Menu
Log in



Digital Retailing – Why do it when you don’t have to?

Wednesday, September 28, 2022 9:00 AM | Anonymous member (Administrator)

In today’s automotive retail landscape, there’s little incentive for dealers to spend money on marketing when inventory is so limited. But, it is an opportunity to hit the reset button in the showroom and back office.

Digital retailing is one place where dealers can shift gears and take advantage of the inventory shortage to “evolve” the car-buying process. Rather than fearing digital retailing, dealers should embrace it as an opportunity to improve the buying process, making it more transparent, customizable, user-friendly and, most importantly, more profitable. Digital retailing is really a win-win for the consumer and the dealer.  Consumers appreciate a more streamlined process to minimize “perceived” pain points and dealers win by providing a digital check out option that requires minimal re-work to close and provides solid front and back-end margins.

According to J.D. Power, 25% of people are willing to conduct the car-buying process online. And more-importantly, the digital retailing process can be controlled to provide a pleasant experience every time. J.D. Power also notes that digital shoppers are more willing to purchase F&I products and dealer accessories when purchasing digitally.

When selecting a digital retailing solution, many dealers don’t realize they have several options.  What is key is to invest in a solution that provides a minimum 25% close rate.

When selecting a digital retailing solution, dealers should make sure of the following:

  • Intuitive & easy to use.
  • Can the solution provide hard payment options.
  • 100% compatible across desktop and mobile devices.
  • Maximize all profit centers, don’t let the digital retailing tool diminish your profit!
  • A comprehensive appraisal tool that is fully integrated with the entire solution.
  • Utilize the same digital retailing tool across stores.
  • Best-in-class support including performance metrics.

On the flip side, the keys to digital-retailing success also depend on a 100% buy-in across the store, from the owner to the GM to the used-car manager to the parts manager to the F&I manager. It’s also important to select the right calls to action on your website. And finally, utilize your current marketing tools, like email, social and traditional digital to “brand” your digital marketing tool and create a competitive advantage in your market!

The time is now to hit reset. For many dealers, digital retailing is something that’s being shoved down their throat by automakers. However, that doesn’t necessarily need to be the case as dealers have a great opportunity to demonstrate again to the OEMs that retailing of vehicles belongs in the hands of the franchised network.

Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282

EMAIL US

Copyright © Chicago Automobile Trade Association.

Powered by Wild Apricot Membership Software