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10:52 am March 11, 2014
Mobile app technology is changing industries faster than any time in history. Global cultures are becoming more mobile and have placed a value on anytime/anywhere access to information.
Industries are learning to embrace and adapt this transition and auto dealers that have embraced this technology are learning new methods of increasing sales as well as creating loyalty and customer retention. Let’s take a look at how this technology is being embraced by auto manufacturers and dealers, and how it is changing their relationship with their customers.
Automobiles are becoming platforms in themselves assisting drivers in numerous ways. It seems mobile apps have become the standard bridge between manufacturers and customers. The auto industry continues to embrace this trend more and more. Some of the big manufacturers like Ford (NYSE: $F) and General Motors (NYSE:$GM) are using mobile apps to market their automobiles.
Toyota (NYSE: $TM) started an aggressive campaign to build mobile apps in 2011. The company wanted to let consumers shop its 16 different types of vehicles with more than 130 different color options, and to find nearby dealers.
As companies were building these apps, early on they had to make a decision on which operating system to choose: Google‘s (NASDAQ: $GOOG) Android, Apple (NASDAQ: $AAPL) iOS, or some other operating systems. The pendulum for mobile apps is swinging towards multiplatform apps, which makes it even more adaptable for different types of phones in different countries.
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The use of smartphones is now being integrated into automobiles and it is estimated by Juniper Research that by 2016 there will be 92 million “Internet connected vehicles” on the road. The concept of the “intelligent car” is expected to generate revenues of about $14.4 billion by 2016.
The integration improves the driving experience; there are numerous pieces of information that the driver can access. Here are a number of samples that mobile apps allow drivers to access using their smartphones:
- Weather and traffic alerts
- Dealer locations
- Navigation directions
- Fuel consumption calculator
- Roadside service information
These are just a few examples of some of the mobile apps that are available, but by no means exhaustive being built into newer model cars.
The development of mobile apps in the future could also make consumers more loyal to car models since brand specific mobile apps are being developed. The most successful car manufacturers will now be operating like high-tech companies, focusing on helping drivers have more of a compelling experience than just getting from one destination to another.
Because they are faster and easier to use, apps have a better track record of getting people closer to a dealership and have become a necessity for all dealers in today’s automotive market.
According to Flurry Analytics, owners of tablets and smart phones spend an average of 94 minutes a day on apps. This is more than people spend browsing the web, which proves that people access information from apps more than any other means.
The automotive dealer focused app “Driver Connect” has the average user spending 21 minutes on the app for each visit compared to five minutes on the dealer website. Twice as many pages are viewed by an app than they are on the dealer’s website.
If dealers want users to come back, the apps have to be useful and create a reason for it to be used on regular basis. The “Driver Connect” app has return visitors 75% of the time. The true power of any app comes from repeat service.
The latest version of this mobile app, Driver Connect 2.5 by DMEautomotive, is intended to drive sales as well as enhance retention and loyalty for auto dealers.
The idea is to provide “user friendly functionality” to enhance the customer experience without having to dig into the app like some competitive automotive apps have.
The customer can set up an account on the app and pull the customer’s vehicle information straight from the dealer’s DMS without having to type in a vehicle identification number scan. When customers are shopping for cars, dealers can put as much information on the app for cars that they’re selling.
There are many more services that the Driver Connect 2.5 app has that will allow consumers easy access along with regular use.
Not only is the automotive industry turning more and more to apps, but so is the cycle industry.
Specialty Mobile Apps, a subsidiary of Sparta Commercial Services (OTC: $SRCO), is developing mobile apps for the motorcycle industry.
Like automotive dealers, its app helps the user perform single or multiple related tasks on a mobile handheld device like a smartphone. It provides a framework where clients can easily utilize and manage interactive customized mobile applications.
We all know the culture is going from desktop to mobile, so the cycle industry will continue to grow.
Automotive and motorcycle dealers like Harley Davidson know that the future to reaching their customers is through mobile apps. Specialty Mobile Apps is the preeminent provider of custom mobile apps for Harley-Davidson dealerships. Presently, there are more than 100 Harley-Davidson dealerships that partner with the company, as well as other Powersports, RV, Marine and Auto dealers and other industries.
The big thing about the mobile app industry is management and customer service. There are a lot of “mom-and-pop” mobile apps companies popping up, but as they grow, they realize they cannot properly service the larger businesses. These small app shops don’t have the revenue, time, nor the manpower, to properly service clients and manage the whole mobile marketing experience. This starts to consume their time and they don’t have the ability to sell or build anymore and it drives them out of business.
The future of the industry is in the commitment to the customer to provide training support and long term technology dedication. This is one of the reasons Specialty Mobile Apps continues to grow and bring on clients.
This is where dealers should be, and will be investing in the future. Traditionally, we have had radio, newspaper ads, TV and industry magazines. Even a website cannot compare to the power of “instant connectivity” to customers.
Benefits to Embracing the Mobile App Technology
With this move in technology, this is where the car and cycle companies will benefit:
Increased Sales
Sales staff will be able to communicate with interested clients, showing them new models and products while they’re on the go. What the industry calls “door crasher deals” are promotions, which can also be sent via a mobile app, that are also time and date sensitive. QR codes can also be created and used linking manufacturer promotions for clients.
Customer Service & Retention
With the app, customers can easily connect with departments like parts, service, body shop or even sales if they need to while they’re on the go. It a driver’s vehicle breaks down, they can easily contact the dealer’s service department for help. Society continues to go mobile, and it is very important to have this access for the consumer.
New & Used Sales Inventory
Customers can have access to showcased vehicles 24 hours a day, seven days a week on their mobile apps without having to drive to the dealership. A “dealer inventory feed” will make all information, including pictures, available to customers instantly.
Bringing It Home
Mobile App technology allows consumers to travel and access information any time they like is transforming industries. Automobile manufacturers are adapting new methods of using mobile apps in the vehicles. Both automotive and motorcycle dealers are developing and using apps to help consumers access information for multiple uses instantly. The relationship between dealer and customer is becoming closer and more personal than ever before thanks to the mobile app movement.
Source: http://www.wallstplaybook.com/mobile-apps-changing-automotive-cycle-industry/
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