Is Visiting Dealerships a Dying Trend?
When the rise of online shopping and the Internet took place in the 1990s, it seemed to signal the beginning of the end for the ubiquitous car dealership. For many years, the process of buying a vehicle was a frustrating, yet unavoidable challenge for buyers. The Internet has given a wider availability of pricing information and model specs to consumers. Easier access to information has transformed the shopping experience and forced dealers to focus more on service and customer experience to stay competitive.
What is the present scenario?
The gloomy predictions from industry analysts regarding the future of dealerships turned out to be wrong. Customers continued to flock to such facilities, whether it was for more test drives or buying vehicles. That was before the Covid-19 pandemic completely changed the way dealerships operate. Showrooms were closed overnight, while sales teams were sent home. Consumers turned to purchasing vehicles almost entirely online.
Now, with the advent of artificial intelligence (AI) and BOT technology, the process of purchasing vehicles has evolved further. Customers wish to complete nearly every step of the car buying process online. One of the reasons for this transition is they can make the purchase without having to leave home. To survive, auto dealerships are now investing in technologies such as automotive CRMs to enhance the online portion of customer experience. However, as more of the process moves online, consumers and dealers alike are starting to wonder — is visiting dealerships a dying trend? Let us find out.
Are physical dealerships becoming obsolete due to online shopping?
The old buying process doesn’t meet the requirements of today’s customer. Shoppers hoping to avoid going into a dealership to negotiate a purchase are looking for different ways to approach the process.
To put it in a nutshell, the present iteration of a car dealership is dying. Previously, consumers visited an average of seven car dealers before making a purchase. However, that has now dwindled to about two visits. Traditional in-person negotiations are going out of style. Customers want more flexibility around when and how they initiate and negotiate automotive purchases.
Shoppers want to approach dealers on their terms. If dealerships can’t adapt to this trend, they won’t survive. They need to change with the demands of today’s consumers to avoid extinction. Dealerships that have embraced technologies like automotive CRM softwares, digital showrooms and automotive e-commerce websites are flourishing. They have used these to create a smooth online experience to build on customer loyalty.
For instance, the chat feature allows dealers to engage with customers 24/7 online. They can provide answers to questions, direct them to specs on particular models, help to fill out paperwork, qualify the customer, and pass them off to a live agent at just the right time.
Live agents can then take over and chat with customers. They can use video chat to show the details of a specific vehicle, or co-browse with the customer to find more information on the website. Live agents help buyers with paperwork and help facilitate nearly every detail of a car purchase at their convenience. This kind of on-demand service helps build brand loyalty.
Are dealerships still necessary?
Online car shopping has changed dealership experience forever. Consumers are now in total control of what used to be a tedious process. But there are still some services that can’t be handled via an online presence. Hence, dealerships are necessary, and they will survive.
For some consumers, a 360-degree view of the car interior and exterior is sufficient. In fact, they will be content to buy the car after a virtual test drive. But this technology is yet to be perfected, so customers have to visit the dealership at some point. Conducting research online helps narrow down choices, which might result in fewer test drives and more time saved. What dealerships can do is space out appointments to prevent crowding and adhere to social distancing protocols. Customers feel more comfortable when their safety is being taken care of.
The other factor that will keep the auto dealership alive is servicing. This is one aspect that can’t be done online — car buyers have to bring their cars to the facility for servicing. However, the process can be streamlined with a strong online presence. An automotive CRM can provide service reminders or schedule service appointments. Dealerships can offer premium quality service by using video chat and diagnosing problems remotely, while saving time.
So what is the final verdict?
The automotive industry is all set to undergo a drastic change. Customers are now willing to pay more for a better and seamless experience.
Dealerships that provide such experiences are bound to have an edge over the competition. The ones that embrace new technologies to create a strong, easy-to-navigate online presence serving consumers on their own terms will come out on top.
Integrating a Customer Relationship Management (CRM), automotive e-commerce website, video chat tool and digital showroom are a must to meet the customer needs and demands.
It is necessary to provide the 24/7 access that customers demand, so they can do their research and discovery whenever it suits for them. And that combined with support via text, voice, or video-based live chat with online human agents can provide personalized service (and experience) that customers are looking in today’s bot-filled world. Rest assured buyers will keep coming back!
