We looked at assumptions around the Agency model to understand what the data shows, the reality, and any learnings.

Will the Agency model make sales more challenging?

Our Chief Executive, Jeremy Evans, Commercial Director, Charlotte Murray, and long-term client Keith Jackman, Head of Marketing & CRM at Sandown, recently presented a digital session at Automotive Management Live, titled: How Agency is Impacting Dealer Marketing.

The format of this session was designed to highlight assumptions – be they right or wrong – around the Agency model and understand what the data shows, the reality from an Agent’s perspective, and the learnings that we have found.

Assumption : No price differences or discounts means Agents have less of a competitive offering

64% of consumers surveyed stated they would conduct most of their research online, only visiting a showroom once they are ready to buy*

50% of consumers say a quick response influences their purchasing decision^

98% of new Mercedes-Benz customers in 2023 live within 20 mins of the dealership vs 76% in 2022

Reality : Agents can focus on delivering an outstanding customer experience to drive reputation and secure long-term retention

We’ve said it before, and it’s still the case now. An ‘always on’ approach to digital advertising is essential to reach prospects during the research phase, which is typically conducted online.

We know that the time between an initial enquiry and an order being placed is just 5 days (down from 16 pre-pandemic), meaning the speed and quality of a response is key – which is where automation kicks in.

Furthermore, Agents should be encouraging and collecting positive reviews via CSI surveys within the CRM process to share across their Social Media and within their post-enquiry messages.

By being timely, accurate and personalised, Agents can stand out from the crowd by their reputation for delighting customers. Our marketing automation platform, VoiceBox , helps retailers do just that.

Assumption : Less new cars sold means there are fewer good quality used cars coming in as part exchange

So, if fewer new cars are being sold, where does the supply of good quality used cars come from, and how do retailers bolster used car profits?

Reality : Agents can utilise additional marketing channels to exploit potentially untapped stock sources