Over the last couple of years, Digital Retailing has come on hot and heavy. The concept has been pushed by the manufacturers and many dealers have gotten on the bandwagon. The story hasn’t been fully written on the concept though. While customers are asking for a greater ability to work deals from home, the jury is still out on whether this is good for the dealer. In order to take a look at today’s Digital Retailing story, let’s look at some of the pros and cons, as well as an example of the tool used properly, to see what’s in it for the dealer.
Digital Retailing Cons:
- Cost: This tool is a very expensive website bolt. Dealers are prone to looking at it as a lead generator, which they should, but does the payback justify the cost?
- Garbage in/Garbage out: Customers don’t input all of the data right. Things that are prone to mistakes are below. All of them have the ability to cause showroom drama when the customer comes in to buy/lease their vehicle. Drama is bad!
- Real credit score
- Real trade dealer payoff
- Did they even get the right vehicle?
- Trying to trade in a lease?
- Items like the trade value model (KBB/Market Data/NADA Guides) don’t always agree with the other trade tool/tools on the website. This can cause confusion for the customer. Which value is right? The higher one of course! This is a source of potential drama.
- Dealers don’t always have a dedicated process for Digital Retailing customers. The customer believes that they have their payment and these stores treat them like a fresh up. This causes a big disconnect. More drama!
- Does it cost gross? (No. Most tools are not set for a deal that is rock bottom)
Digital Retailing Pros:
- Can be a great source of low funnel/high-closing percentage leads.
- Can speed up the sales process for users (#1 complaint about buying a car).
- Can provide gross [is there a word missing here?] when the sales team is full of green peas.
- Can give the appearance of increased transparency, which means increased trust and/or more sales.
- This is a way of appealing to the most skittish of the customers where it is very difficult for the BDC to real them in. The usual result for these people is a killer deal emailed out. That’s never a good thing.
What does the data look like for a dealer that is using the tool right?
Southern Toyota dealer
- Gross Digital Retailing Leads: 231 (After taking out test leads and fake info)
- Unique Digital Retailing Leads: 142 (Many customers will work multiple vehicles)
- Vehicles Sold: 24
- Closing Percentage: 17%
- Total Gross: $ 22,556.58
- AVG Gross: $939.85
This would be a successful outcome for any website tool. The net answer for this dealer is that Digital Retailing is a positive for their store. Not only is it a positive for the customer experience, but it is profitable for the dealer as well!
If your store is struggling with Digital Retailing, we can help. There are a ton of moving parts here, so it is important to align your dealership with a tool that can help your store while it also helps your customers.
Contact us at 877-551-2555, Sales@DealereProcess.com, or fill out the form below to set up a one-on-one demo to hear more about SARA (Smart Automotive Retailing Assistant) and our other sales generating tools!