The automotive industry is now undergoing a remarkable digital transformation. With this in mind, dealerships have to adapt to the latest trends in the industry.
In this article, we will walk you through the trends and statistics impacting automotive in 2021.
Read on to learn more.
The Future of Automotive Digital Transformation
We are living in a world where change is inevitable and happens at an unprecedented speed. For one, digital transformation (DX) has driven acceleration in many aspects of our lives and various industries.
In the automotive industry, DX has had a massive impact. Thanks to the latest technologies, the industry manufactures over 78.6 million units yearly.
Today, the main focus of success is sustainability and personalization. In fact, more and more people now purchase eco-friendly vehicles compared to gasoline-powered models. Consumers also demand more customizable and smarter vehicles.
This trend shows that cars are not just assets, but a service. Now, what are the innovations that continue to change with the transformation of the industry?
Let’s find out.
Automotive Digital Transformation Trends in 2021 and Beyond
Mobile devices have changed how we shop today. For instance, studies show that 51% of car users use it to search for dealers, read reviews, and compare prices.
As a result, the automotive industry in the United States invested over $3.43 billion in mobile ads. And that number accounts for 47% of all investments in digital advertising.
Google also launched a dedicated channel for automotive industry guests. With an immersive mobile experience, ads can now result in a 45% rise in conversions.
Customization with Data
The process of buying a car is diverse. It goes from inspiration search to the actual purchase, and it’s not an easy task.
But thanks to data, car manufacturers can gain knowledge about their consumers. That’s why they should use effective and personalized marketing operations.
As a result, they can categorize their target audience into more precise sections. Then, they can make the right product for the right people.
Personalization is also closely related to customer experience and service. Now, car dealers can use interactive videos to reach their target audience.
Personalized videos are designed based on the insights from data. So, it can adapt to the user’s personality. Studies also reveal the effectiveness of using personalized videos.
For one, 70% of car buyers watch YouTube videos before deciding to buy a car. So, it’s not surprising that the industry is utilizing the medium of video by personalizing it.
VR and AR Technologies
Experts predict the global market for virtual reality and augmented reality technology to surpass over 160 billion by 2023. And now, we’re seeing car dealers fusing these technologies into their marketing strategies.
For example, they use 3D models to enhance the customer experience. With Augmented Reality, potential buyers can visualize how the car will look on the road.
In car showrooms, dealers can give customers a virtual tour of the car’s interior. Virtual technicians also use AR to augment vehicle colors and finishes. So, car buyers can visualize changes to the latest models.