Consumer expectations are rising and technology will help dealers meet the demand.
Technology and innovation are re-shaping the automotive sector and it should come as no surprise that the nature of retail automotive sales is changing at an equally rapid pace.
In today’s world that is so focused on connectivity, social media and online media channels — it’s one area that retailers need to be as adept at as the car buying experience itself.
We have seen how the digital experience has re-shaped the hotel booking and travel booking experience. We have witnessed how online searches and larger household purchases such as furniture are increasing — and we need to prepare for this trend in the automotive sales world.
In Europe as an example, most new car sales involve the Internet and in some cases dealers are exploring the offering of direct sales and financing through their websites.
Technology is a significant tool that represents a challenge — but it also presents an opportunity to reinvent the car buying experience.
Although dealerships will continue to play a significant role as primary channels for building personal contact and relationships, customers are able to quickly interact and access information across media and devices, anywhere and anytime.
Information ranging from vehicle performance to cost of ownership and financing to after sales experience makes the need for a personalized and relevant customer approach even more important.
Furthermore, increasing vehicle complexity, faster replacement rates, and rapid technology evolution means customers want the latest and greatest — and retailers need to be on top of the latest innovation and technological advances.
It all starts with data.
The business insights that data reveals about a dealer’s marketing dollars, sales investments, and inventory management can be important not only in increasing the cost effectiveness of a dealership, but also in creating immersive customer experiences.
New sources of data and transaction information that can be gathered from websites, mobile apps, point of sale conversions and social media metrics, presenting new opportunities for retailers to achieve unprecedented value and competitive advantage.
As consumers lead increasingly hectic lives, in some circumstances it is now possible for them to request a test drive online and have a car brought to their front door.
To be clear this is not about accessing or utilizing personal information — but understanding a customer’s buying experiences, their preferences and ongoing relationship with a dealer — and then harnessing information to identify, as an example when a customer may be in the market for a new vehicle. This information can also help dealers offer more relevant deals and promotions and assist in building a bond with the client, gaining their loyalty. Customers in turn will feel that the dealer understands their specific needs.
As for the next wave of evolution, it appears endless.
As consumers lead increasingly hectic lives, in some circumstances it is now possible for them to request a test drive online and have a car brought to their front door. They can then complete the paperwork online and have a car delivered to them if they decide to purchase a vehicle or even have it picked up for servicing.
The power of holograms is being explored as a tool to redefine how customers first encounter and explore a car, putting them in the driver’s seat to choose the type of car they want, explore the features and options available and experience the customization — all within a dealership experience.
We are starting to see the move from a traditional dealership lot to experimenting with a convenient retail environment through pop up stores in shopping malls, to be closer to consumers and help them see and experience a vehicle in a less complicated fashion.
We are also starting to see interactive brand experience studios in which no vehicles are actually on display, but models are displayed on the walls in brand galleries — and most of the interactions are digitized.
These evolutions may not have arrived yet to a city or town near you — but stay tuned.
