Digital Retailing – Impact on Automotive Dealerships 2022

Digital Marketing is an Essential Tool for Dealerships

Digital retailing is providing customers with a comprehensive online experience that helps to lead them through the purchase journey. Online retail is expected to account for 22% of all purchases by next year, so businesses should continuously improve their websites to accommodate this trend. Digital retailing for automotive dealers is taking on greater importance too as technology improves and purchasing trends evolve. Previously before Covid, just 2% of cars were sold online, but in 2020 that shot up to 30% as a result of pandemic restrictions. Although we can’t predict exactly what percentage of new vehicle shoppers will continue to make their purchase online in the absence of pandemic restrictions, it does show a consumer willingness to make digital vehicle purchases and just how important your online experience can be in persuading potential buyers. Let’s take a look at where automotive sellers can improve their digital retailing experience in 2022. 

Website Design and Content

The design and content of an automotive dealers website provide the first impression to potential customers and is essential in shaping the perspective of the dealership from afar. Dealerships should ensure their websites are optimized for the modern consumer by being easy to navigate and providing accurate information to get the customer started in the purchase process. Dealerships can include easy to use car search widgets or relevant informational content like blog posts or educational videos to further enhance the experience. 

Mobile Optimized

Over half of the worlds web traffic occurs via mobile device, so dealerships should ensure websites are mobile friendly. A customer’s purchase journey starts with interest in a new vehicle, at which point they are likely to take out their phone and search for dealerships in their proximity that can meet their needs. 

Reaching the Right Customers

Although a website is essential, getting customers to that website is even more important and often a businesses biggest challenge. Businesses need the proper data to target their customers, but data collection has grown increasingly challenging with search engines moving away from allowing third-party data collection. Luckily, M1 Data & Analytics specializes in collecting automotive data that allows dealerships to directly target highly convertible customers. 

AI-Assisted Chatbots

Automotive dealerships can improve their customer service experience by incorporating AI- assisted chat bots into their website. AI-assisted chatbots are able to serve customer inquiries after hours or even handle common customer inquiries quickly during normal business hours. Chatbots keep the potential customer on your website longer as they interact with the bot and this could lead to the potential customer further browsing through the website content during the experience. 

Virtual Showrooms

Dealerships should consider incorporating virtual showrooms if they have the resources available as the success of companies like Vroom have proven how valuable the digital experience can be. While many customers are still likely going to want to see and test drive the car in person, a virtual experience can serve to stimulate interest at the very least and may even result in a fully online purchase. 

Are you a dealership looking for ways to improve your digital retailing experience for customers?

Contact us today to learn more about our data services to make sure you are reaching the right customers at the right time.