Omnichannel is the way to go in automotive retail

In a time when everyone was looking at the Tesla business model and pure players were betting on e-commerce as being the future of automotive retail, at MotorK we were going all in on the omnichannel approach. Three years later, it turned out that ours was the best prediction.

The pandemic frenzy has led analysts to overestimate the growth of e-commerce in any sector. While automotive customers are actually shifting some moments of the buying process online, we are assisting to a general slowdown, with user behaviours still settled in favour of a hybrid model. Besides the obvious challenges of selling big-ticket items, such as cars, entirely online, we must acknowledge that customers prefer physical touchpoints for crucial steps in their buying journey, such as the test drive and the delivery of the vehicle, as well as the subscription of ancillary services such as financing and insurance coverage. Another key element going in favour of a face-to-face interaction is price negotiation, particularly for those who tend to be most likely influenced by discounts. All in all, while users rely on online sources in the discovery and research phases, they still value the consultancy of an expert to increase their level of confidence, instead of having to take care of everything on their own.?

We know for a fact that the already small portion of those who say they are ready to complete the entire purchasing process online has further contracted. If most users expect an omnichannel experience, technology should be what facilitates a frictionless transition between physical and online channels. To approach the various moments of truth in a consistent and integrated way to effectively meet consumers’ expectations, retailers must therefore be ready to up their game when it comes to their tech stack: in the next two years they will need to adopt at least 20 digital solutions and embracing a platform approach will be the only way to overcome fragmentation in the value creation process along the omnichannel customer journey as well as internal inefficiencies.

This is exactly why at MotorK we have developed the SparK Platform, a one-stop-shop solution for manufacturers and dealers to effectively handle the various touchpoints in the customer journey and throughout the entire vehicle lifecycle. Additionally, we’ve been injecting AI capabilities into our modules, to expand their potential to attract and engage automotive customers as well as optimise data utilisation and operational flows.

Because of our privileged standpoint of tech partners for automotive retailers, we have a clear understanding of both the technology needs of OEMs and dealers and the customer requirements at any point of their purchase journey, which means that we can enable the business success of our stakeholders while they deliver the best possible customer experience.

Innovation is not about following trends nor about forcing sales data to validate a declared strategy (it’s no secret that some players are claiming hybrid sales as online ones so as to justify their investments in this channel). It’s about understanding, even anticipating, the changing business and customer needs, and fighting the status quo to be truly able to shape the future of automotive and mobility. The way we will do it is by embracing AI as an ally and capturing its revolutionary component in a win-win model for all the players involved.