Competing with online retailers for better dealership growth

Until recently, purchasing a vehicle without a test drive or seeing it in person was an uncommon practice. Most online vehicle transactions of this nature involved older vehicles or those intended for parts or projects. Traditionally, shoppers preferred to visit a dealership, where they could thoroughly inspect the vehicle, ask questions, take a test drive, and complete the purchase in person. Dealership growth was heavily dependent on these conventional shopping processes.

However, the COVID-19 pandemic fundamentally altered how people work, purchase, and communicate. Zoom meetings replaced traditional office and classroom settings, and businesses recognised the potential of selling cars online. Physical dealerships began enhancing their website user experience, offering online purchasing as a premium service, and delivering new and used vehicles directly to customers' doors.

Subsequently, online-only dealerships emerged, enabling consumers to buy, trade in, and sell their vehicles without leaving their homes. At one point, nearly three-quarters of Australians indicated a likelihood of purchasing their vehicles online.

This development may seem concerning for traditional car dealerships aiming to reclaim customers from online competitors. The question arises: how can you compete with a streamlined vehicle buying process that delivers cars directly to the customer's door?

The in-person shopping experience remains relevant. Nevertheless, as a dealership, it is imperative to make in-person buying appealing to consumers who have become accustomed to online car purchasing.

You must provide consumers with a seamless online and in-person experience that surpasses their expectations, combining the convenience of online purchasing with the superior service of an in-person experience. There are several strategies to achieve this. Here are a few approaches for dealership growth.

Invest in your online presence

Boosting your online presence is non-negotiable. With 80% of the buyer's journey happening online before even speaking to a salesperson, you must provide customers with a superior digital experience. Your website must be up-to-date and easy to navigate. Customers want to explore inventory, learn about the vehicle, ask questions, and set up appointments and test drives without having to leave their homes or work. If they can't easily achieve these things, they will move on.

How you can utilise technology for a streamlined customer experience

Technology is your friend when it comes to selling more cars and achieving profitable dealership growth. By offering a superior online experience, you ensure customers are invested in their process with you. Bring them in by allowing them to view your inventory and encouraging them to set appointments or offer incentives for coming in to browse. Make the process of shopping online and shopping in person seamless. Reassure them that coming to the dealership will be pain-free, efficient, and safe.

Using software to improve your sales process is also helpful. Creating goals, keeping everyone on the same page, and setting expectations while easily monitoring your most important metrics can help improve your outcomes. 

Increase sales even with less inventory

The current vehicle shortage is expected to persist for the foreseeable future. However, this does not necessarily have to negatively impact your sales. The most effective strategy to navigate this challenge is to deliver an exceptional customer experience and cultivate a welcoming environment at your dealership.

Optimise your inventory by organizing it efficiently and highlighting the vehicles with the highest sales potential. Additionally, prioritize the education of your sales representatives so they can showcase your inventory in the best possible manner.

It is crucial to attentively listen to customers and guide them towards vehicles that meet their needs, even if their initial choice is unavailable. Given the potential for long waiting lists for certain makes and models, be prepared to present alternative options that align with their preferences.

Clear communication with potential customers is another vital aspect. Transparency in your offerings is essential to prevent frustration. Being forthright about what you have available—and what you do not—fosters trust. By providing an outstanding experience, you will enhance your dealership's growth.

Increase your reach and sell more cars

Your online presence extends beyond your website. It's true that you must have a responsive website that is updated regularly and offers an excellent user experience. But your online presence doesn't stop there. You must also increase your reach via social media and other channels to create visibility and grow your dealership. Here are some tips: 

• Maintain a consistent, on-brand social media presence. Post regularly and engage with viewers and followers. 
• Create informative, entertaining, and interesting content. Be ready to answer questions and respond to comments. Encourage people to share your posts. 
• Always include a call to action. This should be true for all your social media posts, and there should be clear calls to action throughout your website. 
• Enlist the use of third-party websites to increase visibility, such as carsales.com.au and other similar sites.

Offer special touches that make your customers feel welcome and comfortable. Also, streamline the auto-buying process to make in-person buying more attractive. Keep in mind that while purchasing vehicles online may have been born out of necessity during the pandemic, customers are continuing to turn to online dealerships for the frictionless, time-saving ease of the online buying process. 

This shows that convenience even trumps things like a test drive. This means that the easier and more pleasant you make the buying process, the better. With excellent customer service and the right sales software, you will experience dealership growth.