The automotive industry worldwide is subjected to an assortment of factors which are developing intricacy and influencing the financial option accessible to automobile producers. The mainstream of these aspects act together and has tough interdependencies.
Conference season is upon us and each business is competing with hundreds of others for attention.A strategy is needed, or your business simply ends up as part of the noise everyone fast-forwards through – media and attendees alike. So, how do you break through the “noise” barrier and actually get attention? Here are some tips: Press Releases –…See More
Dealers will also realize the importance of relevancy as a cornerstone element of their marketing strategy. Here is several items dealer must focus on in 2018 to gain a competitive edge as consumer search behavior, expectations, and search engine technology changes.
For example, some salespeople swear by holding on to keys for a trade-in negotiation as they run back and forth between multiple rounds of “let me ask my manager.” They think they’re engaging in a foolproof sales tactic, while they’re failing to hear the customer say “I’d like to leave, please give me my keys back.” Don’t be that person.
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No one is suggesting, though, that auto dealers will disappear. Ironically, changes in cars and trucks themselves are making dealers more important. Consumers have more choices of brands and models than ever before. Improved durability and reliability and faster design cycles have narrowed the differences among competing products in the same category. Brand loyalty increasingly derives not from the product itself but from the total purchase and ownership experience. Numerous studies show that customer satisfaction has become a much more critical competitive differentiator and a greater on repurchase loyalty than the car itself. And it is the dealer that controls these levers today. (See Exhibit II.) This explains the intense efforts many vehicle manufacturers have made to set standards for, measure and even base some dealer compensation on customer satisfaction scores.
But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.
Erik Almadrones is a managing director with Deloitte Digital. He has experience in marketing strategy, brand planning and forecasting, customer analytics and revenue management. He brings broad experience in automotive, retail, consumer packaged goods, consumer technology and travel/hospitality.
When it comes to car shopping, social media sites are clearly a major influencer in a buyer’s decision making process. At this point, most marketers understand that social sites should be integrated in some way into a marketing strategy. For some, this may be simply having a Facebook page and posting content or pictures, while other brands have a fully integrated social marketing approach to generate leads and engage with customers. However, with more and more consumers turning to social, the automotive industry needs to get fully engaged with social selling.
It’s also worth noting that a large majority of luxury car customers live in large cities like NYC or LA. This goes to show that for luxury car customers, it isn’t so much the need for a car (we’re looking at you, LA traffic) but rather the prestige of owning a luxury vehicle.