Equipment Trader is committed to sharing resources that help arm dealers to drive more digital leads to their dealership and conquer the competitive market. To build the most effective strategy to sustain in this market, you need the Three D’s: Demand, Data, and Digital Tools. We looked into current market demand and gathered exclusive data from real equipment consumers around shopping preferences. We’re also sharing tips on how to use that data to inform your sales strategy, as well as an overview of tools available to dealers to help conquer the digital landscape.
These insights were shared during our presentation, How to Master the Three D’s: Demand, Data & Digital Tools, during the 2023 Associated Equipment Distributors Summit.
What’s On the Horizon
To better understand how the industry is changing, we have to identify which factors contribute to the rise in demand in construction equipment. New opportunities have arisen with the passing of the Infrastructure Investment and Jobs Act of 2021, as well as ongoing vehicle electrification and mass transit Improvements. Additionally, the urbanization of suburban areas and increasing number of home renovations has had a positive impact on business in the construction sector. For these reasons, it’s crucial that dealers take the time to master the three Ds: Demand, Data and Digital Tools.
Evaluate Demand In the Changing Market
Within the next ten years, global construction output is expected to experience a growth of 5.3% per year. Regardless of the challenges prompted by the pandemic, the demand for equipment is still going strong. Experts have expressed that they don’t see the demand in construction projects slowing down anytime soon. While there is a lot of business drumming up for the future, dealers still have to navigate inventory shortages across product classes while managing this demand. You want to make sure you’re ahead of competitors by seizing the new opportunities to hone in on this demand.
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Respond to The Ripple Effect of Limited Inventory
Get creative when addressing limited inventory. This can be an opportunity to promote the other facets of your dealership, specifically parts and service.
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Keep Convenience Top of Mind
Convenience is key. The presence of digital retailing tools creates the opportunity to streamline your sales process while providing an easy shopping experience for consumers.
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Stay Up To Date on Emerging Digital Solutions
Stay competitive in the market by being more consistent and diligent when following digital best practices.
We know the demand for equipment is high, but you can’t create a strategic plan if you don’t pay attention to the data.
Leverage Data to Inform Your Decisions
Companies who adopt a data-driven marketing strategy are 6x more likely to be profitable year over year. To best position your dealership in a competitive market, you should always carefully consider current data and trends when making business decisions.
There are many ways that internal and third party data can be used to help you make a variety of decisions for your dealership. For instance, you can research keyword search volume to help develop your product mix. Our data shows that skid steers and excavators have remained the top two categories by search result page impressions since 2019. This knowledge is essential for any dealership and can help you prioritize sourcing inventory that consumers are currently searching for.
Data can also inform you how your buyer is shopping. Today’s buyer is more informed and further along the purchase funnel than ever before, with 58% of shoppers on Equipment Trader spending at least 3 months searching for equipment. This 3-month timeframe presents the opportunity for you to engage them at each touchpoint they reach on their buying journey. You also want to leverage data to gain more insight into your consumers and how they are evolving.
Once you understand consumer demand and marketplace insights provided by data, digital tools can help you drive more sales to your dealership.
Utilize Digital Tools to Seize New Opportunities
Digital tools play an essential role in adapting to the new realities of equipment sales, and can help bridge the gap between physical and virtual as shoppers move down the purchase funnel. Aside from offering the traditional forms of communication, such as phone calls and emails, you can go the extra mile by engaging your consumers through SEO/SEM, your dealership website, and social media messaging. You want to leverage these emerging tools to expand your online presence. Remember, reaching a wider audience increases the likelihood of getting higher margins, because you’ll be able to connect with more interested buyers competing for the unit you’re selling.
By incorporating the three D’s into your business strategy, you put your dealership in an advantageous position in the market. The three D’s will help you to navigate the demand for construction equipment, optimize the data available to you, and leverage digital tools to move buyers down the purchase funnel. Make sure to visit our blog to access more powerful insights on data, digital tools, and other resources for dealers.
