A-1 Auto Brokers
Online Automotive Shopping Threatens to Take Over, But Will It?
We've reached a point in the Internet's development where you can buy virtually anything from the comfort of your own home. Rather than go out and shop, consumers can use their computer or mobile device to browse through catalogs to find what they're looking for.
While this is an innovation the mini did not expect to see in their lifetime, it does come with a negative side effect: it's causing significant harm to the retail industry. And, the automotive industry is not exempt.
Is the future as bleak as it seems? Let's look at the facts.
Dealerships May Be in Trouble
With more and more people shopping for cars online, they have less of a need to visit a dealership. While they'll obviously need to make the trip in order to see the vehicle they're interested in, they'll be spending less time there than ever before.
As a result, salesmen will find themselves with far more periods of inaction due to the lower volume of consumers who aren't quite sure what they're looking for. Furthermore, customers who are more adamant about the purchase they want to make are less likely to be swayed by sales tactics, regardless of the deal being offered.
So, what does this mean? Unfortunately, as face-to-face interactions with the sales staff become less frequent, the need for a large sales team becomes difficult to justify.
Adaptation is Key
Fortunately, online shopping isn't the proverbial nail in the coffin for car dealerships. Like in any industry, adaptation is necessary for survival. In this case, dealerships will need to take advantage of the fact that consumers are spending more time online and grab their attention.
This means putting more manhours into social media strategies and reputation management as opposed to focusing too heavily on the physical sales made at your dealership.
You're already dealing with consumers who know what they want. But, you also need to worry about online customers who don't know what they want. The way you handle sales interactions with these customers is crucial.
In short, you need to offer them convenience and lay off the pressure. Giving them the chance to customize their purchase decision online as opposed to being bombarded by offers on the lot can go a long way toward making them sign the papers.
Equip Yourself to Handle The Worst
So, let's say that in the future e-commerce is hitting your dealership a little harder than you'd anticipated. You'll be glad that you invested the extra time in optimizing your company's website to make it as easy as possible for consumers to visualize what they want from your dealership.
Interactive 3D models, detailed descriptions, and easily accessible reviews for vehicles and add-ons will help streamline the purchasing process for your customers. Loan calculators are a good addition, as well.
The worst-case scenario is that your lot gets less initial foot traffic. But, this is your chance to garner more online traffic that will eventually convert into a sale. Regardless of how you may feel about online shopping in the automotive industry, one thing is clear: it isn't going away.
Therefore, it's better to acknowledge it and modify your marketing tactics. And remember, even if you don't, your competitors will.
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1 Comment
Al Amersdorfer
Automotive Internet Tehnologies
Thanks for sharing such a great article and discussing about future threats that may affect any dealership and their sales. I agree with you that we have to adopt new online techniques and we have to gain more online traffic that will eventually convert into sales. I am working as Automotive dealership BDC consultant and i sense these changes in today's market people areĀ