Auto Dealers Face Digitally Empowered Customers
Sixty percent of polled car dealers expect their sales process will become more consultative and rely more on technology, a MAX Digital study says.
Car dealers are amping up their digital efforts, with about a third of them saying they expect their online activities will double in five years.
That’s according to the 2020 MAX Digital Retailing Study. It’s based on a survey of 544 U.S. dealers.
Seventy-six percent of them say they have established a process for transitioning customers from online to in-store. But half of those dealers say the process could improve.
Sixty percent of respondents expect evolving sales processes will become more consultative and rely more on technology, according to MAX Digital, a software provider, that did the study in conjunction with Erickson Research.
The study says the vast majority of car transactions are finalized at the dealership. Three of five buyers arrive having selected a vehicle beforehand through online shopping and researching.
Consumers come in armed with information about vehicles of interest. Consequently, the study says salespeople and business-development-center staffers should know as much, if not more.
“We want our people adding value with all the product details and information,” says survey participant John Hipp, executive general manager of Coggin Chevrolet at the Avenues in Jacksonville, FL.
The survey offers the following tips:
Provide a brand promise, such as full transparency with minimal or no price haggling.
Add a “fast lane” for customers who are up to speed because of their deep online shopping and researching.
Create a team dedicated to an enhanced digital-retailing process.
Make trade-ins collaborative. Have customers evaluate their vehicle. Test drive it together. Use technology to show them market value so they know how the dealership arrives at its trade-in offer.
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