#USA #Atlanta #Cox Automotive #Clarivoy #Autotrader

Understanding the Sales Tracking Challenges for Auto Dealers

In an in-depth analysis, Autotrader, a prominent brand under Cox Automotive, has unveiled alarming statistics about the tracking of vehicle sales in the automotive industry. This report, developed in collaboration with Perficient and supported by Clarivoy data, highlights critical shortcomings in current sales tracking methodologies used by dealerships.

According to their findings, which examined a substantial sample of 875,000 automotive sales transactions, an overwhelming 92% of these were not traceable in Customer Relationship Management (CRM) systems. This reveals that only a mere 8% of sales can be directly attributed to inquiries that resulted in a lead, indicating a concerning gap in the data collected by dealers. This disconnect leaves a significant number of sales opportunities unaccounted for, making it difficult for dealers to understand the totality of their marketing impact.

The Complexity of the Buyer Journey

Today's car buyers navigate a vastly intricate journey before making a purchase. Research indicates that most dealers often rely on the last channel a customer interacted with—typically a dealership's website—leading to what's known as last-touch attribution. However, this method fails to account for the multitude of touchpoints a consumer engages with. The study revealed that the average car buyer interacts with as many as 62 different channels over a purchasing journey, while dealerships only track approximately two, capturing a mere 3.5% of potential engagement points.

This drastic oversight not only affects the understanding of consumer behavior but also leads to lost sales opportunities. Key metrics emerging from the study include:

• - 92% of marketplace-assisted sales remain untraceable.
• - 48% of shoppers initiate their vehicle search on a marketplace; only 14% start on a dealer website.
• - Eighty percent of buyers engage with a third-party site at some point during their journey.
• - The average consumer utilizes four distinct channels while shopping for cars.

Multi-Touch Attribution: A Path Forward

To navigate these challenges, multi-touch attribution presents a promising solution, allowing dealers to capture all touchpoints a customer engages with throughout their buying journey. This method enhances the dealer's ability to evaluate diverse shopper activities, tying them to sales outcomes, thereby increasing the chances for closing deals. Autotrader’s approach, when combined with a weighted engagement formula, shifts the focus from simply tracking lead volumes to measuring the quality of leads generated.

According to Jade Terreberry, Senior Director of Strategic Planning at Cox Automotive, digital channels, especially third-party marketplaces like Autotrader, substantially influence the majority of customer journeys. The lack of comprehensive data from dealers relying solely on last-touch or single attribution models is not merely a perception but a reality observed in the data. In a dedicated test involving a selection of dealers, Autotrader was found to impact 55% of sales, a significant improvement compared to traditional metrics based on single-touch insights.

Terreberry emphasized that with the average car buyer engaging for around 95 days and exploring numerous channels prior to making their decision, it is crucial for dealers to reevaluate their return on investment (ROI) metrics. By employing a multi-touch attribution strategy, they can prioritize the quality of leads rather than just the quantity. Tailoring engagement models to reflect specific customer behaviors and market conditions can lead to more profitable outcomes for dealerships.

Conclusion: A Call for Change

For auto dealers, adapting to the realities of the modern car-buying process is essential. Embracing multi-touch attribution will not only enhance tracking capabilities but also engage customers more effectively through their journey. By downloading the full white paper from Perficient, which utilizes the Clarivoy data, dealerships can uncover further insights about how to enhance marketing measurements and grow their sales potential efficiently.

To read the complete white paper on these essential findings, dealers can visit the link: Download White Paper.

About Autotrader

Autotrader is widely recognized as the leading third-party car listings brand in the market. It leverages extensive consumer insights and expert knowledge in online marketing to simplify the car shopping journey for consumers seeking new, used, or Certified Pre-Owned vehicles. By utilizing advanced technology and data, Autotrader aims to enhance the buying experience for consumers while guiding dealerships in implementing effective digital marketing strategies to connect the online shopping experience to in-store visits.

As a significant player in the automotive industry, Autotrader is part of Cox Automotive, which is the largest automotive service and technology provider worldwide, emphasizing the importance of data-driven solutions in today's competitive car sales environment.