Building More Profitable, Customer-Centric Deals for Any Type of Car Buyer

Dealers are embracing new approaches to retailing more than ever. In fact, 90% of the dealers surveyed in the 2023 Cox Automotive Digitization of Car Buying Study said digital retailing has positively impacted at least one area of their business. New digital solutions can help dealers drive profitable, customer-centric deals on any purchase path, whether they’re online, on the phone, or in the dealership. Here are three ways a modern approach to retailing can help dealerships be more profitable.

1. More Efficient Operations

Operations efficiency is key to dealer profitability. Moving away from paper and toward a more flexible digital format helps reduce manual steps, speed up transactions, and provide seamless data flow.

Digital features like centralized DMS document management, enhanced digital signing, and elevated compliance tools make day-to-day tasks easier and more efficient so dealers can focus on their customers.

2. More Meaningful Connections

Fewer dealers than ever view digital retailing as a barrier to forming personal connections with car buyers. According to the Cox Automotive study, 43% of dealers said digital retailing creates a more personal connection with shoppers—up from just 25% the previous year.

This significant shift represents a breakthrough: Modern retailing saves time and helps drive leads to the dealership, but more dealers now see that the benefits don’t end there. More dealers now recognize that digital also helps establish, build, and nurture more meaningful connections with shoppers.

Consumers are driving this change. Of the shoppers surveyed, 74% are more willing to share personal information such as income, credit score, vehicle data, and online/social media data with dealers online to save time and get more relevant recommendations.

3. More Streamlined Deal Process

Digital tools can also make the deal process more efficient—but according to the Cox Automotive study, less than 10% of dealers completely trust the information customers submit online. As a result, 97% of the dealers surveyed said that customers complete steps online only to repeat them again in-store.

If a dealer doesn’t trust their own digital tools, they’re costing the car buyer and themselves time. Even worse, the buyer’s trust in the dealership erodes when they’re asked to repeat the same information.

To streamline the deal process, dealers need to work alongside the shopper. In the Cox Automotive study, the largest percentage of consumers prefer to sit with a dealer and review the information they’ve submitted online before moving forward to the deal.

Digitial tools can connect dealer workflows, provide better insights, and build more personal connections. And when dealers adopt solutions that provide an easier, more connected workflow, they can focus on the consumer—whether they’re online, on the phone, or in the dealership.

Learn how your dealership can reach its full profit potential with digital solutions that help you improve the customer experience. Download the Key Findings from the 2023 Digitization of Car Buying eBook from Dealertrack today.