By Kevin LeSage, Director of Digital Marketing, Autotrader US

Over the last few months, we have seen the auto market go through some remarkable peaks and valleys. However, in August we saw major growth due to pent-up demand and consumer activity. Now, the markets are beginning to even out back to normal levels, and as we enter Q4, many dealers are looking for ways to remain ahead of any unexpected changes in consumer behavior that may be on the horizon.

With many lessons learned throughout the pandemic, now it the time to look forward, and create a strategy  to end the year strong. Here are a few ways that dealers can make sure that they get prepared, and stay prepared, for whatever Q4 might hold for the auto industry:

• Look into new markets: This may seem like an obvious one, but if you see your market shrinking or leveling out after the post-shutdown boom, look into new markets. With the increase in dealers advertising inventory in regions they do not have inventory listed in, the time is now to protect your turf. Sometimes the best defense is offense. The uptick in online searches for cars we saw during the pandemic opens up your dealership to a wide host of new potential car buyers. Find ways to connect with those outside of your immediate network while also maintaining relationships with those in your own backyard.
• Leverage home delivery: Throughout the pandemic, we saw many dealers adopt brand new digital strategies such as vehicle home delivery that allowed business to continue even while both dealers and customers remained at home. Consumers love this option because it allows them to remain safe and comfortable while still getting a full-service experience from a dealership. On the other side, among dealers leveraging home delivery, we saw 25% increase in daily leads and 25% increase in close rate. Additionally, we saw a 56% lift in site links. This proves that this tactic really does provide value to both dealers and consumers.
• Ramp up your service department: Service and repair departments are a major revenue stream for most dealerships offering these services, but many dealerships could be doing more to utilize these departments to their full potential. In the same vein as home delivery for new and used vehicles, consumers now also want to be able to complete service and delivery requests from home. According to the Cox Automotive COVID-19 Consumer Survey, 48% of vehicle owners who have used service pick-up and delivery had more services completed. Not only does this help dealerships increase revenue, but it also creates a stronger relationship with the customer and reminds them to come back to you the next time they need service or repairs done.
• Rely on analytics and data: As consumers continue to rely on dealership websites and online searches to find cars and identify service, we get to know them better. We started to see dealers leveraging data and insights in Q3, but Q4 is where dealers will see these analytics really begin to make a difference. Tools like heat maps that show where website visitors are located help dealerships identify what inventory will be most effective, in which market, therefore allowing them to reach the right customers more efficiently.

Overall, dealers have learned a lot over the last several months about how to reach customers digitally. While consumer behavior has been slightly unpredictable over the last few months, one thing is certain – car buyers are going to continue to look for service online. By meeting customers where they are, which is online, dealers can make stronger connections going in to Q4 and expand their reach. Getting out ahead of the roadblocks dealers may face in Q4 is the only way to truly be prepared for what’s to come.