The Digital automobile sales current automotive retail and distribution model has remained largely unchanged since the 1980s. This has been poor for both consumers, and manufacturers. For consumers, buying a car can be a slow and fragmented process with lengthy paperwork involved. For manufacturers, multiple stakeholders contributing to the current auto value chain erodes margins and results in a disjointed approach to selling. This has led to a growing disconnect in the buy-seller relationship.
How does this affect OEMs?
Competition for consumer attention is intensifying, with new entrants threatening the sales and distribution status quo. Digital disruption has caused car consumers’ behaviour to evolve, and emphasised the shortcomings of the current business model’s ability to fulfil these changing wants and needs.In this report, we look at the evolution of the automotive retail and distribution model, and offer innovative solutions for OEMs to differentiate themselves and remain competitive.From reinventing the offline experience or offering a dedicated e-commerce platform integrating finance options, through to creating an omnichannel service for consumers.
What are the next steps for OEMs?
Updating and improving a sales process that has not changed for decades poses a unique challenge, but it is one that we believe can be met by ambitious OEMs.This report has conducted analysis on 38 OEMs to understand where they are in the evolution of the industry. We assess the characteristics of digital leaders, and how to move towards a best practise business model.
This report also identifies the barriers OEMs need to overcome to achieve this status, and what the next steps are to transform their business.
What is automotive digital retailing?
Automotive Digital Automobile Sales retailing is a tech solution that lets car buyers drive their path to purchase seamlessly between online and in-person interactions. It also equips you and your sales teams for better customer connections and more efficient deals. By uniting the in-store and website customer experience into a single digital platform, automotive digital retailing software creates an ideal buying journey for modern consumers. Some key aspects of a digital automotive retail tool include:
- Online inventory showcases
- Vehicle and financing comparison tools
- Lead capture and virtual communication tools
- Online finance and insurance (F&I) menus
- Both soft credit pulls and full applications with real-time approvals
- Enhanced desking with real-time sales performance data
Digital Automobile Sales retail doesn’t aim to replace your sales teams; it’s here to make their jobs better and easier by creating consistency and simplicity for every team member across the floor. It emphasizes the strengths of the traditional car-buying process, while filling in gaps in the omnichannel experience. When you bring on digital retail, you give your sales teams the power to run the complete deal workflow from their tablet or computer, and seamlessly continue the customer’s journey no matter where they left off online. And when customers and dealers are faced with inventory shortages, supply chain slowdowns, lockdowns, or other unforeseen economic times, embracing automotive digital retail helps dealers thrive in any challenging environment.
By digitizing car sales, you can future-proof your business and remain a profit center while still pivoting to meet today’s consumers where, when, and how they want to buy a car. In fact, digital retail supercharges the long journey to digitization that began decades ago.
Choosing the right digital retail tool for your dealership in Digital Automobile
Possibly the most important question to ask when vetting an automotive digital retailing tool is whether it will merge with your existing business operations. Find a digital retail solution that integrates with your other software and is flexible for multiple in-store workflows. Ease of use and employee adoption is also important. Communicating the benefits of faster, simpler workflows will help. So will choosing a partner with no-cost support for in-store launch and training. As for overall pricing, look at the monthly cost per rooftop as well as any additional fees for features, setup, training, and more.