The global automotive industry has come a long way since the upheaval of a few years ago, as evidenced by the recent 2013 North American International Auto Show (NAIAS) in Detroit: not only was there an array of gleaming new vehicles and greener models, but also a new optimism thanks to an industry rebirth that is, in large part, working.
Yet the ability to sustain success results from taking full advantage of every opportunity, and some OEMs and dealers are not focusing enough on digital marketing, an area that can have a direct impact on the bottom line. The first stop for more and more car shoppers is not the dealer showroom, but the Internet. And, while conventional wisdom would suggest that car websites should aid and support sales performance, a new Accenture global survey of 13,000 drivers in 11 countries suggests that the current state of industry websites may be hindering it.
The study, conducted in Brazil, China, France, Germany, India, Indonesia, Italy, Japan, Malaysia, South Korea, and the US, found that while consumers are generally satisfied with their online experience, they want content on automotive industry websites customised to be more relevant to their specific car-buying needs, and they believe such a change would make the process simpler and faster. Of the consumers surveyed who say they research their car purchases online before buying a vehicle, 78% visit at least six websites or more first, and 15% say they browse more than 20 websites to get the information they need.
Furthermore, 75% say they still need to turn to more traditional offline media for the information required to make their car-buying decision.
The ability to sustain success results from taking full advantage of every opportunity, and some OEMs and dealers are not focusing enough on digital marketing, an area that can have a direct impact on the bottom line
In the coming months, other major motor shows at cities across the globe – from Geneva and Shanghai to New York, Frankfurt and Tokyo – will introduce the latest cars, trucks and in-vehicle technology designed to encourage car-buying and enhance OEM and dealer profitability. As car shoppers depend more and more on websites to make their car-buying choices, it only makes good business sense for companies to put as much effort into developing an effective, interactive digital marketing platform, just as it does to create extraordinary physical presentations like motor shows and to establish successful brick and mortar dealerships.
Putting digital marketing to better use will only complement the OEM/dealer business model, and could yield an increase in topline sales for the industry of 1-2%. 83% of those polled believe that improved websites would significantly reduce the time needed to purchase a vehicle. They also want a better integrated online-offline sales process that provides a seamless transition from shopping on the web to completing the car purchase in the showroom.
Moreover, the desire for better digital marketing is not borne out of interaction with automotive industry websites alone. More than three quarters of consumers (76%) feel that the sector significantly lags other retail industries in the use of digital media tools, such as video and 360-degree media tours – and the vast majority of respondents believe that better interactive digital marketing is a must for the automotive industry.
83% of those polled believe that improved websites would significantly reduce the time needed to purchase a vehicle
The study goes on to reveal that shoppers would be willing to elevate the online-offline sales process even more. Given the opportunity, 93% would consider having the option of making the entire purchase of a car online, including financing, price negotiation, the back office paperwork, and delivery to their home. Some of this may not be possible now. But, if such a scenario were to become feasible, it too would only serve to augment and enhance sales performance, not hinder it.
One of the most pressing challenges facing retailers across industries today is having the ability to continuously give consumers what they want in an online experience and effectively integrate that experience into their brick and mortar operations. Although the automotive industry is experiencing a strong recovery, OEMs and dealers must focus on providing a consistent customer experience to the online sales process. Consumers want better online support, advice and personalisation when buying a car. Through the use of sophisticated digital technology, better online interaction with customers can simplify the buying process.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Luca Mentuccia is Automotive Industry Global Managing Director with Accenture, a global management consulting, technology services and outsourcing company.
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