SHOPSMART AUTOS – CUSTOMER INFORMATION – AUGUST 14, 2021
What Is Digital Retailing & Why does it Matter? (PT.1)
What’s missing in digital retailing? That’s a question many of us in the automotive industry have investigated for years, particularly in 2021. We interviewed some car dealers and found five digital retailing questions and concerns frequently brought up during the discussion on my quest to find out. Misconceptions and misguided assumptions are the enemy of a proper process and can create barriers between your dealership and online car buyers. So, we are sharing my findings with you in hopes that this article will help you combat that and prepare you for a successful automotive digital retail experience. We’ve outlined five frequently asked digital retailing questions and our responses.
Will the digital retailing process interfere with my in-store operation?
Don’t customers want to negotiate the price in digital retailing?
How will shoppers complete complicated online car buying steps?
Do customers have to complete the entire process online?
How will digital retailing affect my F&I profits?
Will the digital retail process interfere with my in-store operation?
The truth is that, yes, digital retailing can interfere with your dealership’s in-store process if you don’t choose your tools wisely. Some common issues with digital retailers include:
“The deal doesn’t go into my DMS.”
“The customer doesn’t know how to use the tool.”
“We always have to rework the deal because the numbers are off.” “It’s not actually retailing… it’s just a tool for leads.”
If you’ve found your dealership in any of these positions (especially in 2021), understand that you are not alone. However, it doesn’t have to be that way — working twice as hard to make retailing work for your business. The best digital retailing tools will assist your in-store team, not hinder it. Find a retailing product that helps your sales team make the most efficient use of their time by cutting down the processes needed to close the deal. When you’re shopping around for a digital retailing product, ask this question. Knowing that your team can focus on selling the vehicle rather than spend time navigating a lengthy deal-building process will help you sleep better at night.
Don’t customers want to negotiate the price in digital retailing?
Price negotiations are often the most dreaded step in the buying journey. We have found that most consumers trying to purchase a car on websites don’t want to go through the hassle. Understand that with online shopping, it’s all about price comparison shopping and dealer vs. dealer savings. According to a Cox Auto digital retailing article, a lot of consumer confusion related to price stems from automaker MAP restrictions, inaccurate customer financial data, and an overwhelming desire by the dealer to show only one payment – or none at all.
One of the great things about digital retail transparency is that people perceive the price more accurately with a narrow negotiating window. 91% of U.S. consumers would accept (or at least consider) an instant vehicle loan offer if it meant avoiding dealing with a bank or doing extra paperwork. Good digital automotive retailers will help shoppers figure out monthly payments based on accurate lender rates, value their trade, then shop aftermarket items efficiently.
People will pay more for a convenient online shopping experience.
Plus, online consumers who prefer negotiating can still have that option if you offer guided retailing with a live person to assist in the sales process.
How will shoppers complete the more complex online car buying steps?
Many dealerships were forced to pivot into the digital age due to social distancing restrictions seemingly overnight. This rush to adapt has created a wide variety of self-service retailing tools that aren’t as user-friendly as we thought. Many dealerships still struggle to get retailing completion because of how steep the learning curve is. Put your customers front and center when you think of, develop, market, and launch your digital retailing process. Look for features that make complicated steps easier for the consumer and ultimately turn leads into purchases. Below are just a few examples:
Live Human Assistance
Professional live support that keeps the deal moving forward and offers insight when shoppers need it. They also help build trust and rapport to build lasting relationships. When it comes to real-time support, you have options — voice, video, and the all-time favorite texting and chat.
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