Enabling retailers to deliver the benefits of omnichannel retailing: Our learnings 12-months into Deal Builder
The automotive industry is facing major ‘forces of change’ that are driving retailers to evolve traditional practices. The pace and level of change means the role of the Retailer has never been more important for consumers in the buying journey today.
A few years ago, everyone was talking about online retailing being the future. Since then, we’ve witnessed the decline of online only retailers, who serve a small and shrinking segment of the market.
Omnichannel is the future, supporting consumers with a connected retailing experience, combining digital journeys with an outstanding physical forecourt experience – offering the best of both worlds.
To make sure all retailers can deliver the benefits of omnichannel retailing, we’ve been trialling a new retailing solution named Deal Builder with over 1,000 Retailers. After 12 months of a successful beta trail, we want to share our learnings as we open the trial to more retailers.
The consumer appetite
We all know that consumers want to complete more of the buying journey online, with 7 in 10 buyers wanting to do most ‘jobs to be done’ online. And this appetite will only continue to grow, with this rising to 9 in 10 for buyers under the age of 34.
Despite this, over 90% of car buyers still visit a retailer during their buying journey. Whilst many buyers are either already completing some of the buying journey online or have stated a desire to, they still appreciate and enjoy the in-person experience that only a retailer can offer.
Ultimately, cars buyers want it all. A combination of brilliant digital and forecourt experiences which allows them to choose the journey they go on – completing the necessary jobs online before finalising their purchase with the retailer, either on the forecourt or remotely.
Buyers are arriving more qualified, closer to the point of purchase. They are further down the buying journey and often ready to buy once they do arrive on retail forecourts. Yet importantly, almost all buyers still absolutely want the forecourt experience. For most people it is the second biggest purchase they make, and they value support within that journey and the opportunity to experience the product before they commit. Nobody is better placed than Retailers to provide this service.
What is Deal Builder?
In early 2023, we launched Deal Builder as a small-scale beta trial with the aim of empowering our partners to go beyond traditional retailing and meet the evolving needs of car buyers. We believe that by partnering with retailers, we can create an experience that puts buyers in control of their journey, whilst delivering the operational benefits of omnichannel retail for all our partners.
We are building these solutions so that no retailer is left behind, and are investing in the data, technology and connectivity needed to present your products in the best possible way. This goes beyond the car, ensuring we’re advertising your finance partners and, increasingly in the future, the other parts of the proposition that are unique to you.
Deal Builder allows retailers to offer a seamless online buying journey via their Auto Trader advert, giving consumers the option to add a part-exchange, complete a finance application and choose their handover preference, before completing a reservation for the vehicle. The buyer can then inspect, test drive and finalise their purchase on the forecourt if desired, and benefit from the physical experience that only a retailer can provide.
During the beta trial, we’ve continuously invested in improving the journey, working closely with our retail partners to maximise performance, experience, and conversion. We have made great progress, but the journey is far from complete, we will continue to learn, invest, and develop the product based on the feedback we receive each day from car buyers and our retail partners.
Over 12 months on, as we come to the end of our closed beta trail, Deal Builder looks very different to how it did in early 2023. We’ve scaled Deal Builder significantly, working with over 1,000 retailers and more than 40,000 cars available to reserve online through Auto Trader.
Scaling the Deal Builder trial
Following the success of the closed beta trial, we’re now ready to invite all eligible retailers to register their interest in being part of the Deal Builder trial*. So, join the 1,000+ Retailers who are already there, and help us to shape the future of automotive retailing together.
* Certain standards and criteria will need to be met to join the trial. Deal Builder is also currently only available for FCA registered retailers selling used cars. Sign up below to speak to us.
As part of opening the trial to more retailers, we’ll also be gradually scaling our consumer-facing activity to raise awareness of this new buying journey and bring more digital-ready buyers to Auto Trader adverts. This includes: bringing digital-ready buyers to Deal Builder stock with the addition of new search filters on our site alongside new SEO and paid search activity, raising consumer awareness and confidence around doing more online through increased coverage of Deal Builder on our website (including new creative designs and new content), and nudging consumers to convert once they start a deal through further investment into our app and in-journey prompts.
The current phase of the trial allows retailers to manage deals through Auto Trader Portal. The next phase will rollout Deal Builder through Auto Trader Connect, enabling deals to be managed in retailers’ own systems.
How high-performing retailers are succeeding with Deal Builder
We have seen some brilliant results from Retailers on the trial so far. To help new retailers joining the Deal Builder trial to drive performance even further, we want to share the findings of how the best performing retailers are already seeing success.
Out-of-hours Deals
Deal Builder means being open for business all-day, every day. Retailers on the trial have found that 45% of deals come out of hours*, meaning consumers can complete their deal even when business is closed, ultimately resulting in more intent from buyers.
“Deal Builder means that we are open 24 hours a day. Last week we came in and had a deal waiting for us that someone had put in that morning. We're not having to deal with the back and forth, they’ve just reserved the car and that’s it.”
Paul Bainton, Director, G5 Car Sales
[Source: Auto Trader data analysing all deal volume from July – December 2023. Based on 9am-5pm typical opening hours]
Purchase-ready buyers
Deals typically convert around 2x the rate of leads, with the top performing retailers on the trial seeing conversion in excess of 80% on deals*.
With consumers completing more of the jobs online, Deals have a much higher purchase intent and therefore convert at a much higher rate than leads. We’ve seen that, typically, deals convert twice as well as leads, but this all depends on retailer performance and best-practice. Deal conversion on the Beta has ranged from 50% to over 80%*.
“Deal Builder has increased our conversion and has helped us reach new customers that we may not have had before. Overall the customers are more engaged which has certainly helped us."
Craig Walker - Managing Director, Culloden Cars
[Source: Retailer quant survey, January 2024. N=23]
Less haggling on the forecourt
57% of retailers on the trial say that buyers are less likely to haggle on Deal Builder*. With consumers completing more of the purchase journey online, along with advert features such as price indicator, consumers build confidence in the price when building their deal, before visiting the forecourt, so they transact without haggling more often.
"We've seen much less haggling since joining Deal Builder. The buyer has already done their research before reserving the car so these customers are so easy to deal with when it comes to the price of the vehicle".
Ramiz Paramythas , General Sales Manager , Oakwood Specialist Cars
[Source: Retailer quant survey, January 2024. N=23]
More time saved
74% of retailers say they spend less time on admin since joining Deal Builder*. With consumers being able to complete a deal seamlessly in their own time, retailers are receiving deals which require less admin and less contact with the buyer in the earlier stages, meaning retailers on Deal Builder have found more time for what really matters.
"Deal Builder does all that legwork for us like taking in a part exchange or completing finance which saves us 2-3 hours on every deal and means we can spend more time focusing on the customer service."
Bilal Ahmed Asim, Director, ST Motor Group Ltd
[Source: Retailer quant survey, January 2024. N=23]
The Deal Builder trial is now open to all eligible retailers* to enable more of our retailer partners to meet the evolving needs of consumers.
To find out more about Deal Builder or to register for the trail, complete the form by following the link below.
* Certain standards and criteria will need to be met to join the trial. Deal Builder is also currently only available for used vehicles. Sign up below to speak to us.