Retailers across industries have acted swiftly to open digital stores, and now, new car buyers want auto brands to do the same. Changing behavior and rising demand for a frictionless auto buying experience are revolutionizing an industry over 100 years old.
The realities of the pandemic have put a premium on personal space.
For many, getting behind the wheel is a way of taking back control.
Some are looking for a car that can double as a hotel.
Others are wary of relying on public transit and ridesharing companies to protect their health.
These changes are accelerating two major shifts in the auto industry, with implications for who buys cars and how.
Overall, people who have recently purchased a vehicle now expect to be able to buy cars online.
The newly car-curious are a valuable segment, and they're ready to take the wheel.
The percentage of cars sold online increased by 10X in just two years.6
Most shoppers say they are comfortable negotiating purchase, lease, or financing terms completely online or through a mix of online and offline channels.7
Recent car buyers expect more options.
So far, those expectations have gone unmet.
The first-time buyers of the pandemic research differently. More open-minded, they consider a wider range of vehicle types.10
To be ready to meet shoppers online, retailers and automakers need to consider their messaging carefully.
Machine learning can help tailor messaging to each buyer based on searches that signify what matters to them.
And automation can help deliver that message at the right time.
Understanding what people want in real time can help brands connect more meaningfully. To prove it, we conducted an experiment. Our study used elements of machine learning to tailor ad content to stated and inferred user needs, or simulated Google signals.
The ads worked.
Strong messaging built stronger relationships.
But messaging alone won't work unless new expectations are met. As emerging behavioral trends lead to new auto buying behaviors, brands will have to make sure their online retail experiences are ready to match other categories' e-commerce standards. Now is the time for those brands to bridge the digital divide.