Friday, December 16, 2011

Speaking of Smartphones

Smartphone sales are replacing standard computer sales by early 2012.

Did you know that 45% of female Smartphone users (such as iPhones, Droids, and Blackberry) report that they use the phone to find the nearest store, and that 36% use that same phone to price compare?

Apparently, the days of buyers driving around town to "price shop" are fading fast.

Other retail and service business clients that we consult tell us that due to the Smartphones their consumer is armed with massive information. In fact, buyers have so much data about products and services that it's creating "data drowning". In the words of one retail executive: "Buyers have too much information, and not enough facts." But does that really matter if the consumer has a "perception" that your prices are too high?

Consumers are also using smart phones to cross-shop retailers simultaneously as they negotiate, for example looking at your business website while negotiating verbally with another business on the phone.

This brings up a question. How will auto buyers adapt this habit when buying cars? It's safe to predict that they will bring this habit with them into the industry and use it as a weapon on the dealer when buying a car.

Dealers should think about how to prepare their dealership for success in this Smartphone era because whenever a new technology is embraced buy an American consumer, a new shopping habit seems to evolve. Here's one already. According to several dealers we consult, their buyers today are already shopping at odd times on nontraditional days. "Shopping" for a car can now occur in a moving city bus at 6AM on a Sunday morning.

The question is, does your dealership have the ability to respond at that day and hour?

From what we've seen so far in regard to consumer habit, buyers are using the phone to gather information and then use the information to economize their shopping time, not necessarily initiate a negotiation.

The goal of the dealership owner then should be to consider Smartphone use in their marketing plan.

Here are a few recommendations for an auto dealer:

1. Build a mobile website. Only 30% of American businesses have a mobile version of their website. Do you? If not, expect the Smartphone consumer to move on. Your mobile version of your website just needs to list the obvious information someone would want including an email and phone number that someone can "press to dial/email", your new and used inventory, your pricing, your dealership directions and hours, and video links to cars. Note that varying phone formats need to be considered when building your site.

2. Promote the mobile page using local websites. Television stations have very high traffic websites and mobile sites that are well promoted locally. Buy a link or push down ad on these sites and direct buyers to your mobile page instantly. Imagine the convenience to a car buyer when your ad "just happens" to pop up on their favorite TV station mobile site just as they begin to Smartphone shop for your brand. Also, the click though rates of these types of ads have been very healthy, sometimes far beyond "normal" digital ad marketing performance.

3. Develop a reason to attract a competitors Smartphone buyers to your website. We are developing these exclusive ideas for dealers and results have been positive. Your factory gives you a car and a price, usually identical to your competitors. If a buyer were about to sign a deal across town, what message would stop them cold and make the call you? What help this "hot" buyer choose you? What exclusives can you offer him or her beyond car and price?

Remember, today they've got a supercomputer in their hand, and dealer information is free and easy. What are you doing about it?

Also for an excellent video report on Smartphone use today click this link: http://www.cbsnews.com/video/watch/?id=7362003n

Sources: Greystripe 2011, ESA&Company 2011.

-Adam Armbruster is a partner in the retail and broadcasting consulting firm

Eckstein, Summers, Armbruster and Company located in Red Bank, New Jersey

and can be reached at adam@esacompany.com or 941-928-7192.

Adam Armbruster

Sarasota, FL

941 928 7192