7:38 am, March 15, 2023
Cox Automotive has produced a special report examining whether new and used car dealers are adequately set up for an omnichannel future.
The research has been laid out by Philip Nothard, Cox’s insight and strategy director, in a detailed eight-page research paper prepared especially for Car Dealer Live.
Nothard had been due to appear at last week’s conference in Gaydon but was unable to attend due to adverse weather conditions.
He was ably replaced by David James, the firm’s director for strategic partnerships, who presented the findings to those at the British Motor Museum.
Setting out the scope of the report, Nothard said in the research paper: ‘Automotive retail is changing.
‘From the agency model and online-only retailers with disruptive visions (and budgets!), to the rise of EV and the imminent demise of some of the nation’s best-selling models, and on to a revolution in consumer behaviours and expectations fuelled by technological and cultural change.
‘These are busy – and fascinating – times for everyone involved in the motor trade. In this report, we consider just one of these factors: digital retail.
‘Digital retail isn’t new of course, but in automotive it’s fair to say we’ve experienced a faster pace of change in the last four years than we have in the previous 40.
‘The influence of digital channels and tools on how consumers find and choose cars, and how retailers interact with their customers, is undeniable.
‘But just how important do consumers regard digital? And how are retailers meeting their needs? How connected is the buyer journey today? Is omnichannel just a buzzword or is it something tangible that’s already happening?
‘To find out, we surveyed over 3,000 car owning consumers and used car dealers.’
He added: ‘We asked consumers (over three quarters of whom have recent experience buying a used car) what they want when it comes to researching and buying a used car.
‘Our panel of used car dealers was made up of franchised dealers (53% of the sample) and independents (47%).
‘We’ll be diving deeper into the data and considering what we can learn from the sentiment shared (and asking some further questions) over the coming weeks and months.’
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Cox Automotive’s exclusive research paper prepared for Car Dealer Live is now available to download for anyone here.
If you’d like to watch back the session on video, and the rest of the day’s interviews, you can do so with a Watch Online ticket that will allow you to replay the whole event.
Digital approach
Cox’s research highlighted just how important it has become for dealers to nail their digital platforms.
The study found that 53 per cent of customers research using an online search engine and 67 per cent will make use of a used car marketplace, such as Car Dealer Live headline sponsor Auto Trader.
Meanwhile, 92 per cent of respondents said they expected to be able to search stock online, with 73 per cent also expecting high-quality photographs.
When looking into the importance of merging digital and physical platforms, Cox found that 84 per cent of buyers expect details provided online to also be available in-store.
Among the key themes and learnings was that dealers are exceeding expectations when it comes to digital functionality and that demand for online engagement is rising.
During our chat with David James, we also asked the audience for their views on whether consumers will eventually want to buy a car purely online.
Our poll showed that 88 per cent of dealers believed that consumers will continue to favour a blended approach, highlighting the importance of a strong omnichannel approach.
James said: ‘Obviously, as I think everybody will agree, a quality website is really important.
‘From a consumer’s perspective, their expectations now are influenced by a quality website, whether [or not] they actually take their used journey any further and actually converse or discuss or interact with the retailer.’
He added: ‘That lockdown period really accelerated retailers to other portals, making available part-exchange options and valuations online.
‘What we have seen in the learnings from that is that consumers are engaged in that process and prepared to give a bit more information about themselves and what they’re willing to do in order to get a more accurate valuation back.’
Car Dealer Live will be back in 2024 on March 7. Ticket sales will go on sale shortly for those who weren’t at the event.
You can download the full Cox Automotive Are Car Dealers Really Set Up For An Omnichannel Future? White Paper here. To watch back the full video of the session, purchase a watch online ticket here.
