In just a few short weeks automotive leaders on clubhouse have democratized both their pain points and opportunities within the automotive landscape.
Dealerships have been plagued by fragmentation for many years both on the vendor and technology side.
This lack of innovation has sprung up a significant amount of tools, widgets, and websites that frankly continue to be subpar solutions for dealers to embrace digital retailing.
Before I offend any vendors and marketing tools, I want to acknowledge that it’s not the lack of innovation that I’m worried about. It is change management that needs to become the norm for dealerships, partners, and OEMs to innovate.
The market is waiting for NO ONE.
5 Key Pain Points In Automotive
1. The Walled Gardens
Due to rapid innovation by and this relentless need to solve problems in automotive. Many companies have sprung up to solve retail-level pain points. This has cause numerous widgets and solutions that unfortunately have a slightly siloed data structure.
This causes difficulties for tracking the source of truth for conversion data and other engagement related data. In an industry that is constantly focused on performance.
Taking a performance marketing approach is much harder when your website funnel is chopped up in a multiple pieces.
2. The Politics
Granted, politics exist in all industries and companies however, automotive has a more significant political environment mainly due to its relationship between manufacturer and dealer.
Arguably one of the largest relationships in an industry that causes fragmentation and enables rules and compliance that impact the digital eco-system.
For example, OEMs must ensure brand guidelines to create consistency amongst the marketing creative and execution. Many dealers struggle to differentiate themselves due to the requirements for compliant marketing creative.
3. Digital Retailing
Yes, digital retailing is a pain point. Selling a car is not as simple as adding it to cart and checking out as you would on amazon. There is a much longer consideration window where prospective customers are likely to shop across multiple sites, test drive, and negotiate.
Enabling an end to end solution would be extremely effective however, this arguably is not the best way to allow your customers to experience the vehicle prior to purchase.
4. 3rd Party Classified Listings
3rd party listings have been leveraging dealer’s inventory feed to maximize their traffic and seo. This undeniably is contradicting because dealerships lose out on their used car performance because they are competing with 3rd party listings.
The quickest way to check on this would be to look at the overlap within your google ads accounts.
The Automotive culture is ripe for disruption and change. Dealers are looking for the next best thing and eager to grow their business. However, in some cases change is difficult.
We believe that new thinking and the willingness to change and adapt is a huge opportunity within the automotive industry.