Understanding Online Used Equipment Shopping Behavior (part 2)
Did you know equipment shoppers who’ve visited third-party listing sites such as MachineryPete.com are more qualified shoppers than those that come directly to your dealer site without having been on a third-party site? Not all visitors to your dealer website are actually shopping for used equipment. Some may be looking for information related to maintenance of their machine or scheduling a service appointment or even looking at job openings.
Equipment shoppers visit third-party sites as part of their equipment research process because it’s efficient. Farmers are able to see what inventory exists in the market and where it’s located; these sites allow users to search inventory across dozens of dealerships based on zip code and other search criteria. Once they find what they’re looking for they’ll go deeper and click through to the Listing Page to learn more details about the equipment. It's natural users would start on third-party sites to learn which dealership has what they are looking for. Therefore, when they visit the dealership site they are more engaged and qualified.
Here's research demonstrating how shoppers who’ve visited third-party listing sites as part of their equipment search are more qualified when they arrive at your site.
Here's a little background on the data. We found relevant studies in the automotive industry that evaluate the online behavior of consumers across digital channels to better understand how third-party listing sites influence car shopping behavior. We believe online shopping behavior is similar between the two industries and dealers in the used farm equipment industry can use these findings as a proxy to answer questions they have on the value a third-party equipment listing site provides and online user behavior.
One of the studies, conducted by Datium, “Rethinking Online Media Attribution,” found that third-party listing sites deliver an audience that is more qualified, closer to purchase and more engaged than other online investments. Consumers who visited Cars.com were 70% more likely than those who had not visited the site to click on a map, review directions or look for business hours on dealership websites – key “walk-in indicators” reflecting purchase intent.
Another study is AutoTrader’s, “Digital Audience Analysis”, which found that 68% of car dealership visits consist of actual car shopping activities. Car shopping activities are defined as inventory searches, listing page views etc. While 32% of dealer site visitors are not exposed to any inventory at all; these visitors aren’t in the market to buy, they are on the site to complete other tasks, as noted above.
Simply put, after having been on third-party sites, shoppers on dealer websites are more qualified, which indicates a higher likelihood to make a vehicle purchase. Shopper quality can be clearly demonstrated by comparing common dealer website metrics, such as bounce rate, page views, and time on site among Autotrader and Kelley Blue Book visitors versus other dealer website visitors. See exhibit below:
Car shoppers overwhelmingly use third-party sites to shop, and these sites drive highly qualified shoppers to dealership websites as evidenced by lower bounce rates and increased inventory shopping activity. As stated above, we feel these types of user behavior apply to our industry as well and that advertising on third-party sites can deliver high value to dealers looking to reach and influence high-quality, in market used farm equipment shoppers.