Lessons from Carvana: what one industry disruptor can teach retailers about innovation in the digital age
For over a decade now, disruption has defined the changing nature of business in the digital age. Through their use of new technology, companies such as Uber, Netflix, and Amazon changed the nature of the game and redefined entire industries.
But it wasn’t just new technology that led to the rise of these industry disruptors. These companies successfully disrupted by using technology in ways that elevated the consumer experience and lowered common barriers along the path to purchase.
And, if there’s one industry with barriers just waiting to be toppled, it’s the car sales industry. The time commitment, paperwork, negotiating, and search for financing options cause people to dread the experience of shopping for a vehicle.
But, rather than seeing these obstacles as unavoidable necessities, Carvana.com sees them as opportunities for disruption and the streamlining of the customer experience.
Here’s how it works:
As an online shopping platform, Carvana gives customers access to an inventory of over 15,000 vehicles and allows customers to refine their search based on specific aspects ranging from price and model to color and body style. With each vehicle, customers receive information on down payments, monthly payments, and APR financing. Additionally, Carvana allows shoppers to virtually tour and inspect the entire inside and outside of each vehicle and view a report of the vehicle’s history.
When it comes time to purchase the vehicle, Carvana allows customers to sign documents online and receive customized financing options within minutes.
To top it off, Carvana offers next-day delivery of purchased vehicles and gives customers the option to test drive their new vehicle for seven days in real-life conditions before making the purchase final.
In the end, will Carvana provide the disruption needed to revolutionize and elevate the experience of buying a car? While it might be too early to say, the rise of industry disruptors, like Carvana, signal that retail disruption is happening and that customers are viewing these disruptors as viable and attractive alternatives to traditional forms of shopping.
So, how does your brand category ensure it won’t be caught off guard by disruption?
Cause the disruption yourself.
Start by looking at the overall consumer experience and determine barriers and friction points for the customer.
Can you eliminate these points? How? Keep in mind that disruption occurs by looking for solutions found on the outside of traditional modes of operation.
Ask, ‘What new technologies are being adopted (or may be adopted) by consumers that could revolutionize aspects of your business?’
Finally, test and invest in these potential solutions to ensure you’re not left behind when these modes of disruption hit their stride.
Want to learn more? Feel free to reach out at any time. We would love to chat!
The above piece was written by Connor Beck in collaboration with Carter Jensen and the Latitude research team.
Resources and original reporting of the above points covered by the following publications — Forbes, AP News, PSFK, and Gartner L2
More about Latitude
At Latitude, we love taking incredible brands of all sizes and elevating them through tech-fueled experiences that add true value. From pop-up retail to permanent build-outs, our team brings brand stories and modern-day commerce together to truly stand out. Want to learn more? See our case studies. Give us a shout.
Additional Resources
Want to learn more? Our 2019 retail report is now available and includes a long list of case studies and insights from Shopify, Dollar Shave Club, and much more.
We would love to share this presentation in person with your team, please let us know if that is something you would like to chat more about.
