One of the interesting facts about the automobile industry is that each year latest car models are launched. No other industry better understands the importance of innovation than the automobile industry. Auto dealership has also incorporated innovative methods. Investing on vehicles is a little of risk. Earlier purchasing a vehicle required you to research about different models on foot and dealership was all about intensive research by the buyer and his purchase experience. All the information about different vehicle models, the inventory as well as test drive was provided by the auto dealer on visit to the automobile showroom.
However, with the coming of smartphones and due to advancements in mobile technology, a significant change has been witnessed in the way consumer research about the vehicles they want to purchase and the manner companies market their newly launched cars. And this has influenced the auto dealership sales. Now with every people around the world using smartphone, car brands must think about how to use mobile to reach the customers. By using latest mobile technology, auto industry can increase their revenue in a great way. Here are a few ways through which auto dealers can increase their revenue by embracing mobile app technology:
Apps users will bring more business
Smartphones are increasing in popularity and mobile apps have become an important aspect in our lives. Studies show that around 90% Americans use cell phones and around 77% of those use smartphones. Today, mobile phone users spend over 85% of their time using various apps. Many studies have been conducted to understand how mobile applications can influence the automotive industry. Whenever consumers have to make a purchase, they rely on their smartphones to conduct research on the products online and often visit their trusted app to finalize the purchase. According to a 2014 DME automotive study, consumers who used dealership-branded app were 73% more likely to purchase, and after purchasing, booked 25% more service appointments compared to non-app users. This offers enough opportunity for auto dealerships to invest in the mobile application marketing method and earn revenue.
Provide customers with information
With so many people using mobile devices today, this is definitely a great way to reach a large base of car consumers directly. Auto buyers who use mobile are 72% more likely to visit the dealership. The best way to increase the possibility of getting more auto consumers is by offering them valuable information related to dealership. Auto consumers often mention that they are compelled to visit auto dealership after going through online research process. This means a car dealership needs to provide consumers with a wide range of content in relation to car-buying process such price details, payment options, vehicle comparison tools, high-quality images, customer reviews, competitive inventory and listing of cars. An informative app can be very useful as this can help in influencing consumer’s purchasing activity. Also, through push notifications you can keep updated with latest offerings in auto dealership.
Payments made easy through mobile payments
Mobile payments have increasingly become popular with the users. Instead of going to the store and paying through checks or cash, customers prefer to pay through mobile. An increase of 36% in mobile payments through apps has been witnessed since 2015. And is further growing with more apps coming into the business. In automotive industry, making payments through mobile app is a huge advantage. Customers are going to be more satisfied if they can pay for the services and purchases easily through mobile. Whether they are purchasing auto parts, paying for services, or even settling for the car, mobile apps can be wonderful option for making payments.
Apps help in building long-term loyalty
Of course, dealers make the initial step of selling the cars to the customers but apps can be a useful tool to strengthen long-term aspects of vehicle ownership. A person who owns the car will certainly look for regular service of his vehicle. Dealership-branded apps are more likely to draw attention of the customers for car servicing. The customers who are equipped with the app are more likely to take service appointments for vehicle compared to non-app users. According to a study, car owners spend more on servicing after purchasing the car. So, having an app can help auto dealership to generate more revenue through service department. The dealership apps can be useful in booking service appointments, view service hours, pay online for repair orders, and help to consult with the staff on services.
Beat the competition through Geofencing
Geofencing is an effective marketing tool. It is not just helpful to keep customers engaged during purchasing process, but it also enables dealers to attract potential customers from the competitors. If a car buyer has previously downloaded your app, geofencing allows you to track car buyer’s location in real time. Through geofencing, dealerships can send push notifications to buyers sitting in a nearby showroom letting him know that you are offering better price than the competitor. Using geolocation tactics, dealership can increase foot traffic to the showroom.
For years, auto dealerships have been slow to adapt to new mobile marketing technologies. Most of the auto dealerships have not yet understood the use of mobile apps as it can generate leads and convert them into sales. Auto dealerships that create effective apps can influence new age car buyers who expect seamless online business. With the help of right tools, you build effective customer relationships and increase revenue.