Is there room in an evolving automotive marketplace for a traditional dealership?
In the automotive marketplace, there is a great deal of focus on innovation and the latest breakthrough. In the midst of that ongoing discussion is a central question: what is the future of the car dealership in the automotive retail industry?
Over the last several years, various trends have been established and which are largely linked to innovation and technology, influencing our day-to-day lives and how consumers purchase products, both large and small.
On the automotive scene, online shopping continues to evolve. Armed with smartphones, consumers are never far from the information they need to feel comfortable with a significant purchasing decision. While this presents a challenge for dealerships, in many ways it is also an opportunity for those who choose to seize it as an opportunity.
It’s not uncommon for today’s consumer to do research online and determine what they want to buy before engaging a dealership. This makes it imperative for dealerships to ensure that their online presence is interactive, engaging, and staff are committed to responding to consumers in a timely and thoughtful manner. Likewise, a website needs to stand out, be intuitive, and allow for the collection of data in order to appeal to the specific needs of each consumer.
If a customer has a question or is in need of information, a timely and thoughtful response is required or that customer will simply move on.
So, is the traditional dealership becoming less relevant? The fact is, when technology and people are intertwined to provide the best customer experience possible, the dealership that is focused on this level of service will continue to thrive.
The recipe for dealer success hasn’t changed. At its core, the focus is consumer service and satisfaction. But that doesn’t mean we don’t need to adjust. As technology evolves, we need to be more conscience of and more responsive to customer-specific requirements. Dealership managers need to find a way to connect their online presence with human interaction in the showroom. Strategic communication needs to be triggered by events such as customer service appointments and anniversaries of vehicle purchases and other milestones. If a customer has a question or is in need of information, a timely and thoughtful response is required or that customer will simply move on.
Furthermore, managers must educate and train salespeople as product advisors to guide customers in finding the right vehicle to meet their needs, wants and desires. Sales staff need to be the authority on whatever product a dealership is selling. They must also develop customer trust by taking a sincere interest in getting to know and help customers — not simply make a transaction.
Car buying has always been a personal experience, and as long as that remains the case, dealerships demonstrating a commitment to take care of customers will always be relevant.
