Saturday, June 01, 2013

Google set to take over another industry...

Google is set to use its enormous market share, goodwill, and unlimited data to reshape the auto industry, at least the way consumers and dealers interact.

Currently, google is beta testing a program called google cars.

http://business.time.com/2013/03/21/how-google-is-horning-in-on-car-dealership-sales/

It allows consumers to shop for vehicles, all the way down to color and trim levels without ever having to leave the google cars search page.  Meaning the consumer won't have to visit cars.com, edmunds, autotrader and the like.  Bad news for those guys.

It also means that when the consumer asks for a quote or more information on the automobile, the information sent to the dealer in the form of a lead is anonymous.  Bad news for the dealer.

Currently, whenever a consumer asks for more info you he/she would have to provide contact information.  Obviously, this is very valuable information to a salesperson who then uses this info to follow up on the lead hoping to make a sell.  Google is changing that practice.  The contact info sent to the dealer will be anonymous, a la craiglist.  At most, the dealer will know the individuals first name.  Also, google will limit the number of times that the salesperson can contact the consumer to follow up.  Presumably, to prevent a salesperson from harassing a potential customer.

On the face of it, one might conclude that this is a win-win for the customer.  Maybe so, maybe not.  It is yet to be fully implemented.  It certainly seems like a loss for industry sites and dealership personnel.  Cars.com and the like depend on the revenue generated by providing leads to dealers.  Dealerships depend, in part, on following up and hopefully closing sales leads.  Google's foray into the automotive lead generating business will definitely disrupt the current process with perhaps dire consequences for both the dealer and the current lead generating companies.  How everyone, including the consumer, adapts will be something I have my eye on.

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