The industry is evolving.
Customers are changing.
Will you follow them?
The customer shopping experience has evolved in the past decade to suit consumer needs, comfort and to meet the requirements of globalization. With the expansion of retail giants such as Amazon, goods can be browsed, purchased and delivered to your doorstep with just a few clicks. Should the product be damaged or not up to your expectations, it can be sent back and refunded, free of charge.
This has prompted almost all retailers, big or small, to provide content, goods and services online. Despite many other industries having already adapted to the new way of doing business, you will find traditional dealerships throughout the globe, which still have the look and feel as the ones that existed over 30 years ago.
Customer expectations and demands are shifting
Automotive dealerships have not had the need to transform as rapidly, as their product was always viewed as a necessity, and the most important investment after the purchase of a home. However, the landscape is beginning to shift. Customers today have voiced their dissatisfaction with the traditional dealership, with only 14% preferring the current vehicle purchasing process (Cox Automotive, 2016). Amongst the many concerns, the most impactful pain point across all generations was the massive amount of time spent filling out paperwork or sitting around and waiting idly. 33% of Millennials, 37% of Gen X and 29% of Baby Boomers bring this topic up (IHS Automotive, 2016).
With purchases, bookings, terms and agreements taking minutes online, the car purchase journey is simply cumbersome for most customers and the majority are not willing to spend a large portion of their day in the dealership. Visitors want to be able to use this idle time at a dealership as an educational or learning experience. 43% of customers expect to learn either about their vehicle of interest, parts, the automotive market or history, which is a factor many dealerships neglect, since so much information is available online (IHS Automotive, 2016).
Dealerships must go to where the prospects are
It is common for most dealerships to be situated in locations outside of urban centers. This makes sense for financial viability since prime large site for dealership would represent considerable level of investment. This however causes accessibility issues for a large number of customers, who value location as the second most important factor after quality but before price when selecting a dealership (Capgemini, 2013).
In regions such as China, location is even a priority before the quality of the service and price, as convenience is a must in fast-paced, high-tech cultures. Dealerships with locations outside of cities also tend to have trouble capturing new potential leads or prospects, as individuals willing to drive to the location already have interest in purchasing a vehicle.
ARE YOU READY TO
THE WAY YOU SELL CARS?
Dealer 4.0, our vision of a modern, mobile dealership aims to solve the aforementioned issues and to transform the traditional dealership into an interactive, customer-friendly, high-tech experience.
What’s in it for your dealership?
- 1 Create new lead generation channel by reaching potential customers who may not have been accessible through other channels.
- 2 Increase customer interest and engagement thanks to accurate selection of content and exhibits presented in and near the showroom.
- 3 Build confidence and trust as well as expanding upselling opportunities with effective pricing offers and promotional packages based on analysis of the customer’s driving behavior and related statistical data.
- 4 Improve stock management by utilizing tracking analytics to see which models were most viewed, as well as which colors, specifications and customization the most are sought after or configured throughout the past days, weeks, months or years.
- 5 Boost brand value as customers are swayed by the dealership, as the experience is new and different from that of competitors.