E-commerce has rapidly changed the way consumers search, research, discover and buy products. The demand is not limited to low-risk investments like fashion, food and beauty, but has expanded to high-risk investments like electronics, real-estate, automobiles and more. Smartphones leverage information about potential purchases right on a customer’s fingertips.
At the dealership
Automobiles are categorized as high-risk investments, and were previously the type of products that a customer would research on foot. Once upon a time, the dealership experience including inventory showcase, informative rundown from a sales person and test drive, catalyzed the marketing to sales conversion process.
Over the past five years, the increase of smartphone usage has complicated automobile sales. Armed with search engines and apps that showcase competitive inventory, dealer information, pricing, payment options and more, consumers now have access to virtual dealership experiences. Ultimately, technology has changed the needs of a consumer who is on a dealership visit after online research.
Impact of mobile adoption for auto dealerships
Recently, Cars.com partnered with Placed.com to study the role of smartphones in leading a consumer to a dealership visit. Here’s what the study has shown:
- 81% of automobile consumers used their smartphones to research before purchasing a vehicle. 63% of these consumers used their devices to look up information while physically present at the dealership.
- Mobile auto shoppers are 72% more likely to visit more dealerships than those who do not use smartphones.
- 33% of shoppers were lured into competing dealerships through mobile advertisements.
An analysis of the report shows that mobile adoption is necessary for automobile dealerships as a majority of consumers are in the digital space and use information presented their to make buying decisions.