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Empowered Dealerships

Despite the rise of online sales, dealerships remain crucial in the car buying journey, and OEMs need to empower them with tools and services to enhance customer experience and drive sales.

Detailed Analysis

While the pandemic accelerated the shift towards online car sales, physical dealerships continue to play a vital role in the customer journey. Car buyers still value the hands-on experience of inspecting, test-driving, and interacting with sales representatives. The report emphasizes that "car buyers still see dealerships, and the hands-on experiences they enable, as critical touchpoints in their purchase journey." This underscores the need for OEMs to support and empower dealerships rather than overlooking them in favor of online channels. OEMs can empower dealerships by providing them with digital tools and services that improve efficiency, reduce costs, and enhance customer satisfaction. For example, digital agents can assist dealers in answering customer questions, especially during peak hours, providing accurate and up-to-date information on topics like tax credits and charging point installation for EVs. However, simply providing these tools is not enough; OEMs must also incentivize their adoption to ensure dealers effectively utilize them. The report highlights the importance of a unified approach, stating that OEMs and dealers must "unify all of the moments that matter during the car buying and owning journey so that the online experience outside of the dealership and the offline experience at the dealership are unified, integrated and coordinated."

Context Signals

The pandemic accelerated the shift towards online car sales, but e-commerce has not fully replaced the need for physical dealerships. Digital tools can help dealers provide information on complex topics like EV tax credits and charging infrastructure.

Edge

Gamification and incentive programs could encourage dealer adoption of new digital tools and best practices. Personalized training programs for dealers could enhance their understanding of new technologies and customer needs.
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TRENDS
OEMs and dealers must 'unify all of the moments that matter during the car buying and owning journey so that the online experience outside of the dealership and the offline experience at the dealership are unified, integrated and coordinated.'