Automotive sites that accommodate consumers' diverse research styles and needs will capture buyers’ attention and succeed in influencing purchase decisions.

Just as “search” was the buzzword in 2003, “research” will be the name of the game in 2004. And nowhere is this trend more obvious than in the automobile marketplace.

Now, more than ever, consumers are using their own research skills on the Internet to inform their vehicle purchase decisions. Time-saving, convenience and the ability to compare prices and dealers are major factors in the popularity of automotive Web sites. According to Forrester Research, new car buyers in the United States in 2003 rated Consumer Reports as the most important source of automotive information (cited by 74 percent of respondents), followed by non-car company Web sites (68 percent), advice from friends (61 percent), car company Web sites (59 percent) and auto dealership personnel (57 percent).

These findings suggest, among other things, that automotive marketers have a huge opportunity to better understand purchase cycle dynamics in order to implement strategies that influence the consumer early on.

Consumer Empowerment Elevates Expectations and Demands

The data-rich online automotive marketplace is empowering consumers, challenging online and offline channels to work in tandem, and intensifying competition between marketers. It is arming consumers with accurate information about cost and availability of car models and options, giving them an edge over dealers when haggling over price. As buyers become more informed, they are better able to detect inconsistencies and, more importantly, to determine for whom the deal is advantageous: the seller or the buyer.

Automobile shoppers who start on the Web seek a full spectrum of information that will influence their decision: product, pricing, dealer, finance and insurance information. Which sites they end up choosing will no longer be based solely on awareness and brand equity, but also on functionality and content. For instance, Nissan recognized that the Buying Guide section of Nissan’s site will have to compete with others’ existing advanced research tools, so the company’s interactive team is boosting the tool’s awareness throughout the site. They are adding contextual links from other areas and are improving the content within to add more compelling and interactive material, all in hopes of increasing the volume of customers using the Buying Guide to lead them closer to a transaction.

By 2007, 37 percent of all new car sales will be the direct result of a specific purchase decision made online. Enhancement of Web sites will be critical in order to increase their chances of influencing and capturing those sales, especially given the consumer criticism of exiting online offerings.

They cite the following negative issues:

• difficult navigation,
• too much creative and not enough data,
• lack of updated content, and
• lack of non-abrasive personal assistance.

Consumers are demanding comparison shopping, which is fundamentally changing their expectations of the purchase process. And, as the number of model choices that manufacturers offer expands, vehicle comparison is proving to be one of the most critical site components.

Most corporate marketers agree: The better informed consumers are the more confident and happier they will be. The experience of buying a car only gets easier for all parties involved as customers gain more insight into what they really want and need.

That being said, how exactly can online marketers ensure this appeasement?

Robust Consumer Research Tools Drive Web Site Improvements

Marketers need to respond by gaining a thorough understanding of user expectations, motivations and potential sources of online purchase reluctance in order to offer solutions by designing and implementing improved interactive strategies. Continually assessing new platforms and technologies will ensure sites are providing enhanced content and functionality to customers. Reviewing traffic patterns and path analysis will help marketers decide which content to feature most prominently and which tools and features to potentially add. Clickstream analysis enables companies to observe actual, unprompted user behavior and invest resources where they will have the greatest impact.

By using advanced technology, innovative marketing tactics, and some of the most sophisticated Internet partners, companies can deliver value-added services to customers. Whether campaign goals include awareness, brand impact, traffic generation or client acquisition, marketers are learning quickly that each one should be in some way informed by meeting consumers’ information requests.

The ultimate challenge is to make users feel confident that they will achieve their tasks. To inspire confidence, Web sites can offer content-specific keywords associated with information links and ensure that content gets more and more specific as people navigate deeper into the site.

Many industry professionals believe automakers should build informative, easy-to-use sites and forego costly investments in one-click auto shopping. Instead of investing precious capital into developing online transaction capabilities, auto manufacturers that focus on cultivating their core business, which includes integrating online and offline marketing channels, will reap significant rewards. One of the best performing tactics is for manufacturers to post updated local dealer data on their Web sites. Dealerships are where consumers form their most important brand impressions and make purchase decisions.

Dealerships Face Awareness and Consumer Reluctance Challenges

As if marketers didn’t have enough to worry about, they also have to determine how to incorporate their dealerships into online marketing programs. Potratz Partners Advertising, which provides automotive dealers with competitive strategies, divides interactive advertising into two separate goals. First, ensure that dealers are visible when consumers are doing their initial research. Second, once consumers are browsing the site, encourage them to submit a request for information to the dealer, which gets the sales process started.

“In today's age, the interactive campaign begins long before the consumer actually logs onto the dealer’s Web site. If we can get a consumer on the Web site, the chances of that person visiting the dealership in the next three months to purchase a vehicle are much greater. Like all online advertising, the challenge is how to get him to log on in the first place,” says Craig Hall, director of business development for Potratz Partners Advertising.

Once the first goal is accomplished, it is vital that the site offers a fast and efficient way to view inventory, pricing and vehicle comparisons. Short and basic online questionnaires are a cost-effective tool that dealerships can use to pre-qualify consumers. Potratz’ Hall adds, “Questionnaires are becoming a valuable sales tool especially for dealers in more remote locations because consumers are willing to travel to a dealership that is trying to make the sales process less painful.”

Giving Consumers What They Want Most: Price and Comparison

However, some automotive consumers prefer not to interact with a dealer at all. These modern shoppers are the precise target of Carsdirect.com, the only third-party Web site to offer transactional price quotes without offline contact by a dealer. After consumers configure their ideal vehicle, the company uses software to identify which dealer in its network actually has the vehicle in stock. The consumer can then decide if he or she wants to be connected to the dealer.

By providing buyers with immediate quotes and dealer inventory, the company conveys its respect for, and understanding of, the new Internet information-powered consumer. Generating 4 to 5 million visitors per month, user-friendly Carsdirect.com has become one of the most popular new and used vehicle research destinations. The company’s Research Center allows shoppers to simultaneously compare the specifications of competing vehicles or search for available manufacturer rebates and incentives on any new vehicle.

Carsdirect.com revises its Research Center not toward generating page views, but to make it easier and quicker for consumers to find necessary information. Two of the Center’s most popular features are the Car Comparator, which offers an up to 500-point comparison tool, and the Buying Guide, which provides a wealth of information in categories such as buyer reports and reviews, finance, insurance, incentives and rebates, safety and vehicle history.

Internet Shoppers Still Seek Human Contact for Assistance

Not only does Carsdirect.com’s unique pricing and inventory content provide it a competitive advantage, so does its use of customer service personnel with a non-traditional sales title: Vehicle Specialists.

“Consumers enjoy aggregated information all in one place. They’re also looking for a way to make the car buying process easier using an unbiased human to help them. Our Vehicle Specialists act like personal shopping assistants, by arranging appointments and financing with dealers,” says Chuck Hoover, vice president of marketing at Carsdirect.com. He says referring to and seeing these Vehicle Specialists as “helpers” instead of “salesmen” is helping consumers overcome traditional offline buying behavior by acknowledging that such high-dollar purchases online also require one-on-one assistance around the buying process.

Companies that provide this type of personability along with modern features will drive loyalty, satisfaction and subsequently, word-of-mouth advertising. Viral marketing via direct-to-URL is the most substantial generator of Carsdirect.com’s business; 5 percent of customers refer the service to others. Passionate customer reviews prove this to be true. “I was completely astonished by the service and how easy it was. I learned about MSRP and invoice values, vehicle ratings on safety and was able to make comparisons on the site. All of this in the comfort of my home,” said a customer who purchased a Hyundai Elantra.

Customer Segmentation Informs Site Design

Research conducted to understand how the needs of customers change throughout the purchase cycle must be translated into acute interactive strategies that also inform architecture and design decisions.

For example, Lexus applies findings from its site usability and behavioral studies to create a balance between consumers in different phases of the purchase process. The interactive team created tools, such as the Build-Your-Lexus Configurator for “in-market” consumers and Vehicle Comparison for those who are new to the brand, to support each group’s needs.

“It’s this balance that is critical to maintain, as the site should not be just brochure-ware, but be able to drive leads, while at the same time not losing site of the fact that we are a luxury brand, where image and brand equity are critical,” says Lexus National Interactive Marketing Manager Robin Pisz. “We frame in third-party content for this section, and, as such, it provides an unbiased perspective on our models versus others.”

Enabling Mobile Content Makes Offline Car-Buying Process Easier

One of the newest innovations automotive companies are using to merge online and offline behavior is the eBrochure. OEMs like Lexus and Nissan North America are using the instrument to offer customers mobile content, thereby allowing them to have model and brand information in hand when they visit a dealer. Nissan’s response rate (based on first half of FY 2003) shows that of the site’s visitors, 2 percent submitted an eBrochure request for Infiniti models and 1 percent for Nissan models.

“The user feedback we receive is very positive. Many users have suggested we increase the depth and breadth of the information within the eBrochure. Some also suggested they would prefer to customize the information they're able to print in brochure form including imagery, stats, and pricing info. This feedback will go into future site revisions,” says Steve Silver, director of e-business and CRM at Nissan North America.

The trend toward more information-empowered consumers could have drastic consequences on OEMs who fail to respond. For instance, “in-market” shoppers are no longer going directly to OEM sites but instead using third-party sites that offer aggregated information and up-front pricing. However, OEMs claim the trend is not negatively impacting their sales. Since approximately 70 percent of Lexus’ in-dealer customer traffic has already visited Lexus.com before entering a showroom, the company understands how highly valued the online channel is. Pisz believes that manufacturer sites will long be the primary destination for model and brand information, with third-party sites serving vehicle comparison needs.

One thing is certain: To better entice browsers, every automotive site must provide the information and tools consumers seek, while supporting the needs of their varying purchase cycle stages and goals.

Rebecca Weeks, an independent strategic marketing consultant, offers consumer businesses innovative solutions for developing, strengthening and managing customer relationships. She is known for her exceptional research and trend-spotting skills for both the corporate and agency sides.