The last couple of years proved to be very rough for the automotive industry. Various hardships ranging from the outbreak of COVID-19 to the ongoing European crisis took quite a heavy toll on this gigantic sector and the associated industries.
Still, it looks like things are finally turning around and that the automotive industry is launching a very welcome comeback. Namely, according to some sources, the US car market is expected to 2.95 billion by the end of 2022. Although these numbers are still lower than the ones we had in 2019, they do present an increase compared to previous years.
However, such growth always entails heavier competition. Let us take a look then at some of the tips that should help your organization to use these circumstances to the benefit of your organization and climb on top of this recovering market.
Use customer reviews to increase brand confidence
New customers tend to be hesitant when it comes to engaging in a relationship with unfamiliar brands. In the case of vehicles that present a very substantial expense, earning the confidence of first-time buyers only becomes harder. This problem can be solved by allowing existing customers to post product reviews and freely express their opinion about the purchased parts and vehicles as well as the quality of the customer service. Some estimates say that this form of peer recommendation can boost conversion by a staggering 270%. Similar results can be accomplished by tools like referral programs.
Leverage the power of SEO
Up until recently, car purchases were mostly conducted exclusively at dealerships. However, the times are changing. Modern buyers are very savvy and like to do thorough research before they make a final purchase decision. They also like to stay in tune with industry development so they spend a lot of time checking the relevant online content. You can easily exploit these trends by putting a greater focus on your SEO strategy and allowing the clients to get in touch in a more natural, organic way. Starting a blog or creating a quality video content strategy can make these efforts even more effective.
Tap into the replacement parts market
Modern vehicles have much longer life spans than their predecessors. Owners that take good care of them and apply the quality protective coating for cars can keep these four-wheelers road-worthy for quite some time. So, selling these people new, more expensive models is not really an option. What you can do is try to expand your portfolio with replacement parts and maintenance services and give your company an entirely new and very lucrative source of revenue. Measures like this one can also serve as a great safety net for dealing with slower market periods like the ones we witnessed in previous years.
Start selling online
The COVID-19 global pandemic gave the ecommerce market a tremendous boost. Now, that we are slowly leaving this crisis behind, people are not that inclined to flood back to the physical stores, and the number of online sales keeps growing with each passing month. What’s interesting is that this trend is picking up steam even in the areas where online sales were considered a novelty. With that in mind, we would like to point out that, as of today, 63% of car consumers are considering buying their new vehicle online. Taping into this lucrative niche can help your company easily stand out from the competitors.
Realign the company’s goals according to market trends
Even when at its peak, the automotive industry can hardly be considered consistent and features a lot of seasonal and some other, less predictable ups and downs. Anticipating these trends and readjusting the workflow, supply chain management, and budgets to align with the current market reality can save your organization from unnecessary costs and help in optimizing its operations. So, the previous experience proved that car sales spike on Mondays, end of the year (October, November, and December), and on holidays like the 4th of July. Other fluctuations can be anticipated with comprehensive market research.
Incentivize buyers with small perks
Last but not least, we would like to remind you that small benefits, promotions, and other incentives can go a long way in steering away the indecisive buyers from your competitors and right to your doors. These perks can range from more substantial (5% discount for first-time buyers) to symbolic (offering the first couple of oil changes for free). But, in either of these cases, they do add value to each purchase and make you a better choice than the rest of the competitors. For the best effect, you should leverage the FOMO and constantly shuffle these offers making them unique and more importantly time-limited.
We hope these couple of mentions gave you a general idea about the strategies you can use to turn the anticipated automotive market growth to your advantage and truly put your company on the radar. After a couple of very slow years, car sales are finally preparing for a big comeback. This situation will allow the companies associated with the automotive industry to make a lot of money if they only make the right moves. That won’t be easy, but now you know in which direction you should be heading.
