Speed & Empowerment: What the Digital Transformation Means for Auto Dealers, and How to Succeed

The process of purchasing a vehicle has - until somewhat recently - been a decidedly “low tech” affair. Even as innovative new ecommerce technologies have been developed and customer preferences have evolved, the process of auto retailing had not changed much.

But as the world has confronted the COVID-19 pandemic, digital auto retailing has gained incredible momentum. Consumers have made clear that they want to buy their cars online, and innovative dealers and retailers are building digital customer experiences and contact-free sales processes to meet this emerging demand. Auto ecommerce is here to stay, and offering a compelling, “end-to-end” digital experience has now become table-stakes for auto retailers.

Not surprisingly, there is a wide variety of technologies and software solutions being marketed to dealers and retailers these days. It can get quite confusing to find the right solution. And the stakes are high...because, in the world of digital retailing, the winners are those that can deliver on customer experience. Selecting the right ecommerce technology stack is among the most strategic and impactful decisions a modern auto retailer will make.

In this article, we’re going to focus on the two things customers cherish most when using an ecommerce solution - Speed and Empowerment - and highlight the critical capabilities auto retailers must look for when evaluating options for their dealerships.

“I Feel the Need….the Need for Speed!”

Consumers have embraced ecommerce because it is usually more convenient and faster than their “brick and mortar” options, and this is the case when it comes to auto-retail. The traditional process of buying a vehicle is famously tedious, laborious, stressful, and boring - usually taking 4-6 hours or longer. To modern consumers, this process is tragically antiquated, and many would-be buyers delay or avoid their purchase altogether rather than subject themselves to it. The right ecommerce solution can dramatically streamline and accelerate the car-buying process, but only if it:

• Digitizes every step of the process. A vehicle purchase has many steps, and the right solution empowers customers to take every step digitally. Virtually all solutions make it easy for customers to review inventory and upgrade options, but then force customers to speak to staff to get actual financing offers, trade-in valuations, and more. This provides a disjointed customer experience, slows down the purchasing process, and - importantly - degrades staff productivity and throughput because team members are forced to manually perform tasks that can be done by the customer by themselves online. Select a solution that digitally enables every step in the process, including hard credit pulls, finance offers, trade-in offer management, and digital document management.
• Offers a seamless, integrated experience. To accelerate the car buying process, a consistent and streamlined customer experience is key. The right ecommerce solution does not force customers to leapfrog from site to site, or tool to tool as they progress. Instead, it provides an ecommerce experience that is fully integrated with the dealer’s .com site, with each step provided with consistent branding, look & feel. When customers are offered an ecommerce experience that is consistent and fully-integrated, they are more confident in the process and able to more quickly progress.

Letting the Customer Drive

Modern consumers like ecommerce not only because it is usually much faster, but also because it puts them in charge of the process. They can start the process while sitting on their couch, and they can take each step at their own pace. It empowers customers to own the buying experience, which inspires confidence and minimizes the pressure that often accompanies large purchases. The right ecommerce solution:

• Lets customers start the process on their terms. The right solution empowers customers to start the car purchasing process whenever and however they want. If they’d like to start by perusing available inventory, or reviewing their financing options, or getting a quote for their trade-in, they must have that choice. A successful ecommerce solution does not make customers follow a prescribed path, and does not force customers to provide personal information just to begin the process.
• Dissolves the barriers between the digital & the showroom. Ecommerce has become essential to the modern auto retailer, but nothing will ever replace the showroom, nor should it. For car purchasers, the experience of visiting the dealer can’t be fully digitized, because often buyers understandably want to see the actual cars and speak face-to-face with knowledgeable staff. The ideal ecommerce solution makes every step of the purchase process seamless, no matter whether it is performed online or in-person. If a customer wants to select their car and review their financing options online, and then handle the rest of their transaction (F&I, delivery, etc.) while in the showroom, the solution should enable staff to easily pick up where the online experience left off. If the customer visits the lot to select a vehicle and get a trade-in valuation but would prefer to conduct the rest of the transaction from home, the solution should provide an easy link so they can continue the process later.

Auto ecommerce is here to stay because customers demand it. Dealers have many options when it comes to deploying digital retail tools, and it can get confusing. But if dealers prioritize solutions that streamline the purchase process and empower the customer - as described above - they will be well-positioned to take full advantage of the exciting new realities of the auto retail industry.

Sources: Modal proprietary data.