Car dealerships are undergoing a digital transformation to better meet the needs of today’s consumers. With increasing internet usage and mobile connectivity, customers expect a seamless online-to-offline car buying experience. Dealerships that fail to embrace digital are likely to lose out. The reality is modern shoppers can find everything they need online, from toothbrushes to investment properties. It only makes sense that a digital transformation of car dealerships is underway.

The rise of third-party car-buying sites like Carvana and Vroom has pushed traditional car dealerships to up their digital game. Features like online inventory search, price quotes, finance applications, and test drive scheduling are now standard across most car dealership websites.
Customers can complete nearly the entire car buying journey online before ever stepping foot in the showroom.

Using Data to Create Personalized Experiences

Forward-thinking car dealerships are leveraging customer data to deliver personalized recommendations and tailored incentives throughout the buyer’s journey. With CRM software and sales automation tools, salespeople can provide customized product suggestions based on the customer’s interests, budget, and lifestyle.

Targeted digital marketing campaigns can also drive traffic and increase engagement. With insights from analytics, car dealerships can identify high-intent website visitors to prioritize follow-ups.

Improving Car Dealerships’ Services with Digital Technologies

Beyond sales, car dealerships are utilizing digital to improve customer service. Many now enable customers to schedule appointments and pay for repairs online. Some even offer video chat functionality for virtual vehicle walkarounds and estimates.

The Digital Transformation of Car Dealerships - beacon

Emerging technologies like RFID tags, beacons, etc., allow dealers to track inventory in real-time. This gives salespeople instant access to vehicle availability and location information to better assist customers. Gone are the days of wondering if the vehicle you see for sale online is still available when you visit the dealership.

Investing in Online Reputation Management

In an increasingly transparent digital landscape, brand reputation is more important than ever. Car dealerships must closely monitor online reviews and social media conversations to promptly address customer feedback. Dissatisfied customers can easily damage a brand’s reputation with viral negative reviews. Shoppers are relying on online reviews and word-of-mouth referrals more than ever.

Proactive reputation management, like responding to reviews, running social media promotions, and improving local SEO, provides an opportunity for dealerships to showcase customer service. A strong online presence and positive word-of-mouth can help drive sales.

Car Dealerships Must Adapt to the New Normal

While in-person test drives and transactions are still integral to most car purchases today, dealerships must continue adapting to changing consumer preferences. Offering flexible options like home delivery, virtual appointments, and online document signing provides convenience to customers.

Shoppers have more options at their fingertips to research, browse, and purchase vehicles than ever before. That means they can smell out a good deal while avoiding car dealerships that stink.

The digital transformation of car dealerships is well underway. With declining foot traffic, dealers must make their websites and mobile apps the new frontline for engaging and converting today’s digitally savvy buyers. The future survival and success of car dealerships depend on their ability to create seamless customer experiences for shoppers who are used to finding everything they need from the comfort of their homes.

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