Published On: Tue, Nov 8th, 2022

Digital Retailing in the Automotive Industry

Digital retailing in the automotive industry helps streamline the car buying process from beginning to end by combining online and offline activities. This includes streamlined lead management and sales processes. This type of retailing is also beneficial to dealerships. Dealerships can more effectively respond to changing global consumer behavior and market trends.

Automotive IndustryCustomer’s Ability to Go Deeper into the Car Buying Process Online

Increasingly, customers are going online to make their car-buying decisions. Car dealerships should focus on engaging customers online instead of relying on in-person visits. Whether customers buy their cars online or offline, they want to get as much information as possible about what they’re buying. To boost their automotive leads, dealerships must increase their online presence and make their consumers’ experiences as seamless as feasible.

While there’s still a lot of friction associated with buying a new car, many consumers are making their car-buying experiences online..

Video is one of the most effective formats for encouraging consumers to buy a car online. YouTube videos of test drives have doubled in the last year and can influence up to 70% of buyers. Videos can give shoppers a realistic picture of what the car looks like and help them decide whether or not to purchase it.

Consumers want the best car buying experience but want to do it on their terms. The future dealership could include high touch points, “at-home” trials, and larger out-of-town “edutainment centers” that provide an immersive brand experience.

Dealership’s Ability to Adapt to Global Changes

A dealership’s ability to adapt to global changes will depend on how well it can adapt to new customer expectations and changing consumer habits. Traditionally, dealers act as a central hub for information and service, a relationship based on a one-to-one relationship with customers. By reinventing itself as a trusted advisor, a dealership can retain current revenues while creating new revenue streams.

Benefits for Dealerships

Digital retailing for dealerships is a significant shift for many reasons, and there are several benefits to dealerships that use it effectively. The most obvious one is a reduction in transaction time. With this shift, dealerships can provide customers with a more enjoyable experience and increase sales volume.

Another benefit of digital retailing for dealerships is the increase in transparency. Online shoppers expect a dealership’s website or mobile app to enable them to configure and process accurate payments. The ability to customize workflow and payment options for individual shoppers will help them make a more informed decision. Furthermore, the ability to streamline the F&I process can help dealerships maximize sales.

Despite this advantage, the dealership experience is still vital in auto buying. PERQ suggests that true digital retailing should enable shoppers to begin, stop, and continue the process at their leisure. While dealerships may not want to eliminate the dealership experience, they should make it as simple as possible for consumers to purchase.

Digital retailing for dealerships allows dealers to address consumers’ most significant pain points and streamline car buying. Through online and mobile channels, dealerships can make it easier for customers to get a guaranteed trade-in offer or decide on a loan. It can also streamline the trade-in valuation process. By improving online and in-store customer experiences, dealerships can increase sales and customer satisfaction.