New car sales plummeted in 2020 amidst the coronavirus outbreak and the financial insecurity that many consumers experienced due to the worldwide pandemic.
The good news is that after a sluggish year, economists are projecting a bounce back in 2021 as households that put off new car purchases begin returning to new car dealerships.
However, consumer habits have likely changed long-term due to COVID, and smart dealerships must adapt to the times. An experienced automotive paid search agency can help position your company for success in the new year by digitally reaching prospective buyers. Here are some of the automotive dealership trends to track in 2021.
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Sales in 2020 vs. Sales Outlook in 2021
Sales of new vehicles fell by about 15% in 2020 compared to the previous year, according to WardsAuto. There was a silver lining, though—annual new auto sales beat projections that came out in the spring as COVID began to affect American consumers and dealerships seriously. This data shows the industry was more resilient than initially expected.
COVID will still affect inventories and consumer behavior in 2021, but analysts believe the impact will be lower in the new year. The biggest challenge may be ensuring an adequate supply of new cars to satisfy all the customers who stayed away from dealerships in 2020.
The most successful sales teams will likely be the ones who rapidly and gracefully leverage digital auto retailing. Industry experts expect that online sales will remain a popular trend in 2021 and into the future.
An automotive paid search agency like ArcMinute Marketing can help your business introduce prospective customers to your brand online. As an automotive SEO agency, we help your online presence so you can answer their questions and choose your stock’s best vehicle to satisfy their needs.
COVID Remains a Factor in 2021
Dealerships should continue to incorporate COVID into their 2021 strategy. COVID has proven to send the dealership customer experience into a whirlwind. Dealerships have been challenged more than ever, dealing with everything from inventory issues to creating contactless sales experiences.
On the one hand, customers who lost income but need to buy a car may be interested in less expensive models. On the other hand, GM has reported that people who did not experience job interruptions are seeking more high-end brands. The vastly important rental car market was quiet in 2020 as people worked from home more rather than traveling for business.
Seek To Build Deep Relationships and Earn Trust in 2021
Consumers place a high value on honest, forthright brands. According to an Accenture survey, 66% of respondents said they are attracted to transparent companies about their operations, including how they treat both customers and their employees. This transparency also extends to how companies use the data they collect from their customers.
One thing has not changed—brands need to build deep relationships with their customers. For auto dealerships who rely on locals for much of their business, it is vital to focus on forming trust with folks right in their own backyards.
The higher each of the factors ranks, the more the expected close ratio should grow. A great way to improve the close ratio is to focus on the following aspects of advertising:
- Improve the prequalification of leads by writing better copy for ads, landing pages, and forms.
- Focus on creating highly targeted offers that cater to a smaller group of prequalified leads who make purchase decisions.
- Optimize the copy and content of the marketing materials by removing underperforming keywords.
Finally, the formula for calculating expected new revenue is a combination of the two mentioned metrics: close ratio and CLTV (New Revenue = Number of Leads X Close Ratio X CLTV). It provides an overview of the expected revenues from newly acquired customers.
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2021 Will Be the Tipping Point for Digital Retailing
Auto dealerships must commit to digital retailing to stay competitive in 2021 and beyond. Customers have gotten used to contactless transactions and are likely to continue shopping and even completing entire purchases online.
The adage “just get them in the door” no longer applies when customers do their shopping from a computer screen. This trend, which had been building steam, was especially apparent amidst the pandemic and is likely to remain a significant factor.
Dealership marketing in 2021 should include strategies such as pay-per-click advertising, search engine optimization, and social media marketing.
Dealerships must determine how to target likely customers, anticipate their concerns, build trust, and close the deal to get the best return on investment. This expectation is a tall order for those used to face-to-face transactions, but automotive dealership digital marketing strategies can help.
Automotive Digital Strategy Agency | ArcMinute Marketing
ArcMinute Marketing is based in Detroit, the Motor City, which means we understand the car industry’s value and how it affects many lives each day.
The professional team at our boutique agency specializes in working with auto dealerships to come up with a strategy to help you reach interested shoppers, then turn them into committed customers. We provide ongoing consulting to fine-tune your campaigns and keep you running at full capacity.
Our talented team can improve your website user experience, place paid ads on platforms like Google and Facebook, and improve your company’s search ranking. You can schedule a discovery call with ArcMinute Marketing today to see how our automotive dealership digital marketing strategies can help your business.
