The traditional form of selling cars is nearing an end, and the digital dealer must be embraced to bring dealers closer to consumers.
A recent study performed by OSF Digital gives dealers the feedback required to support the movement away from in-person car shopping to a more dynamic eCommerce structure, which is what customers are looking for. Much like the world of retail shopping, which can be done online with deliveries, curbside pickup, and order-ahead methods, consumers desire the same experience when buying a car. This could mean a massive shift in business practices by many dealers around the country.
The Study that Tells the Tale
The study performed is called the OSF Digital 2022 U.S. Automotive Dealership Ecommerce Benchmark Study. While that is a mouthful to say, the title does give you an idea of exactly what you need to expect when you read the study. Without going through every detail, what we understand from this study is that customers desire the convenience of completing a majority, if not all, of the car shopping experience online. They want visibility into dealership inventory, they want access to related products, and they want to have the entire process streamlined to avoid spending hours at the dealership.
It’s Time for Dealers to go Digital
You’ll still find many customers that want to visit a dealership and do some business in person, but that is becoming less of the norm than before. Using the OSF Digital study, we learn that car buyers want accurate, consistent information delivered quickly and without any fuss. The digital dealer will aid in eliminating the pain point that many feel when visiting a car dealership to make a purchase. Unfortunately, many car dealers are only just starting to put the digital aspect of selling cars together.
Consumers are Digital First, Dealers Should be as Well
If we hadn’t gone through the global pandemic, there’s a good chance car dealers wouldn’t have changed at all. The pandemic forced many dealers into a digital world where they weren’t quite comfortable yet. Thankfully, many did find their way through and now they simply need to take the next step. Some key items from the OSF Digital report include:
- 95 percent of buyers use digital sources for information
- 83 percent of consumers would like to shop online before making the purchase decision
- Most automotive consumers visit 4.2 websites during the purchase process
- Over 60 percent of consumers visited dealer websites after watching videos of the vehicle they are considering
- 79 percent of dealers don’t have the search functionality needed to make this process smooth for the consumer
- Only 5.5 percent of all dealers offer a 360-degree viewer feature to allow shoppers to see the entire exterior of a vehicle
These figures are somewhat alarming but considering many dealers were thrust into a digital world less than two years ago, it’s not surprising that many are still falling behind. The world of the digital dealer is upon us, and many car dealers will need to adjust, but how can they do this?
How to Digitize the Dealership?
One of the greatest hurdles that many car dealers face is having enough IT support to offer consumers what they need. Some may feel they need to employ a full-time staff of digital experts, but that’s simply not the case. Many dealers can turn to partners that work in digital marketing to find the eCommerce solution that fits their needs, budget, and goals. Modern-day sales experiences are much different from what they once were, and car dealers are adjusting to bring about the best consumer experience possible.
What Pain Points Can the Digital Dealer Remove for Consumers?
Heading to a car dealership can be intimidating. This is one reason many shoppers will spend some time researching vehicles online before making a purchase. Once at the dealership, the environment, while inviting, can feel overwhelming. If you’ve ever sat in the showroom waiting for the salesperson to talk to their manager, you’ve felt anxiety and frustration, which is part of this experience. Moving to a digital, online experience, some of the pain points that can be removed are:
Talking to a Car Salesperson
That’s not to say people aren’t friendly and try to help, but some people don’t understand the language being used and will feel a bit overwhelmed. Consumers want information and conversations on their terms, not when the dealer wants to provide them. Being able to sit at home and shop for the vehicle desired is a better situation for most consumers.
Inconsistent Pricing Information
Car dealers try to ensure the online price of a vehicle matches what’s found on the lot, but sometimes that isn’t the case. A streamlined process that is fully digitized could remove this pain point. It can be disheartening to arrive at a dealership only to find a higher price is being asked for the vehicle than what was listed online.
Hours Spent at the Dealership
On average, the car buying experience at a dealership is four hours long. That is half of a workday, requiring many shoppers to spend time on their off days just to buy a vehicle. This time could be broken into smaller pieces or completed more efficiently when a digital dealer model is used. A quick, streamlined process makes it much easier for shoppers to have the experience desired.
Price Negotiation
Many car dealers have already removed this pain point but will need to take things just a step farther. You won’t often find any need to negotiate a price at most new car dealers but may find that some cars are sold at different prices while having the same equipment. Inconsistent pricing is one of the pain points that consumers want dealers to fix.
Lack of Flexibility
To buy a car, you must be present at the dealership. That statement is no longer true. Thanks to the pandemic, online car buying has grown and continues to be a preferred method of purchase. Not all dealers have caught onto this process but may have to if their competitors are to use a digital dealer process to make the car sales experience much better for consumers.
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