It’s hard to believe another year has passed and we are starting to prep for the new year. With all of the obstacles thrown at us in these past few years, such as COVID and chip shortages, we are hopeful we’ll see the light at the end of the tunnel. The automotive industry as a whole has learned to adapt to these said obstacles, however, there are more changes headed our way. So, what is there to expect for 2022 and where do we go from here? Let’s dive into how to combat the new and existing challenges we are facing.
That’s The Way the Cookie Crumbles
The marketing world will now have to learn to live in a cookie-less world. Don’t worry, Oreos isn’t going anywhere! (Phew). The cookies I am referencing impact how you are able to effectively target your customers. Google will be following suit with Apple and Mozilla (Firefox) and will begin phasing out 3rd party cookies. Without this 3rd party data, it will make it harder, especially for local companies, to target their audience.
So now what? Our recommendation is to collect your own 1st party data, which will of course have a higher R.O.I. opposed to any other data type. I am sure you’re now wondering how to accomplish that. As mentioned in our Digital Dealer Conference Recap blog, our ID Retargeting program will allow you to market to the people who are coming into your site in real time, opposed to marketing to 3rd party data that could be dated or no longer accurate. Another option is partnering with another local company and purchasing their data, which would be labeled as 2nd party data. I should also mention that most websites will still be collecting the 3rd party data, but by asking the person browsing for permission to collect their data, which I am sure you have noticed on some sites already while shopping.
Managing Inventory Shortages
Unfortunately, it is forecasted that the inventory shortage issue will continue into early 2022. There are even some manufacturers that have promised inventory to dealers of vehicles that aren’t even built yet. Below is a list of the most popular workarounds we recommend your dealership to execute:
1. Allow customers to custom order their vehicle
With the assistance of your agency, set up a custom landing page on your website that showcases the available models and options and how they can reserve their vehicle of interest.
2. Invest in a Digital Retailing Tool
Inventory issues aside, digital retailing is the new way of buying cars and it is here to stay. Did you know that 76% of people are open to completing their entire car buying process online?
A digital retailing tool also allows you to reach a wider net and not only sell more of the inventory you do have, but to acquire more pre-owned vehicles as well. (More on that next!)
3. Acquire pre-owned inventory
Since there is a halt on new car production, you will have to keep your inventory levels afloat with pre-owned. As mentioned above, a digital retailing tool will help you buy inventory from people in your market. Since it has been slim pickings, people are more willing to drive the extra mile for a car they need and as should your dealership.
If you do not have a DR tool, some examples that your dealership could promote are that you offer a pick-up and delivery service, offering above book value, and that you will buy their car even if they don’t buy from you.
While we are hopeful that we will fully recover from the COVID-19 crisis, chip shortages and everything in-between, there is unfortunately not a set date on when things will go back to “normal”. Although, there may be no returning from our “new normal”. The main topics we covered here are what your dealership should be focusing on when entering 2022, and even now. For more information on our ID Retargeting Program, or Digital Retailing options, please feel free to contact us today!
Sarah is a well-seasoned marketing professional who kicked off her career soon after graduating Kutztown University. Starting right out of the gate in automotive marketing, she has spent the past four years excelling as an account manager, recently advancing to the senior position at D2D. She is an expert when it comes to juggling, organizing and following through with the day-to-day tasks that come along with the position. Having worked with most vehicle manufacturer brands, she has an expansive knowledge of co-op, creative requirements, and everything in-between.
For more information on how D2D can help, feel free to reach out at firstname.lastname@example.org