Consumers turn to video to glean information when making a purchase decision whilst dealers are increasingly discovering its worth as a means to keep and engage customers throughout the entire ownership lifecyle.
"The opportunity to use video throughout this lifecycle is huge,” CitNOW boss Alistair Horsburgh (pictured) will tell delegates at this year's AM Digital Dealer Conference.
“For example, with around three quarters of people funding their vehicle purchase with PCP plans, the renewal process is much easier to predict.
“Consequently, we have dealers who will send a video six months before the end of the agreement showing the latest model of their customer's car with an upgrade illustration."
Having coined a new phrase, video relationship marketing (VRM), Horsburgh will introduce the concept at the conference on September 15 - and share some early results.
One BMW dealer utilising video as part of the renewal process has seen them increase from 25% to 45% on average.
Whilst the dealer had implemented a particular focus on renewals, video has played an important supporting role.
Meanwhile, Volkswagen has recently taken the lead offering video on its used car locator.
"It provides the next step," said Horsburgh.
"Customers can view a web video then request their own personal version alerting the retailer on their video app.
“The sales executive then makes a personal video and sends it directly to the customer.
“The aim is to turn more enquiries into sales and early results are positive. Retailers live with the service are reporting a 25% increase in web enquiries."
The use of video in aftersales to show work required on a vehicle from an eVHC is now widely accepted, but some dealers are also sending customers videos when there is nothing to report which has helped improve satisfaction scores.
"There are a significant number of video opportunities throughout the ownership cycle.
“Cars are complex so 'explainer' videos are useful to describe features such as how to use the sat nav or pairing a phone.
“Some premium dealers are using video to explain the customer's invoice, a useful way to communicate with those opting for the collect and delivery service.”
The widespread adoption of video may seem overwhelming, but dealers are only trying to keep pace with the expectations of their customers.
"Dealers forget how much video content their customers are routinely consuming. Watching online TV news, entertainment and information is taken for granted these days."
The presentation from main conference sponsor CitNOW will explore further the connection between the website and the dealership including how the customer experience can be enhanced and how video helps build relationships.
Tickets: Tickets are only available to dealers and vehicle manufacturers.
Suppliers wishing to exhibit please email firstname.lastname@example.org or call 01733 366467.
Conference venue: Silverstone Wing, Silverstone Circuit NN12 8TN