5:26 pm, April 12, 2011
Car Dealer was the only media outlet invited to search engine giant’s inaugural Think Dealer conference. JAMES BAGGOTT reports on why Google thinks dealers are dangerously lagging behind online
Change is coming to the motor industry whether you like it or not – but it’s a case of embrace it now or be left behind. The internet and the way consumers access it is changing at such a pace, many in the technology industry are struggling to keep up – let alone dealers trying to sell cars online.
A staggering number of people now access the web from their phones – in fact it’s predicted this will very soon overtake the number of people logging on from desktop computers – while ‘being found’ online is becoming increasingly difficult.
Those were just some of the stark messages coming from Google’s very own automotive experts at the web giant’s inaugural conference for the motor trade, Think Dealer.
Delegates to the conference included marketing directors and managers from all of the UK’s car manufacturers and large advertising agencies who were advised on how their dealers can adapt in this ever changing web world. Car Dealer was the only media present at the event.
‘Today is about changing,’ said Richard Trinder, Google UK automotive industry director. ‘The motor industry is not moving fast enough.
It is lagging behind other industries at a time when change is getting faster. This thing called the internet is not going to go away – it’s just going to get faster. It’s a tough market out there and dealers need to understand the speed of change.’
Trinder then listed some shocking facts about car buyers. Some 71 per cent are undecided on brand or model when they start looking for a new car – giving you a real opportunity to sway their decision. Buyers currently spend around 3.2 months looking for their new car and are willing to travel to get it – most said they wouldn’t think twice about traveling more than 30 miles for the right deal. And where do they start that search? Online. In fact, while 53 per cent will start their search on the web, an incredible eight out of 10 will use the web at some point.
‘The internet influences key decisions throughout the car-buying process,’ explained Trinder. ‘That’s why it’s so important that dealers are there, visible, at the very start. We know that 65 per cent of car buyers find their eventual seller online. And, more startlingly, 22 per cent actually change who they intended to buy from after what they found online.
‘The retail industry is the current leading light in marketing online. The problem is the motor trade does not care enough about dealer websites to capitalise on where consumers are. You wouldn’t not care about how your showroom looked would you, so why do it online?’
Trinder explained that currently there are 1.8bn people online in the world and that figure will balloon to 5bn by 2020. In 2010 4.6bn had access to the web via their mobile phone. By 2020 an incredible 10bn will be able to surf on the go.
‘More people have access to a mobile phone in the world than have access to drinkable water,’ added Trinder. ‘It’s a scary world in some ways, but that proliferation of choice is only going to increase.’
There are a number of simple steps that dealers can take to ensure that they’re in front of buyers when they start shopping for a new car online – and it doesn’t have to mean shelling out.
Google’s dealer marketing manager Alex Rose explained how updating your dealership’s profile on Google Places can have a dramatic affect – and it won’t cost you a penny.
‘The old adage that satisfied customers tell three people and dissatisfied customers tell nine is less important today,’ explained Rose. ‘Now customers are broadcasting to thousands of people online via social media and review sites. To some, these online reviews are like therapy – but it’s important to remember that it’s not all bad. Some customers are happy to praise a good dealer.’
Rose advises dealers to take ownership of their site on Google Places. This is your web page where contact details of your site are displayed, a picture, and importantly, any reviews about your firm are aggregated from the web.
‘Pages can be modified by dealers,’ says Rose. ‘They need to
take ownership of their Places page, claim it as their own. It doesn’t take long to modify and you can respond to user reviews.
‘Negative reviews need to be responded to and you need to take that conversation offline. Respond with an apology that the customer has had a bad experience and a telephone number for them to call. It shows other users that you will act.’
Rose advises dealers to set up a Google Alert for their dealership’s name. This will flag up any comments made about your business online so you know it’s there and can respond.
The conference also hinted at what the future holds for dealers on the web. ‘The end game has to be actual car sales online,’ said Trinder. ’Some 45 per cent of web users want to be able to buy cars online. The demand is there – it’s about who offers them that chance. We hear a lot about the fact the Chinese are coming. Will they be the ones that look at a different distribution model for cars in the UK? Selling cars will soon take place online, no doubt about it.’
