Auto dealers are facing downward profit margin pressures on new-and used-car sales due to e-business strategies for Internet shopping, according to Gartner Group Inc.
Ironically, 70% of auto dealer revenue is from maintenance and repair services to consumers, not vehicle sales, according to Gartner, an information technology consulting firm.
Gartner's customer relationship management advice to dealers is to shift their business focus to retaining and extending customer relationships. Dealerships that do not take this approach will be out of business by 2004, according to Gartner.
"Brands such as Mercedes and Land Rover do an excellent job of creating a vision of the total life of the car ownership for consumers," says Rob DeSisto, Gartner vice president and research director.
He adds, "Pricing new cars is only the first step in car investments, and dealers have to begin taking a longer view. The role of dealers must become more relationship-focused if they are to survive. Showing brochures and sales promotions on the web is not going to cut it with the consumers in the new economy."
Gartner offers dealers the following advice in capturing that new consumer over the life of a car:
* Participate in collaborative dealer councils with the original equipment manufacturer (OEM) for defining the complete consumer experience.
* Demand technical support from OEMs for Internet capabilities. Such CRM strategies are not practical for individual dealers to deploy on their own.
* Differentiate after-sale value-added services, such as roadside assistance programs, and free routine maintenance during warranty periods
* Embrace the Internet for customer communication. Offer a virtual garage, schedule appointments on-line, e-notify customers for service check-ups and inspections, and create targeted e-mail campaigns to renew car leases.
Here's a list of the hot 50 vehicle models which web-savvy consumers were investigating during the month of July 2000: - ranked by 2000 / 2001 New Car Pricing Reports generated at Kelley Blue Book's website, www.kbb.com:
1. Honda Accord
2. Ford Pickups (F Series)
3. Chevrolet/GMC Pickups (Silverado & Sierra)
4. Honda Civic
5. Ford Explorer
6. BMW3 Series
7. Chevrolet / GMCTahoe / Yukon
8. Toyota Camry
9. Volkswagen Jetta
10. Volkswagen Passat
11. Ford Mustang
12. Toyota Corolla
13. Toyota 4Runner
14. Nissan Maxima
15. Chrysler/Plymouth/DodgeVoyager/Caravan
16. Nissan Xterra
17. Dodge Ram Pickups
18. Honda Odyssey
19. Chevrolet/GMC Blazer/Jimmy
20. Toyota Tacoma
21. Ford Focus
22. Chrysler PT Cruiser
23. Ford Expedition
24. Ford Ranger
25. Mitsubishi Eclipse
26. Honda CR-V
27. BMW5 Series
28. Jeep Grand Cherokee
29. Nissan Pathfinder
30. Volvo 70 Series
31. Dodge Durango
32. Ford Windstar
33. Dodge Dakota Pickups
34. Ford Taurus
35. Ford Escape
36. Toyota Tundra
37. Nissan Frontier
38. Chevrolet/GMC S10/Sonoma
39. Toyota Avalon
40. Audi A4
41. Saturn S Series
42. Nissan Sentra
43. Toyota Sienna
44. Volkswagen New Beetle
45. Acura Integra
46. Mercedes-Benz E-Class
47. Jeep Cherokee
48. Lexus IS 300
49. Pontiac Grand Prix
50. Chevrolet Corvette
51. Chevrolet Corvette: Made the list
