You can’t browse retail automotive news sites today without seeing messages about revolutionizing the sales process or fixing what’s broken. There’s definitely some truth to that, I’m sure we’d all agree. But the retail automotive process has been extremely successful up until recently with billions of dollars in annual sales. So then, how can it be so broken?

Is There a Problem with Us?

For instance, let’s look at the sales process. It was once a platform where customers drove or walked in, the sales person assessed their needs, the right car was found, and the customer drove away happy. And now, it’s so much more complicated.

In today’s sales environment, the customer is ‘afraid’ to visit the dealership before they’re ready to buy. A salesperson can’t use the same tactics of yesteryear for fear of being found too aggressive to the point where the customer leaves disgruntled. What once was a negotiation-based process is now turning to a haggle-free environment or a price discussion that’s led by the customer.

Did the sales process actually get worse over time? Or is it simply no longer acceptable to do business the same way it was done twenty, thirty, or forty years ago?

It Goes Further than Automotive

We see the same changes in retail outside of the automotive market too. Retail giants like Sears are losing their market share at an alarming rate, even closing all their stores in Canada through bankruptcy. Amazon and eBay are a common place to do your retail shopping. What’s even better is it’s dropped off right at your door and you never have to wait in line or talk to a sales rep.

SkipTheDishes will pick up your restaurant order and deliver it to your door. You don’t even have to leave home to buy groceries if you don’t want to.

It’s a Technological Shift

What was once a profitable business practice is making a hard left turn. It used to work – maybe it still does - but it won’t for much longer. If the rest of the retail industry no longer requires a customer to leave home for their purchase, the retail automotive sector won’t be able to stand as it is for very long.

‘The way it was’ wasn’t ever a problem. It just needs to change with the times, like everything else. As technology increases, business practices need to become innovative to stay relevant. Otherwise, it’s the way of the dodo bird…

What’s Right for Today?

For the current automotive market, the trends are to do with technology and the customer visit. It’s about providing a service rather than making a sale. Heavily dependent on technology, the customer bases authority on the information presented and on research done before the dealership visit. It’s no longer the salesperson’s role to be authoritative – at least, not in most cases.

What’s Coming Tomorrow?

The future is coming faster than we think. Research has pegged off the current dealership model in as little as seven years, although it’s probably longer than that. If that’s the direction we’re going, however, there are ways to remain relevant.

- Offer at-home services. Manufacturers like Hyundai are already testing it at 30 stores in the US. A customer can request a test drive and the car will come to them so they don’t have to visit the dealership. Perhaps it’ time to get on board with at-home services.

- Provide online F&I products and paperwork. Let the customer see what’s offered before sitting them in an office with an F&I manager. They feel like fish being shot in a barrel. You might be surprised at the selections customers will make.

- Service department pickup and delivery services. Some dealerships already offer valet services, and good on you. If you want customer loyalty – especially if they no longer have to visit the dealership to buy their car – you’d better give them a reason to stick around for service.

The automotive industry wasn’t doing it wrong twenty years ago and beyond. It just failed to change with the times and is now playing catch-up. But if the retail automotive industry wants to survive, it needs to make some serious changes, and now.