In this high rate environment where car prices remain high and access to consumer credit is a challenge, dealers need to be strategic about their digital retail investment and ensure they’re getting the most value possible.
By adopting best practices, dealers can better navigate some of these economic challenges and improve their sales process, customer satisfaction and drive more sales.
Below are some key strategies dealers can implement to unlock the full potential of their digital retail investment.
Adopt In-Store Digital Retail
Integrating an in-store solution with an online retail experience is crucial for boosting customer satisfaction and efficiency. When customers can easily transition from browsing online to visiting the dealership, it reduces the headache of double entry for both the customer and employee.
An effective in-store solution connects online and offline processes, which helps in:
- Increase Customer Satisfaction Scores: A unified approach ensures customers encounter consistent information and service quality, which boosts their confidence and satisfaction. After implementing Upstart’s online and in-store tool, Hanania Mitsubishi increased their CSI scores by 10 percent.
- Speed Up the Deal Process: Streamlined processes reduce wait times by up to 90 minutes and administrative burdens, allowing sales teams to focus more on closing deals.
- Improve Sales Operations and Training: By using an in-store solution and tablet or iPad, the onboarding process becomes much less daunting for new hires, reducing training time from weeks and months to days. According to Mike Anderson, CSO of Lexus of Lehigh Valley, the dealership was able to train a new hire, who was previously a waitress, successfully using the iPad – in just one month, she became their highest performer selling 20 cars.
Transparent Pricing
Transparency is key to building trust with potential buyers. A recent study by Upstart found that placing the lead gate further into the sales process can significantly improve lead quality. This practice, often referred to as “no more unlocking price,” has several benefits:
- Generate Higher Quality Leads: When customers are allowed to explore more before providing their contact information, those who do convert are generally more serious and informed, resulting in a higher lead-to-sale ratio.
- Boost Trust: Transparency in pricing and information builds trust, making customers feel more confident and comfortable with their decision-making process.
Personalize Your CTAs
The call-to-actions (CTAs)—aka “the buttons on the website”—are a critical element in guiding potential customers through their journey.
According to Upstart, dealer-branded CTAs outperform generic ones significantly, resulting in:
- Higher Click-Through Rates: Dealer-branded CTAs saw significantly more clicks compared to standard “Shop Online” buttons. In fact, Upstart found that dealer-branded CTAs generated up to 228 percent more clicks than your typical “Shop Online” verbiage (this is based on Upstart internal study from January 2022 to April 2022 that compared retailers on Upstart platform that used all five CTA buttons on their site to evaluate the CTA wording impact). This personalization makes the messaging more relatable and compelling.
- Stronger Brand Connection: Personalized CTAs reinforce the dealership’s brand identity, making communications more memorable and effective.
Ensure Team Buy-In
For modern retail strategies to be effective, the entire team needs to be on board. This involves providing comprehensive information and training on how these tools can improve operations and customer experiences.
Key steps include:
- Setting KPIs: Establish clear Key Performance Indicators (KPIs) to measure success and guide improvements.
- Regular Reviews: Frequently review these KPIs to ensure accountability and to identify areas for further training or adjustment.
- Ongoing Training: Continuously educate the team on new tools and strategies to keep everyone aligned and proficient.
Unlocking the full potential of a dealership’s modern retail investment requires a strategic approach that integrates both in-store and online experiences, emphasizes transparency, personalizes customer interactions, and ensures team-wide adoption.
By implementing these best practices, dealers can enhance the sales process, improve customer satisfaction and ultimately drive greater success for the dealership in challenging times.
