The automotive industry is constantly evolving, and with it comes new technologies, trends, and ways to reach customers. Over the past decade, car dealerships have seen a huge shift in how they market themselves — from traditional print ads to mobile-friendly websites and social media marketing. In 2023, we’ll see even more changes as dealerships continue to adapt their methods of reaching consumers.
There are a lot of exciting things happening in automotive digital marketing right now, but here are 6 trends we think will really impact car dealerships in 2023:
AI is a trend that has been building in the industry for quite some time now. In fact, it's a trend that many dealerships are already using to improve their business.
But what exactly is AI? And how can you use it to improve your dealership's performance?
What is AI?
Artificial intelligence is basically the ability of computers to learn, understand and solve problems without being explicitly programmed to do so. In other words, it's software (like Facebook or Instagram) that can learn from past experiences and adapt accordingly as new information becomes available.
How can car dealerships benefit from AI?
AI can be used to help dealerships better understand their customers and provide them with more personalized experiences, which can mean higher sales, lower turnover rates, and happier employees.
The most obvious way that dealerships can use AI is by taking advantage of the technology's ability to process large amounts of data quickly. For example, a dealership could collect information on every customer who buys a car and use it to find patterns in their buying behavior. This would give them insight into what kinds of vehicles people want, how much they're willing to spend on them, etc.
With the rise of mobile technology and its integration into nearly every aspect of life, it's no surprise that this trend has also infiltrated car dealerships. While some dealerships may still be resistant to change, there are many benefits to embracing the integration of mobile technology into your dealership.
Here are 5 ways that mobile integration can benefit your dealership:
- Increased customer service - Mobile integration helps you connect with customers on a deeper level by giving them more control over the buying process. Customers who feel like they're making decisions themselves instead of being told what to do feel more empowered, which makes them more likely to stay loyal to your brand long-term.
- Greater employee efficiency and productivity - Mobile integration allows customers to schedule appointments online, view inventory and pricing, and even pay for their service online. This means that they don't have to wait on hold or visit your dealership in person to get the information they need. Your customers can now do everything they need from their phone or tablet.
- Increased sales opportunities - Mobile integration increases the number of people who view a vehicle online before visiting a dealership, increasing the likelihood that they'll purchase their car from you.
- Reduced costs at the dealership level - Mobile integration reduces cost for car dealerships by cutting down on unnecessary overhead costs. It also reduces the time it takes to process customers, which means that you can serve more people with the same amount of staff.
- A more positive brand image among consumers - Mobile integration creates a more positive brand image for dealerships by giving consumers the feeling that you care about their experience. When customers can interact with your business through a mobile device, they feel more connected and valued.
Big Data Analytics
Big data refers to large amounts of data that can't be processed by traditional database management tools. It includes all the information collected by your dealership's website, social media channels and other digital channels.
How does it work?
Big data analytics is used in many industries as a way to monitor customer behavior so you can improve your business. For example, if you notice a decline in sales of a certain car model, you could use big data analytics to identify why (e.g., it's out of stock) and how best to respond (e.g., offer discounts). You could also use big data analytics to find out what types of advertising are most effective for your dealership's particular target audience or even predict when customers are most likely to buy from you instead of a competitor.
The role of big data analytics in car dealerships is simple: It helps you understand your customers better so you can sell them what they want when they want it, without having to guess or play catch-up based on past experience.
Self-driving cars have been making headlines for years now, and it’s easy to see why. After all, who doesn’t want to sit back and relax while their car drives itself to work? But the future of self-driving cars is more than just convenience—it’s an opportunity for car dealerships to reach new customers and increase revenue.
With more and more people buying self-driving cars, it's likely that car dealerships will need to shift their focus from performance to luxury and comfort. This means they'll have to offer a higher level of service and expertise in order to attract customers looking for luxury vehicles.
But how exactly will they impact car dealerships? Here's what you need to know:
- Self-Driving Cars Will Increase Customer Traffic. One of the biggest benefits of self-driving cars is that they'll increase traffic at car dealerships. Traditionally, salespeople have been tasked with driving customers around town and showing them different options before making a purchase decision; but with self-driving cars, this task will be taken over by your car itself! Not only does this mean that salespeople won't have to spend as much time on driving around town—it also means that customers will be able to make more informed decisions when it comes time to buy a new car or truck because they'll be able to see all their options from the comfort of their home or office chair rather than having to drive around town looking at different vehicles.
- The number of people coming into showrooms is likely to drop significantly as more people buy their cars online. Showrooms could become virtual showrooms with customers able to view product information online before going into physical showrooms for test drives and purchase decisions.
- The autonomous capabilities of self-driving vehicles will mean you can serve customers better and more efficiently.
- Self-driving vehicles will help you communicate with your customers in new ways, opening up new avenues for marketing opportunities.
Internet of Things (IoT)
The Internet of Things is one of the most exciting trends in digital marketing today. In this post, we'll discuss how IoT can help car dealerships stay ahead of the competition and offer their customers a better experience.
What is IoT?
The Internet of Things (IoT) is a system that connects physical devices to the internet, allowing them to send and receive data. This can include everything from your smartwatch to your car's engine components.
Why should car dealerships care about IoT?
IoT can help car dealerships stay ahead of the competition by offering their customers more personalized experiences. By using IoT solutions, dealerships can improve their digital marketing efforts by providing real-time insights into customer behavior and preferences. This gives them an edge over other dealers who are unable to offer these same kinds of insights because they lack access to this data or don't have time to analyze it themselves!
How does it work?
IoT solutions involve installing sensors on various parts of your dealership's property or vehicles so that you can see where customers go during their visit and what kind of interactions they have with your staff members or other products/services offered there (ex:
There are several ways a dealership can benefit from this technology, but here are just a few:
- Improve customer service. IoT can help you better understand your customers' needs by collecting data about their preferences, behaviors, location, and more. This information can help you deliver personalized experiences across all customer touchpoints, including online, through mobile apps, and in the vehicle itself.
- Improve operations efficiency. IoT can help you automate processes and save time while improving accuracy and quality control by providing real-time visibility into what's happening on the ground floor of your business—from inventory levels to maintenance work orders. Automation can also reduce costs by reducing labor expenses associated with manual tasks like inventory management or order fulfillment.
- Increase sales conversion rates through personalized marketing campaigns that target specific customer groups based on their unique preferences and needs (e.g., "car enthusiasts who have bought from us before").
Electric Vehicles are a hot topic in the automotive industry right now, and they're only going to get hotter.
That's why we're highlighting electric vehicles as one of the six trends that will impact car dealerships in 2023. We know that you're wondering what this all means for your dealership and how to make sure you stay ahead of the curve—and we've got some answers for you!
What Is an Electric Vehicle?
An electric vehicle (EV) is a vehicle that uses electricity from an external source rather than gas or diesel to power its engine. EVs are typically considered "green" because they don't produce any harmful emissions like CO2 or NOx during operation. This is great news for our environment, but what does it mean for your business?
How Can Car Dealerships Benefit from EVs?
As more people become aware of EVs' environmental benefits, many are choosing them over traditional vehicles in an effort to help protect our planet. The trend toward more environmentally-friendly transportation options is only going to continue—so if you want to stay relevant in today's marketplace, it's important that your dealership offers at least one electric model on its lot!
The impact of electric vehicles on the automotive industry is here and dealerships need to embrace it.
Drivers are increasingly turning to electric vehicles because they offer a more affordable, cleaner transportation option. But how can car dealerships benefit from this trend?
Here are six ways your dealership can take advantage of the rise of electric vehicles:
- Increase sales by offering more options for buyers who want to drive an eco-friendly vehicle
- Attract new customers who are looking for an eco-friendly option that's also affordable
- Gain access to new markets, such as millennials and Gen Zers who prioritize sustainability when making purchasing decisions
- Capture market share from other dealerships in your area, which may not yet have embraced this trend or may not be prepared for a future where EVs are mainstream.
- Create a new revenue stream by selling add-ons like charging stations and accessories like solar panels or other energy-efficient upgrades (like smart TVs) that work with EVs' built-in apps.
- Provide EV charging stations for customers who need to charge on the go
Digital marketing is quickly becoming a vital channel for dealers to attract and engage customers. Dealers that know how to leverage digital platforms and the power of search engine optimization can increase site traffic, customer engagement, and even sales. Dealerships need to also keep up with technology and learn to integrate new technologies into their marketing and sales processes. Dealerships that fail to do so run the risk of being left behind as more customers become accustomed to using mobile devices as a primary source for information about vehicles, pricing, financing, service and repair options.
Quickride is a dealer management software aimed at changing the game for car dealerships. Whether you're looking to grow a customer base, increase customer loyalty and engagement or drive efficiency at your dealership, our team can help you identify the right strategies and tools to drive success. Our team is passionate about providing dealers with the latest technology and best practices needed to succeed in today's market. Schedule your demo today to find out how.