A careful review of app data analytics teaches us many things about apps and their benefits to dealers.  The most important lesson to learn is that every dealer that has an app has some sort of consumer activity.  Our goal is to discuss how to measure the success or the degree of that activity and how app stats can impact all areas of your dealership.

Mobile apps for auto dealers are a dynamic and emerging technology.  Since the majority have smartphones and use apps, we can relate to the fact that apps generate activity.  For dealers this activity can lead to increased CSI, sales, service retention and increased revenue.  Dealer Apps have gone far beyond the ‘cool factor’.  Why? Because they generate consumer activity.  Even though the download and activity numbers vary per dealer, it is still worth noting that any activity can impact your business.  The success of an app largely depends on the activity it generates and how a dealer decides to use the app in their everyday processes (also known as app marketing).

Very few ‘systems’ you invest in have the ability to impact all areas of your business the way an app can.  It is a communication tool; a branding tool; a sales tool; a service tool; and a utility tool.  Naturally, more downloads increases the activity level throughout the app. This is one of the major differences between a mobile app and a mobile website.  You must advertise your app. (you’ve seen eBay, Hertz, GEICO, Walmart, Best Buy, Delta and others advertise their apps).  All this effort in order to generate app activity. 

Here are 9 areas of overall app activity that should be important to you:

• Number of times your app is accessed
• Inventory views
• Scheduled Service
• Messages viewed (Push Notifications)
• How many times Dealership number is dialed
• Number of Carfax (or similar) viewed
• Number of Vehicles created
• Number of profiles created
• How often Facebook or Social Media is accessed

This is the ultimate goal of the app – to generate activity from your customers.  This activity is what can improve customer relations, increase brand awareness and impact the bottom line.  Dealers try many things to attract, sell and retain customers - websites, social media sites, billboards, radio/TV commercials and more.  The Science behind marketing is ever changing.  The data now all points to mobile and what use to be a trend is now an expected part of your business.  Since a dealer branded mobile app impacts so many areas of your business shouldn’t it be a serious part of your marketing and retention strategy?    

WHAT CAN AFFECT THE NUMBERS?

It is important to understand that there are variables that affect the activity of an app such as the brand, location, customer demographics, the app itself (features) and dealer participation.   Some dealers have an app just to say that they have one.  Maybe a competitor has one and they don’t want to be outdone by their competition.  They don’t promote it, send out push notifications or use it internally.  Other dealers take more of a proactive approach and make the app part of their culture.  They advertise it everywhere (digital and print), they get their staff involved in using and promoting it and they send out regular Push Notifications.  In both scenarios the results vary but there are always results.  Obviously, the dealers that make it part of their culture experience greater results.  And this is where it becomes interesting.  Push Notifications, Geo Fencing and Chat messaging via the app makes it a serious contender in the customer acquisition and retention game.  Dealers sell cars via the app, service activity increases, Inventory views are high and Push Notification views are strong.  For those dealers, they would say that despite not being able to put a hard dollar amount on ROI, the app is successful.  It is a contributing factor in the monthly revenue.  Not to mention, out of all the marketing and retention strategies, the cost of ownership of an app is significantly less expensive.

FUTURE OF APPS

Stats show that the average consumer if given the option of an app vs a mobile site for a business that they frequent will choose the app.  Why?  Because of convenience, functionality and performance.  They inherently know that an app should and is going to provide a better experience than a website.  Engagement features will only get better.  OEM involvement and Connected Vehicle technology will require the use of more apps.   New features are being added that will amaze your customers, which will make doing business easier with you and increase your bottom line.  Features such as - paying for service via the app, an interactive staff directory, a personal greeting service, vehicle information portal, mobile wallet, local notifications, rewards system and more. 

App Marketing must be included in a dealer’s marketing strategy.  The goal is to help educate on the features of the app, how to market the app, understanding the analytics as well as sending out Push Notifications.  Thousands of downloads will not happen overnight.  By following an App Marketing plan, consistent downloads and app activity will increase over time.  As long the app is part of the process, the bottom line will be impacted positively.  The time invested is worth it.  Keep up with promoting your app and you will be able to capitalize on the activity. 

For an in depth look at your app’s activity please contact your Mobile App Provider to review your app’s analytics.