Every dealer is fishing for serious buyers. But where, when and why are they biting? Surprising new information released by CNW Marketing Research* at the 2006 NADA convention in Orlando reveals the latest about car buyers' behavior when they are closest to purchase. The news from CNW Marketing Research presented at NADA showed that newspapers and the Internet are the two primary sources of information when car buyers are closest to purchase.
Where customers look. And when they're hooked.
As the chart below shows, the number of models customers investigate drops dramatically as the purchase decision approaches. But as the sales process narrows, how do you make certain that you are in that elite group?
The CNW Marketing Research study holds some compelling answers. It shows how and where customers shop as they approach the purchase decision. To see how this can build your sales, let's look into three key stages of car shopping, and how to make your advertising work harder in each stage.
Looking
When: Six months before purchasing.
Where: Primary source of information is TV.
Why: Still looking into vehicle needs. The study showed these consumers are considering multiple brands and options.
Wow: Use the Internet to help build your dealership "brand" with banner ads and a virtual showroom.
The key is to plant the seed in these customers' minds so they consider your dealership when they're ready to buy.
Cooking
When: Three months before purchase.
Where: Internet and local newspapers.
Why: Everything is starting to simmer. Now consumers are narrowing the number of body styles and vehicles and starting to focus on a specific choice.
Wow: These consumers are hungry for information. Give it to them. And remember they're going to the Internet and the local newspaper first.
Hooking
When: Just before purchase.
Where: The Internet.
Why: Use the Net to reel in the catch. This study and others show these consumers are going online to decide how much to pay and where to buy.
Wow: Since 1998, the percentage of buyers who list the Internet as the primary source of information just prior to purchase has quadrupled.
Maximize your media. Pinpoint your promotions.
The CNW Marketing Research findings suggest that if you advertise vehicle pricing and specials on TV, radio and billboards, you're simply not spending your advertising dollars most effectively. It's time to adjust your price point promotion accordingly and use your online and offline media to power your promotions. Here's how to do it.
Build on your foundation. Since dealers sell cars, and car shoppers go to the Internet just before buying cars, online advertising should be the foundation of every dealer's advertising plan. Other types of advertising can supplement online advertising for other purposes.
Work with all the tools. Take full advantage of all online advertising tools:
- Dealership website
- Online classifieds
- Online display ads
- Dealer specials
- Online dealer locator tools
- Lead generation
- Search engine marketing
Look for a one-stop shop. Get the most bang for your buck and simplify your plan by seeking an online advertising partner with a wide variety of online advertising tools and experience. One such example is cars.com.
Hit them with a one-two punch. Don't forget print! The CNW Marketing Research study showed that both online advertising and newspaper classifieds were the two primary sources of information for shoppers who are closest to buying. Be sure to supplement your online advertising by advertising your deals and specials in newspaper classifieds.
*CNW Marketing Research, Annual Purchase Process Study, 2005
