Car buyer demands are changing so quickly that despite dealers in-stock inventory and proven experience driving profitability, external disruptors are creating a new breed of customer that’s just there to pick up a car. 

Since 2008 dealers had the best selection and location with hyper-aggressive pricing and marketing to reach customers as they research and shopped online.

Today, we’re fighting to survive by spending 13% more on $12 billion in local automotive advertising, with customers still unhappy about the experience. 

But according to a 2018 Deloitte Study, only around 10% of customers didn’t like a dealership’s facilities, their process or website.  However, most wanted to choose from a variety of vehicles while on their phones and up to 57% wanted to save time and do more online.

So why are dealers spending more in marketing without fixing the actual pain points?  48-61% of customers would switch brand or color and pay more for the right vehicle features.  On average, they might pay $2,276 more according to an AutoTrader/CBS study.

Smart dealers are bringing their proven in-store experience and processes online to convert otherwise anonymous shoppers with a personal touch.  They have the best options to guide people through the long-term commitment and investment with a personal encounter of their next vehicle.

Google, Facebook, Microsoft, Apple, Amazon and MagicLeap all believe that virtual and augmented reality is the current and future state of retail shopping.  It’s working on nearly every cellphone.  Wearable devices cost less than $200 and are wire and phone free.  Auto manufacturers are integrating it into their windshields, owner apps and internal systems.  FlowFound enables both AR/VR immersive experiences online and app-free for dealers and their major brands.

OEM’s and third-party providers like Edmunds let customers download an application to customize and place considered cars in the driveway.  Many allow digital customization of vehicles and are bringing more of the transaction online, circumventing much of the dealership experience.  But where does that leave dealerships?

With us, dealers can use virtual reality to deliver deeply compelling and moving experiences around vehicle features while enticing customers to come in today to drive off the lot.  We can engage customers with augmented reality to prevent price shopping and build retention with incentives based on service data and answer questions on-the-go, online and at events or malls.  We can reach customers on their mobile phone when they're due for service, going to a competitors site, or even via text message.  

We must decide whether to spend more for less or take the processes and handshake we know to create an disruption for, instead of against our industry.