Internet Strategies with Steve Stauning | |
 | Steve Stauning is the founder of pladoogle.com and a principal in the marketing services consulting firm Kain-Stauning. He is the former ecommerce director of the Asbury Automotive Group, and prior to that he spent several years overseeing the development of web-based products for automotive dealers at Dealer Specialties and Reynolds & Reynolds. You can reach Steve at: sstauning@dealer-communications.com |
Majority of New Car Shoppers Plan to Research Financing Options Online – Is Your Website Ready? March 21, 2011
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Contained in the results of a study released last week, kbb.com reported that 66% of new car shoppers planned to finance their next vehicle purchase and that 64% of those planned to research their financing options online.
While kbb.com seems well-prepared to help these consumers understand their options (based on their announced collaborations with Bank of America and Autobytel's Car.com), I don’t see very many dealer websites that are equally prepared. Can consumers visiting your website get the answers and options they need or will you force them to find this information elsewhere?
Think about it this way: If a consumer finds what they need on your website and submits a purchase request, you have a tremendous advantage. If they leave your website and end up on a competitor’s site or a research website (from whom your competitors buy 3rd party leads), then you are at a distinct disadvantage. (I won’t even go into what happens if you’re the only one not buying 3rd party leads in this case.)
Help! I want to keep my consumers on my website!
Rather than provide some long-winded, clever response to this definite cry for assistance, I thought the best way to help dealers understand what might resonate with finance customers researching online (and increase online conversions) was to provide the following financing checklist for dealer websites:
· Online credit application. Sure you have one, but does it work? In one test with a dealer group in Texas who changed their online credit applications from the standard long, uninviting static forms to short, attractive and interactive forms with video, the results were pretty astounding: depending on the store, they saw a doubling or even tripling of the number of completed credit applications. Plus, the average FICO improved by 50 points! (This is logical, of course, when you consider that someone with a 780 isn’t likely to complete a long form online, while the guy with a 480 has plenty of time and nothing to lose by completing your long application.)
· Online trade appraisal. Most dealership websites do a good job of giving the customer the option to check their trade value online. That said, you’ll want to make sure consumers can find this form on your site. (Hint: I would put a link to this form and a link to your credit application in the navigation drop downs for new cars and used cars, in addition to the finance drop down.)
· OEM Incentives. Can consumers find all of the same incentives on your site as they can on the OEM’s website? If not, then expect to have them leave your site and seek out this information. Better yet, add this content with strong calls-to-action that encourage the consumer to submit their information.
· VIN-Specific Finance Specials. Sometimes called “New Car Specials” or “Manager’s Specials,” VIN-specific finance specials are a great way to display a couple of competitively priced new vehicles per model without having to discount the selling price of all your vehicles. When you show available rebates and discounts on a given unit, and then you ask for the consumer’s information, you stand a great chance of acquiring a lead that your team can close.
· Leasing Information. Even if you don’t do a lot of leasing, it is a good idea to display leasing information (especially when that information shows a payment lower than a traditional finance payment).
· Lease v Finance Information. Creating a static page on your website that explains the different vehicle purchase options is not only easy to do, you might have an F&I vendor who already has one ready to go. Ask around, and if you can’t find one, your F&I manager should be able to put together the proper word track for you to place on your website.
· “Yes We Can” Verbiage. For the consumers seeking auto financing – even for those with good credit – there is always a concern that they won’t get approved. By filling your website with positive financing messages and encouraging site visitors to “Save Time – Apply Online,” you will grow your finance leads and your overall store sales. Also, be sure that customers understand that your team is filled with experts at auto financing – many consumers still think a dealer would rather do a cash deal than a finance deal – make it clear that you love to finance vehicle purchases and that you can secure competitive rates for the customer.
It should go without saying, but you’ll want to check with your OEM on compliancy, and also verify that whatever you place on your website is in accordance with the laws of your state. Of course, once you do provide online consumers with the opportunity to research their finance options with you, be prepared to receive more and better sales leads from your own website.
Good selling!
While kbb.com seems well-prepared to help these consumers understand their options (based on their announced collaborations with Bank of America and Autobytel's Car.com), I don’t see very many dealer websites that are equally prepared. Can consumers visiting your website get the answers and options they need or will you force them to find this information elsewhere?
Think about it this way: If a consumer finds what they need on your website and submits a purchase request, you have a tremendous advantage. If they leave your website and end up on a competitor’s site or a research website (from whom your competitors buy 3rd party leads), then you are at a distinct disadvantage. (I won’t even go into what happens if you’re the only one not buying 3rd party leads in this case.)
Help! I want to keep my consumers on my website!
Rather than provide some long-winded, clever response to this definite cry for assistance, I thought the best way to help dealers understand what might resonate with finance customers researching online (and increase online conversions) was to provide the following financing checklist for dealer websites:
· Online credit application. Sure you have one, but does it work? In one test with a dealer group in Texas who changed their online credit applications from the standard long, uninviting static forms to short, attractive and interactive forms with video, the results were pretty astounding: depending on the store, they saw a doubling or even tripling of the number of completed credit applications. Plus, the average FICO improved by 50 points! (This is logical, of course, when you consider that someone with a 780 isn’t likely to complete a long form online, while the guy with a 480 has plenty of time and nothing to lose by completing your long application.)
· Online trade appraisal. Most dealership websites do a good job of giving the customer the option to check their trade value online. That said, you’ll want to make sure consumers can find this form on your site. (Hint: I would put a link to this form and a link to your credit application in the navigation drop downs for new cars and used cars, in addition to the finance drop down.)
· OEM Incentives. Can consumers find all of the same incentives on your site as they can on the OEM’s website? If not, then expect to have them leave your site and seek out this information. Better yet, add this content with strong calls-to-action that encourage the consumer to submit their information.
· VIN-Specific Finance Specials. Sometimes called “New Car Specials” or “Manager’s Specials,” VIN-specific finance specials are a great way to display a couple of competitively priced new vehicles per model without having to discount the selling price of all your vehicles. When you show available rebates and discounts on a given unit, and then you ask for the consumer’s information, you stand a great chance of acquiring a lead that your team can close.
· Leasing Information. Even if you don’t do a lot of leasing, it is a good idea to display leasing information (especially when that information shows a payment lower than a traditional finance payment).
· Lease v Finance Information. Creating a static page on your website that explains the different vehicle purchase options is not only easy to do, you might have an F&I vendor who already has one ready to go. Ask around, and if you can’t find one, your F&I manager should be able to put together the proper word track for you to place on your website.
· “Yes We Can” Verbiage. For the consumers seeking auto financing – even for those with good credit – there is always a concern that they won’t get approved. By filling your website with positive financing messages and encouraging site visitors to “Save Time – Apply Online,” you will grow your finance leads and your overall store sales. Also, be sure that customers understand that your team is filled with experts at auto financing – many consumers still think a dealer would rather do a cash deal than a finance deal – make it clear that you love to finance vehicle purchases and that you can secure competitive rates for the customer.
It should go without saying, but you’ll want to check with your OEM on compliancy, and also verify that whatever you place on your website is in accordance with the laws of your state. Of course, once you do provide online consumers with the opportunity to research their finance options with you, be prepared to receive more and better sales leads from your own website.
Good selling!
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