Friday, October 10, 2008    

June, 2001

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You Built The Websites, But Where Are Your Customers?
What’s in-store for you?

by Stephen J. Alexander
Guest Columnist

Stephen J. Alexander

Why is it that consumer-based automotive aftermarket Web sites have been largely unsuccessful?

Untold numbers of retailers put in a lot of time, sweat and money building Web sites that give consumers direct access to a huge assortment of products, parts and accessories. They envisioned do-it-yourselfers glued to their home computers ordering everything from high performance parts to fancy seat covers to service parts.

Some retailers viewed Web sites as an extension of their existing store network. They thought a Web-based enterprise would be an inexpensive way to add “stores” and create a virtual nationwide presence. Some have even been operating on the notion that shopping on the Web would be so convenient that consumers would gladly pay higher prices than they could find in their local retail stores.

They built Web sites and awaited a flood of business. But the flood never came. In fact, many retailers have found it difficult to get consumers interested in their Web sites at all. In short, they built it, but nobody came.

Several reasons have been given to explain the lack of customers flocking to automotive aftermarket retail Web sites. One is that there are too many such Web sites competing for the same customers. Another is that Web sites selling automotive products are too confusing for consumers to navigate. A third reason given is that when using their computers, consumers are too busy and occupied with other interests to seek out and order automotive aftermarket products.

Missing the Point

Retailers who have bought into these excuses, however, are missing the point entirely.

The real reason that consumers aren’t using auto aftermarket Web sites is as much cultural as anything else. To sell some products, you simply must have direct interaction between the consumer and the product or interaction between the consumer and a human being in a retail store. Both are preferable.

In our culture, shopping for automotive parts isn’t just a mindless trip to a store. It’s an experience. Consumers seeking products have been conditioned for tens of years to rely on instinct and judgment, which are triggered when they participate in the shopping experience. In simpler terms, automotive aftermarket consumers want to see, touch and examine the products they buy for their vehicles. They want the kind of interaction that can come only from a completely uninhibited, free flow of conversation between two human beings. It’s an experience that you can’t duplicate in the virtual world.

The need for this interaction among do-it-yourselfers, in fact, has become even more important as vehicles have become more complex, increasing the need for in-store personnel.

It is true that over half of households in the U.S. now have computers. But personal computers tend to be used primarily for finding information resources more so than for purchasing. Consumers use computers more often to learn about current events, research health issues and for educational purposes than for purchasing products. They might gather information about products, but then they’ll take their printout of information to the local retail store, where they can have a “true” culturally-conditioned shopping experience.

Is Success Possible?

So. The question that remains is whether or not there are or will be any successful automotive aftermarket Web sites. I concede that some will do well. The ones that succeed will do so because they have an established brand name, like NAPA, or will be the Web sites of companies with a strong regional aftermarket chain. The successful regionals will have to support their Web sites with lots of advertising. They will be companies that have invested a great deal over the years to establish the store’s name, and they will have built equity that can be translated by varying degrees into consumer participation on the Web.

For the rest, Web sites might prove to be useful, perhaps as an informational resource where consumers can find out which stores in their area sell the products they seek. Most would argue, though, that these Web sites will not translate into impressive purchases.

It is axiomatic that to be a successful Web site retailer, you must invest an enormous amount of money to create name recognition. Even if you do that, there is no guarantee your investment will yield Web sales.

Eating Up Profits

Automotive aftermarket retailers also have found that the cost of doing business via a Web site is much higher than expected. In some cases, returns can eat up profits. Too often, on-line orders result in the wrong part being sent out to the shopper, which may happen because the shopper doesn’t enter adequate or correct information. So-called help lines on Web sites might control the problem, but won’t eliminate it.

Selling products on a Web site for a price that is more than in your store also is unlikely to justify the cost of virtual marketing. Consumers are price sensitive. They’ll quickly figure it out if a Web-based retail price is higher than the store price for the same product. Couple that with the fact that many consumers would still prefer to get out of the house, into their cars and drive to the a store for that shopping experience. It really is a cultural thing.

The conclusion? At this time, I do not believe it is possible to change consumer buying habits significantly enough to justify major investments in Web site-based retail selling. It’s far better to invest your dollars in building brand recognition for your company within your trading area, improving the physical appearance of your stores and training personnel to better interact with consumers, who desperately need to feel they can trust and rely on advice from the staff in your store.

Stephen J. Alexander, president of Automotive In-Store Marketing, Inc., is a member of Aftermarket Business’s Retail Advisory Board. He can be reached at his Sanibel Island, Florida headquarters, phone 239-395-9203, or e-mail salexander@autoinstore.com.

COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, June, 2001. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.



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