Embracing Online Auto Retailing, from Start to F&Inish

Embracing Online Auto Retailing, from Start to F&Inish

In this moment of seismic change in the retail environment, it’s critical to understand that brick-and-mortar days aren’t necessarily over — but to stay relevant and competitive, physical dealerships require expansion to include a digital storefront as well.

Auto retailing is retailing, period. Once the pandemic hit, online shopping went through the roof for industries far beyond clothing and groceries. Auto sales made a dramatic shift while dealerships were shuttered during lockdowns across the country and shoppers turned to the internet in droves. According to a recent survey*, 60% of respondents indicated they were open to buying a car online while just 32% were willing to do so before the COVID-19 pandemic.

Has this shift meant a magical transition to seamless digital sales across the industry? Certainly not. But the trend is moving in the right direction with more retailers shaping their strategies to move from simply using the internet as a tool to bring people into the dealership to truly offering a comprehensive virtual sales experience. In this moment of seismic change in the retail environment, it’s critical to understand that brick-and-mortar days aren’t necessarily over — but to stay relevant and competitive, physical dealerships require expansion to include a digital storefront as well.

This expansion has to include evolution in online F&I presentation to ensure customers are being offered a full range of services and that the full scope of revenue opportunity is being captured. Unfortunately, it took COVID-19 to bring us to the inevitable, but here we are. Taking an entrepreneurial approach, and following the example of those who are leading the charge, is a great place to start.

Now is the perfect time to:

  • Evaluate your online capabilities. Do you have efficient and scalable e-commerce functionality? Do you have the staff or professional resources to build and manage your online offerings?
  • Educate yourself on best practices. Make a careful study of your competitors or those in the industry that have successfully shifted to digital retailing. Carvana is one resounding example: They reported second-quarter revenues of $1.12 billion and nearly 56,000 units sold, an increase of 13% over 2019, with the number of cars sold up 25% year over year. What are they doing right and how can you translate some of their best practices to your structure?
  • Partner wisely and train thoroughly. Invest in digital retail tools that are integrated with your CRM and website, and test for user experience improvements. Simplify and make the digital retail process consistent for all customers, providing sufficient training and documentation to your sales and BDC teams.

While this evolution/revolution may be a dramatic change for your business, you don’t want to be left behind the pack that’s charging ahead in the digital race. You also don’t want to leave revenue on the table. Just as you wouldn’t finalize a sale without offering F&I options to a customer in person, you’ll want to integrate digitized menu selling seamlessly into your online offerings. Keeping in mind that in-house sales are not vanishing either, carrying this optimized customer experience into the back room is critical as well because these interactions will continue to be shaped by the need for a streamlined, efficient presentation to minimize time and contact.

But in this area, it’s about much more than just automating the conversation around protection products, extensions and add-ons. This is where harnessing the digital aspect of your platform can make an eye-popping difference.

Look at some of the top digital retail solution providers in the industry for example. The F&I presentation software they offer have been adapted successfully by some of the largest and most prestigious automotive groups in the country because they go well beyond replicating the exact same presentation that a dealer may have been using for 20 years. These tools utilize big data and predictive analytics to create a tailored presentation based on the overall deal, vehicle and financial situation for each customer. Pair power like that with a service contract provider and administrator committed to helping you build wealth through best-in-class F&I products and you’ll take your digital strategy way above the next level.

Once you’ve hit all the marks in developing your online presence, amp up your marketing to make sure people know about it. Hit social media and make good use of customer data you already own to spread the word through email outreach or whatever works best for your brand.

Online auto retailing is here, it’s vital and it’s valuable. The best time to get started was yesterday. Don’t waste another minute.

*https://dealers.cargurus.com/rs/611-AVR-738/images/June_Covid19-SurveyUS.pdf

You May Also Like

Skip the Stip: Lending Without Stipulations

New AI-powered technologies are creating more access to credit opportunities without the need for these stipulations and lengthy supporting documents.

By Adine Deford, vice president of marketing at Informed.IQ

While everyone wants a faster, more digital loan application process, those with less money and bad credit often must wait longer and submit more paperwork. Customers with credit scores below 620 are frequently in this group; they apply for subprime loans. As a result, dealers and lenders are losing out on these crucial borrowers, who are more likely to give up on their loan applications because of drawn-out, cumbersome processes.

EV Credits — Are They Worth It?

The industry brings with it environmental benefits, economic opportunities and infrastructure development, but are EV credits the way to go?

Utility Audit: More than 80% of Companies Overpay on Their Utility Bills – Are You One of Them?

Are you paying too much for your utilities? A utility bill audit by a trained professional can uncover errors and overcharges.

Unmasking Double Brokering in Automotive Transport: A Quick Guide

Transport and logistics is not immune to fraudulent practices such as double brokering. Here’s what you need to know to stay safe.

autosled - double brokering
Dial in the Details: Preserving Vehicles and the Profitability of Dealership Inventory

Making cleanliness a priority of each car will all but guarantee to lead to a more profitable season ahead.

Rob Harper - Ziebart blog

Other Posts

DOWC’s Diodato Named One of NJBIZ’s ‘Leaders in Law’

Honorees were chosen by a panel of independent judges with experience in the justice system.

DOWC Receives NJBIZ Empowering Women Award

This award, given by NJBIZ, a leading New Jersey business journal, recognizes and celebrates companies and organizations that have shown a strong commitment to supporting and elevating women in New Jersey.

DOWC Is One of New Jersey’s Best Places to Work

DOWC received high marks for its workplace environment, company ethics and policies, and for providing an opportunity for growth.

How to Boost Appointment Conversions with Positive First Impressions

It’s crucial to equip your staff with effective phone handling strategies that can make a lasting impression and persuade callers to choose your dealership.