Everyone understands, or at least I hope they do, that the auto industry is changing rapidly and dramatically. The biggest hurdle for OEMs and their franchise dealers is the consumer. I fear that too many aren't listening to what consumers want, and what they expect today when purchasing a new/pre-owned vehicle, and or servicing their vehicle.

It was only five years ago, on any given weekend, one could drive by any dealership and see consumers all over the dealer's lot. Times have changed, today it's difficult to find a customer on a dealer's lot, any time of the day or week. Why is that? Consumer sentiment has changed, and consumers shop much differently today than in years past.

Consumers have made it very clear that they want options, and one of those options is to conduct business with a franchise dealer without ever stepping foot in the dealership. Let's face it, visiting a dealership for any reason isn't a priority for consumers. Whether it's servicing their vehicle or purchasing a new vehicle, consumers will conduct business with those dealers that provide out of store experiences. What are out of store experiences? The ability for a consumer to have their vehicle serviced at a franchise dealer without the consumer visiting the dealership...only their vehicle, or, the ability to conduct a Test Drive at the consumer's home/office/other location of choosing. Read the following customer quotes when asked about their Test Drive experience at their home.

• "Didn't want to go into my local dealership for a test drive. Much too much high pressure. Salesmen are like vultures"
• "Because it seemed like an easy, and novel way to test drive the Camry without going to the dealer"
• "I'd so much rather have the option to go online and get straightforward pricing instead of dealing with dealer shenanigans"
• "I thought it was a really convenient way to explore the vehicle. I was surprised it was available. Thank you Toyota!"
• "Jeff was great and it was awesome to be able to try the car in our neighborhood since that's where we'll be with it most of the time"
• "It was a much simpler process to test drive the car than going to the dealership and deal with the sales pitch"

Consumers want options when shopping, and they want out of store experiences. Traditional brick and mortar shopping is being decimated by companies such as Amazon...that provide out of store experiences. The auto industry (OEMs and franchise Dealers) must adapt to the changing consumer, and their preferences for shopping and purchasing goods, inclusive of automotive service and purchasing a new/pre-owned vehicle.

Consider the current and archaic "lead generation" process; Dealers must "work a lead" relentlessly to get the consumer in the dealership, only to have a very small percentage actually show up. In addition, dealers spend too much money per unit sold, and simultaneously enjoy lower gross profit and margins...why? Test Drives at home provide the dealer with an actual lead (live customer), demo, used car appraisal, equity mining and much more. The consumer is reaching out to you the dealer for a Test Drive, not the other way around. It's time to adapt to the changing consumer.

The biggest threat to the automotive industry is the industry itself, and the inability to change. Adapt to the changing consumer, or the consumer will ensure you become obsolete.

Ken Hite is Senior Vice President at RedCap. RedCap's technology and drivers are utilized by OEMs and dealers for Service Customer Pick-up and Delivery, as well as Consumer Test Drives conducted at the consumer's home. Ken has 25 years experience within the automotive industry, inclusive of retail, OEM, after-market and start-ups. The auto industry must learn to exceed customer expectations and implement business processes based upon customer convenience.