Lehel Reeves shares why consumers prefer video and how dealerships can lose sales if they fail to provide it.
While many dealerships agree that video is important and worthwhile, at the same time some think it’s time-consuming and lack the resources to put a video marketing strategy in place.
What if I told you that acquiring and scaling a well-planned video marketing strategy which leverages video content for shoppers throughout the entire buying cycle can be automated AND cost less than $5.00 per unit a month? Or that this same video content can help in search engine optimization for your website at no additional cost? And, how about this: that same video content can also build customer rapport — AND attract new buyers you don’t even know exist? Would it then appear to be worth it?
According to NADA, the average dealership runs a marketing cost per sale of $640 per unit. Dealerships spend a ton of money between all their marketing sources attempting to attract attention to their inventory.
And how about this for a statistic? 93% of marketers say video brought them new customers — Interested now?
There is a case to be made that social media can help sell more cars. In fact, according to a study by leading video research company Animoto, 73% of consumers responded that their purchase decision was impacted by a company’s social media presence.
And what is the most popular type of content across all social media properties?
The best part is that with a scalable video marketing strategy you can use all of the same automated video content for your social media strategies as well, dramatically increasing the return on investment from all of your digital marketing. Would you rather spend $640 per unit — or much less? It makes sense to look at what moves units and acquires new customers for the least amount of money. That’s how you increase profitability.
Still need convincing? How about this: 57% of millennials watch more video ads on social media than on television, and 45% of consumers discover brands through video ads; more than recommendations from friends, which is at 31%.
When it comes to discovering brands, word of mouth is still king. But, increasingly, consumers get recommendations from friends and then check out the dealership via social media such as Facebook or online reviews.
Having a healthy and robust presence on social media with video content can influence car shoppers and bring you sales from shoppers you didn’t even know were in the market.
Video content is here to stay and will increasingly dominate all platforms as the preferred type of content influencing sales. If you don’t already have a strategy in place to produce video content to market your inventory, your store’s value propositions, your monthly promotions, your employees, and your brand, you’re behind the eight-ball.
It really doesn’t take as much work as you think. And, the rewards you will reap are well worth the effort.
All too often marketers find themselves with writer’s block, if you will, when it comes to new ideas. Short of spending a ton of money for an ad agency, businesses can still find opportunities to insert themselves into trending stories for little money… IF they act quickly.
Case in point: On Nov. 2, 2017, a young aspiring videographer decided to use the power of video to help his girlfriend sell her car. What was so special about it? Nothing! It was a 1996 Honda Accord. But he created this incredibly clever, well filmed video advertising the vehicle. In fact, it was so clever that, to date, it’s received over 6.2 MILLION views. Yes, a video merchandizing a car went viral. Surprise! Videos sell cars.
You can watch the video here:
CarMax heard about this trending video and quickly jumped into action. They created a response video integrating the features and items for the 1996 Honda Accord and offered $20,000 for the vehicle (We all know that a 1996 Honda Accord with over 100,000 miles is not worth $20,000). This video also went viral because outside observers joined the ongoing story to see what would happen.
Here is the response video by CarMax:
At the end of the day, the videographer accepted CarMax’s offer and his girlfriend sold the car to them – minus the cat.
Why did this work so well for all parties involved; and why did anyone care?
When making the video of the1996 Honda Accord, the aspiring videographer took the time to tell the vehicle’s story. He created a high-quality video walkaround that was over-the-top in personality. The seriousness of his tone in the video essentially became its own character.
Of course, people loved it. But why? For someone to even take the time to make a video like this is itself entertaining. But the character and personality injected into the vehicle throughout the video captured a lot of people’s attention – and for something that’s normally not that attention-getting.
Video has the power to engage and hold an audience when it’s done right — and this videographer did it perfectly.
CarMax saw an opportunity to capitalize on a trending video in a humorous way. But, more importantly, in a way that supports their brand message – namely, that they buy cars. The video had a tongue-in-cheek style that was appreciated by the Internet citizens paying attention. While their video didn’t go quite as viral (only around 350,000 views), that is certainly more views than they were used to getting on any vehicle inventory video.
In the end, the lesson to be learned is that every car has a story, something that makes it unique, special, and desired by “someone”. But that story can only be told by making videos in a way that engagers viewers. Your video doesn’t have to reach 6.2 million people. It only needs to engage one. And when it does, you’ve done your job right.
Make videos infused with personality, which are also high quality, regardless of if you’re selling a Ferrari supercar, or a 1996 Honda Accord.
The second lesson to be learned is that there are marketing and branding opportunities all over the place. You can capitalize on these without much expense, and little effort. While you certainly shouldn’t try and jump on every trending piece of social media that’s gone viral, you should identify those that fit well with your dealership and brand message. The Internet can be very critical if it senses you’re out of character, or solely trying to get attention. Your Internet audience can, however, appreciate a clever response that’s in-character.
Take this as an example of how two videos of a 1996 Honda Accord engaged millions. Consider any opportunities you have at your dealership to improve the quality and engagement of your vehicles through video marketing. You may start seeing more engaged buyers — which will translate into faster inventory turn and higher front-end revenues. And that’s what video merchandizing is all about.
by Tim James
Ever since the first car dealership opened, dealers have understood the emotional impact of “the walkaround.” As consumers move through the buying cycle, they get to a point where they don’t just want, but need to experience a vehicle that they are interested in. In the past, most consumers would visit the dealership in the evenings, when the lot was closed to avoid “being sold.” But driven by their need to experience the vehicle in person, they still came, day and night.
Well, believe it not, nothing has changed! Consumers still have an uncontrollable need to experience a vehicle first hand as they move through the buying cycle. The only difference is that the initial experience takes place online via a Vehicle’s Detail Pages (VDP Pages). Imagine, however, if a dealer could put one of their vehicles (or their entire inventory) in every mall, venue and every other busy consumer traffic area in their PMA, at no additional cost. Now image if they could have a salesperson at each and every location to talk to customers 24 hours a day, and 7 days a week.
While placing a vehicle and a salesperson everywhere in the physical world isn’t practical for dealers, it’s absolutely possible in the digital world. In this age of online shopping, one of the most important assets that any dealer has is their inventory’s VDP. Chances are very good that car buyers who land on a dealer’s vehicle display page are very close to buying. Every vehicle in their inventory should thus be displayed to its best advantage, and on as many potential touch-points that a car buyer is likely to visit as possible.
Let’s face it. Most of your in-stock vehicles are competing for consumer interest. Many dealers choose to attract consumers via low prices, sacrificing profit for the sale. Smart dealers understand that high quality, visually appealing inventory marketing will get a shopper emotionally attached to a vehicle. It will motivate that shopper to want to visit their store to test drive “their” car long before any “price” motivation will. The fact is, once a shopper begins forming an emotional attachment to a vehicle, you no longer have to be the lowest price to motivate the shopper to visit your store.
Nothing can generate a higher level of emotional attachment than a quality video presentation of your inventory, nothing. The best part of the equation is that your shoppers actually want to see videos of the vehicles they are considering. In fact, video content is quickly becoming the media of choice for consumers. 85% of automotive shoppers stated that they watched a video of a vehicle during their car buying experience, and half of them (49%) take action immediately after watching. While dealers are sure to have nice websites, great pictures of vehicles, attractive newspaper ads with calls-to-action, many neglect the fastest growing type of marketing (and the type of marketing that will have the biggest emotional impact) – video.
Think about it like this, your online advertising should be focused on motivating a shopper to “visit your dealership”, not “buy a vehicle”. Price based motivation is asking the shopper to commit to a purchase before they’ve ever even visited your store or test driven the vehicle. Meanwhile, a video’s power is inherent in its ability to involve multiple senses when displaying the vehicle to an online car shopper. Having high-quality videos will allow shoppers to experience your inventory at the highest level possible online, making it more likely for a shopper to become emotionally attached to a vehicle and have an uncontrollable need to visit your dealership to take a test drive.
Having the ability to then place that video on multiple touch-points throughout the buying cycle increases the odds that the consumer finds, views and chooses your vehicle over your competitor’s, regardless of whether it’s the lowest price.
Improve the quality of your inventory marketing to potential customers and you will see more interest, higher conversion, more profit per sale and a faster turn rate. Sell the car, not the price.