Buying a new vehicle is no longer something modern consumers see as an in-person-only process. Most will utilize online or digital tools to complete a portion of the shopping process, and dealerships are rising to the occasion by integrating automotive digital retail technology into their approaches.
Knowing you’re ready to make the jump with your dealership is one thing. Successfully doing it is another, thanks to common challenges like upskilling and cybersecurity compliance. In this introductory guide, we’ll touch on what you need to know to get started, including an overview of where digital tools for car sales may fit into your business goals.
Why Is Digital Transformation Necessary for My Dealership to Remain Competitive?
Digital transformation can help your dealership stay relevant and competitive. Utilizing digital tools improves the car buying experience, enhances efficiencies, and streamlines your operations.
The Importance of Digital Retailing Tools in Automotive
Consumer preferences for digital shopping and customer service experiences are growing. Numerous studies and data sets confirm that modern consumers are not only open to the option of shopping for vehicles online but expect it.
78 percent of customers who completed a vehicle purchase online described the experience as “highly satisfying.”
92 percent of car shoppers say their next vehicle shopping experience will at least somewhat involve the web.
In other words, you can potentially amplify your dealership's bottom line if you embrace digital transformation sooner rather than later.
How are digital retailing platforms improving the car buying process?
A dealership’s decision to embrace automotive digital retailing tools will affect the buying and selling process in several ways.
- Digital retailing tools and online educational resources make it easier for customers to shop confidently and facilitate a customizable experience that works for them.
- Integrating technology into car dealership operations can make it easier to scale without also needing to expand your facilities or add headcount.
- Digitizing can make processes faster and reduce the risk of error.
What are the biggest technology challenges automotive dealerships face today?
Whether you’re not sure where to start when it comes to digitizing your business or have simply hit a few roadblocks along the way, you’re not alone. Most leaders face their share of challenges when considering or implementing new car dealership technology solutions.
Any major shift in how you do things at your dealership will call for some upskilling and additional training for your staff. Plus, it’s not uncommon to encounter resistance to change. Some team members may struggle to master automotive retail software. Others simply may not understand why things need to change when they were working fine before.
Some dealership operators worry about potential startup costs. However, many of the best digital retail tools for auto dealerships are easy to customize with your budget and needs in mind. Finding a partner that helps you take the guesswork out of this process can also help create a smooth transition.
Essential Digital Retailing Tools for Dealerships
Dealers who effectively use digital tools can grow their competitive advantage by meeting or exceeding buyer expectations, expanding their customer base and increasing sales potential.
Digital tools for car sales
When implemented properly, automotive digital retail technology delivers the online equivalent of the service customers get when they visit your dealership. The right digital retailing tools allow customers to:
- Browse your entire catalog from the comfort of their own homes
- Discover valuable information about F&I products, recommended maintenance and more
- Explore and discuss various financing options, a common hang-up for automotive customers
- Take advantage of buyer resources like pricing calculators, interactive product overviews and educational content
- Complete as much of the buying process as they like online, including chatting with a representative or scheduling an appointment
Keep in mind that many modern consumers prefer online shopping because it helps take pressure out of the equation. Digitizing your dealership is a solid way to incentivize those customers to buy from you instead of your competitors.
F&I digital tools
F&I digital tools are just as important as other retail resources, as F&I services correlate to a large portion of a dealership’s profitability. Since financing is a common sticking point for many consumers in the market for a new car, the right digital tools can make it more approachable and easier to see the value.
Virtual F&I helps bridge that gap. Traditional F&I transitions to virtual F&I once a finance manager and their customer start interacting from two different locations. Just as digital tools can reproduce the experience of buying a vehicle at a brick-and-mortar dealership, virtual F&I brings traditional in-store financing discussions online.
This process aims to preserve the interaction of an in-person human-to-human experience with video meetings.
F&I managers can still expertly walk their customers through options that suit their needs and thoroughly explain the benefits of each. Those customers who prefer completing all or most of the buying process online then feel more in control of the selection process.
Adding virtual F&I tools to your dealership’s operations helps add another dimension to the experience you provide, allowing you to connect with different types of customers and meet them wherever they are most comfortable.
Integrating Technology in Car Dealership Operations
Successfully incorporating automotive digital retail technology into your dealership operations takes time and typically requires adjustments. To ease the transition:
- Know what you’re looking for in a digital solution. Choose a program that meets your needs and those of your customers. Factors to consider include pricing, service support, ease of communication and straightforward systems.
- Prioritize interactivity, especially when it comes to tech and features that directly serve your customers. An engaging system can help preserve the personal touch that’s so important for fostering solid brand-customer relationships.
Remember that your customers aren’t the only ones who need support. Choosing the right digital partners helps ensure you get the assistance you need to successfully implement the tools. Look into options that provide robust in-store support, help with team training and more.
The Future of Digital Retail in the Automotive Industry
Technology evolves quickly, so staying on top of emerging trends is crucial. Some tech developments that are already being integrated into the industry include:
- Virtual vehicle tours that allow potential customers to examine a future purchase in detail anytime and from anywhere.
- Robust cybersecurity offerings that can help assure customers that their valuable personal information is safe with you, as well as safeguard your dealership.
- Omni-channel retail processes that offer consumers a 360-degree experience that seamlessly connects online and offline experiences.
- Websites that transition smoothly to mobile for customers on the go. Plus, the ability to rank higher in search engine results with the support of SEO (Search Engine Optimization) and location features to help you reach more customers near and far.
Remember that your customers aren’t the only ones who need support. Choosing the right digital partners helps ensure you get the assistance you need to successfully implement the tools. Look into options that provide robust in-store support, help with team training and more.
What’s Next for Your Automotive Digital Retail Technology Journey?
Many of your existing and potential customers (and quite a few of your competitors) are likely already utilizing enhanced digital components in the car buying process. The sooner you find and implement the right digital retailing tools, including F&I digital tools, the sooner you can start reaping the benefits.
Strategic automotive partners like JM&A Group can help point your dealership in the right direction with robust support designed to serve your operations and maximize profitability. Start your store’s digital transformation journey with the guidance of partners dedicated to your success!
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