Since the coronavirus pandemic, video watch times are expected to reach a 100-minute a day benchmark. With an 80% rise in content consumption.
Video is a powerful sales tool across the Automotive industry, bridging the gap for engaging, informing, and marketing to customers.
51% of marketing professionals worldwide name video as the type of content with the best ROI. Marketers who use video grow revenue 49% faster than non-video users.
In the UK alone, video tools have become an integral part of the new and used car sales process with over 3000 dealerships utilising specific video software to help engage with their customers and drive sales.
The rise of video is unprecedented, it's estimated that by 2022, 82% of all created content will be video. YouTube statistics show that the number of channels in the MENA region has increased by 160% over the last three years.
Video is a vital platform used to learn about products and services.
Using video not only directs the user towards a brand but also connects on a deeper level, with personalised videos taking a positive effect to gain the consumers attention rather than a promotional video which consumers may skip.
Billy Coutin, Director GardX, a shareholder of B2See video, market leaders in providing Automotive product and Solutions, discussed the importance video is playing in Automotive businesses.
"Our aim as a business has been to develop a tool that can be used to create interactive customer focused video that can quickly and easily be sent directly to consumers. The whole concept of video is broad, be it promotional videos, specific new or used car videos, or instructional videos. When we talk about using video, we mean sending personalised one to one videos directly to consumers for things like; responding to sales enquiries, questions around specific vehicle features, pre-test drive confirmations and product-specific revenue-generating videos."
From internal statistics, they found it is clear that video is a proven and successful tool for any business to utilise when done correctly.
Utilising an application-based video product, enabled their clients to have far better transparency. It also meant they could track exactly what is going on in the business and to see the direct correlation between videos sent and vehicles sold.
Coutin discussed building trust and transparency by using video and what dealerships could gain. "Sometimes customers don't feel fully committed to buying a used car remotely and often want to see the car first to make sure it is as described and in good condition. They may not be able to visit the dealership as quickly as they'd like or due to restrictions. Video can bridge the gap by showing the customer a full vehicle walkaround, therefore building trust through the transparency of video. This is why in the original statistics we showed that 84% of people say that they've been convinced to buy a product or service by watching a brand's video.
The main benefits to a dealer would be increased customer satisfaction, decrease in test drive 'no shows', increase vehicle inventory turn rates and higher enquiry to sales conversions. For example, a recent dealership study that we carried out in the UK resulted in 82% of vehicles that had a video watched over three times went on to purchase that vehicle. This was over 3 months and 13 dealerships."
Since the coronavirus pandemic, video watch times are expected to reach a 100-minute a day benchmark. With an 80% rise in content consumption.
Coutin explains how video can be used. "Personalised videos can be used for many different use cases such as; pre-handover confirmations, revisiting lost sale opportunities, confirming test drives, post-delivery follow-ups, vehicle feature explanations and product specific revenue generating videos. If you take Paint Protection as an example, the average price is 1500 Dirhams. Take 50 car sales per month with a current product penetration of 25% which leaves 38 customers that bought a vehicle from a dealer but chose not to buy paint protection at point of sale. Using our B2See Merchandising video solution we know that by resoliciting those customers, we can convert another 10% of car buyers into paint protection buyers delivering another 6000 Dirhams per month or 72,000 Dirhams over the course of a year, and the best thing is – this solution is completely automated”.
Although video was already on the rise before the pandemic, these extreme circumstances have forced business to reconsider their approach to some of the emerging video marketing trends that they were ignoring.
Viewers retain 95% of a message when they watch it in a video compared to 10% when reading it in text and with the new purchasing habits change, consumers have accepted the shift in communication and expect businesses to adapt to the change.
Whether video is used for sales, aftersales or marketing, it's clear, that it is now a vital tool to use in the Automotive industry.
