Published: December 2024

As we welcome a new year, it is time for motor retailers to reflect on how the sector is continuing to evolve so they can adapt their marketing strategies accordingly and hit the ground running in Q1. From a customer communications perspective, the key trends most likely to come to the fore in 2025 include a more prominent role for AI and a results-focused approach to social media.

The five-year countdown

There needs to be a significant ramp-up in private sales of EVs if the industry is to meet its annual Zero Emission Vehicle Mandate production targets. 2025 marks the halfway point since the 2020 ZEV announcement and the 2030 deadline. With this in mind, how can retailers ensure they are the ‘go-to’ place for EV purchases?

We are encouraging retailers to modify their marketing activity to include a specific focus on EVs. Creating video content that busts common myths and misconceptions around EV ownership will help educate and reassure consumers, while simple jargon-free language will make EV marketing content more accessible. Retailers who support the EV transition with bite-sized content will be in an advantageous position when customers come to enquire, purchase and maintain their first EV.

Implementing a CRM strategy that is specifically tailored to EV prospecting is vital for success. Retailers can, for example, create new opportunities to engage with customers about the change to EVs by implementing tailored enquiry follow-up messages. Once the customer has purchased an EV, bespoke aftersales communication plans can continue to grow consumer confidence around ownership. However, this is only effective if the data is accurately collected.

Advancements in AI

In 2024, retailers were starting to dip their toes in the AI waters, and the technology is developing at an extraordinary pace. We foresee 2025 being the year that AI adoption rates really take off within the automotive retail space.

However, AI-powered communications can only be as effective as the data that feeds them. We have reviewed the data from over 500 UK retailers and have seen that the quality is variable. In 2023, we reported that 30% of the data held by retailers was inaccurate; this has now risen to 40%. To get the maximum return on marketing spend, the activity has to reach the right people at the right time, and this is only possible if the data is accurate. Having processes in place to regularly audit customer data is essential.

Getting smart with social media

Much like AI, social media is rapidly evolving, and the capabilities of the major platforms change constantly. For example, Instagram is looking to counter hashtag spammers by removing the option to follow hashtags within the app. This will mean that the organic reach of posts will be limited and will require creative commitment from retailers to keep posts in consumers’ feeds. It will also mean looking at different platforms, such as TikTok, which we see having increasing levels of engagement for retailers in 2025.

As a result, paid social media needs to work smarter. From our recent survey completed by 1,000 UK car buyers, 40% of people either ‘completely agree’ or ‘somewhat agree’ that: “Relevant advertisements from vehicle dealers on social media platforms would influence my decision to purchase a vehicle from them.” This marks a significant increase from 2022, when just over a quarter (26%) of prospective car buyers agreed with the same statement.

To boost the efficiency of social media advertising, we implemented two solutions in 2024. Dynamic Custom Audiences allows retailers to automatically upload real-time customer data direct from their DMS into marketing campaigns on Meta platforms (Facebook and Instagram), while Meta Offline Conversion reporting allows us to attribute enquiries, orders and bookings directly to social media advertising, measuring the success of campaigns without the retailer having to carry out labour-intensive manual attribution.

From SMS to RCS

Offering a multi-channel approach is also becoming increasingly important. Rich Communication Services (RCS) are poised to become the standard in 2025, revolutionising how SMS is used within the customer journey. As SMS evolves to include images, video, and more interactive elements, creating engaging messages will become the norm. This shift will empower retailers with faster, more direct two-way communication, improving customer response times, boosting sales conversions, and enhancing aftersales retention. Our LeadBox solution seamlessly integrates two-way SMS, giving retailers a powerful tool to connect with customers effortlessly and effectively for a multi-platform approach.

As ever, 2025 will see marketing strategies change and develop, but getting the basics right will pay dividends in the long run. Keeping agile to the changes and hitting the ground running with targeted and timely communications in 2025 will boost the enquiry funnel and help drive conversions.

Related Posts