Some auto industry news sources declare there will be a 15% drop in car sales this year thanks to COVID-19. These are speculations that seem singularly focussed on safe assumptions. We have no way of truly knowing how car sales will change in the aftermath of the Coronavirus. In fact, the automotive industry outlook might be better than imagined.
Why You Should Ignore Most Auto Industry News Sources
We won’t go as far as to say those that believe the automotive industry outlook is poor are completely wrong. However, we will say you need to take what they say with a grain of salt. First and foremost, many current news articles are repeating the same information. This makes it feel more certain even though it is just one opinion being repeated over and over again. Secondly, news industries thrive on providing negative information to their audience. It captivates audiences, traps them in a fear-mindset, and has them coming back for more because of our tendencies toward negative bias.
Keeping up on current auto industry trends is important. Just don’t get caught up in all the negativity being published. The negativity can change the way you think and make you give up on the world ever being right again. Instead, it is important to consider alternatives and remain as positive as possible. In fact, we believe there are a couple of arguments for some opportunities. The auto industry can rebound once the pandemic craziness has subsided.
Will Car Prices Go Up?
There are two reasons we believe there is a chance that car prices could actually jump up after the COVID-19 pandemic has passed. Let’s take a closer look at each of these so you can see how each of these is not just possible, but probable.
Pent-up Demand
There has not been a legitimate decrease in the demand for cars. The same number of people are still going to need new vehicles. However, they have had to put off their buying decisions because nearly everything has come to a halt.
This is creating pent-up demand. Think of all the people who are currently wanting to get a new car. With quarantine restrictions lifted and the economy showing signs of a pulse, consumers are going to return to showrooms across the country. This could cause dealerships and even used car lots to see a surge in buying activity from customers.
Limited Inventory
Production lines have come to a standstill at many car factories. If manufacturers cannot make up for lost time, there may be a limited number of vehicles available to meet the pent-up demand. This could drive up the prices of new vehicles since there will be a limited supply of them with high demand. Imagine consumers making a run to secure their new car needs the same way they did for toilet paper.
Certain colors and models may become particularly valuable if there have been fewer of those made by the time the demand returns to normal. This may continue for years if inventories remain limited.
The Prepared Will Prosper
If you want to take full advantage of whatever demands and changes may come after COVID-19, you need to consider three things now. What is our offer message, who should we target with that message, and what channels will reach them most efficiently? A sound strategy around these three things will prepare Dealer, Region, and OEM sales efforts to maximize on the opportunity and potential demand in a post-pandemic market.
Communication Strategy
We have already begun to see offers centered around peace of mind when making a purchase in uncertain financial times. Stressing selection and inventory availability in a healthy secure purchasing environment, with minimal interaction will be important as well. Depending on inventory, offers will need to be tailored to sway selection desires toward what is available vs. what is most popular.
Online Targeting
Take advantage of how much more time people are spending online. The pandemic is going to heighten online channel adoption, above and beyond projected growth levels. This is one of the best and most cost-effective ways to identify and target potential shoppers.
In particular, social media advertising will help you create targeted ads that you can set up to only be seen by your target audience.
Mobile site optimization is especially important with so many people using their smartphones for browsing today. When they land on your site, you want to be sure they’re greeted with a clean, concise, and easy-to-use website.
One thing to focus on now that can help your business for years to come is SEO. Search engine optimization is a powerful multi-faceted strategy that will help improve your search rankings so that more customers can find your website.
Email Marketing
While many people are spending the majority of their time at home, use email lists in conjunction with offline data to model and target specific audiences. Plan ahead for when quarantines and travel bans are lifted so you can have an email series ready in time to capture the demand.
If you don’t currently have an email list, now is the perfect time to use online advertising and other agency email resources to start building one. This will allow you to be ready to let everyone know when your business is ready and waiting for their visit.
Ready to Find the Silver Lining in the Coronavirus Stormcloud?
Now you know why it is so important to avoid listening to the doom-and-gloom attitude that many auto industry news sources have today. Instead, focus on that silver lining and work hard to make the most of the situation.
There may not be anything you can do about COVID-19, but there is something you can do to prepare your business for whatever lies ahead.
If you want to get a jumpstart on your competition by improving your digital marketing strategies, contact us today. We would be more than happy to help you prepare your business for a post-coronavirus world.