THE SHIFT TO DIGITAL Motor retail in a changing world - Marketing Delivery
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THE SHIFT TO DIGITAL Motor retail in a changing world
‘‘
The shift to digital: motor retail in a changing world 3
We have seen two STAYING IN TOUCH
years’ worth of digital WITH CUSTOMERS
transformation in IN A DIGITAL WORLD
two months
The Covid-19 pandemic has affected every individual and
every business across the UK, in ways that would have been
hard to imagine before the first lockdown in March 2020.
However, when considering the consequences for how motor
Jared Spataro retailers interact with consumers, it can be argued that the
Corporate Vice President, Microsoft 365 pandemic has merely brought forward a shift in mindset and
process that was regarded by many as inevitable.
Change has been driven largely by the transformation in how
customers prefer to engage with retail businesses, linked to
their widespread adoption of digital communications and the
use of social media platforms. Against this backdrop we have
seen improvements in data capture and data handling by
dealers (with encouragement from data privacy legislation),
and increased availability of software tools that can map and
respond to online behaviours.
CONTENTS More motor retail businesses than ever before rely on digital
processes to drive their revenues and profitability. We
might not have yet seen the oft-heralded shift towards full
automotive ecommerce throughout the sector, but making
4 ccelerating the shift to a digital world
A
How the pandemic has forced dealers to embrace
new technologies
the most of a ‘virtual showroom’ is now mission-critical for any
successful motor retail business.
So, what comes next?
6 The dealers’ perspective
Leading UK car retailers talk about how they have
faced the challenges brought on by the pandemic
The current heightened level of digital communication will
become the norm in the motor retail sector. Within just a few
months, car retailers and workshops have embraced digital
strategies like never before. If 2020 was a year of reacting
8 Divergent attitudes across the UK to circumstances, 2021 will be a year in which businesses
augment and perfect their digital operations.
One country, four nations: how car buyers’
attitudes differ from one region to the next This is why we have produced this report, drawing on the latest
consumer research involving motorists in England, Scotland,
10 Automation in aftersales
Overcoming the logistical challenges of filling up
your workshop
Wales and Northern Ireland. Car retailers and workshops face
myriad challenges in 2021 and we hope this report provides
retailers with practical guidance for staying in touch with
customers in an uncertain world.
13 The shift to digital
How to establish an effective digital showroom
Jeremy Evans
Managing Director, Marketing Delivery
4 The shift to digital: motor retail in a changing world The shift to digital: motor retail in a changing world 5
ACCELERATING
THE SHIFT TO A
DIGITAL WORLD
44%
of customers now expect dealers to
be quicker at responding to any social
How the pandemic has forced dealers to
embrace new technologies media enquiries they may have
O
ver recent years businesses worldwide The most important headline for UK dealers is The demand is still there to customers, but drawing on data and
have diligently researched how best that 40% of customers are now less likely to visit a Although fewer customers are visiting the technology to ensure their business is chosen
to adapt their customer engagement car dealership in person when researching a car showroom, demand has remained strong. over any another.
strategies for a digital age. Many had started purchase because of the outbreak of Covid-19. 32% of motorists say they have found
to put these strategies into action. Then the themselves more frequently browsing dealer Thanks to technology, this certainly doesn’t
pandemic kicked in. Significantly, they also now expect vehicle and classified websites during periods of mean abandoning the personalised service
retailers to be more responsive during the lockdown, looking at new or used cars. and customer relationship-building that has
‘Covid-19 was the digital accelerant of the period when social distancing measures are This fact is borne out by internal data served car retailers so well for so long. It means
decade’, reports communications provider in place. 65% of customers say they expect released by Auto Trader UK***, which saw adopting flexible, programmatic tools that
Twilio (Covid-19 Digital Engagement Report), dealers to respond more quickly to their the average number of monthly visitors to help engage customers automatically, but
which surveyed thousands of corporate emails, while 62% expect dealers to be quicker autotrader.co.uk rising by over 20% year-on- still on a personal level and taking account of
decision-makers. at returning their phone calls (if they can’t get year in the months following the end of the their particular circumstances and needs.
through first-time). first lockdown in 2020.
Necessity is the mother of invention, so the This could mean using automated emails
saying goes. The pandemic has meant In addition, 44% of customers now expect Furthermore, according to our data, 33% of to alert prospective used car buyers to
businesses – including car retailers and dealers to be quicker at responding to any motorists say they are now more seriously new stock that matches their specific
workshops – have had to quickly adopt new social media enquiries they may have. This considering the purchase of a car, thanks to requirements.
tools and processes to sustain customer could be anything from asking about vehicles their reduced household expenditure in 2020.
communication during a period when face- that a retailer may have in stock, raising a For others, social media might be key to
Among Londoners this figure is even higher,
to-face interaction has been problematical complaint, or simply enquiring about opening generating conquest custom. Dealers can
with over half of respondents (54%) now more
at best, and patterns of enquiries and sales hours and the ‘Covid-safe’ measures that a capitalise on a growing opportunity to target
seriously considering the purchase of a car.
have fluctuated wildly. sales or aftersales business has in place. buyers who research potential purchases
Our research also highlights the increased within social platforms.
The Twilio report found that Covid-19 Sources: numbers of younger people looking to buy
had accelerated respondents’ digital *Twilio, Many other businesses will find rich pickings
Changing demands of UK car buyers a car. Among 18- to 30-year-olds across the
communications strategies by a global ‘Covid-19 Digital
UK, almost two thirds (59%) said they were among their aftersales customers. This is
Engagement
average of six years. In the UK, the average Report’, 2020 more seriously considering buying a car hardly a surprise when so many drivers have
was estimated at 5.3 years. **Marketing
due to reduced financial outgoings during delayed an MOT or service for their car due
Delivery, OnePoll
lockdown. to lockdown. Digital tools make this seamless,
The changing demands of UK car buyers consumer
with a programmatic eCRM-based aftersales
survey of 1,000
With five years’ digital development UK motorists, Optimising a virtual showroom campaign providing workshops with a
condensed into a matter of months, or November 2020
With staffing levels lower than normal, and competitive edge.
even weeks, many car retailers have ***Auto Trader
with limited scope for face-to-face customer
UK press release:
proven themselves adept at engaging with ‘Growing demand appointments, businesses are more reliant For hundreds of UK dealers, electronic
potential customers online. Yet Marketing for digital retail
now than ever on their ‘virtual showroom’. customer relationship management (eCRM)
Delivery’s latest consumer research** has offers ‘huge’ tools are now helping to maintain a steady
opportunity to
identified some ongoing challenges that accelerate sales’,
There’s a greater need for motor retailers to stream of enquiries on new and used
dealers now face. 20 November 2020 ‘think digital’ – offering the same services vehicles, as well as drive workshop utilisation.
6 The shift to digital: motor retail in a changing world The shift to digital: motor retail in a changing world 7
THE DEALERS’ MEET THE PANEL
PERSPECTIVE
‘‘
Leading UK car retailers talk about how they have
faced the challenges brought on by the pandemic
Jeremy Evans
Managing Director
Marketing Delivery
data has been critical for some time, “The ever-changing guidance on Having our data in
so we were already in a good place vehicle servicing and MOT was a
good shape has
when the lockdowns started.” particular challenge and the email
campaigns we’ve run have meant enabled us to use the
KJ: “We know that some dealers we could keep our guests informed eCRM tools available
desperately tried to ‘fix’ their customer
T
he Covid-19 pandemic, and the many of the casual, face-to-face
at all times during a worrying and to us and maintain
data issues during lockdown, but for
confusing time.” quality contact with
resulting sequence of lockdowns conversations with new and long- us it has been a long-term project,
‘‘
that closed showrooms and standing customers where you find underpinning our digital strategy. KJ: “Looking across our various our customers
workshops across the UK, has created out how people really feel. And, Ian Godbold Having our data in good shape has digital channels, we have probably
an extremely turbulent trading if you’re talking to someone in a Marketing and CRM enabled us to use the eCRM tools had more interactions with customers
environment for motor retailers. showroom, that is obviously with Director, Cambria available to us and maintain quality and prospects than in previous
a person who has overcome or set Automobiles contact with our customers. years, even with fewer colleagues
We spoke to a number of leading aside their concerns. But it’s clear available to us. The data-driven
franchised dealers to gather their that there is greater hesitancy in “It’s about having the right customer
electronic communications have
perspectives on recent challenges, the market as a whole.” consents in place, too. We’ve done a
been indispensable, doing the heavy
and to explore how they plan to lot of work to ensure we’re ready and
lifting and ensuring our customers Our survey data
flourish in an increasingly digital- Dean Adams: “We’ve done a lot to able to interact with customers online,
give reassurance about sanitisation and permissions are key. If you don’t are aware of the changing situation suggests that 40% of
focused retail landscape.
at our facilities, but there is obviously have consent, it doesn’t matter how and how we are continuing to look customers are now less
Reductions in showroom footfall a change in attitude toward visits. It’s good your data is. The efforts we have after them.” willing to visit a car
Jeremy Evans: “Our survey data meant even more people are moving made over the past few years are showroom as a direct
suggests that 40% of customers DA: “We’ve used our social media
enquiries and general communication certainly paying dividends now.” consequence of the
are now less willing to visit a car Keith Jackman channels even more during the
‘‘
online, rather than casually dropping
showroom as a direct consequence of Head of Marketing Changing nature of online interaction uncertain lockdown periods. As a Covid outbreak
in. More consumers are now aligning
the Covid outbreak. Is that borne out and CRM, Sandown JE: “People talk quite generically about way of keeping information flowing
themselves with our existing digital-
by your own experience?” Mercedes-Benz digital interaction, but have you found to our community – and enabling
centric strategies.”
that certain channels or forms of digital us to continue to present offers
Ian Godbold: “It isn’t easy to assess The importance of quality data communication have been busier for and stock – the use of Facebook in
consumer sentiment regarding JE: “Given the growing importance of you than others during recent months?” particular has been very effective.
showroom visits. But the simple fact is digital communication, have you felt Being able to automate some of that
our retail facilities have been forced able to rely on your customer data as IG: “Email has been so important for activity has allowed us to maintain
to close periodically, overall footfall is much as you’ve needed to?” us. We’ve utilised email to keep our a strong local presence. Email has been so
consequently down, and anecdotally used car stock in front of our guests at important for us. We’ve
it’s clear that customers are wary about IG: “During the lockdowns our ability a time when dealerships were closed, “But it’s not just about one channel,
utilised email to keep
visiting any physical retail location.” to use our data to remain in contact and to maintain engagement with the and it never will be. We have a diverse
with the right people at the right guest electronically until such time as digital comms approach to reflect our used car stock in
Keith Jackman: “I wouldn’t dispute time was a safety net we couldn’t do Dean Adams we could welcome them back or bring the changing needs of a diverse front of our guests at a
those numbers. Social distancing without. In truth, we’ve felt that having Head of Marketing and associates back into the business to audience. Automation tools help us time when dealerships
measures mean we’re missing rapid access to high-quality customer CRM, Sinclair Group talk to them. keep the digital plates spinning.” were closed
8 The shift to digital: motor retail in a changing world The shift to digital: motor retail in a changing world 9
DIVERGENT
Proportion of respondents who say they would
be more likely to stay in touch with a dealer that
Every nation is shares alerts about relevant vehicle stock via
social channels
best at something
ATTITUDES
60%
ACROSS THE UK
40%
Scotland
57%
20%
One country, four nations: how car buyers’ attitudes
differ from one region to the next 0%
England Scotland Wales Northern
Ireland
T
he UK’s primary legislative regions – England, Scotland, of customers expect quicker Proportion who say they would be more likely
Wales and Northern Ireland – have sometimes taken very to book their car in for a service or MOT with a
responses to an enquiry dealer that monitors the date on which it is due
different approaches to dealing with the pandemic. That
might be one reason why we are seeing some distinct regional following the Covid-19 outbreak and makes the effort to contact them
differences in our latest consumer survey that benchmarked
attitudes towards the car buying process and how people
prefer to engage with car dealers and workshops.
England
71%
Proportion who say they are less likely to visit a
car dealership in person when researching a car
purchase because of the outbreak of Covid-19
Northern Ireland of aftersales customers are
70%
more likely to book an MOT Proportion of buyers who say they would take
with a dealer if that business their custom to another dealer if they didn’t
receive a response quickly enough
monitors the test’s due date
of used car buyers are and reminds them to book
receptive to dealers at the right time
emailing them with details of
relevant new vehicle stock
Proportion of respondents who say they Because of Covid-19 outbreak,
would be more likely to stay in touch with Wales the proportion who would now
55%
a dealer that shares alerts about vehicle expect a quicker response from
stock similar to their initial enquiry a dealer to a sales enquiry (all
forms of communication)
of customers are likely to take
their custom elsewhere if they
don’t get a response to their
enquiry quickly enough
10 The shift to digital: motor retail in a changing world The shift to digital: motor retail in a changing world 11
AUTOMATION
IN AFTERSALES
Overcoming the logistical challenges of filling up your workshop
O
ur latest consumer research suggests on file. It also enables workshops to issue
that 70% of motorists are more likely to automated MOT or service reminders to
book a service or MOT with a workshop customers at set intervals to help instigate
that monitors the due date and makes an and manage aftersales custom.
effort to contact them about it in advance.
Aftersales eCRM: helping dealers to generate
Contacting individual customers regarding and retain more aftersales business
forthcoming MOTs might seem like a simple MOT Box integrates with our Aftersales
process, but it all-too often falls down due eCRM (electronic customer relationship
to the logistical complexities of capturing management) system. This helps dealers
relevant data and consents for a large and workshops engage customers with
number of customers, and then acting on mobile-responsive email, SMS and social
that information in a timely fashion. media messages.
It’s important to respect preferences for how The Aftersales eCRM platform is designed
customers wish to be contacted, wherever to enhance aftersales retention by sending
practicable (see data below). automated marketing messages and MOT
and service reminders to potential aftersales
We recently launched a digital tool to help customers. It can also help dealers track
UK vehicle workshops identify and target customer responses to aftersales marketing,
all customers whose vehicle MOT is due helping service teams to target future
soon. MOT Box can quickly cross-check campaigns even more effectively.
70%
a workshop’s entire customer database
against more than 30 million MOT records
held by the UK’s Driver and Vehicle
Standards Agency (DVSA). Preferred method for customers to be contacted
by a workshop with MOT and servicing reminders
The system automatically identifies customers
in the workshop’s database who own a
vehicle over three years old with an upcoming
MOT due date. It produces a data extract at
the click of a button, helping dealers target
potential MOT customers with reminders and
aftersales marketing messages in a GDPR- of motorists are more likely to
compliant way.
book a service or MOT with a
MOT Box can be tailored to the needs of any
individual site or dealer group to integrate workshop that monitors the due
directly with their dealer management system,
so dealers can easily review and augment date and makes an effort to
records with MOT dates and scheduled
servicing due dates, for all customer records contact them about it in advance
12 The shift to digital: motor retail in a changing world The shift to digital: motor retail in a changing world 13
THE SHIFT
TO DIGITAL
How to establish an effective virtual showroom
I
f 2020 was the year when dealers MOT records, the system automatically
exploited digital communication to produces a data extract at the click of
help them withstand a maelstrom of a button, helping dealer staff target
unprecedented challenges, 2021 can and potential customers with reminders
should be the year in which they hone their and aftersales marketing messages in
digital offerings to maximise the myriad a GDPR-compliant way.
possibilities and opportunities.
If you are interested to learn more
Below is a summary of our product offerings, about how to increase the effectiveness
and what they can help you achieve: of your own virtual dealership, contact
Marketing Delivery on 01892 599 911 or
VoiceBox – Sales and aftersales eCRM get.in.touch@marketingdelivery.com.
solutions feature automated ‘programmatic’
technologies that let dealers control and Jeremy Evans
personalise their electronic output. High- Managing Director, Marketing Delivery
quality, timely and relevant contact can
be maintained simultaneously with all
customers and prospects, tailored to reflect
previous contact.
Car Alerts helps keep consumers informed
either when they have been marked as a
‘lost’ lead or after they enquire about a
vehicle but do not proceed to a purchase.
Consumers are auto-enrolled, providing
them with ‘real-time’ alerts when new stock
arrives that matches their initial enquiry.
SocialStock targets relevant prospects
through tailored social media marketing.
30 million
Developed specifically for car retailers,
SocialStock integrates stock remarketing
and social media advertising tools, and
automated lead capture for Facebook.
SocialStock is suitable for any dealer, from
independent solus sites to larger groups with
numerous locations and brands.
MOT records can be cross checked
MOT Box helps dealers keep on top of
quickly against a workshop’s entire their customer’s MOT requirements. Able
to quickly cross-check a workshop’s entire
customer database customer database against over 30 million
The Brewery Business Centre Bells Yew Green, Frant East Sussex TN3 9BD 01892 599 911 marketingdelivery.co.uk marketingdel marketing-delivery marketingdelivery
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