Selling Cars in the Digital Age

Selling Cars in the Digital Age

Visiting numerous dealerships to scope out the perfect car has never been a hobby of consumers for many reasons. Salespeople at dealerships are oftentimes viewed as aggressive and overly eager to meet their quotas, which is discouraging to consumers who just want to speak to a true professional who will be honest and help them find the best cars at legitimate prices. A CNBC article referenced a recent release by management consulting firm McKinsey & Company that indicated consumers now visit just 1.6 dealerships on average when car buying as opposed to 5 dealerships back in 2009. 

Are Consumers Avoiding Dealerships?

Research indicates people are so opposed to going into dealerships that they try to avoid it until the last minute, and companies have begun to take note. CarMax, for example, has recently rolled out a new “home delivery” option in select areas, which entails a representative taking a car to someone’s home or office to test drive and potentially buy right there on the spot - the consumers don’t even need to go to a dealership at all.

This, however, takes away from the interpersonal connection in a professional environment that dealerships provide, plus many car shoppers also like to see the service department at the dealership to determine if it is where they would like to take their cars for maintenance and repair.

How Can Dealerships Effectively Draw Consumers Into the Dealership?

Therefore, the question is how to effectively draw customers into the dealership via the Internet and turn their searches into a sale.

Cox Automotive released a report in 2018 that outlined just how important it is for dealerships to master digital retailing. Among many other interesting findings, the report noted that when consumers combined both online and in-store shopping together, there was a 172% increase in satisfaction. This indicates that dealerships have to do whatever it takes to stay relevant on the Internet; otherwise, your business might suffer.

So how do dealers begin to tackle the new digital age, where 70% of car shopping begins online?

Of course, dealerships’ websites are critical. Another Cox Automotive publication reported that 73% of consumers opted for third-party car buying websites, whereas only 53% opted for dealerships’ websites. Nowadays, consumers expect to have a fast and seamless browsing/searching experience online. After all, almost all of the information we ever want to know is, literally, right in our hands.

Everything on a dealership’s website should be up-to-date and accurate. This especially includes inventory, as consumers don’t want to view cars that aren’t actually available. Quotes also must be accurate and up-to-date, as it’s a frustrating experience to be given a quote that isn’t right. Also having an option to include a trade-in value quote is key, as many consumers factor that money in when deciding which car to purchase.

Many successful websites ask the consumer what they want based on their preferences (sound system, price range, heated seats, SUV/compact/truck/etc, 4WD vs. AWD, and so on) and then provide them with possible options that might suit their needs. Interactive dropdowns and checkboxes can help users easily filter out vehicles they are uninterested in and only see the ones they might want.

Nobody likes paperwork, especially when buying a car. Many car buyers become overwhelmed when sitting at a desk signing dozens of pages, but technology can thankfully reduce some of the anxiety associated with it. Having fill-in forms and applications for each step of the buying process available online can be a huge incentive for customers to delve further into a specific dealership. Being able to complete forms at home increases accuracy and decreases stress for buyers.

Finding someone who doesn’t have a smartphone is a rare occasion these days, so a smartphone app is also a great tool to use. Having a well-laid out and reliable app that is easy to search can greatly benefit sales and consumers’ shopping experiences.

Finally, many consumers today would rather request information via email rather than in person or over the phone. Though most dealerships appreciate more of a personal “touch,” they must adapt to consumers’ desires. An easily accessible “Contact Us” page is critical on websites and apps, and someone at the dealership must be quick to respond. The standard “24-hour response time” businesses often provide after an information request is usually not fast enough and consumers will move on to other dealerships.

The Internet can make or break a solid positive reputation. One bad customer experience posted online can deter others from visiting a certain dealership, because online reviews heavily influence our behaviors these days. However, if dealerships can keep up with their online presence and also provide great service when consumers do walk through the doors, all signs point to success.

Nimble Compensation is a cloud-based software solution designed specifically for car dealerships to make compensation calculations the easiest part of payroll.