Market Pulse: Impact on Shopper Demand from Summer Surge of Covid-19 Cases

Chris Martin, Senior Vice President of Customer Development

Market Pulse: Impact on Shopper Demand from Summer Surge of Covid-19 Cases

Chris Martin, Senior Vice President of Customer Development

Market Pulse: Impact on Shopper Demand from Summer Surge of Covid-19 Cases

Chris Martin, Senior Vice President of Customer Development

It’s the reality that just won’t go away. As NADA reported retail sales tracking back towards normal in June, the news regarding the surge in new Covid-19 cases across the South and the Sunbelt began to heat up. The impact on the auto industry remains to be seen. While significant surges have not translated into mass stay at home orders disrupting day to day dealership operations, certain production lines are operating in a reduced capacity based on the spread in their local vicinity. And as supply continues to return to normal, demand does not.

In fact, recent surges are having a minimal impact on overall shopper demand. With a lens into online shopping activity across the entire internet, Client Command’s Active Shopper Network® is uniquely positioned to deliver real-time insights into who has started shopping, stopped shopping or continued shopping in the past 24 hours. Dealers must stay in tune with shopping activity trends as they make inventory decisions and lean in to used car inventory if and when new car production pipelines lag.

Shopper demand resists Covid-19 surges — Rebounds to 2019 levels in most states.

In spite of recent surges, demand continues a steady, upward climb. When the Covid-19 pandemic began to impact everyday American life, shopper demand fell off rapidly, especially the number of new entrants coming into the market. And the cities and states most impacted by the spread, saw the most immediate decline in shopping activity. Active Shopper Network® insights offer encouragement to dealers concerned that recent surges could have the same impact on demand.

Year-Over-Year – Active Shopper Network® – Daily Shopping Trends (National)

ALL Daily Active Shoppers

ALL SHOPPERS – TRENDS: The race to catch and eclipse 2019 shopping levels continues to gain momentum. Shopping activity lagged 2019 by double digits for much of Q2 and has seen a rapid incline catalyzed by the Memorial Day holiday. In the first few weeks of July, the lag has been cut to 2%.

Active Shopper Network® – 360 Day Comparison (National)

ALL Daily Active Shoppers

The map below offers a visual representation of how shopping has changed in a 360-day time frame at a state level. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

360-DAY COMPARISON:

Across the nation, shopping activity has rebounded to and is now outpacing 2019 levels in most of the nation. The key outlier? California. Although surges in Covid-19 cases are being most heavily reported from the South and Sunbelt, many of those same states are showing a 7-13% year-over-year increase in shoppers — ranging from 7% in Arizona to as high as 13% in Florida.

What does this mean?

Surges in Covid-19 cases are having minimal bearing on overall shopper demand. And many of the states most impacted by the current spread, are actually trending ahead of this time last year.

To dig deeper, let’s compare what is happening in mid-July to 15 and 30 days prior.

The maps below offer a visual representation of how shopping has changed in the most recent 30 and 15-day timeframe at a state-level, respectively. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

Active Shopper Network® – 15 Day Comparison (National)

ALL Daily Active Shoppers

15-DAY COMPARISON:

Mid-July, overall shopping was up 3% across the nation from the beginning of the month – with states in the Sunbelt and South tracking with that national average. Some southern states including Alabama, Louisiana and Georgia were even tracking ahead of the national average.

Active Shopper Network® – 30 Day Comparison (National)

ALL Daily Active Shoppers

30-DAY COMPARISON:

Across the nation, the number of shoppers in mid-July are up 12% from a month prior – including most of the states most impacted by the second surge. Only California and Nevada showed a minor lag of 10% and 12% respectively.

Active Shopper Network® – 2020 Daily Shopping Trends (National)

NEW Daily Active Shoppers (started shopping that day)

NEW DAILY ENTRANTS TRENDS: The number of new entrants continues to lag the high bar set in January, yet continues to hold steady. Following a volatile April and May, the number of new entrants more than doubled in early June and is holding strong in July, feeding the sales pipeline for late summer to early fall.

What does this mean?

Shopping trends are moving in the opposite direction in this phase of the Covid-19 pandemic from what was seen at the initial impact point of the crisis. With new daily entrants holding steady and overall shopping trends climbing upward, shopper demand is strong, even among the states most impacted by the reports of surging Covid-19 cases. What remains to be seen is if the length of a shopper’s buying cycle will be impacted by inventory delays and OEMs pulling back the aggressive incentives and financing plans.

Resist the urge to scale back. Rely on today’s shopping data to power your marketing strategy.

Dealers looking to scale back marketing efforts due to an expected similar correlation between rising cases and dropping demand, should pause and re-evaluate. Client Command is leveraging our industry-leading tech to help dealers know today’s shopper demand in their market and take action through precision targeting and advertising.

If we have learned anything from this season, it is that predictability is dead. Dealers relying on data models and previous trends to make marketing decisions to navigate this market are left blind to reality.

Give us a call to demo to the Active Shopper Network® and strategize on how your dealership can move forward through this next phase. More about the Active Shopper Network®>>

Client Command’s patented technology allows us to connect cookies and devices to shopper identity. The Active Shopper Network® monitors 90% of internet connected devices across more than 61 billion URLs specific to automotive, including classified listing sites, dealership websites, OEM websites, automotive research sites, automotive Google searches and more.

It’s the reality that just won’t go away. As NADA reported retail sales tracking back towards normal in June, the news regarding the surge in new Covid-19 cases across the South and the Sunbelt began to heat up. The impact on the auto industry remains to be seen. While significant surges have not translated into mass stay at home orders disrupting day to day dealership operations, certain production lines are operating in a reduced capacity based on the spread in their local vicinity. And as supply continues to return to normal, demand does not.

In fact, recent surges are having a minimal impact on overall shopper demand. With a lens into online shopping activity across the entire internet, Client Command’s Active Shopper Network® is uniquely positioned to deliver real-time insights into who has started shopping, stopped shopping or continued shopping in the past 24 hours. Dealers must stay in tune with shopping activity trends as they make inventory decisions and lean in to used car inventory if and when new car production pipelines lag.

Shopper demand resists Covid-19 surges — Rebounds to 2019 levels in most states.

In spite of recent surges, demand continues a steady, upward climb. When the Covid-19 pandemic began to impact everyday American life, shopper demand fell off rapidly, especially the number of new entrants coming into the market. And the cities and states most impacted by the spread, saw the most immediate decline in shopping activity. Active Shopper Network® insights offer encouragement to dealers concerned that recent surges could have the same impact on demand.

Year-Over-Year – Active Shopper Network® – Daily Shopping Trends (National)

ALL Daily Active Shoppers

ALL SHOPPERS – TRENDS: The race to catch and eclipse 2019 shopping levels continues to gain momentum. Shopping activity lagged 2019 by double digits for much of Q2 and has seen a rapid incline catalyzed by the Memorial Day holiday. In the first few weeks of July, the lag has been cut to 2%.

Active Shopper Network® – 360 Day Comparison (National)

ALL Daily Active Shoppers

The map below offers a visual representation of how shopping has changed in a 360-day time frame at a state level. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

360-DAY COMPARISON:

Across the nation, shopping activity has rebounded to and is now outpacing 2019 levels in most of the nation. The key outlier? California. Although surges in Covid-19 cases are being most heavily reported from the South and Sunbelt, many of those same states are showing a 7-13% year-over-year increase in shoppers — ranging from 7% in Arizona to as high as 13% in Florida.

What does this mean?

Surges in Covid-19 cases are having minimal bearing on overall shopper demand. And many of the states most impacted by the current spread, are actually trending ahead of this time last year.

To dig deeper, let’s compare what is happening in mid-July to 15 and 30 days prior.

The maps below offer a visual representation of how shopping has changed in the most recent 30 and 15-day timeframe at a state-level, respectively. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

Active Shopper Network® – 15 Day Comparison (National)

ALL Daily Active Shoppers

15-DAY COMPARISON:

Mid-July, overall shopping was up 3% across the nation from the beginning of the month – with states in the Sunbelt and South tracking with that national average. Some southern states including Alabama, Louisiana and Georgia were even tracking ahead of the national average.

Active Shopper Network® – 30 Day Comparison (National)

ALL Daily Active Shoppers

30-DAY COMPARISON:

Across the nation, the number of shoppers in mid-July are up 12% from a month prior – including most of the states most impacted by the second surge. Only California and Nevada showed a minor lag of 10% and 12% respectively.

Active Shopper Network® – 2020 Daily Shopping Trends (National)

NEW Daily Active Shoppers (started shopping that day)

NEW DAILY ENTRANTS TRENDS: The number of new entrants continues to lag the high bar set in January, yet continues to hold steady. Following a volatile April and May, the number of new entrants more than doubled in early June and is holding strong in July, feeding the sales pipeline for late summer to early fall.

What does this mean?

Shopping trends are moving in the opposite direction in this phase of the Covid-19 pandemic from what was seen at the initial impact point of the crisis. With new daily entrants holding steady and overall shopping trends climbing upward, shopper demand is strong, even among the states most impacted by the reports of surging Covid-19 cases. What remains to be seen is if the length of a shopper’s buying cycle will be impacted by inventory delays and OEMs pulling back the aggressive incentives and financing plans.

Resist the urge to scale back. Rely on today’s shopping data to power your marketing strategy.

Dealers looking to scale back marketing efforts due to an expected similar correlation between rising cases and dropping demand, should pause and re-evaluate. Client Command is leveraging our industry-leading tech to help dealers know today’s shopper demand in their market and take action through precision targeting and advertising.

If we have learned anything from this season, it is that predictability is dead. Dealers relying on data models and previous trends to make marketing decisions to navigate this market are left blind to reality.

Give us a call to demo to the Active Shopper Network® and strategize on how your dealership can move forward through this next phase. More about the Active Shopper Network®>>

Client Command’s patented technology allows us to connect cookies and devices to shopper identity. The Active Shopper Network® monitors 90% of internet connected devices across more than 61 billion URLs specific to automotive, including classified listing sites, dealership websites, OEM websites, automotive research sites, automotive Google searches and more.

It’s the reality that just won’t go away. As NADA reported retail sales tracking back towards normal in June, the news regarding the surge in new Covid-19 cases across the South and the Sunbelt began to heat up. The impact on the auto industry remains to be seen. While significant surges have not translated into mass stay at home orders disrupting day to day dealership operations, certain production lines are operating in a reduced capacity based on the spread in their local vicinity. And as supply continues to return to normal, demand does not.

In fact, recent surges are having a minimal impact on overall shopper demand. With a lens into online shopping activity across the entire internet, Client Command’s Active Shopper Network® is uniquely positioned to deliver real-time insights into who has started shopping, stopped shopping or continued shopping in the past 24 hours. Dealers must stay in tune with shopping activity trends as they make inventory decisions and lean in to used car inventory if and when new car production pipelines lag.

Shopper demand resists Covid-19 surges — Rebounds to 2019 levels in most states.

In spite of recent surges, demand continues a steady, upward climb. When the Covid-19 pandemic began to impact everyday American life, shopper demand fell off rapidly, especially the number of new entrants coming into the market. And the cities and states most impacted by the spread, saw the most immediate decline in shopping activity. Active Shopper Network® insights offer encouragement to dealers concerned that recent surges could have the same impact on demand.

Year-Over-Year – Active Shopper Network® – Daily Shopping Trends (National)

ALL Daily Active Shoppers

ALL SHOPPERS – TRENDS: The race to catch and eclipse 2019 shopping levels continues to gain momentum. Shopping activity lagged 2019 by double digits for much of Q2 and has seen a rapid incline catalyzed by the Memorial Day holiday. In the first few weeks of July, the lag has been cut to 2%.

Active Shopper Network® – 360 Day Comparison (National)

ALL Daily Active Shoppers

The map below offers a visual representation of how shopping has changed in a 360-day time frame at a state level. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

360-DAY COMPARISON:

Across the nation, shopping activity has rebounded to and is now outpacing 2019 levels in most of the nation. The key outlier? California. Although surges in Covid-19 cases are being most heavily reported from the South and Sunbelt, many of those same states are showing a 7-13% year-over-year increase in shoppers — ranging from 7% in Arizona to as high as 13% in Florida.

What does this mean?

Surges in Covid-19 cases are having minimal bearing on overall shopper demand. And many of the states most impacted by the current spread, are actually trending ahead of this time last year.

To dig deeper, let’s compare what is happening in mid-July to 15 and 30 days prior.

The maps below offer a visual representation of how shopping has changed in the most recent 30 and 15-day timeframe at a state-level, respectively. Dark blue indicates a negative market change (a loss of shoppers) of more than -11.7%. Green indicates a positive market change (increase in shoppers) of 5%.

Active Shopper Network® – 15 Day Comparison (National)

ALL Daily Active Shoppers

15-DAY COMPARISON:

Mid-July, overall shopping was up 3% across the nation from the beginning of the month – with states in the Sunbelt and South tracking with that national average. Some southern states including Alabama, Louisiana and Georgia were even tracking ahead of the national average.

Active Shopper Network® – 30 Day Comparison (National)

ALL Daily Active Shoppers

30-DAY COMPARISON:

Across the nation, the number of shoppers in mid-July are up 12% from a month prior – including most of the states most impacted by the second surge. Only California and Nevada showed a minor lag of 10% and 12% respectively.

Active Shopper Network® – 2020 Daily Shopping Trends (National)

NEW Daily Active Shoppers (started shopping that day)

NEW DAILY ENTRANTS TRENDS: The number of new entrants continues to lag the high bar set in January, yet continues to hold steady. Following a volatile April and May, the number of new entrants more than doubled in early June and is holding strong in July, feeding the sales pipeline for late summer to early fall.

What does this mean?

Shopping trends are moving in the opposite direction in this phase of the Covid-19 pandemic from what was seen at the initial impact point of the crisis. With new daily entrants holding steady and overall shopping trends climbing upward, shopper demand is strong, even among the states most impacted by the reports of surging Covid-19 cases. What remains to be seen is if the length of a shopper’s buying cycle will be impacted by inventory delays and OEMs pulling back the aggressive incentives and financing plans.

Resist the urge to scale back. Rely on today’s shopping data to power your marketing strategy.

Dealers looking to scale back marketing efforts due to an expected similar correlation between rising cases and dropping demand, should pause and re-evaluate. Client Command is leveraging our industry-leading tech to help dealers know today’s shopper demand in their market and take action through precision targeting and advertising.

If we have learned anything from this season, it is that predictability is dead. Dealers relying on data models and previous trends to make marketing decisions to navigate this market are left blind to reality.

Give us a call to demo to the Active Shopper Network® and strategize on how your dealership can move forward through this next phase. More about the Active Shopper Network®>>

Client Command’s patented technology allows us to connect cookies and devices to shopper identity. The Active Shopper Network® monitors 90% of internet connected devices across more than 61 billion URLs specific to automotive, including classified listing sites, dealership websites, OEM websites, automotive research sites, automotive Google searches and more.