Effectiveness of dealership apps

[AutoMotionTV]

I had posted a similar version of these next two paragraphs in our blog and wanted to post it here to possibly get some feedback:

There are currently over 200,000 apps available in the iTunes App Store and that number doesn’t include apps for Android or Blackberry. With the explosion of mobile app technology is there anything that you can’t find an “app†for anymore?
With this in mind, could this unlimited amount of choices be turning into App Overload for consumers, or is it just simply making life that much more convenient? Is the app market becoming too cluttered, or are more options better for consumers, leaving them with a wider array of choices? Is a “free†app better than a “paid†app? Are mobile apps just going to be a cell phone “fadâ€, or will it permanently change the way we use mobile devices in the same way texting did?

I wanted to ask these questions to see how people felt. I also wanted to know how people felt about the effectiveness of apps and how they would apply to the dealership realm. Would a dealership app work the same or similar to other retail apps? There are a lot of different kinds of apps that retailers use. There are apps used as a pre-sales tools to draw customers in, a post-sales tool to increase retention, an informational app to expedite the process of obtaining info about the company, an “exclusive members†app, or even some are meant as a form of pure entertainment just to get the consumer involved with the brand.

Which one of these, if any, do you see working best for dealerships? I wanted to ask this question to see how people feel about the idea of an app and to see if apps that typical retailers use would work for bigger purchases like a vehicle.

I’m honestly torn on my decision as to whether or not apps always work. I definitely believe that in some cases they do and this has obviously been proven for companies like Jeep, Oakley, Levi’s, and more. Does this mean they could work for every company that sells a product or service as long as they’re done right? Or could it still fail miserably no matter how much you put into it?

Just want some professional opinions is all. Thanks in advance for the help.

 

[Billfred]

(Full disclosure: One of the other members of our group already has a listing in the App Store. I have nothing to do with it, outside of downloading it and playing with it for a bit.)

To answer your points as listed:

Would a dealership app work the same or similar to other retail apps? Only to the extent that a car deal can be completed on a 3.5" screen. Browsing is obviously feasible, as is submitting a lead...but you're not going to PayPal us your down payment.

As for the different genres of apps:
Apps used as a pre-sales tools to draw customers in - Leave it to the OEMs, or conceivably a larger dealer (or group) that had enough presence in a city to justify an uber-inventory app.
Apps used as a post-sales tool to increase retention - Where's the value added? Short of a service appointment form--which I can put on my mobile site--I'm not seeing it.
An informational app to expedite the process of obtaining info about the company - I have Google for that. What does an app bring to the table?
An “exclusive members†app - The where's-the-value question arises again. Unless I'm a Hyundai dealer about to have a bunch of iPad-wielding Equus owners or giving every customer an iPod touch (and charging $229 to every deal), targeting this crowd can't possibly be a positive return on the time and energy invested.
Apps as a form of pure entertainment just to get the consumer involved with the brand - Again, I'd leave that to the OEMs. If we tried to create such an app for every 2010 or 2011 model launch (LaCrosse, Regal, Sierra HD, 9-5, Terrain, CTS Coupe, CTS Sport Wagon, SRX, and just getting Cadillac as a whole), we'd be an app developer that sold cars. Judging from the developer articles I see on TUAW and the like about months of development time--and that's just iOS development--I can't possibly see a dealer working alone profiting from the venture.

I’m honestly torn on my decision as to whether or not apps always work. I definitely believe that in some cases they do and this has obviously been proven for companies like Jeep, Oakley, Levi’s, and more. Does this mean they could work for every company that sells a product or service as long as they’re done right? Or could it still fail miserably no matter how much you put into it?

Hardly any dealers--even us nuts who are trying to push the boundaries of what's possible online--are on the level of Jeep, Oakley, or Levi's. General Motors, however, is. While I haven't seen a final version of their forthcoming apps to extend OnStar functionality to smartphones, they clearly have the information necessary to keep retention (owner information, vehicle information, dealer information, existing OnStar Dealer Maintenance Notification system). And they have people to fix and enhance these apps, where I sure as heck don't.

In summary:
-As a consumer, I think apps can work great where there's value added.
-I don't think most dealers are equipped to add that value, at least not at the expense of far more effective endeavors. (See the threads on here about empty specials pages, crappy equipment descriptions, and taking two or three exterior photos.)
-I do think most OEMs are equipped to add that value. (Mercedes has a great app for the SLS AMG, and Cadillac had a nice spread in the USA Today iPad app for the CTS-V Coupe.)

 

[Alex Snyder]

Instead of post-sale let's call them apps for retention. I may be crazy, but I believe service is the heart of dealership apps for the future.

 

[AutoMotionTV]

I would definitely agree that it can be difficult to compare dealerships to companies such as Levi's or Oakley, but I guess that was the reason I was asking is to see if its inconceivable to think of apps working in similar ways or would they need to be on an entirely different level. It does appear that apps can work if done correctly. The biggest problem then seems to be what is the correct way to go about it...

I would also agree that dealerships can't afford to focus a lot of time on developing an app but that is why I would say that the development would definitely need to be outsourced, which in that case there are a few different routes to take. Some apps could take months and cost thousands of dollars. There are a some other options where the turn-around is much shorter and the cost is much less as well. But in either case the app would be updated regularly through the developer and would basically leave the dealership with the sole task of pushing the app toward the customers to let them know that its available.

I just figured I would ask because our company has been playing with some ideas as far as app development goes and thought we would try it out on the automotive industry to see how it takes.

I do agree with Alex and would be confident in saying that a service app would definitely add the most value to the dealership and also the end consumer. Those apps however would be the ones that cost thousands to tens-of-thousands of dollars to develop and take months to develop. I guess it would depend on the size of the dealer or dealer group on whether or not it would be feasible to go with this option. However in the future as app development becomes more streamlined, I could see it becoming more feasible for any dealership. Who knows how far in the future we are looking though. That all depends on the genius developers I guess.

 

[AutoMotionTV]

Has anyone heard of the "Chevrolet Dealer" app? GM has already been testing a beta in a few select dealerships and it's planned to roll out sometime this fall. Apparently it is supposed to be on the sales side of the spectrum and is to be used by sales people out on the lots or can be used by the customer without having to be at the dealership.

I haven't found an official release date yet besides "fall 2010", but they have been talking about it since the summer.