The digital landscape has changed over the past decade, with dealers increasingly focusing on digital marketing compared to traditional marketing channels.
The systems and processes you can implement are more consistent and deliver better outcomes for your dealers.
They are also traceable and diverse, with a growing role for digital, from dealer management systems (DMS) to customer relationship management (CRM), from contact centers to video to finance.
We reached out to some of the leading players in the sector to get their views on what the dealer market will look like going forward, and to find out more about the upcoming key digital trends and trends that will impact dealers over the next 12 months. , we asked dealers to identify specific areas of need. Increasing profitability will require a focus over the next 12 months.
Darren Sinclair, CCO; Ivendi, When it comes to digital, he said a key challenge facing dealers is adapting to changing market conditions.
“While both the new and used car sectors remain relatively healthy, the declines we have seen in recent months suggest that the post-pandemic boom period is over and we are returning to something closer to 'normality.' It strongly indicates ''market.
“This means increased competition and dealers need to focus their digital efforts on attracting buyer attention and maximizing the leads they receive. We need to make sure we have the basics in place first, and this includes everything from perfect SEO to displaying your stocks more attractively online.But our core expertise is There are several important developments in the online consumer journey.
“While it has been widely accepted in recent years that the standard model for auto retail is a hybrid journey that includes showroom and digital elements, we are beginning to see evidence of a shift towards the latter.
John Hogan, Co-Founder and CEO RWA Automotive, the key digital challenge for dealers is to increase efficiency in key areas. Basically, it's about making the most of what you have.
“As new and used vehicle sales volumes and profit margins return to pre-pandemic levels, we need to find more efficient ways to conduct the same level of business.
“Labor is our biggest cost, so we have to look for efficiencies through technology. Fortunately, technology has come a long way since the pandemic began. Through our website and over the phone. New tools are being added to make the process more streamlined, including new tools to better capture inquiries into your business, tools to respond and take appointments, and more. AI can help make answers to digital inquiries more relevant. This will strengthen these systems and processes and bring in more sales.”
Automation is becoming increasingly important to Hogan. With systems and processes in place, dealers can achieve better results. Insurance companies have already shown that AI email provides better performance than humans in contact centers.
“Once a car has been sold, there are ways to automate paperwork. New or enhanced tools to automate service and MOT reminders, self-check-in for service appointments, and follow-up of deferred VHC work. The tools are there, and the intelligent application of these tools will enable dealers to do more work with fewer people,” he said.
Simon Donegan, Commercial Director Carwow, When it comes to digital, I believe we're doing a ton of business right now. Digital interaction trends will accelerate this year. It will become more and more omnichannel. Independent research supports this.
“Research shows that consumers visiting Carwow say they are increasingly comfortable researching and comparing cars entirely online (45% in 2023 vs. 30% in 2020).
“Furthermore, 28% of people who bought a new or used car in 2023 said they completed all aspects of the purchase journey, including payment, online, compared to just 13% in 2020. , this is not just a trend among consumers.
“Daily online auction sales are up 68% year over year, with over 125,000 vehicles returning to dealers, so we're seeing more opportunities for dealers to buy used cars online. This trend of digital interactions and transactions is expected to grow even further in 2024.
Jeremy Evans, Chief Executive Officer Marketing implementationis a supplier that believes data-driven decision-making and communication will play an even bigger role in conversion and retention. And omnichannel is the name of this particular game.
“It’s clear that customers want an omnichannel experience, and they want every communication to be timely, relevant, and personalized. , only if customer and vehicle records are easily accessible, accurate and up-to-date, and data can be exchanged between critical back-office and customer-facing systems.
“We recently visited the National Automobile Dealers Association (NADA) conference in North America, where there was a renewed focus on inventory-based decision-making leveraging intelligent technology. 2024 From then on, intelligent technology will grow as an asset for many companies to help improve the customer experience.
“We know that the debate around AI over the past 12 months has been evenly divided between disbelief and promise, but if used correctly, there are many possibilities that AI can bring to many industries and customers. There is no escaping the benefits and features that exist in the automotive retail sector.”
Carwow and Marketing Delivery focus on volume and variety, says Martin Dew, the company's director of digital solutions. auto web designbelieves customization is a key trend this year.
“Software development techniques and tools have come a long way since I was programming software in college 20 years ago. Highly specialized software companies have emerged that focus on development. In some cases, like us, they create several specialized software, but they cannot create a single monolithic solution. Outside of the automotive space, it is common for the companies that use it to set up their own software ecosystems, but if you break it down, all widely used software has an architecture that allows it to easily communicate with other software. I am.
“From a dealer's perspective, they may be used to finding a software provider that covers everything they want to do. We advocate an approach that (if possible) integrates our solutions with world-class providers of business process systems.”
Carol Fairchild, Chief Operating Officer CitNOW Group, To be more competitive, many dealers believe they need to invest in digital customer touchpoints across sales and after-sales. He touches on the key points of greater volume and more channels as an example.
“Modern digital tools will be key to driving this, and artificial intelligence (AI) will play an increasingly important role in content creation. For example, Auto Imaging’s AI technology will Analyze to ensure you're up to the highest OEM and network standards, ensuring consistency across your retail group while reducing time on the web and increasing staff efficiency.
“Video continues to grow in importance for automotive retailers. It bridges the gap between customer and retail teams and enables faster approval of work identified in aftersales.” CitNOW Group In a recent survey conducted by In 2023, CitNOW expects to see an 11% year-on-year increase in overall video usage across sales and aftersales, reaching a record 12.9 million videos in just 12 months. I did.
for key loop, Connectivity is a key trend for dealers. Graham Stokes, Keyloop's vice president of sales for UKI and APAC, said: “With apps and purpose-built platforms, seamlessly connecting customers with their vehicles and services has never been easier. Adoption of such tools is expected to continue to increase over the next year.
“In-vehicle connectivity has also improved, allowing valuable insights into performance and consumer behavior to be shared directly with dealers and OEMs, and will also benefit from improved data and knowledge sharing through digital platforms. I am.
“Another topic of increasing interest within the industry is artificial intelligence, which has potential applications such as improving customer interactions through personalized experiences and increasing dealer operational efficiency. .
“In a rapidly evolving industry, retailers and OEMs must recognize and leverage the potential of technology to effectively navigate and support the transition towards a promising future.
Organizations that successfully capitalize on these digital trends can gain a competitive advantage and position themselves for success. ”
got it. Numerical data, omnichannel, connectivity, efficiency, and customization are key digital trends that dealers can expect to see more of in the coming years. The future is hybrid, with AI looming large across sectors.
