A significant change is occurring within the automotive industry, and dealerships that fail to stay with the curve of these changes will soon be considered archaic. As direct-to-consumer models grow in prevalence - including the agency model and OEMs selling cars with no haggling - the traditional methods of buying cars will not be enough to win the loyalty of the customer.
How will dealerships attract customers in this new environment, where transparent pricing is replacing haggling and customer experience (CX) is king? The answer lies in embracing a customer-first approach and adapting to the evolving trends in the automotive market.
Automotive Trends Driving Change
Historically, the automobile industry has been one of the laggards in embracing digital transformation, certainly not as fast as the retail business, but that is slowly changing with new entrants like Tesla and Rivian, which are focusing on a digital-first, easy-to-buy experience, offering a much more convenient experience for customers.
The industry is also being redefined by the shift from traditional internal combustion engines to electric vehicles. As consumers' expectations and purchasing behaviors shift with the growing demand for EVs and the rise of mobility services, manufacturers are increasingly selling directly to customers, leaving dealerships to focus on customer interactions such as test drives, product demos, and delivery—without control over the pricing or the final sale.
Why dealerships need to adapt now
There is a strong case for change in automotive dealerships. As the customer experience emerges as the new differentiator, dealerships need to move faster to keep pace. For sectors that have been quick to accept digital transformation, such as retail, those who got ahead and seized new technology have won. Automotive dealerships can do the same: emphasize exceptional CX management and assist customers along every step of the buying process—with no sense of high-pressure sales.
Here are four key changes dealerships need to adopt in order to remain relevant in this new age of transparent, no-haggle car buying:
1. Focus on EV Education and Support
The increasing popularity of electric cars is a great opportunity to differentiate dealerships. Providing proactive outreach teams who are focused on information regarding EVs and their benefits helps dealerships provide some fantastic assistance to customers trying to navigate this new technology. Customers appreciate knowing and being helped without that hard sell.
2. Build Digital Experience Centers
Developing "Experience Centers" onsite as well as online will give customers time to choose, ask their questions, and experience the vehicles in a nonpressured atmosphere. Online channels of support, such as live chat and digital consults, ensure that your dealership finds customers at their point along the decision cycle.
3. Centralize operations to have efficiencies.
As profit margins continue to tighten, many are shifting away from isolated, self-contained teams and moving toward more centralized approaches. Consolidation of functions across locations helps better optimize costs and enhances sales efficiency, enabling dealerships to serve more customers with fewer resources.
4. Integrate Seamless Digital Customer Journeys
There will be a need for digital tools - live chat, CRM, even chatbot integration. The online presence should be efficient and seamless when it comes to how online and offline experiences seamlessly dovetail to help make these customers decide with confidence.
The Future of the Automobile Dealership
The no-haggle, transparent, customer-first model is not some new trend but a necessity in surviving the automotive market. The digital innovation and streamlined customer journeys will have to lead to education and support-from which dealerships will realize that electric vehicles are yet to be a new field that is rising.
To stand out against competition, dealerships must have a fantastic experience that leads to trust and loyalty. The more these best practices get ahead of the curve, the more dealerships attract more customers and ultimately drive long-lasting relationships into sustainable growth.
Ready to future-proof your dealership's customer experience?
One Point One takes the confusion out of a rapidly changing world of autos for you. Get an unforgettable customer-first buying journey. Discover how we can support your digital transformation and raise the game on your customer experience strategy by contacting us today.
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