Cycle 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 motorcycle 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.
We will be sharing these valuable insights during our Presentation, “How to Master the Three D’s: Demand, Data, & Digital Tools,” during the 2023 AIMExpo.
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 for motorcycles. New opportunities have arisen with ongoing vehicle electrification, the emergence of digital retailing, and new riders entering the motorcycle lifestyle. 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
Three years ago powersports retail sales reached historical highs and sustained increased levels of sales through 2021. While we have seen a decline from 2021, new vehicle registrations still remain above pre-pandemic levels. According to data provided from our partners at Statistical Surveys Inc. (SSI), demand is starting to return to pre-pandemic levels, with over 2.3 million motorcycle registrations in the past year—which is still over 100,000 more registrations than in 2019.
Additionally, the Cycle Trader marketplace received 36 million new visitors in 2022, which is a 22 percent increase from 2019. There is a lot of business drumming up for the future, so now is the time to get ahead of competitors by seizing new opportunities to hone in on this demand. Here are a few examples of how dealership might achieve this:
- Create experiences to retain prospects’ interest in motorcycles and keep them within the sales funnel. Try to think outside of the box when engaging with the motorcycle community!
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.
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 motorcycles 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 standard bikes have seen 22% growth in search results impressions from 2021 to 2022. We’ve also found that the top five powersports categories have seen double digit positive growth in SRPIs over 2019. This type of knowledge is essential for any dealership and can help you prioritize sourcing and marketing inventory for which consumers are currently searching.
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 51% of shoppers on Cycle Trader spending at least three months searching for a motorcycle. This three-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 motorcycle 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 earning 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 motorcycles, 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.