Auto dealers, once the e-commerce slowpokes on the information super highway, are catching up nicely with new web site upgrades that give vehicle shoppers multiple ways to interact online with retailers and manufacturers, according to new research from the National Automobile Dealers Association.
Today 95.4% of all dealers have a basic web site and 99% have sites that feature a “Contact Us” form or other e-mail communications form. 51.7% of auto dealers also have dedicated Internet sales reps, which represent about 14% of each auto retailer’s total sales force, according to NADA.
But the NADA survey of almost 400 automotive retailers nationwide, finds that dealers are making the biggest stride in adding more interactive tools that give online shoppers new ways to research and price cars, trucks and sports utility vehicles and schedule appointments. Six years ago only 57% of dealers offered manufacturer suggested retail pricing data online vs. 88% in 2006.
In 2006, 68.3% of auto dealers had an interactive tool that enables owners to book a service appointment, compared with only 41.8% in 2000. As of 2006, 75.5% of dealers also let consumers use their web site to submit financial forms and 68% offer car buyers the option to schedule a specific time to visit a showroom.
The Internet is also helping dealers to close more sales, with the web generating an average of 62 leads per month in 2006 vs. just 32 monthly leads in 2000. On average in 2006 dealers were able to close on about 30% of all Internet leads, compared with 18.5% in 2000.
Despite their progress on the web, the NADA survey also finds that many dealers still need to improve their online customer service, especially e-mail. The survey found that only 17.1% of dealers respond to a web-based customer inquiry within 20 minutes, compared with 43.9% within one hour; 26.5% within six hours; 10.8% within one business day and 1.7% between one and three business days
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