What Is Automotive Merchandising?

line of used cars for sale at a dealership

If you want to place your car dealership front and center, opening the door to increased revenue, vehicle merchandising is a must. It captures every touchpoint between your dealership and prospective buyers. Think digital advertising clicks, sales interactions, and everything in between. For modern dealerships, a strategic merchandising strategy is essential, allowing you to build customer trust, drive conversions, and ensure sustainability in an increasingly complex market.

Below, we discuss the changes in consumer behavior that modern dealerships should be considering in their car merchandising strategies. We'll also discuss how to optimize key touchpoints in the consumer journey, covering everything from content optimization for LLM (Large Language Model) searches (i.e. ChatGPT, Google Gemini) to employee training for interacting with increasingly well-informed consumers.

The simplest definition of merchandising is any behavior taken to promote and sell a product. Every form of contact between your dealership and customers — from ads and your website to conversations with your sales staff — fits under that umbrella. A strong car merchandising strategy means optimizing as many of these interactions as possible.

This holistic approach recognizes that modern car buying is not a linear process. A customer may see your dealership's ad on social media and then visit your website for vehicle specifications before heading to third-party review sites to learn more. Each touchpoint represents an opportunity to reinforce your value proposition and build consumer trust.

Used car merchandising and marketing go hand in hand, as the latter helps a dealership generate interest in specific vehicles. The merchandising leg takes over to promote the coveted cars.

Why Is Strong Car Merchandising Important to Your Dealership?

A full-funnel approach to vehicle merchandising is more critical than ever, as cutting-edge technologies are reshaping modern consumers' car-buying behavior. Today, 87% of car buyers go online for information gathering when car buying, which indicates that by the time they step foot on your lot, they've already done their research and may have made a decision¹.

Consumers are also more knowledgeable than ever before. Trade-ins are a prime example. Data suggests that 63% of consumers already have an idea of what their trade-in is worth².

Dealerships must recognize this high level of knowledge and tailor their approach accordingly, providing accurate information to become a source of trust.

More generally, every interaction in the consumer journey, both digital and in-person, should be seamless, informative, and persuasive enough to position your dealership as the obvious choice over the competition. Employing a strong vehicle merchandising strategy helps you remain competitive by:

Helping shoppers discover your dealership across multiple channels
Convincing those shoppers to come into your dealership
Converting prospective buyers into customers
Building trust and credibility among consumers
Compelling customers to return to your dealership for future purchases and service needs

Elements of an Automotive Merchandising Strategy

A solid automotive merchandising strategy means optimizing as many consumer interactions as possible. Elements to consider when shaping your strategy include the following.

Website Content and Design

Consumers want transparency. Your merchandising pages should have thorough and detailed information on each vehicle. Focus on relevant specs. For example, EVs have unique specifications, such as battery range, which don't apply to gas-powered vehicles. Keep in mind that customers can verify the information on your website using online resources, so make sure every detail is accurate and up to date.

Finally, it doesn't matter how much online content you have if your website is unattractive, challenging to read, or lacks user-friendly navigation. These issues will cause potential customers to lose interest. To this end, web pages must be well-designed and intuitive. The information should be organized in a clear and easy-to-understand manner. hotos and other visuals will enhance a page.

Ensure usability extends to the mobile version of your website as well, as 14% of customers who use the internet to shop for a car are only using their mobile devices² and have limited time (say a lunch break) to scroll. Your mobile merchandising pages should deliver key information quickly and clearly. This means prioritizing essential details, such as pricing, key features, and contact information.

Marketing and Ads

To catch the eye of modern car buyers, you need to be where they're looking. Place ads on third-party websites (like Cars.com and Autotrader) that consumers use to research vehicles.

With that said, don't limit yourself to traditional automotive marketplaces.

Today's consumers are increasingly discovering vehicles through social media platforms like Facebook Marketplace, Instagram, and even TikTok. People don't shop solely based on price or trade-in value. Shoppers want credibility and big-picture value. Mention service perks and standout features of the vehicles in your inventory. These details help justify why a customer should choose you over your competitor.

SEO and LLM Search

Research suggests that 46% of internet searches have local intent, making your visibility in local search results crucial for attracting qualified prospects in your area³. Leverage local search engine optimization (SEO) by optimizing your Google Business Profile and running geo-targeted ads to capture nearby customers searching for "car dealership near me" or specific vehicle types in your area.

Developments in large language models (LLM), like ChatGPT, are becoming increasingly popular alternatives to traditional search engines like Google. You can prepare for this shift by optimizing your content for conversational search queries.

Instead of focusing solely on keyword-based SEO, start incorporating natural language patterns into your website content — think complete sentences and FAQ formats that mirror how people actually speak when asking about vehicles.

Customer Interactions with Your Staff

Just as customers expect your website to state the facts, they also expect accuracy and honesty from your sales team. Online resources mean consumers are savvier than ever. They can fact-check claims your sales team makes on the lot, thanks to the smartphone in the palm of their hand. If a salesperson's facts are off, you run the risk of losing trust.

Your sales team needs the tools to maintain accuracy, like touchscreen tablets containing real-time inventory data, current pricing information, available incentives, and detailed vehicle specifications. This allows your staff to provide immediate, accurate answers without having to step away from the customer.

How ACV Max Can Support Your Car Merchandising

ACV Max is a comprehensive auto merchandising solution designed to maximize your dealership's inventory and retain gross profits. From detailed analytics to reporting, ACV Max streamlines the entire appraisal and auto merchandising process. Plus, with built-in tools like ClearCar for customer trade-ins, you can easily put a number on a vehicle in minutes.

Empower your sales team with expert-level knowledge and elevate your inventory management with automated merchandising and actionable insights. Sign up for a demo and learn how ACV MAX can help your dealership.

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