Google held a conference at its New York base concerning automotive parts and services. The conclusion they gave to attendants was that people are going online in growing numbers looking for auto parts and services via search. That includes both local, national and international searches.
Bonita Stewart, who runs Google's automotive division, and formerly worked as a marketing exec for Chrysler Group, said that while search for auto parts and services is increasing, automakers are losing out in the area.
She said that over the last two years search traffic which leads to OEM parts has decreased by 23 percent while it has increased for parts retailers and tire stores.
"Automakers need to invest in their parts and services sectors." Stewart says 60% of dealership sales involve new vehicles, but 60% of profit is parts and services. "They are losing Web traffic to retailers partly because they aren't investing in search referral."
Stewart added that 36 percent of Internet users use the Internet to shop for auto parts online. The most searched items in order are tires, accessories, car care, filters, batteries and brakes.
She is quoting data commissioned by research company Compete.
While this is an obvious pitch to the auto industry for more search business because of the slowdown in sales, there is still a lot of truth in what is being said.
For those of us not in the auto business, it's a good thing to think of as far as if there is anything within our products or services similar to auto parts. Are there secondary sales that could possibly make more money than the our original products or services we offer?
When you consider the auto industry and 60 percent of its profit coming from parts and services, we need to take a good look at what we may have that could lead to similar profits. We need to be careful not to get caught up in the original thing we offer to the exclusion of additional high-profit sales.
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