“The UK used car market is projected to see only modest growth in the coming years, with transactions expected to rise from 7.4m in 2024 to just under 7.9m by 2027,” according to the latest analysis from Cox Automotive.
That’s less than 7% growth anticipated across three years.
With used car transactions significantly lower than in previous periods, including 2002-2008 and 2014-2019, what are retailers doing to maximise the positive impact of each and every used car sale?
One proactive approach is to start looking at the data showing how much of an appetite there is for add-on products and services for used car customers.
The used car buying journey can be shorter than the new car journey so it would be easy to assume that there is less of an opportunity for bolting on the likes of accessories, warranties and protection products, but the data coming out of the order to delivery platform AutoBuzz tells a very different story.
Scalable solution for used car buyers and add-on sales
AutoBuzz builds a personalised digital WelcomeHub or microsite for each and every used car customer when an order is confirmed and within this ‘hub’ all the relevant, potential add-ons are explained and promoted.
Despite common perceptions that there isn’t enough time to engage with used car customers as the handover period is relatively short, data from AutoBuzz has once again proven this to be incorrect. In fact, we see 87% of used car customer emails being opened and with a 65% click rate, engagement that is substantially higher then any typical sales or marketing email campaign.
Within the Hubs, the high levels of engagement, where true customer intent is shown, levels are 14% higher after 2 x touchpoints with conversion on products like accessories being above 80% proves that, with the right kind of highly personalised and intelligent content, the used car buying journey holds massive potential for add-on sales.
Going further, the AutoBuzz tracking data shows that the excitement for the used car purchase goes way beyond the delivery point. In fact, even when AutoBuzz tested pushing communication to used car buyers once they had driven off in their new vehicle, the engagement levels were similar.
Robust sales process in used car retailing
There is little doubt that those businesses that sharpen up on sales process around used cars stand to maximise performance from a shrinking marketplace.
It’s too easy for sales teams to close out used car sales in short timeframes and neglect to present the associated products and services because time simply wouldn’t allow.
The data shows clearly this opportunity exists, not just between order and delivery but beyond that point as well.
If you want to find out more about how AutoBuzz can start to improve retail performance in the above ways, please get in touch with the team so we can set you up a short pilot to showcase the value.
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