Is Your Dealership Set Up to Succeed as an Online Retailer?

Remember the early days of the pandemic? Wiping down groceries. Finding new hobbies. Ordering way too much food via contactless delivery. Amidst all the craziness and extra calories, dealerships were trying to figure out how to stay open and safely interact with customers. Meanwhile, companies like Carvana and Vroom were having success and setting records in the first half of 2021. If you watched the Super Bowl, you probably saw at least one of their commercials.

So why am I telling you all of this? Well, let’s fast forward to September 2022. There have been some seismic shifts in consumer expectations. Customers are looking for the ability to buy cars online, but they also want options. It's a brave new world. People are willing to travel farther to buy a car, which presents dealers with an opportunity. Your dealership's market may be expanding and I believe dealers are perfectly positioned to succeed--just as much as online retailers. Here's how you can gain a competitive advantage.

Customers still want to shop online

One thing companies like Carvana got right was customers’ appetite for online car buying. Their annual revenue doubled in 2021 while lots of people were stuck in their homes. But recent reporting indicates most dealership customers (88%) purchased their last vehicle in-store and 74% plan to make their next purchase the same way. In our study from last year , 78% of people who called themselves online buyers reported they visited a dealership for one reason or another. The best plan of attack is to present options that appeal to every potential customer:?in-store buyers, online buyers, and customers who want a hybrid of both.

Delays in paperwork can be costly

The only thing worse than not having a car? Having one but not being able to drive it. Online retailers have occasionally run into issues with delivery delays and getting the proper paperwork to their customers promptly. Hopefully you don’t have any of the same issues with vehicle registrations or titles at your dealership. But what about in F&I? Have you embraced eContracting or are you still doing things the old-fashioned way through the mail? Paper contracts are more prone to error and can balloon your contracts in transit times—effectively holding money hostage. The benefits of eContracting are manifold and in today’s digital age, it’s time to jump on board.

Remember the value of a lifetime customer

Are you making it easy for online customers to do business with you or forcing them to repeat certain steps? The vast majority of your customers are going to start the buying process online. Build trust from the jump by offering multiple ways to connect on your website, and then ease them into your store with a seamless transition that picks up where they left off.

Cracks in your process or half measures that leave people frustrated will inevitably be mentioned in online reviews. As I’ve said before, there are no shortcuts to earning a loyal customer. And a loyal customer represents a lifetime of value.

There’s a reason companies like Carvana became more popular during the pandemic. Consumers liked the idea of a new approach to the car buying process. Well, who’s to say dealers can’t be the ones to present an approach that’s more efficient, more accurate, and more profitable? Your customers are ready for an omnichannel experience. Are you?