The weekend is the busiest time for dealerships, but not everyone wants to spend their day off there. Most people would prefer to shop for new appliances at Sears, relax at home with a rental from Blockbuster, or start their new electronics hobby with parts from Radio Shack.
At least, that’s what they may have done twenty years ago before those companies failed to adapt to an online retail model. Now, we see too many dealers following an old pattern rather than learning from the mistakes of these once booming businesses.
Most Dealers Are Not Going Where the Consumer Is
Today consumers are so conditioned to shopping online that most don’t even leave their house before first opening their browser. With over 80% of car shoppers using online sources during their purchase consideration[1], you would expect that automotive dealerships would be at the forefront of transitioning to an online model. The reality, however, is those dealerships that have embraced online retailing are few and far between.
Every dealership has a website, and they all pay handsomely to drive people to that site. The problem is that often times that’s where the journey ends. For how much is spent on each visitor you would think there would be more interest in optimizing those leads.
If consumers are going to your website, why not provide them with the experience they are looking for?
Sure, your website as-is may drive some people to visit your showroom, eager to learn basic purchase details. Or, it could lead them to search elsewhere online, like a competitor’s site.
When a dealer implements digital solutions for consumers, it can be felt in multiple ways throughout the entire dealership, benefiting multiple departments. These benefits can range from:
- Improving CSI
- Increasing Sales
- Driving More Revenue
- Consumer Trends
For example, Digital Motors provides dealerships with end-to-end solutions that allow consumers to shop for and purchase their vehicle online, and one of the key benefits of the platform is the dedicated Dealer Success team. From lead optimization, to site analytics, to one-on-one training and support, ensuring our customers’ continued success is a top priority.
It’s not only beneficial for our dealers, but also for the insight we’re able to gain from their experiences. It’s an unfiltered view of what’s really transpiring in the industry.
Though we have this unique perspective, the results are hardly surprising. Dealers on the Digital Motors platform note how they experienced higher conversion rates from sales leads and increased run rates on their F&I products. The more they embraced the platform, the better their results.
Consumers want to shop online, so it’s no wonder that 63% of them are more likely to purchase F&I products that they can review online, on their time[2].
When you give your consumers the option to make purchases online, they are more likely to spend more, whether they are purchasing a new car or adding F&I products and accessories.
Bottom Line
The easier the shopping experience, the more shopping will actually occur. There’s no worry about losing customers who can’t find the information they’re looking for. There’s no worry about not being able to sell when your physical store is closed. There’s no worry that you’re missing out on margins by not effectively upselling. There’s simply less worry, for everyone. Dealers can sell more, and shoppers can leave happy.
This concept, basic as it may be, is still viewed with a heavy level of skepticism by those clinging to tradition. They disregard the signs, and their competitors, and continue to spend the way they did twenty years ago. It’s like pulling your financial portfolio out of Amazon and dumping it into Sears. Which company would you rather your business emulates?
[1] McKinsey, 2020
[2] Assurant Resource Automotive, 2020
