At Dealerweb, we’ve been recording and reviewing significant industry trends from the past year, along with our own usage statistics, to gain a better understanding of how automotive retail is evolving.

Most noticeable is that the traditional slow-down in enquiries towards the end of the year happened much earlier than usual. Historically, we would expect this to take place in the second half of November, however in 2022, enquiries began to decline from September: most likely due to the rising cost of living that started to impact consumer spending.

In this blog, we’ll look at some of the other facts and figures that our customers have experienced, and how this data can provide automotive dealerships with detailed insights to inform their decision-making. We’ll also give you some tips around how to respond to these trends and maximise your sales opportunities.

Learn from industry trends

With an industry-wide shortage of new vehicles, our data showed that retailers saw a 4.7% drop in new car sales. However, total on-the-road (OTR) values rose by nearly 14% to more than £37,600.

As the demand for used cars increased, prices remained high. This meant that although the total number sold stayed at around the same level, dropping by just under 1%, the average OTR value reached over £23,700, nearly 14.5% up on 2021.

With the current economic turbulence, including the cost of living crisis, showing no signs of abating, savvy retailers are already adapting their pricing and sales strategies in order to grow conversions and maximise opportunities. One of the AM Top 100 Dealer Groups increased their conversion rate to 20% in the last quarter of 2022 by prioritising enquiry response, while a ‘back to basics’ approach for another resulted in their conversion rate increasing from 23% to 27%.

Going back to basics

In this context, going back to basics means getting the simplest parts of the sales journey right every time, in order to maximise every opportunity that comes your way. You already have the customer enquiries coming in, and in Showroom you have the right tool to support engagement. These should be combined with a high level of customer service, so that customers get the experiences they’re looking for. According to Salesforce’s State of the Connected Consumer report, 88% of customers say the experience they get from a company is just as important as the product or service they’re purchasing.

So while the following tips may sound like simple common sense, they can make a big difference in generating sales and improving conversion rates:

• Log every lead and follow them up in a timely manner, using reminders at opportune times to keep customers engaged
• Register all customer interactions so that the sales journey runs smoothly and customers aren’t irritated by repeating touchpoints
• Respond to customer communications using the same channel, something that two-thirds of car buyers expect, but only one-third of industry professionals do
• Focus on improving customer journeys wherever possible, including by investing in the skills of your sales staff and the technology they use on a daily basis.

Evolve your tech stack

Many of the tips above can be supported through technology: not only through Dealerweb Showroom itself, but also through the range of integrations which connect other technologies to the platform for seamless sales management. These include:

• CitNOW Sales: creating personalised videos of vehicles that customers are interested in can pique their interest and encourage them to progress through the buying journey. Some 43% of car buyers say they’re more likely to commit to a purchase after receiving a personalised video
• Tootle: making the part exchange valuation process as easy and transparent as possible can remove stress and complication from the buying journey, for customers and sales staff alike
• FCA Compliance: take the worry out of compliance through a controlled process with enhanced protection from potential litigation. Reduced duplication and management time can also result in a more efficient sales team.

In summary

Even though the automotive retail market is ever evolving, the good news for retailers is that there is plenty they can do to maximise their sales. And furthermore, what they can do isn’t complicated or expensive to implement: it just needs good coordination of customer journeys, a diligent approach to following up leads, and ensuring the right technology is deployed to deliver on customer expectations. A combination of astute management, Dealerweb Showroom and associated integrations gives you the best possible chance of maximising your conversion rate.

To find out how Dealerweb Showroom can help you maximise your sales, browse our website for more information.