The automotive industry pumped the brakes hard in the early months of the global COVID-19 pandemic. The impact was first felt in China, where sales plunged 71 percent in February 2020; by April, sales had dropped 47 percent in the United States and went deeper into a decline with an 80 percent decrease in Europe. From a consumer perspective, analysts expect this volatility to continue through the rest of 2021, advocating car shoppers to do extra research, be flexible, and brace themselves for higher prices and increased competition if they know they need to make a new vehicle purchase soon.

Although the auto industry is still navigating the ramifications of COVID-19, there are several reasons for optimism. Low inventory levels are accelerating new and used car margins, driving a modest level of revenue growth. Limited new car inventory availability also causes consumers to be more efficient in how they shop for their next car.

This could actually help evolve and improve in-store experiences in several ways, leading to a more efficient sales process for dealerships. Fittingly for an industry that’s all about moving people and things around, the automotive industry is in transition. However, these trends, along with the fact that car inventories are expected to grow significantly in the early part of next year, creates a path for a strong recovery and a growing return to in-person auto shopping in 2022.

In a recent Deloitte consumer study, 71% of respondents said they prefer to buy their next vehicle in-person. In order to regain market share and create a new buying experience for customers, understanding who current customers and prospects are can inform where and how to best interact with them through tailored offerings and advertisements. This can be done on a local and national level.

Here are six ways auto marketers can leverage data-driven insights to create customer experiences for consumers as they return to in-person auto shopping:

• Don’t forget about consumers who are showrooming. As pandemic-related restrictions have eased in some areas, customers have flocked back to dealership floors. If they are visiting your showroom, they are likely visiting your competitor’s showroom or scouring the internet for the best deals as well. According to foot traffic data, car buyers visit about 3.4 dealerships on average before making a purchase. With visitation data, you can retarget these audiences with relevant offers to increase your position over other nearby dealerships and offers.
• Increased sales of pre-owned vehicles affords marketers to get creative with offers. Car industry experts anticipate a 9% growth rate in used car sales between 2019 and 2025. Marketers have the opportunity to serve customers with new and targeted offers based on their visitation rate and behavioral data. Dealerships now have inventories full of certified pre-owned autos that look, feel, and function like new cars but cost much less. Low APR financing also helps make pre-owned vehicles very attractive.
• Your best measure of success is foot traffic. Visitation is the best measure of success for any brand with a physical location because a visit represents true buying intent. Use visitation data to not only understand the effectiveness of your advertising strategy but also optimize campaigns towards your results. Brands can also lower acquisition costs by improving targeting across traditional mediums, such as linear TV, by understanding which channels are driving the most relevant results.
• Winterize your campaign strategies. If you are an auto DIY brand, make sure to fuel this past year’s growth during the fall/winter seasons. With weather triggering ad technology, you can automatically activate campaigns for everything from windshield wipers to snow chains during inclement weather conditions. Conversely, if you are an auto dealer, you can automatically turn on/off your mobile campaign when there is a shift in weather that will impact visitation to your locations.
• An integrated marketing strategy will go a long way. As people transition from outdoor activities to indoor, it’s important for marketing campaigns to maintain their reach no matter where your potential customers are spending their time. Adding CTV and social media to your marketing mix can help ensure you are reaching consumers no matter where they are.
• Reach for the longtail. With a growing market of consumers with older cars on the road, service departments and DIY auto brands are in a unique position to engage with this growing segment. Layer your CRM data with location-based audience data to help understand and reach your customers at important maintenance timeframes.

The automotive industry, like so many other verticals, will be evaluating consumer behaviors and recalibrating marketing and sales strategies now and in the future. There’s no way to know how many changes will stick, but understanding the consumer mindset is the first step to reaching consumers who may be increasingly comfortable with new ways of shopping and interacting with brands. With the right automotive marketing strategy, you can continue reaching and engaging car buyers and getting your dealership seen when – and where – it counts.