The importance of a Mobile App for Auto Dealerships

Are you prepared for the mobile evolution?

There is an Evolution taking place in the business community in the way that customers want to connect with your company. It’s called the Mobile Evolution. Is your company ready for the mobile evolution? Remember when there was just newspaper, radio, and TV. Then the advent of the personal computer and explosion of websites; Now more than 64% of Americans and 85% of Millennials own a smart phone which is driving the growth of the next tool in the arsenal for companies – the mobile app!

With mobile use growing every day, the millennial generation has been instrumental in this evolution and now businesses are connecting directly to their customers through their mobile devices. In fact, Studies show that over 55% of Millennials expect brands to have a mobile app that gives them quick and easy access to their business. And Did you know that in the next five years more than 50% of all cars sold will be to those in the Millennial Generation?

%

Of Americans Own A Smartphone

%

Of Millennials Expect Brands to Have Apps

%

Of Cars Sold Will be to Millennials in next 5 years

Why is having your own mobile app so important?

Look around, companies everywhere are trying to get connected to your customers through their mobile devices! Are you letting them; are you currently promoting them? Ask yourself, are you telling customers to download some other company’s app and putting their brand in their pocket? Do you have materials in your dealership promoting another app?

Are you letting someone else have full access to your customers for their future sales and service needs? If you answered yes, to any of these questions you are not only losing money, but you are giving up control of your most valuable asset. Your Customers!

Having your own mobile application gives you instant access to your customer base and communicating with them has never been faster, easier, and less expensive. Additionally, customers will leave your store with your brand in their pocket and they will know your company is just a touch of a button away.

Don’t be the last to this race because there is limited real estate on your customers mobile device. Just watch the TV commercials for almost every business out there today; your bank, your insurance company, your grocery store, you name it; they are all promoting their app to their customers. They are promoting their app in order to give their customers a better, faster, and easier experience for their business. The question is, will your brand be on your customers phone, or will some other dealer reach them first?

Industry Analysis

According to Cars.com 81% of automobile customers use their smart phones to research before purchasing a vehicle. 63% of these customers used their devices to look up information while physically present at the dealership.

A recent study performed on trend analysis in the automotive field has shown that car dealership service departments are increasing sales because of their mobile app users. Results from studying dealerships with mobile apps have shown a 25% increase in the number of 6 month service visits after the app was released. The study that was performed estimates that incremental service revenue grew by approximately $144,000 for every 1000 app users.

A separate study has shown that customers with an app from a dealer installed on their phone are 73% more likely to purchase a vehicle from that dealer and spend 7% more on that purchase than a customer without their mobile app. A dealer’s mobile app simplifies the buying process and makes it easy for customers to interact with all aspects of a dealership from the swipe of a finger , which are key factors to these results.

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