today's shoppers. The current health crisis has accelerated digital retailing trends that were already on the horizon — and they're likely here to stay now.</p><h4>There's reason for dealers to be optimistic, despite the pandemic</h4><p>The Covid pandemic has reshaped many parts of American life, including how people research and buy cars. Still, bright spots remain for dealers who keep up with their digital marketing efforts and promote their online and contactless services. By continuing to market to consumers, dealers will stay top of mind, consequently leading consumers to turn to their dealership when they return to the market — and they&nbsp;<em>will</em>&nbsp;return.</p><p><em>Read the full study </em><a href="https://dealers.cargurus.com/rs/611-AVR-738/images/USNov_Covid19-Survey_CarGurus.pdf" rel="noopener noreferrer" target="_blank"><em>here</em></a><em>.</em></p>

How COVID Is Reshaping Car Shopping and What It Means for Your Dealership

<p>CarGurus and GfK recently studied the digital path to purchase of over 3,000 car shoppers. We dug into that data, as well as data from a series of&nbsp;<a href="https://dealercenter.cargurus.com/industry-insights/june-covid-19-sentiment-study-finds-bright-spots-for-car-dealers" rel="noopener noreferrer" target="_blank">COVID-19 Sentiment Studies</a>&nbsp;we conducted this year, to see how the shopping journey has evolved.&nbsp;</p><p>What we found is that today’s car buyers aren’t experts on car shopping anymore. Since many only replace their vehicles every five years, a lot can change between purchases. As a result, the process takes around five weeks for most. This leaves lots of time for shoppers to spend hours researching online and comparing options across multiple devices — all with the goal of finding a reliable vehicle at a price point they’re comfortable with.&nbsp;</p><h3>Car Shoppers Are Full of Uncertainty at the Start of the Journey&nbsp;</h3><p>Today’s consumers are increasingly beginning the research and shopping process full of uncertainty. In 2020, 41% of shoppers were undecided on the price they’re willing to pay for a vehicle — <a href="https://dealers.cargurus.com/rs/611-AVR-738/images/2018CarGurusBuyerInsightReport2-19.pdf" rel="noopener noreferrer" target="_blank">up 25% in just two years</a>. Similarly, uncertainty around whether to buy new or used has also increased since 2018, going from 26% to 32%. To fill in the gaps and inform the many decisions they must make along the journey, shoppers turn to online sources to research their options. Shoppers estimate roughly 60% of their shopping process is spent online, researching, and comparing options.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/11/dreamstimemedium_101374594-1024x682.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" height="330" width="496"></figure><p><br></p><p>While there are many online resources shoppers can use, including dealership, OEM, and industry sites, auto shopping sites are the most commonly used resource by car buyers: 93% of shoppers use auto shopping sites. And they visit this category of sites multiple times: the average shopper visits auto shopping sites 12 times before buying a vehicle, with the use of these sites only accelerating as the purchase nears. In comparison, 63% of car shoppers visit OEM sites, and 58% visit dealership sites, with the average shopper visiting them only 5.5 times total before purchase.&nbsp;</p><h3>Car Shoppers Have Different Objectives When Using Desktop and Mobile Devices</h3><p>More and more consumers use a combination of desktop and mobile, switching continually between devices while shopping for their next vehicle. Though this makes it clear that the shopping experience must be optimized across all devices, each device plays a specific role throughout the process:</p><ul><li><strong>Desktop drives vehicle comparisons and selection.</strong>&nbsp;Desktop sessions deliver more engagement and play a critical role in the journey, especially as the purchase nears. Car shoppers spend 2x as long per session on desktop as on mobile, likely because the desktop experience provides a larger screen for comparisons and is free from distractions like text messages and push notifications.&nbsp;&nbsp;</li><li><strong>Mobile is used at the dealership and to prepare for negotiations.</strong>&nbsp;More than two-thirds of car buyers continue to research mobile during the dealership visit because of its convenience. The use of mobile devices on the lot has been steadily increasing — from 59% in&nbsp;<a href="https://dealercenter.cargurus.com/industry-insights/2018-buyer-insight-report" rel="noopener noreferrer" target="_blank">2018</a>, to 64% in&nbsp;<a href="https://dealercenter.cargurus.com/industry-insights/2019-buyer-insight-report" rel="noopener noreferrer" target="_blank">2019</a>, to 67% in 2020.&nbsp;</li></ul><h3>Vehicle and Dealership Selection Come Down to Price and Reliability</h3><p>When it comes to dealership selection, price greatly influences where consumers buy. That doesn’t necessarily mean shoppers are only looking for the lowest price though. It’s that they want to feel confident they’re paying a fair price for the vehicle they’re purchasing. On CarGurus, 81% of all leads go to vehicles with a fair deal rating or better, with the biggest percentage (37%) going to Fair deals.&nbsp;</p><p>Ultimately, reliability is paramount to consumers when choosing a vehicle. And it tends to be especially important to shoppers searching for a vehicle less than $10,000 (58%) and Gen X shoppers (49%).&nbsp;</p><h3>Interest in Digital Retail Has Surged Since the Spread of COVID</h3><p>During this rollercoaster of a year, it’s not just car dealers who have been forced to adapt and evolve — consumers’ preferences around buying have also changed. Among car shoppers, both openness and preference for buying online roughly doubled due to the pandemic and, despite dealers re-opening to foot traffic, have not declined. Before Covid, 32% of car shoppers were open to buying online. According to CarGurus’ recent&nbsp;<a href="https://dealercenter.cargurus.com/industry-insights/june-covid-19-sentiment-study-finds-bright-spots-for-car-dealers" rel="noopener noreferrer" target="_blank">COVID-19 Sentiment Study</a>, now 60% are. Similarly, 37% would now prefer to buy online — up from 19%.&nbsp;</p><p>Ultimately, car shoppers are spending more time online, leaving fewer decisions to be made during the dealership visit. Optimizing the car shopping experience across both desktop and mobile, providing digital retail solutions, and offering competitively priced, reliable vehicles will increase your dealership’s likelihood of converting more shoppers into buyers.</p>

Latest Research: Evolution of The Car Shopping Journey in 2020

<p>The COVID-19 pandemic has had an economic impact on almost every industry, including automotive. But adaptable car dealers have embraced their new selling environment — scheduling virtual appointments, making pickups/drop-offs for service appointments standard practice, and investing in digital retailing. Though business has gone on, many dealerships have had to do so while short-staffed.&nbsp;&nbsp;</p><p>While the timeline to recovery is uncertain, business&nbsp;<em>will</em>&nbsp;return to “normal,” which is why preparing for hiring (or rehiring for many) and developing a great team should continue to remain a priority. When you have a process that attracts the top talent and a company culture that makes employees want to stay, you’ll decrease turnover, increase your bottom line, and — most importantly — positively impact your customers.&nbsp;</p><h3>Build up your employment brand&nbsp;&nbsp;</h3><p>Having a great employment brand isn’t something that happens overnight. According to the Bureau of Labor Statistics, with unemployment numbers decreasing as of the July jobs report, now is the time to work on yours. Focusing on it now will set your dealership up well for when you’re ready to start hiring again. Not only will it help you bring back the exceptional talent that’s been sidelined due to the pandemic, but it’ll also help you retain the great people you’ve kept on during this unprecedented time.&nbsp;&nbsp;</p><p>One way to communicate your employment brand is through your job listings — think of them as the VDP for your employment brand. Just like you provide many photos and a 360-degree walkaround of a vehicle to get someone to click on the lead form, a job description should communicate your dealership’s culture to applicants and sell them on your company.&nbsp;&nbsp;</p><p>Your dealership’s career page is another place to speak to your employment brand. Include information about perks and benefits, pictures of your dealership, testimonials from your employees, and an updated list of open opportunities. You want recruits thinking, “I can see myself there” when they look at your career website.&nbsp;&nbsp;</p><h3>Attract qualified candidates&nbsp;</h3><p>At a time when there are likely more applicants than jobs, you have the advantage of being selective — and your job descriptions play a huge role in this process too. They should be specific and detail exactly what your open position entails. This will help candidates self-select the right roles. Also, try avoiding industry-specific terms in your job descriptions to not miss out on qualified candidates from other industries. This will ultimately help bring more diversity to your workforce.&nbsp;&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_175093004-1024x684.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" height="511" width="768"></figure><p><br></p><p>Technology is another crucial part of effective recruiting. You already use multiple channels for generating leads for your vehicles — your website, SEM, and display ads, to name a few — the same should go for recruiting. Keep in mind, some channels may be more effective than others. For example, targeted ads may not break the bank per applicant, according to data from&nbsp;<a href="https://hireology.com/wp-content/uploads/2019/10/NADA-2019-Research-Study-FINAL-NONE-PRINT.pdf" rel="noopener noreferrer" target="_blank">Hireology and NADA</a>, but you need to spend a lot of money before one of those applicants turns into a hire. Typically, word of mouth is your most effective and affordable recruiting channel — another reason building a culture that makes people want to work for you is so valuable.&nbsp;&nbsp;</p><h3>Hire and onboard the right candidate&nbsp;&nbsp;&nbsp;</h3><p>Don’t wait to review applications — it could cost you valuable hires. According to Hireology and NADA data, it takes an average of 5.7 days for a hiring manager to review a sales consultant application. That’s a lifetime for a motivated candidate, especially if they’ve been out of work for some time. Imagine if you took five days to respond to a lead for a car on your lot. You’d never sell that car. The less time applicants spend waiting, the more effective your hiring process is.&nbsp;&nbsp;</p><p>Once you have an accepted offer in hand, the final stage of the hiring process is onboarding. Today, you might be doing this virtually, making it even more important to have all training, calls to shadow, and milestones to meet in the first few weeks mapped out for the new hire. Virtual onboarding has its advantages though: new hires can watch recorded training multiple times at their leisure, progress can be easily tracked, and automation keeps the process moving. In-person onboarding will likely make it easier for new hires to interact and more seasoned employees to act as mentors.&nbsp;</p><p>No matter how you’re doing it, check-in regularly with new hires to see how onboarding is going and answer questions along the way. The bottom line: communicate your support early and often. The worst thing you can do is throw them into a new role with no support.&nbsp;&nbsp;</p><h3>Coach employees to success&nbsp;</h3><p>Hiring and onboarding a candidate isn’t the end of the process. People are your most important investment, but so often, that investment isn’t well cared for. That’s where coaching comes in. Coaching is training and guiding an employee toward achieving a goal — not just telling someone what to do. Your basic framework for coaching should answer these questions:&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_15587033-1024x928.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" height="310" width="342"></figure><p><br></p><ol><li><strong>What’s the goal?</strong>&nbsp;Ask questions to assess the employee’s needs and find out what they’re looking to accomplish.&nbsp;</li><li><strong>Why is this happening</strong>? Uncover the skill gap or root cause of the need for coaching in a particular area.&nbsp;</li><li><strong>How are you going to move forward?&nbsp;</strong>Figure out what motivates your employee and determine an action-oriented plan for moving forward.&nbsp;</li></ol><p>Be consistent with your coaching efforts and provide your employees with regular feedback. When you make it a priority yourself, you model how important it should be for your employee. But don’t just show up — take the time to prepare in advance — and always follow up on action items.&nbsp;&nbsp;</p><p>Hiring and coaching tactics may vary by dealership, but every leader should have effective processes in place. Invest in your employees, and they’ll invest in your business. Ultimately, this will help make you more money and give your dealership a competitive edge.&nbsp;</p>

Why You Shouldn’t Let Hiring & Coaching Take a Backseat To Your Business Operations

<p>In today’s age of the customer, dealers must compete on more than just price in order to win the sale. Yes, part of that is providing an exceptional consumer experience, but there’s also a huge opportunity to earn a customer’s business by getting involved in the community.&nbsp;</p><p>According to a CarGurus survey, 45% of CarGurus shoppers said they were somewhat or very likely to switch to a brand that supports a good cause, given similar price and quality. It’s simple: when your dealership supports your community, your community tends to want to support your dealership in return.</p><p>But the perks of community involvement extend far beyond the sale. Here are five additional ways your dealership benefits from giving back, plus some ideas for how to get involved.&nbsp;&nbsp;</p><h3>1. You differentiate your brand and generate positive PR</h3><p>Getting involved in and driving difference in your community can have a very positive impact on your <a href="https://www.dealermarketing.com/reputation-is-everything-hispanic-car-buying-preferences-survey-review" rel="noopener noreferrer" target="_blank">dealership’s reputation</a>. That’s because people tend to take notice when someone is doing something good to support the community. Not only will your dealership stand out from others, but it might also benefit from some free publicity. A <a href="https://www.dealermarketing.com/podcast/why-you-should-let-someone-else-buy-your-media" rel="noopener noreferrer" target="_blank">positive media</a> mention or short feature on your local news channel about your dealership’s charitable efforts can reach thousands of people in one fell swoop — you might even influence some <a href="https://www.dealermarketing.com/how-covid-is-reshaping-car-shopping-and-what-it-means-for-your-dealership" rel="noopener noreferrer" target="_blank">car shoppers</a> along the way. Making a big purchase like a car tends to be an emotional process, not just a logical one, and building up feelings of goodwill could pay dividends for your dealership.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_132857851-1024x683.jpg?auto=format&amp;w=793" srcset="https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_132857851-1024x683.jpg?auto=format&amp;w=793&amp;dpr=1 1x, https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_132857851-1024x683.jpg?auto=format&amp;w=793&amp;dpr=2 2x, https://cdn1.dealermarketing.com/wp/2020/09/dreamstimemedium_132857851-1024x683.jpg?auto=format&amp;w=793&amp;dpr=3 3x," class="lazyload" style="display: block; margin: auto;" width="793"></figure><p><br></p><h3>2. Employees respect business leaders who give back</h3><p><a href="https://www.dealermarketing.com/b-social-responsibility-through-heliotropic-leadership" rel="noopener noreferrer" target="_blank">Giving back</a> can help generate positive PR externally, but it can also help you garner favor within your own business. Typically, when employees respect their leadership, they’re more likely to stay with a business long-term. Plus, when morale is high, they’re more likely to feel engaged and, ultimately, be more productive at work.&nbsp;</p><p>In addition to retaining your top talent though, getting involved can also be an excellent tool for recruiting new staff. Showcase how your dealership supports local causes, and you’ll likely appeal more to prospective employees too.</p><h3>3. Giving back helps improve your local community</h3><p>When you pitch in around your local area, you help make your community a better place to live. For example, cleaning up a local park provides a more enjoyable place for everyone to relax and play. Similarly, making a donation to a nearby school gives your employees' children a safer and better place to learn and play. Whatever way you choose to give back, a stronger community frequently leads to a stronger local economy, which can only benefit your dealership.&nbsp;</p><h3>4. Your business may be able to take advantage of tax deductions</h3><p>Giving back is good for your community, but it’s also good for your dealership’s bottom line — the ultimate win-win. How? In some instances, businesses can deduct charitable contributions to qualifying organizations on their tax returns.&nbsp;</p><p>Tax-deductible contributions aren’t limited to money either. Your dealership can donate equipment — like a used minivan to a local community center — and may be able to write it off. Mileage accrued when doing charitable work also generally qualifies as tax-deductible. Make sure you choose an organization that the IRS has approved as a recognized charity to take advantage of the tax benefits that come with philanthropy. Also, make sure to consult with a tax advisor to understand the applicability to your organization better.</p><h3>5. You connect with others and build your network</h3><p>It’s easy to go about your day-to-day business interacting with the same type of people on a regular basis. But how will that ever broaden your reach? Getting involved exposes you to a variety of different people and is a great way to diversify your network. You might just meet your next biggest customer or a dealer peer you can learn from while serving others.&nbsp;</p><h3>How to get started</h3><p>Money is helpful and often necessary, but giving back doesn’t have to mean writing a huge check to an organization. There are plenty of ways for you to make an impact with your time, expertise or another type of contribution. Here are some ideas:</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/09/1594837.jpg?auto=format&amp;w=438" srcset="https://cdn1.dealermarketing.com/wp/2020/09/1594837.jpg?auto=format&amp;w=438&amp;dpr=1 1x, https://cdn1.dealermarketing.com/wp/2020/09/1594837.jpg?auto=format&amp;w=438&amp;dpr=2 2x, https://cdn1.dealermarketing.com/wp/2020/09/1594837.jpg?auto=format&amp;w=438&amp;dpr=3 3x," class="lazyload" style="display: block; margin: auto;" width="438"></figure><p><br></p><ul><li><strong>Organize a food drive.</strong>&nbsp;Whether you collect canned goods from <a href="https://www.dealermarketing.com/why-diversity-equity-and-inclusion-are-key-to-dealership-success" rel="noopener noreferrer" target="_blank">employees</a>, or you open it up to include your shoppers, this is a relatively easy way to help others. Set up a bin at the front of your store, put up a sign advertising the food drive, and watch the donations roll in.&nbsp;</li><li><strong>Deliver meals to those in need.</strong>&nbsp;This has recently been a popular way for dealers to give back to frontline hospital workers, but meal delivery is also a great way to help senior citizens in your area.&nbsp;</li><li><strong>Donate a car to an organization in need.</strong>&nbsp;As a car dealer, you have access to a variety of vehicles. Pick one — it doesn’t have to be your flashiest, just one that’s reliable and safe — and donate it to a cause you believe in.&nbsp;&nbsp;</li></ul><p>Whether you choose to invest time, money, property, or all three, pick a cause that you believe in and get started helping others. As you can see, it can have a powerful impact on both your community and your business.</p>

5 Ways Your Dealership Benefits From Driving Difference in Your Community

<p>The 2020 coronavirus pandemic and its subsequent lockdowns have forced the automotive sales industry to get creative to keep the — frequently proverbial — doors open. From video calls to solo test drives at a customer’s home to complementary service appointment vehicle pickups, the customer experience looks much different now than it did just a few months ago. For most dealers, moving some parts of the sales experience online will be the new normal for at least the rest of the year. Whether you haven’t had the capacity, bandwidth, or the know-how to create these new contactless customer experiences, here’s how you can create the groundwork to run them smoothly.&nbsp;</p><h3>Social distancing dealership appointments</h3><p>Depending upon the regulations in their region or state, many dealerships have had to deal with permanently closed salesrooms, while some have been able to sell cars by appointment only. When setting up private dealership appointments, treat the appointment like you would any other business meeting — it has a start time and an end time. It’s not a great experience if your first appointment is running behind, and the next customer arrives to find that there are a lot more people in the dealership than they’re comfortable with. Also, schedule a gap of time in between your appointments for sanitization practices. Wipe down surfaces and door handles. Offer masks, gloves, and hand sanitizer to your customers as a courtesy, especially if the customer will be touching cars on the showroom floor.</p><h3>Virtual appointments</h3><p>If you can’t open your doors for customers, you can schedule virtual video calls and record walk-around videos of vehicles the customer is interested in. This is our most popular contactless solution dealers are adding to their vehicles on CarGurus. You can run these on your smartphone or set up a computer with a webcam on your showroom floor.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/06/dreamstimemedium_99137336-1024x768.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" alt="virtual showroom " height="196" width="261"></figure><p><br></p><p>It sounds painfully obvious, but make sure the car is clean. Vacuum the floors and fabric surfaces, wipe down the dashboard and clean the windows. If you’re recording a video walk-around to send to a customer, make sure your dealership’s contact details — such as phone numbers, email address, and website — are clearly displayed next to the video in the email or on your website if it is hosted there. Limit the video length to no more than two minutes to hold their attention and cover all the details and condition of the vehicle in the commentary. If you already know some details about the potential buyer, such as having three kids or a dog, make sure you personalize your description to match their needs. It will help them see themselves in the vehicle, even if they can’t actually get in the driver’s seat yet.&nbsp;</p><h3>Free test drive at home</h3><p>Test drives are the bread the butter of car sales, and you can still do them if your dealership doors are closed with free test drives at home. Like private dealership appointments, you need to schedule the appointment with a start and end time. Set a limit on how long and how far a customer can test drive the vehicle. Make sure to calculate the time it takes for you to drive the vehicle to their home, the test drive duration, and the drive back to the dealership in the total appointment time.&nbsp;</p><p>Help your customers feel safer by wearing gloves, a face mask, and using hand sanitizer and offer these items to the customer when they’re in the vehicle. You can also use plastic steering wheel covers, floor, and seat covers, and plastic on the center console to keep contamination to a minimum.</p><h3>Contactless purchase</h3><p>Of all the contactless services dealers are offering right now, contactless purchasing will most likely stick around longer than the others. Buyers are open to it: according to an April 2020 CarGurus survey of 722 car buyers in the U.S., the percentage of car buyers open to buying online jumped up from 32% before the pandemic to 61% in April 2020.&nbsp;</p><p>Before you get started moving offline paperwork online, check with your state regulations. Some states require physical signatures for automotive sales if that’s the case, overnight the contract to the customer with a prepaid return envelope so that they can mail you the signed documents right back at no cost to them.&nbsp;</p><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/08/dreamstimemedium_1741116033-1024x586.jpg?auto=format" style="display: block; margin: auto; user-select: auto;" alt="home delivery" height="333" width="582"></figure><p><br></p><h3>Free home drop-off</h3><p>Many dealerships were offering vehicle delivery even before the coronavirus pandemic started. To run a smooth home drop-off, many of the same rules that apply to home test drives apply here. Schedule a delivery window with the customer, come prepared with personal protective equipment for yourself and the customer, and designate an assistant to follow you in another vehicle so that you have a ride back to the dealership. If you can, have the customer sign the paperwork in advance through contactless purchasing or try to limit your physical contact with the customer when handling the paperwork.&nbsp;</p><p>Regardless of which new customer experience you’re putting in place at your dealership, the most important thing is to communicate these changes to your customers early and often. Explain the precautionary steps you’re taking to keep them safe in detail. They’ll thank you with their repeated business and brand loyalty when they need servicing or another vehicle in the future.&nbsp;</p>

Preparing Your Dealership for Post-Pandemic Operation

<p>While we can’t be 100% certain how strong it will be, the demand for vehicles — whether it’s due to an expiring lease, delayed upgrade, or repair issue that was put on the backburner — will return. When coronavirus restrictions start to lift and the economy begins to hum again, you want to be the dealer that shoppers turn to. Even though it may feel like activity has come to an abrupt pause, that doesn’t mean you have to or even should stop all of your marketing. If anything, now is the time to focus your digital marketing activities on building your dealership’s brand by using your owned — and free — media channels, so that you emerge stronger once the situation returns to normal.</p><p>Here are three marketing tactics you can deploy as you build your dealership’s brand during this time.</p><h3>1. Identify and Amplify Your Message</h3><p>Depending on where you live, the severity of restrictions on your business varies. Where I live in Massachusetts, auto repair and service centers are deemed essential businesses, and dealerships can continue to sell vehicles digitally. Other states have different regulations in place for dealerships. For example, in early April, I spoke with a dealership in Texas that was still able to sell cars onsite through private showroom appointments. Clearly, as this situation evolves, your sales practices will have to evolve as well.</p><p>The best thing you can do right now to maintain a strong brand reputation is to frequently communicate the COVID-19 related changes that you’re making. Whether you’re able to sell cars virtually or deliver cars to shoppers’ homes for no-contact test drives, or if you are simply putting business on hold, your customers need to know what you’re doing.</p><p>To start:</p><h4><strong>Document all the changes to your business operations.</strong> </h4><ul><li>Many dealerships are jumping on the fast track to digital retail with little to no experience to draw from. As business processes start changing, take the time to electronically or physically document the changes. This could be everything from identifying who is responding to internet leads, to detailed steps for managing contracts digitally. Use this document as a reference tool for your sales staff or others who are handling digital retailing activities at your dealership.</li></ul><h4><strong>Get everyone on the same page. </strong></h4><p>You might have more staff working remotely or working reduced hours. In moments of change, it’s best to communicate openly and often. Choose a time you can all connect daily, every other day, or another cadence that works for you, and share updates on activities at the dealership. Use your business operations documentation as a reference point every time you meet.</p><h4><strong>Communicate the message across all your digital marketing channels. </strong></h4><ul><li>After you’ve documented the changes and aligned your team around them, you need to communicate the changes to your customers. It’s vital that your message is consistent — consumers that <a href="https://insights.cargurus.com/2019marketingbestpractices-us/p/1" rel="noopener noreferrer" target="_blank">view a consistent message across multiple channels</a> improve their perception of that brand by 68% and increase their purchase intent by 90%.</li></ul><figure class="ql-card-editable ql-card-figure"><img src="https://cdn1.dealermarketing.com/wp/2020/04/dreamstimemedium_106356103-630x350.jpg?auto=format" style="display: block; margin: auto; user-select: auto;"></figure><p><br></p><h3>2. Focus Your Marketing Activities on <em>Owned</em> Channels</h3><p>With marketing budgets reduced or even completely eliminated, now is the time to focus your digital marketing efforts on your free, owned channels. This includes your social media channels, your dealership website, and your email audience via your CRM. Continuous communication through these channels helps build your brand as a trustworthy, supportive partner when consumers need you — without spending a dime.</p><h4><strong>Dealership website </strong></h4><p>Your website is your most important owned channel, and it’s the best one to use for communicating rapidly-changing business information. Shoppers are likely to have questions about your operations and policies, so you should consider creating a landing page specifically for coronavirus-related changes. This page should include information about adjusted business hours, current specials or promotions, an overview of your sanitation practices, how you’re keeping customers safe, and instructions for how customers can reach you. Some dealers are getting creative with homepage banners or popup windows that link to a COVID-19 landing page.&nbsp;</p><h4><strong>Social media</strong></h4><p>With most people social distancing at home, many are turning to social media as a means to connect with loved ones and get the latest news from authorities. Globally, <a href="https://about.fb.com/news/2020/03/keeping-our-apps-stable-during-covid-19" rel="noopener noreferrer" target="_blank">Facebook is experiencing a spike in usage</a> across their suite of apps, and Twitter saw its monetizable daily active users (mDAU) jump <a href="https://www.reuters.com/article/us-health-coronavirus-twitter/twitter-ad-sales-hit-by-coronavirus-but-active-users-soar-idUSKBN21A3HY" rel="noopener noreferrer" target="_blank">23% quarter-to-date</a>. Similar to your dealership website, use your social media channels as a way to communicate updates in real-time.</p><p>Make sure to update your Facebook page with new operating hours or any special promotions you’re running. One dealer in Indiana shared with me that they’re offering free oil changes to medical workers and have used Facebook to promote it. The post has already been shared many times, expanding their dealership audience quickly and at no cost. Also, keep an eye on your direct messages and answer them in a timely matter.</p><h4><strong>Google My Business</strong></h4><p>Updating your business hours and other key operational information on your Google My Business (GMB) page will help your dealership’s local ranking on Google and enhance your presence in Google Search and Maps. If you’re promoting a special offer — such as complementary pickup and delivery for service appointments — create a GMB Google Post that deep links to the offer’s landing page on your website. This is a great way to drive traffic from Google searches directly to your website free of charge.</p><h4><strong>Email marketing</strong></h4><p>Set up different email distribution lists based on contact type (open leads, sales customers, service customers, etc.) and create custom email campaigns with audience-specific messaging. Send information about service and repair center changes to customers who have received service in the past. For any open leads you had pre-coronavirus, have your sales team personally send email follow-ups.</p><p>Send an email update to all your leads, sales customers, and service customers about how your dealership is practicing social distancing and focusing on sanitation to keep customers safe. Keep in mind that shoppers are being inundated with email marketing, so it’s important to monitor your open rates and unsubscribe rates to make sure you’re not over-emailing.</p><h3>3. Above All Else, Lead With Empathy</h3><p>Regardless of the format or medium, your marketing should lead with empathy. Consider the challenges that the person receiving your marketing messages could possibly be going through. If you’re still sending automated email flows, conduct a quick audit of the content to make sure it’s still relevant to the current situation and adjust the language where you need to. Turn them off completely if the message feels completely irrelevant. If your business plans on donating a portion of revenue to the local community or giving back another way to first responders, communicate that plan to your customers.</p><p>Everyone processes information differently, so also consider asking your customers directly <em>how</em> they want to hear from you. Solicit direct feedback from your audience at the end of every email communication or reach out to your social media audience to get a pulse on how your messaging is resonating. Being transparent with your customers from the beginning builds community, and ultimately trust. Dealerships who communicate with clarity and sensitivity only stand to benefit from their marketing efforts during this uncertain time.</p>

Articles by:ASHLEY KARR