In this episode of Witt's Wise Words, Bill Wittenmyer shares why you should get fresh eyes on your plans by involving other people to avoid missed opportunities.

Is your dealership planning to implement a digital retailing solution this year? If so, you’re not alone. According to a 2017 study by Root & Associates and CDK Global, more than half of dealership management has expressed interest in a digital retailing solution for their website.

Now that more tools are becoming available, it won’t be long before a small percentage of car buyers complete at least part of the purchase process online.

One of the first questions that dealers should ask when implementing a new solution is, “How can we best serve our customers during their online car-buying journey?”

It’s a simple question, but the answer is not.

The first thing to consider is that until now, your websites and marketing strategies have been designed to encourage customers to call or submit a lead, make an appointment and come to your dealership.

The goal is different with digital retailing. You want customers to visit your website to start the purchase process. At some point the vast majority (more than 80 percent) will come to your dealership for a test drive and/or to complete paperwork.

How will you transition the online process to an offline process?

This is where your staff comes in, and why I see dealerships remaining central to the digital retailing process. Online car shoppers need you. They need you for your inventory selection, they need you to accept their trade-ins and many will need your help to arrange finance.

What they don’t need is a salesperson trying to close them. They’ve already made the decision to buy. Online customers need guidance and information; not closing or phone tactics designed to “just get them in.”

It’s important to realize that digital retailing is not just another lead generation tool. It is a tool designed to allow the customer to complete one, some or all parts of the purchase process at their convenience, not yours.

Concierge or Combos?

According to Cox Automotive’s Future of Digital Retail Study, online car buyers prefer staff who are “product specialists,” defined as highly knowledgeable about vehicle specs, features, technology, models and trim levels.

Customers also need someone who is knowledgeable about your digital retailing solution software and sales process, so they can get help navigating through the various steps.

Buying a car is still a pretty complex process, and most people will have questions or needs that can’t be addressed online.

To create the best online customer experience will probably require some experimentation. Options for new roles and responsibilities in your dealership include:

• Digital sales specialist or concierge to facilitate the online car-buying process
• BDC agents trained to facilitate the online car-buying process
• Product and/or brand specialists to answer questions and help with selection
• High touch, combination sales/F&I managers that oversee the entire process from A to Z

There seems to be a consensus among industry experts that a hybrid approach including several of these roles might emerge. Perhaps you have a combination Sales/F&I manager that oversees the process, with some portions facilitated by a concierge or product specialist.

Alternately, BDC agents guide customers through their journey to a certain point, then hand the deals over to the combination Sales/F&I Manager.

Also, keep in mind that a small percentage of customers will want the new vehicle delivered to their home or work. Who has this responsibility? Ideally, a product specialist who can explain features and take the customer for a post-purchase test drive.

Very likely several new staffing models will emerge as viable, and which one you choose will depend upon how closely it adheres to your desired sales process.

To be clear, I’m not saying the role of the traditional car salesperson is going away. Not yet, anyway. But how your salespeople approach and communicate with online customers is very different than how they interact with a showroom up.

As turnover in your sales force naturally occurs, you might be able to replace some of them with product specialists and concierges.

Look at the young adults who work at Best Buy or Apple. They know their products and they’re trained to give an excellent customer experience. If you can find people with a similar mindset to help with the digital retailing process, your customers’ enthusiasm and satisfaction levels will skyrocket.

How do you think digital retailing will change staff roles and responsibilities in your dealership? Are you ready to make the leap into digital retailing?

All indicators point to 2018 as a milestone year for automotive digital retailing.

Manufacturers including Ford, Toyota and BMW are working to develop products that allow customers to buy a vehicle from their dealerships’ websites.

Large dealer groups like AutoNation, Sonic Automotive, Asbury and Penske have developed, or are in the process of developing, online car shopping tools and software for their dealers’ websites.

And vendors are jumping on the digital retailing bandwagon as well.

Consumer demand exists; according to Cox Automotive’s Future of Digital Retail Study, 83 percent of car shoppers say they want to complete one or more steps of the purchase process online.

It seems that the only people who aren’t thrilled about automotive digital retailing are dealers themselves. Many dealers are reluctant to implement a digital retailing solution. Their primary concerns include:

• Losing control of the sales process
• Decline in gross profits, especially from F&I products
• Significant investment required
• Process changes and training required
• Integration issues

While consumer demand for digital retailing is unlikely to go away anytime soon, it’s not necessarily going to be bad news for dealers. Most of the digital retailing products in development are designed to keep your dealership central to the vehicle purchasing process. Not all solutions require a significant investment, and integration can be seamless with the right solution.

The vast majority of consumers still want to visit dealerships at some point during the buying process. Car shoppers still rely heavily on dealerships for inventory selection, accepting trade-ins and arranging finance. Most consumers still want the touch, feel and smell experience of buying a car.

According to the Capgemini Cars Online 2017 study, 71 percent of car buyers want to take a test drive and see the car in real life. The Cox study found that 89 percent of consumers said they want to sign final documents at the dealership; although 25 percent of those would like to review the paperwork before coming in.

Additionally, there are many variables such as credit scores and state laws that affect a person’s ability to transact a vehicle purchase online. Some consumers will always find it easier to let dealership staff manage the process.

Bottom line? Even though consumer demand is there, adoption rates will likely be slow.

ELEAD1ONE predicts that within two years, five to ten percent of consumers will complete some of the purchase processes online. In three to five years, that will grow to 20 or 30 percent.

This doesn’t mean dealers should adopt a wait-and-see attitude.

The Time is Now

The faster dealers embrace digital retailing, the more control they will have over the car-buying process by lessening the impact of solutions that cut dealers out of the process.

You’ve probably heard about third-party websites that plan to offer consumers the ability to purchase a vehicle online. Their proposed format is to sell the almost-completed deals as leads to dealerships.

The fact is, car shoppers must complete the transaction at your dealership. They need you. Why bother with a third-party solution when you can have your own?

The reason there’s so much hype about online car buying is that consumers have an interest. Once the tools become available, consumers will start using them. You want to encourage consumers to spend time shopping on your own website instead of relying on a third-party where you won’t control the process.

In the near future, the vast majority of online car buying will be completed with a hybrid approach. The customer will start the process online, reach out to the dealership for help through the process, and finally come to the dealership for a test drive and/or to complete the paperwork.

There will always be a percentage of customers who want to visit your dealership. There may be disruptors threatening to upend our business, but the reality is, the laws are still in your favor.

However, that may not always be the case. Rather than fight the inevitable disruption, embrace it by giving your customers what they want. Digital retailing is not a revolution; it’s simply the next step in the natural evolution of the car sales business.

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Game-changing application is designed to keep dealerships central to the online car-buying process

Atlanta, GA – Feb 19, 2018 – ELEAD1ONE today introduced DealBuilder for auto dealerships, an online car-buying application that guides customers through the entire vehicle purchase process with the involvement of dealership personnel. DealBuilder can be used either in-store with DealerBuilder Showroom, or on a dealer’s website with DealBuilder Online.

“Our vision for the future of digital retailing keeps dealerships central to the online car-buying process, unlike third-party solutions that plan to sell partially completed deals as leads to auto dealers,” said Bill Wittenmyer, Partner of ELEAD1ONE. “Although DealBuilder can be used to complete the entire purchase process online, in the near term we think most customers will start their deals online and come into the dealership for test drives and to sign papers.”

DealBuilder is fully integrated into ELEAD1ONE CRM and can be used on a desktop, mobile tablet or smartphone. The Showroom and Online versions are synchronized so that a customer can start a deal online, save it and come into the store to complete it; or the customer can start a deal in the store, then finalize it from home or work.

DealBuilder Showroom enables salespeople to be fully mobile while guiding customers through the car-buying process. Salespeople can interact with customers and progress through each step whether they are out on the lot, at home or running errands.

CRM integration allows salespeople to use DealBuilder on their mobile device to access metrics, view appointments, complete tasks, add notes, manage customer contacts and see who’s “On Point” to take the next up.

Lexus of Wesley Chapel in Wesley Chapel, FL has been testing DealBuilder Showroom for two months. Twenty-one salespeople are using the app on iPads to walk customers through the entire journey from start to finish. They use DealBuilder to show inventory, confirm quotes, communicate with their managers, fill out credit apps and to scan drivers licenses before test drives.

“No matter where the salespeople are on the property they never have to leave the customers’ side. The app shows our customers that we respect their time and the salespeople love it,” said Jordan Johnson, Director of Strategy for Lexus of Wesley Chapel. “DealBuilder empowers our salespeople to do more and is simply the intelligent way to do business in 2018.”

DealBuilder Online is designed for use on a dealership’s website. While viewing inventory, the customer sees the option to “Build Your Own Deal” or “Buy Now.” The customer can save vehicles into a “Virtual Lot” as they continue to browse, and use the application to view side-by-side comparisons.

Custom notifications alert salespeople and managers when a deal is created online and when a customer has questions or progresses to the next step. A built-in chat application instantly connects the customer with a salesperson and can be used for price negotiation or to get help through the process.

To obtain a remote trade-in evaluation, customers upload vehicle photos and fill out a detailed damage report. A dealership manager evaluates the information and extends an offer that the customer can accept, decline or contact the dealer for more information.

When using DealBuilder Showroom, salespeople can use a built-in VIN scan to scan the customer’s VIN and fill out a damage report while they’re with the customer at their vehicle. Once the information is posted to the CRM, an instant trade offer pops up on the screen.

DealBuilder’s built-in desking tool allows customers to compare payments, change terms and add aftermarket products. Online F&I presentations recommend products and present all necessary disclosures.

DealBuilder is the only digital retailing solution on the market that calculates accurate payments to the penny, incorporating state and local taxes and fees, as well as the consumer’s credit score into the final price. The ability to offer accurate pricing is pivotal to guide the customer to the final step, which is the retail installment agreement.

Once a customer accepts an offer, DealBuilder encourages them to schedule a test drive at the dealership. Once there, salespeople can use DealBuilder Showroom to map the test route and manage the test drive process. DealBuilder gives turn-by-turn directions so drivers stay on route and the application also tracks distances, route information, braking information and average speed.

Once the test drive is complete, the customer can apply for credit while at the dealership or home. If the credit application is declined, DealBuilder encourages the customer to contact the dealership. If approved, DealBuilder generates a set of documents that the customer can e-sign, or the customer can come into the dealership to sign the final documents.

“More than 80 percent of car buyers want to complete one or more steps of the vehicle purchase process online,” said Wittenmyer. “DealBuilder allows dealerships to meet customer expectations while retaining control of the entire process.”

To see a demo of DealBuilder in action, visit Booth # 3760C at the NADA Convention & Expo, March 23-25 in Las Vegas, NV. Make an appointment online or call 855-983-9470.

For more information visit http://www.elead-crm.com.

About ELEAD1ONE

ELEAD1ONE, the benchmark in automotive software, helps dealers bridge the gap between sales, service, and marketing operations. The company’s automotive-only contact center, CRM, and service drive technologies are the foundations of their unique suite of products that drive its clients forward through strategic business advantage. Headquartered in Georgia, ELEAD1ONE has over 1,500 employees nationwide and serves more than 8,000 dealerships across the United States and Canada, including six of the top ten dealer groups.

ELEAD1ONE continues to lead the industry standard by providing insight to the community, identifying trends, and through the continuous development of personalized retail solutions that help dealers operate more profitably. For more information, visit our Website, like us on Facebook, YouTube, or follow us on LinkedIn, Twitter, and Instagram.

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