We all know that when you speed up your inventory turn rate (or sales velocity) you lower your overall cost per sale, boost your profitability, and best of all—you sell more vehicles. But if you’re already selling a ton of the top selling car in the industry, is there really room for improvement? Or, let me rephrase that: Do you want to make more money? Uh…yeah. Ok, let me explain how.
Today, consumers are more experienced shopping for cars online than they’ve ever been before. They’re quite adept at finding what they want and gathering detailed information on that vehicle. For example, three-quarters of them are shopping for cars on their phones today. Dealer groups we work with have told us that about 70 percent of car shoppers who show up on their lots today are self-directed buyers, meaning, they’re very informed, they’ve studied the vehicle they want on the dealership website and they’ve been to the VDPs (Vehicle Details Pages). Car shoppers who show up at the dealership are much lower funnel and more informed than the car shoppers of yesterday. Millions of them still enjoy researching cars on independent auto sites, as third-party site traffic counts attest. However, these shoppers see no need to fill out a lead form on that third party site, much less wait for three to four dealers to call. These are not passive shoppers; they are active, self-directed, in-market shoppers.
As a dealer, your goal today is to get your inventory in front of these sophisticated shoppers sooner. This is where the newest auto retailing technology comes in: Deeplinking. This technology bypasses the lead forms on third party sites (which really act like walls that drive away well over 98% of consumers) and gets these shoppers from the point of identifying a specific car they want directly to your VDPs. This is what dramatically speeds up your sales velocity. It’s a groundbreaking auto retailing technology whose time has come.
Here’s the data that shows you how much Deeplinking speeds up sales velocity:
Top Selling Vehicles of August 2014
Increase in Sales Velocity with LotLinx DeeplinkingTM
|1. Ford F-Series||37.41%|
|2. Honda Accord||12.41%|
|3. Chevrolet Silverado||42.86%|
|4. Toyota Camry||29.14%|
|5. Dodge Ram||46.67%|
|6. Toyota RAV4||55.12%|
|7. Honda CR-V||66.93%|
|8. Honda Civic||37.12%|
|9. Toyota Corolla||62.02%|
|10. Nissan Altima||33.75%|
We looked at the top selling cars in August 2014, according to Automotive News industry data. LotLinx Business Intelligence took a sample of dealerships and measured the days on lot (DOL) for these vehicles before Deeplinking was applied and then the DOT once the dealerships started using LotLinx DeeplinkingTM to retail their cars. This is how much faster these cars sold, as a percentage of the decrease in DOT for each model.
In a nutshell, this is why Deeplinking is so efficient at selling cars:
- Today’s number one car shopping activity today is searching for inventory.
- The vast majority of consumers today are doing their pre-purchase research online and then they’re destination-shopping that specific inventory—who has it, where is it?
- Deeplinking presents in-market shoppers on third-party sites with the right inventory at the time they’re looking for it, and then directly connects them to the car’s VDP – faster.
- The best auto research sites today work like Kayak does in the travel industry: it’s adept at attracting a wide audience of consumers who are hunting for specific inventory, and whose next step is going to be purchasing that inventory. In this example, Kayak serves up flights, the consumer selects the flights they want, and then Kayak sends to them directly to the airline they choose, where they’ll buy their ticket. It’s fast, and it’s efficient. This is what Deeplinking does for cars.
This dramatic improvement in efficiencies means a better consumer experience and higher profits for you business. Data shows that even lower volume sales models, pre-owned, and others all sell faster when retailed with Deeplinking. The proof is in the numbers. If you want to turbocharge your new car sales velocity by 42% or more – drive more car shoppers directly to your VDPs with Deeplinking. Add this strategy to your current marketing mix, and watch your cars fly off the lot.
Dean Evans is the CEO of LotLinx, the automotive industry’s first ever automotive retailing solution that connects the over 6.5 million consumers who are searching for vehicle inventory online every month directly to the dealership websites where that inventory resides. He can be reached at [email protected].