Now sales tools are expanding into greater use of video to sell not only new, but used vehicles.

The road to different sales techniques comes as foot traffic through showrooms slows dramatically and predictions are that sales (not including carryover orders) could drop by as much as 75 per cent.

John Elsworth, the former Holden and Hyundai executive who is now managing director of automotive video company CitNOW (See it Now), told GoAutoNews Premium that business was strong as more dealers used the technology to introduce vehicles to prospective customers.

“A personal video from a salesperson changes the way the customer is introduced to the dealership and the vehicle they want to buy,” he said.

“It turns salespeople into real people and allows them to remotely show all the features, inside and out, of a vehicle to a customer. It means the salesperson and the customer don’t come into physical contact and allows the customer to view the video in their leisure.

“It brings the car to life and it relates the customer with the salesperson. At the same time, it reflects the professionalism of the dealership.

“As a sales tool, it can introduce a vehicle to its new owner with the salesperson going through the vehicle to show how the car works – how to pair Bluetooth, adjust seats, tune the radio and so on.”

It is not used just for sales, either. Mr Elsworth said CitNOW is used in dealer workshops to highlight and explain to customers the repairs required and also work they have completed.

“Customers watch the video from home, approve the work online and accept payment online or tap-and-go,” he said.

“It really means customers spend very little time interacting with service advisers when it comes time to pick up their car.”

John Elsworth

CitNOW, which has about 270 dealership clients in Australia, is an app-based system that lets a dealership create and distribute video to sales and service customers. It can be accessed as a hyperlink in a branded environment or sent direct to the prospective customer’s PC or mobile device.

“Videos can be five minutes to 10 minutes and we have had one that was 15 minutes long to give more detail to the customer,” Mr Elsworth said.

“The length of the video is up to the dealer and what the customer wants.”

More recently, the technology has focused on used cars. Mr Elsworth said some dealers were now making videos of their used-car stock that could be accessed any time in the future by people searching for a particular vehicle.

The use of tools such as CitNOW and even the mobile phone-based FaceTime app are some of the latest ways dealerships are exploring digital ways to gain sales. Many have been using digital and online methods for a while.

But the downturn in the economy and the latest hit by COVID-19 is putting more emphasis on expanding the technology.

It also reinforces the online sales approach of Tesla that historically uses online orders for its vehicles.

In the US, the company has started “touchless deliveries” that allow owners to use a Tesla app to do everything from unlocking the car to sign paperwork – such as for servicing – and drop off the car.

The US also has online sales for used cars, dominated by Carvana. In 2019, it lifted sales by 89 per cent over 2018, reflecting the growing customer acceptance of online transactions.

It was enough for Carvana’s market capitalisation to rocket to twice that of the biggest bricks-and-mortar retail car chain in the US, AutoNation.

Cox Automotive analyst Michelle Krebs said the COVID-19 outbreak will accelerate the wider adoption of services that will allow customers to stay away from showrooms.

“It’s what people wanted going into this,” she said, citing a Cox January survey that found consumers said vehicle pick-up and delivery was their top request.

By Neil Dowling