By Lindsay Ciavattone, Director, Dealer Relations, CarGurus

Whether you’re building digital retail tools in-house, working with a partner to integrate new capabilities, or doing a little bit of both, the path to successful digital retail adoption can be challenging — especially since there is no one-size-fits-all solution. But, when running smoothly, digital retail can make a measurable impact on streamlining dealership operations, improving customer satisfaction, and driving sales volume.

With some proactive consideration and early preparation, there is an opportunity to chart a more seamless path toward digital retail adoption. Based on my experience working directly at dealerships and now supporting dealers to identify the best tools and tactics to deliver on their bottom line, there are four high-impact areas I typically recommend dealerships consider when moving toward digital retail:

● Strive for alignment — When considering a third-party integration, a valuable first step includes making sure the vendor can align with your values, your goals, and your corporate structure. With this baseline understanding, you’ll also have a sense of whether they can work with you to meet your individual needs. Dealers should choose a vendor that can be a direct partner, and be nimble with implementation – including the ability to add or remove certain features to match your goals, and flexibility around integration with other systems.

Also, consider your goals for your customer experience. An ideal tool should be as frictionless as possible, allowing shoppers to choose which steps of the buying process they want to lead online. Consider your customer base – will they be eager to go as far as submitting a deposit online or will most want to review preliminary financing details from home before heading in to complete the transaction? Knowing no two customers are the same, a digital retail tool that allows shoppers to handle as much of the process online as they’re comfortable, like CarGurus’ Digital Deal, typically offers the right balance between functionality and flexibility.

● Review opportunities for integration — Adding a new process or system can understandably be intimidating, especially since many dealerships are already using a variety of internal and third-party platforms. Between OEM tools, CRM tools, inventory management, accessories, parts, financing, and more, adding a new platform can be a project in itself. Ideally, a digital retail tool should be designed to integrate customer information within existing systems – that’s one less thing for a dealership team to open, learn, and launch. When reviewing potential digital retail tools, I typically encourage dealers to consider current capabilities, what’s working, and the opportunities for improvement. From that point, it typically will be easier to then consider how a digital retail solution can fit within the flow of platforms already being used, or where a tool can help fill gaps.

● Establish a digital retail mindset — CarGurus data confirms that digital retail leads bring higher quality, high-intent shoppers. These leads can be a treasure trove for efficiency when the right lens is applied toward the customer details in the CRM, followed by actionable follow-up. But, to capture the maximum value from digital retail, there are benefits in considering overall team practices and procedures beyond lead management and shopper engagement. For example, how should a BDC’s target goals be reframed if a growing number of shoppers are looking to hash out more of a purchase from home before visiting the dealership? Should there be cases where the finance manager is the first person connecting with a shopper if they’ve already submitted their financial information? Is the information in a lead being evaluated with an eye toward a digital retail customer’s desire for efficiency and action? Ideally, digital retail is a mindset that is shared across dealership leaders and carried out through process.

● Consider your roll-out strategy — If it’s your first venture into digital retail, it’s important to take baby steps. For some dealerships, a staggered rollout may be the best approach to give teams the opportunity to test and learn. For example, if you have several rooftops, establish your digital retail footing in one, then expand to more stores. This will provide the opportunity to review dealership procedures and identify any areas for adjustment before getting everyone on board.

I also encourage dealers to take advantage of training opportunities from the digital retail provider. A successful roll-out plan includes training, not just at the beginning, but several times throughout the onboarding phase to cement new behaviors and ensure product expertise.

As with any new process, it’s also important to remember that digital retail will continue to evolve as more consumers grow more comfortable. Taking on the journey with a partner who can help you navigate future changes and customer needs will help ensure a long-term strategy of success.