Conversions improved on falling new car enquiries - Dealerweb

Retailers across the UK saw an overall 2% drop in new car sales leads during 2023, according to the latest data from showroom management software provider Dealerweb.

Even so, most dealers performed better with those leads that came in, with average conversion rates hitting 30%, up from 25% in 2022.

In the used car market, Dealerweb’s analysis points to a 5% rise in enquiries during 2023 and a 9% increase in the overall value of orders.

However, the growth in the used car market stalled in Q4, with enquiries and sales up just 1%, year-on-year, hinting at how the rising cost of living and stubbornly high interest rates were affecting spending and consumer confidence in the lead-up to the festive period.

The data also shows how the average used vehicle sale price increased by 4% in 2023 to £24,078, whereas average new car selling prices only increased by 1% to £37,192.

Brendan Walsh, chief revenue officer at CitNOW Group, said: “As consumer demand continues to fluctuate, retailers might find it beneficial to think about the digital tools they use to drive the end to end customer experience and how effectively stock is presented through their online ‘shop window’.

“Good quality digital assets will help boost enquiries, then using a stock profiling tool such as RTC Insights can help drive conversions. By using RTC Insights to monitor stock prices against market trends, retailers can ensure they are always competitive on price and maximise the potential to convert leads.”

Dealerweb, one of CitNOW Group’s solutions, supports retailers in creating an omnichannel approach to facilitate the transformation of every customer moment and ensure the quality of their online experience aligns with the offline showroom experience.