Storefront is changing the ways OEMs, dealers and consumers interact says Benoit LaForce.

In 2024, Autotrader launched Storefront. Conceived as a first of its kind digital retailing solution, Storefront was designed to provide new vehicle buyers with a seamless, curated shopping experience, while at the same time, providing OEMs with a fully branded, ad-free environment within Autotrader, to showcase their products.

Since launch, Autotrader notes that it has seen impressive results, generating new vehicle sales leads at significantly higher rates than the market average. To gain some greater insights into Storefront, how it works, and the benefits it offers OEMs, dealers and consumers, Autosphere sat down with Benoit LaForce, Executive Vice President, Media and New Car Solutions at Autotrader. 

Autosphere: Can you tell us a bit about the genesis of Storefront, and some of the reasons Autotrader decided to pursue this concept in automotive retailing and partner with OEMs in this way? 

Benoit LaForce: When the COVID-19 pandemic hit, lockdown and social distancing measures were a major disruption for the automotive retail industry. OEMs and Autotrader were having discussions to understand how they could effectively connect and communicate with customers, due to the closure of retail showrooms. Different platforms were considered for that, particularly ones where consumers were highly intentional when it came to their purchase decisions. In 2020 Autotrader conducted a test, called Digital Showroom, in partnership with Volkswagen. This trial was run over 90 days where we were able to showcase VW models online. The objective was to convert users into qualified buyers and gauge how consumers were interacting with the brand and product online. It was a new concept because traditionally, consumers looked at Autotrader as a used car platform, but when we saw the results, we knew we were onto something. 

AS: How did it evolve from there? 

BL: From that initial test, we felt the next step was something bigger and that took place over a longer period of time (a whole year as opposed to just 90 days). In 2023, Autotrader launched a big study that aimed to understand what a consumer’s attentions really were when they visited the Autotrader website, whether it was conducting a full purchase transaction, arranging an appointment, securing a deposit, looking to get a valuation for their trade in or even book service appointments. We surveyed more than 6,000 people over a six-month period to really understand what their motivation was in visiting the Autotrader site. When we broke down the results, we discovered that 80% of them were coming to the site to purchase a vehicle, but further investigation revealed that 20% of that 80% of shoppers surveyed, were coming very early in the research stage of the buying process. These were people looking to purchase, based on changing needs, while 30% of them were in the comparison stage, weighing in different vehicles and options, based on their criteria. Then there was an additional 30% that just wanted to transact and complete the purchase. The results were quite eye-opening because they showed that overall, consumers were visiting the Autotrader site with a serious intention to purchase. 

AS: There were some other interesting findings you discovered, can you tell us about those? 

BL: In the same year we did this study we also conducted another one called Path to Purchase. This was a survey of 1,200 individuals who had purchased a vehicle during the previous six months. From this study, we discovered that 45% of those that visited the Autotrader platform did so with the intention of purchasing a new car. Not only that, but they were considering a far greater range of brands and models and as a result, visiting more dealers to make those purchases. Furthermore, it became clear that there wasn’t a great deal of overlap between these consumers and those that typically visit an OEM website to purchase a vehicle. From that we were able to conclude that it made sense for OEMs to tap into our marketing funnel and gain access to a huge audience that traditionally they might not have courted when it came to both purchase consideration and the actual transaction. It also suggested there was a way of creating a different experience for consumers visiting Autotrader who were looking at new vehicle purchases, compared with those that were looking at used cars and trucks. From there, we were able to start building the concept of Storefront which we have today. 

AS: Can you tell us a little about how Storefront works and why it differs from other online retailing concepts we’ve seen in the past? 

BL: In most cases, when you think of online retailing, you’re thinking about a digital experience where you can put down a deposit online. Storefront is different because it taps into the customer experience from the top, all the way to the bottom of the sales funnel. While there are other marketplaces that show inventory, Storefront provides OEMs with the ability to tell their story, showcase the brand and their product offerings within the Autotrader platform, while allowing consumers access to the tools we’ve traditionally had including resale values, seller’s marketplace and research and advice. The advantages are that it provides a new avenue for the OEM, and it builds trust and transparency with the consumer by creating a unique experience on a platform like Autotrader. 

AS: It’s been over a year since the program was launched. Is there anything specifically that stands out, based on that time in the marketplace?

BL: What we have seen is that users coming to the site via Storefront are engaging with us at a high level. Of those that come to the site, 90% are going to the following page and are staying since, the average time on Storefront is roughly 4 minutes and 30 seconds, which is very high in terms of overall engagement and time spent. Additionally, we’ve seen a 50% increase in leads specifically for new vehicles. And, when we look at consumers going to an OEM or dealer website to make a new vehicle purchase, we’ve been able to see that 29% of those leads originate through Storefront and Autotrader. 

AS: With that feedback in mind, are any particular aspects of the platform that you feel really resonate with consumers – i.e. – Augmented Reality, real time inventory, content, navigation ability etc.? 

BL: Currently, the adoption on augmented reality is very interesting. When users come to Storefront, they often use the configurator—which provides them with an augmented reality experience when shopping for a vehicle, and 80% of them will go to the next stage of the process, which is to get a quote on a particular vehicle and look at available inventory, which is very encouraging. We’ve also seen high level of satisfaction among consumers who have used Storefront, with seven out of 10 visitors rating the experience either excellent or very good. We’ve also seen strong brand engagement and the OEMs that have been working with us (including Mitsubishi and Hyundai) have signed up for another year, and we’ve recently added others such as Polestar. The results have been very encouraging and we’re now further investing in the platform to make it more integrated and user friendly for the consumer, including adding AI features to make it more intuitive.

AS: Can you tell us a little about the statistics and findings from OEMs using the platform, and what that represents for their KPIs and overall brand recognition and penetration in the Canadian marketplace? 

BL: We’ve seen an average of plus 13% increase in purchase intent, as well as plus 10% increase in favourability and overall, metrics have shown double digit growth. When we think about it in that context, it’s been a significant game changer. The results have shown that we have, with Storefront, a platform that allows consumers to buy a vehicle easily, do it with confidence, and do it consistently. And I think that consistency aspect is a key thing here. What we’ve seen in the marketplace overall, is that consumers are going from website to website and that’s resulting in fatigue and less willingness to complete the journey or transaction process. But, if you’re able to create a shopping experience and one that’s consistent, and where a consumer can go onto the site, look at multiple brands, build their vehicle, price it and select their next car purchase, it is a big win for them and a big win for the industry.

AS: Going forward, how do you see platforms like Storefront continuing to influence and evolve the customer brand experience journey as it relates to a new vehicle purchase and are there any specific factors you’d like to mention? 

BL: One thing that comes to mind is how automotive retail relates to other industries, regarding the customer experience. Clairvoy recently released a white paper entitled How Retail Media Networks (RMNs)are Influencing Automotive Marketing (https://www.clarivoy.com/blog/how-retail-media-networks-are-influencing-automotive-marketing.) This white paper showed that RMNs, like Amazon Ads, BestBuy Ads and Walmart Connect have become major channels for brands looking to reach consumers at the time of high purchase intent and now, this is migrating into the automotive retail space.  Clairvoy works with OEMs, dealers and agencies and in Canada, they partner with Autotrader. We’ve seen big brands gain significant traction by creating store fronts on other platforms like Amazon when a new product is launched, and for us, we see OEMs looking at Autotrader and our Storefront platform as an opportunity to increase their brand presence, enrich the consumer shopping experience and engage with an audience that might not traditionally visit an OEM website to purchase a car.

AS: Any final thoughts? 

BL: We’re excited about the results that we’re seeing right now after a year of having this product in the marketplace, and despite current political and economic disruptions, the signs are very encouraging with growing consumer engagement and new brands partnering with us.