Selected Podcast
Is the Car Sales Business Driving Toward Disruption
In this episode, Mark Mathis talks about how digital is disrupting the car industry.
Featuring:
Mark Mathis
Mark Mathis is Chief Creative and Strategy Officer. Transcription:
Mark Mathis: Hello, this is the One-Minute Marketer. I'm Mark Mathis, Creative Director at Amperage Marketing and Fundraising. And you know what? I've been thinking, is the car sales business driving toward disruption? I bought a new car, well, a new used car this month. And I have to say, I was disappointed. I haven't purchased a car at a dealership for more than eight years and not a lot has changed.
So that had me wondering, is digital going to disrupt this industry just like everyone else has been disrupted? In a quick search, I found the disruptor of all disruptors, Amazon. Yep, Amazon is still planning to enter the car selling/buying market. The e-commerce giant has a track record of dominating nearly every vertical it expands into.
Dealers may be part of the original process, but we know Amazon quickly cuts out the non-efficient parts. UPS, FedEx and USPS know exactly what I mean because they have all been replaced by Amazon vans.
Carvana seems to be the model that offers the most disruption. You can sell your car and buy a car online. Plus Carvana will pick up your old car and deliver a new one right to your home. No four to five-hour negotiating process. Paperwork is all done online. In fact in 2020, Carvana sold nearly 250,000 vehicles. They posted an annual revenue of $5.6 billion, making them the second largest used car retailer in the United States.
We're all demanding a digital first experience no matter the product or service. Here's a couple of things I recommend the auto industry do to immediately be more digital. Number one, improve online experience. The online auto websites are clunky and they're not user-focused.
Number two, take better photographs of cars and trucks at the dealership. Many vehicles have black interiors and they need lighting to see details. In fact, all photography needs to be improved at dealerships.
What about a video tour of a car? Show us the features and the benefits. Have someone talk about it. I don't need to come hear a salesperson. Show me, tell me before I even get there. My new car has a lot of electronics that needed much better explaining and much better selling.
Number four, more detailed information. Why can't the dealership provide the charts and graphs, the ratings about the car? I bought a wallet online that had more information online than my new car did. Sure, the information is available on other websites, but do you really want me going to these other websites to look up that information? I might just stay there and buy a car.
Number five, the car pricing game is going to end with digital disruption. Calling for today's prices, it's just silly in this digital world. Post it, get over it. Get the prices out there.
Number six, make it more fun. Carvana has a car vending machine to attract younger buyers. Old school sales by the holiday is not fun. A spooktacular sale is just dumb. Coffee, balloons and one of your car salespeople without gloves and a hairnet making hot dogs does little to attract any new buyers.
Number seven, think through the digital journey and fit into the journey. Let the select negotiators go. Bring on people who know how to provide information and, more importantly, more experience.
Not all car buyers are going to go online to buy a car. Test driving is still a dealership advantage, yet clinging to status quo delivers a ho-hum experience, speed thrills and it attracts new customers. And online has the acceleration game down.
I'm hoping to buy my next car 100% online and have my new electric car drive itself to my house.
That's the One-Minute Marketer. My special thanks to audio engineer, Bill Klaproth. If you like this marketing thinking and strategy, reach out to us at AmperageMarketing.com. We'll move the needle for you. Thank you so much.
Mark Mathis: Hello, this is the One-Minute Marketer. I'm Mark Mathis, Creative Director at Amperage Marketing and Fundraising. And you know what? I've been thinking, is the car sales business driving toward disruption? I bought a new car, well, a new used car this month. And I have to say, I was disappointed. I haven't purchased a car at a dealership for more than eight years and not a lot has changed.
So that had me wondering, is digital going to disrupt this industry just like everyone else has been disrupted? In a quick search, I found the disruptor of all disruptors, Amazon. Yep, Amazon is still planning to enter the car selling/buying market. The e-commerce giant has a track record of dominating nearly every vertical it expands into.
Dealers may be part of the original process, but we know Amazon quickly cuts out the non-efficient parts. UPS, FedEx and USPS know exactly what I mean because they have all been replaced by Amazon vans.
Carvana seems to be the model that offers the most disruption. You can sell your car and buy a car online. Plus Carvana will pick up your old car and deliver a new one right to your home. No four to five-hour negotiating process. Paperwork is all done online. In fact in 2020, Carvana sold nearly 250,000 vehicles. They posted an annual revenue of $5.6 billion, making them the second largest used car retailer in the United States.
We're all demanding a digital first experience no matter the product or service. Here's a couple of things I recommend the auto industry do to immediately be more digital. Number one, improve online experience. The online auto websites are clunky and they're not user-focused.
Number two, take better photographs of cars and trucks at the dealership. Many vehicles have black interiors and they need lighting to see details. In fact, all photography needs to be improved at dealerships.
What about a video tour of a car? Show us the features and the benefits. Have someone talk about it. I don't need to come hear a salesperson. Show me, tell me before I even get there. My new car has a lot of electronics that needed much better explaining and much better selling.
Number four, more detailed information. Why can't the dealership provide the charts and graphs, the ratings about the car? I bought a wallet online that had more information online than my new car did. Sure, the information is available on other websites, but do you really want me going to these other websites to look up that information? I might just stay there and buy a car.
Number five, the car pricing game is going to end with digital disruption. Calling for today's prices, it's just silly in this digital world. Post it, get over it. Get the prices out there.
Number six, make it more fun. Carvana has a car vending machine to attract younger buyers. Old school sales by the holiday is not fun. A spooktacular sale is just dumb. Coffee, balloons and one of your car salespeople without gloves and a hairnet making hot dogs does little to attract any new buyers.
Number seven, think through the digital journey and fit into the journey. Let the select negotiators go. Bring on people who know how to provide information and, more importantly, more experience.
Not all car buyers are going to go online to buy a car. Test driving is still a dealership advantage, yet clinging to status quo delivers a ho-hum experience, speed thrills and it attracts new customers. And online has the acceleration game down.
I'm hoping to buy my next car 100% online and have my new electric car drive itself to my house.
That's the One-Minute Marketer. My special thanks to audio engineer, Bill Klaproth. If you like this marketing thinking and strategy, reach out to us at AmperageMarketing.com. We'll move the needle for you. Thank you so much.