“It’s not just what they buy, but how they’ll buy it”. How retailers must adapt to changing consumer shopping needs.

By Karolina Edwards-Smajda, Commercial Products Director, Auto Trader.

If you were able to join our latest weekly webinar, you will have heard us discuss our latest consumer research findings and the implications we believe this will have on how retailers like you will need to operate. I also shared some of the new features Auto Trader will be launching soon to help you adapt to these changing consumer shopping needs.

Retail distancing will be essential to reassure car buyers

Whilst 82% of consumers researching their next car are looking to buy now or as soon as they’re able to make a transaction, there is real concern amongst the UK public about how they will interact with retailers when they are eventually able to make that purchase. Our research found that nearly one in four (24%) of the 1,051 people asked about their car buying behaviour said they’d ‘definitely’ be happy to return to a normal interaction with a retailer as soon as the restrictions have been lifted, however three in four (76%) displayed some uncertainty, and one in five (20%) are actively looking to avoid it.

The ability for retailers like you to reassure potential buyers and provide trust in your ability to provide a safe retailing environment will be crucial.

Will consumers visit the showroom at all?

Half of the those surveyed said they’d still be happy to complete the purchase at the dealership but wanted the majority of the process conducted online allowing for “minimal contact”. Viewing, test driving and collection may have to happen in one visit. When asked about whether they’d be interested in buying a car if a home delivery service was an option, only 7% of consumers said this would be their preferred option. This increases to 12% of car buyers aged 45-54, which although low still does represent a significant number of annual transactions.

The importance of your online showroom

With consumer visits to dealerships set to fall, online showrooms will become the primary mechanism for driving sales. As a result, the digital marketplace will become increasingly complex and competitive; the businesses that will stand out from their competitors will be those that not only build confidence in the cars they’re selling, but in their ability to sell them safely. That’s why our development team has been busier than ever to accelerate the launch of new functionality that will help you highlight the extra mile you’ve gone to keep your customers safe.

We’re confident the appetite to purchase remains, however our research highlights that for most consumers, their expectation of a retailing experience will be vastly different to what it was pre-lockdown. You must use this time to plan how to implement measures that enable your customers to buy a car safely and which comply to the strict guidance set out by the government. You must be retail ready for when the restrictions lift - failure to do so will put you at a huge disadvantage to those businesses that have been able to adapt to the new retail landscape we are now faced with.

New Auto Trader features to help you adapt

To help you adapt to this new landscape, we are going to introduce a range of new features to your adverts which highlight the new measures you are putting in place to potential buyers giving them the trust and reassurance they need at this challenging time.

Covid-19 Safety procedures

Your adverts will have a dedicated space for you to outline the steps you’re taking to maintain consumer safety during the showroom experience, such as social distancing measures, anti-bacterial cleaning, and the application of personal protective equipment (PPE) among staff.

Book a live video viewing

Potential customers will have the option to book a Live Video Viewing directly with the your team from your Auto Trader advert, in order to explore any specific details or features they couldn’t find in the advert view and replace the showroom visit with a virtual one.

Home delivery flag

If you provide a home delivery service, you will be able to highlight this to customers covered by your delivery area and provide more details about how the service works and any associated costs.

We’ll be in touch next week with details on how you can set these new features up in Portal. The new features will appear on Auto Trader’s marketplace as soon as the current restrictions have been lifted and showrooms have been allowed to open in line with government advice. The functionality will be included in all selling packages at no additional charge and apply to all channels, including vans, bikes and leisure.