More than 80 percent of consumers say they want to complete one or more steps of the purchase process online, yet many dealers are dragging their feet when it comes to implementing digital retailing solutions. Their primary concerns include:
- Losing control of the sales process
- Decline in gross profit, especially from F&I products
- Significant investment required
- Process changes and training required
- Integration issues
Many of these fears are unfounded, and ultimately, digital retailing offers dealers more benefits than drawbacks. Although consumers want to complete some of the process online, 80% of consumers would never purchase a car without a test drive, and 89% want to sign final documents at the dealership.
Additionally, variables such as credit scores and state laws affect a car shopper’s ability to transact a vehicle purchase online. Some consumers will always find it easier to let dealership staff manage the process.
This means that in the near-term, dealers are well positioned to remain central to the online car-buying process. However, that doesn’t mean you should adopt a wait-and-see mentality. The faster you embrace digital retailing, the more control you will have over the car-buying process by lessening the impact of solutions designed to cut your dealership out of the process. You are essentially offering car shoppers another channel for lead generation right from your website.
You’ve likely heard about third-party websites that plan to offer consumers the ability to purchase a vehicle online. Their proposed format is to sell you the almost-completed deals as leads.
The fact is, car shoppers want to complete the transaction at your dealership. They need you. Why bother with a third-party solution when you can have your own, giving you control of the entire process from start to finish?
Preparing for Digital Retailing
One of the first questions that dealers should ask when implementing a digital retailing solution is, “How can we best serve our customers during their online car-buying journey?”
The first thing to consider is that until now, your websites and marketing strategies have been designed to encourage customers to call or submit a lead, make an appointment and come to your dealership.
The goal is different with digital retailing. You want customers to visit your website to begin the purchase process. How will you seamlessly transition the online process to an offline process?
This is where your staff comes in, and why dealerships will remain central to the digital retailing process. Online car shoppers need you. They need you for your inventory selection, they need you to accept their trade-ins, and many will need your help as a consultant and to arrange financing.
What they don’t need is a salesperson trying to close them. They’ve already made the decision to buy. Online customers need guidance and information; not closing or phone tactics designed to “just get them in.”
It’s important to realize that digital retailing is much more than a lead generation tool. It’s a solution that allows the customer to complete one, some or all parts of the purchase process at their convenience, not yours.
Changing Staff Responsibilities
Buying a car is still a pretty complex process, and most people will have questions or needs that can’t be addressed online. Online car buyers want to work with staff who are “product specialists,” defined as highly knowledgeable about vehicle specs, features, technology, models, and trim levels.
Online shoppers also need someone who is knowledgeable about your digital retailing solution software and sales process, so they can get help navigating through the various steps.
Creating the best online customer experience will require experimentation. Options for new roles and responsibilities in your dealership include:
- Digital sales specialist or concierge to facilitate the online car-buying process
- BDC agents trained to assist the online car-buying process
- Product and/or brand specialists to answer questions and help with selection
- Combination sales/F&I managers that oversee the entire process
There seems to be a consensus among industry experts that a hybrid approach including several of these roles might emerge. Perhaps you have a combination sales/F&I manager that oversees the process, with some portions facilitated by a concierge or product specialist.
Alternately, BDC agents can guide customers through their journey to a certain point, then hand the deals over to the combination sales/F&I manager.
Also, keep in mind that a small percentage of customers will want their new vehicles delivered to their home or work. Who has this responsibility? Ideally, a product specialist who can explain features and take the customer for a post-purchase test drive.
It’s likely that several new staffing models will emerge as viable. Which one you choose will depend upon how closely it adheres to your desired sales process.
To be clear, I’m not saying the role of the traditional car salesperson is going away—not yet, anyway. But how your salespeople approach and communicate with online customers is very different than how they interact with a traditional showroom up.
As turnover in your sales force naturally occurs, consider bringing in product specialists and concierges.
Instead of hiring experienced salespeople, try hiring people who excel in customer service and are comfortable using technology, such as associates at Best Buy or Apple. If you can find people with a customer-centric mindset to help with your digital retailing process, your customers’ enthusiasm and satisfaction levels will skyrocket.
Join Bill Wittenmeyer in his upcoming session at Digital Dealer 26 Orlando on Tuesday, April 09, 2019: 2:30 PM – 3:20 PM. This session will review the current state of digital retailing and consumer expectations, including why people want to purchase online and what they expect from your dealership during the process. Bill will address the most common concerns from dealerships and makes a case for why dealers should embrace digital retailing sooner rather than later. He’ll guide you through how to adapt internal sales processes without losing profits or control.