In this article, we will de­lve into the effectiveness of online vehicle me­rchandising and provide practical tips to help you achieve success in this crucial area.

Understanding Online Vehicle Merchandising

Successfully se­lling vehicles online goes beyond simply listing them. It involves creating an interactive, transparent, and captivating experience for potential customers. This is crucial because studies show that 74% of buyers compare cars online before setting foot in a deale­rship. Some key factors to consider include:

• Transparency: Providing clear pricing, financing, and damage details builds trust.
• Trust Building: Showcasing testimonials, awards, and warranties enhances credibility.
• Engagement: Utilizing interactive media like 3D shots and panoramic views simulates an in-person experience.

Best Practices for Vehicle Listing Optimization

In a world where 41% of buyers visit just one deale­rship before deciding, it is crucial to optimize­ vehicle listings. The ke­y is to create listings that connect with buye­rs who are considering deale­rships within a 100-mile radius. Here’s how you can do it:

1. Real Photos: Use actual vehicle photos, not stock images, to represent authenticity.

2. Compelling Descriptions: Highlight important features and benefits to entice buyers.

3. Video Integration: Full-motion videos engage shoppers, providing a virtual test drive.

4. Special Offers: Regularly update specials and calls to action to maintain relevance.

Read more about listing optimization.

Leveraging Digital Marketing Strategies

Digital marketing goes beyond simply running online ads. It involves establishing a cohesive and consistent online presence that aligns with and reinforces the brand and value­s of your dealership. Here­ are some esse­ntial strategies to consider:

• SEO: Improve search engine rankings to increase visibility.
• Social Media Marketing: Engage with potential buyers, building community and loyalty.
• Email Marketing: Create targeted campaigns to nurture leads and drive interest.

Creating Engaging Content for Vehicle Merchandising

Content is king, and it holds a significant role­ in captivating the audience and transforming casual browse­rs into potential customers. The ke­y lies in crafting compelling narratives that re­sonate with the reade­rs.

• Blog Posts: Share insights, tips, and industry trends to educate and inform.
• Videos: Showcase vehicles in action, highlighting features and performance.
• Customer Testimonials: Real customer experiences build trust and humanize your brand.

Utilizing Inventory Management Systems

In the age­ of big data, inventory management syste­ms have become more than just organizational tools – they are now strategic asse­ts. These systems stre­amline merchandising efforts, track inve­ntory accurately, and provide valuable ve­hicle information, ultimately maximizing potential re­turn on investment.

Enhancing the User Experience on the Dealership’s Website

Creating a use­r-friendly website goes beyond just aesthetics. It involves crafting a seamless online journey that mirrors the experience of being in a physical store.

• Mobile Optimization: Ensure a consistent experience across all devices.
• Live Chat Support: Provide real-time assistance, mirroring in-store customer service.
• User-Friendly Interface: Intuitive navigation enhances user satisfaction and conversion.

Personalization and Customer Engagement

Personalization goes beyond simply using a customer’s name in an e­mail. It involves creating customized experiences that de­eply connect with each individual.

• Personalized Emails: Content that reflects individual preferences and behaviors.
• Targeted Advertisements: Reach the right audience with relevant offers.
• Proactive Communication: Engage customers throughout the buying process, building relationships.

Monitoring and Analyzing Performance

Effective­ monitoring and analysis of performance goes beyond mere numbers. It involves gaining valuable insights that fuel ongoing improvement. By utilizing tools and metrics to track key performance indicators (KPIs) and refining strategies based on data-driven insights, dealerships can drive meaningful progress.

Conclusion

Enhancing your dealership’s online vehicle merchandising strategy is a multifaceted approach that requires understanding shifting consumer behavior, implementing winning strategies, leveraging expert photography insights, and utilizing time-saving software tools. By embracing these tips and strategies, you can stand out from the competition and drive sales in today’s digital landscape.

The post 7 tips for enhancing your dealership’s online vehicle merchandising strategy appeared first on CBT News.

Why are photos so important?

Your customers are already visual. While you could explain in poetic detail every aspect of a vehicle from the condition of the sheet metal to the feeling of touching the steering wheel, your customers also want to see the vehicle itself to be more connected to it—and to believe that it really is as good as you say it is. In fact, doing a little less writing about a vehicle and offering more visuals is rather important.

Photos are also much more engaging. Many website platforms consider photo gallery views as a measure of engagement. Photos are far more honest than anything else you can post about a vehicle besides the vehicle history report.

How to take good photos

Explaining how to take good photos is a little difficult because in some cases, you might find some of the elements you’ll want to control a little difficult to manage. We’ll start by explaining that the very best car photos come from dealerships and online car vendors that set up a specific photo studio – probably an entire room, complete with good, natural, and portrait lighting and a clean consistent background.

You should also know that the photo studio process costs a lot, requires moving cars inside after reconditioning, and takes up a lot of space. If you already have a studio, good for you! You might not need much guidance. If you don’t, we’ll explain what else you can do.

Get the right lighting

Bad lighting makes your vehicles look less appealing. The colors aren’t very accurate. By bad lighting, we literally mean harsh, direct sunlight, especially on interior colors like gray or white that might look washed out in the high noon sun.

Our suggestion here is simple: Find a shaded corner on your lot, or learn to control your camera enough to make the colors and lighting look right.

Also, while sunset photos of a car do look good, there is a decent chance you won’t have enough time to take photos of more than a couple of cars during the golden hour. Plus, promptly after sunset is when you’ll start to get too dark for photos.

Take lots of photos

We could more carefully rephrase this to say take lots of photos without repeating yourself. Take a photo of the vehicle from every corner angle, then general photos of the inside, including seating surfaces, the steering wheel, and any technology within. We recommend taking at least 20 photos per vehicle if not more.

If the vehicle isn’t especially loaded with infotainment and accessories, take good, up-close photos of how clean the vehicle is after detail. This also matters to people!

Get a template

While this isn’t about the photo itself, many photo inventory providers will make you a template that places your logo and website at the bottom or top of the photo. These are great for both getting your phone number out there on 3rd party listing sites and planting that seed of a familiar logo to customers.

Consider a virtual tour

This will bring an additional cost, but it’s immersive. There are more than a few software platforms that can guide you through how to make a 3D image of your vehicle that embeds on your website and allows for a more interactive look at the vehicle.

To be honest, you might not need it for every car, but for a few higher-end luxury vehicles and cars with lots of competitors out there, it can help sell the car for more or faster.

Get examples

Some dealerships don’t quite know what standard they should live up to. Consider this: if you are contemplating whether or not you want to improve your vehicle photo merchandising, or don’t know how—take a look at your competitors. Look at the photos of your bigger competitors (If you are a big competitor in the area and want to improve, look at other brands too) and see how they do things. 

The post Tips and tricks for creating topnotch merchandising photos appeared first on CBT News.

Walking into a dealership, the smell of new cars, a firm handshake with a salesperson who knew your name, and a test drive that sealed the deal. It was personal, tangible, and authentic.

Fast forward to the last decade, where online platforms have revolutionized the car buying experience, particularly for electric vehicles (EVs). Though the landscape has shifted, one thing remains constant: the need for a personalized, seamless journey from the first online click to the final in-person signature.

Dealerships now face the challenge of blending the old with the new, creating a harmonious Online-to-Offline (O2O) buying experience that captures the essence of traditional customer connection within the digital realm. Let’s explore how to make this possible in the age of EVs.

Setting the Standard: Tesla’s Approach

Like it or not, Tesla, under the visionary leadership of Elon Musk, has revolutionized the car buying process. Their approach bypasses the conventional dealership network, allowing customers to customize their vehicles online, get pricing details, and place an order. Tesla’s approach also heavily emphasizes the experience after purchase, with over-the-air updates and direct customer service.

However, not all dealers or OEMs have the luxury or capability to replicate this model due to various restrictions, state-wise and nationally. But Tesla’s paradigm shows us the potential — and gives us a roadmap to what more car buyers are looking for.

The Agency Model: Opportunities and Pitfalls

Recent discussions in the auto industry highlight the push for an “agency model” to sell vehicles. This approach, especially favored for EVs, significantly emphasizes the manufacturer’s role in the selling process. While this can bring about a uniform buying experience and pricing model, it will also alienate dealers, who have traditionally been the face of the car buying experience.

Yet, this push isn’t a death knell for dealerships. On the contrary, it’s an opportunity because dealerships benefit the customer. At your dealership, you can still play a pivotal role in providing hands-on experiences, test drives, and answering intricate questions that online platforms might be unable to handle. Plus, your customer can haggle. You can be the welcoming bridge between the online dream and the offline reality.

Blending the Best of Both Worlds

Here’s how dealerships can adapt to offer the best of both worlds:

Digital Showrooming with Next-Gen Tech: Embrace the next wave of digital immersion with plans to e products like the upcoming Apple Vision Pro. This cutting-edge technology could redefine online showrooming, allowing potential buyers to experience virtual test drives and interactive explorations of vehicles from the comfort of their homes. The potential of such tools to simulate real-world experiences might be the next leap forward in bridging the online-offline divide.

Pre-visit Paperwork: Offer buyers the option to fill out most of the required paperwork online. This not only speeds up the process but also ensures that the time spent at the dealership is focused on the vehicle itself.

Appointment-based Visits: Prioritize the customer’s time. When they come in, ensure they have a personalized, efficient experience. This is especially pertinent for EV test drives which may require more orientation for new than conventional vehicles.

Educational Resources: Dealerships can play a pivotal role in educating customers about EVs. By offering a combination of online videos, tutorials, and offline seminars, dealers can demystify aspects of EV ownership, such as maintenance, charging, and long-term benefits.

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

Feedback Loop: Post-purchase engagement is crucial. And that doesn’t mean random emails promoting sales on vehicles the customer wouldn’t buy. Understand the buyer’s journey, solicit feedback, and use this information to refine and enhance the overall experience.

The Road Ahead

The tactile and emotional aspects of buying a car, encapsulated by the new car smell, the steering wheel’s feel, and the test drive’s excitement, are hard to replicate purely online.

\While Tesla has pioneered a unique model, traditional dealerships hold an integral position in the car-buying landscape. By marrying online innovations with the tangible, hands-on experiences they excel at, dealerships can craft a future-ready, holistic EV buying journey.

The post Creating a seamless online-to-offline EV buying experience appeared first on CBT News.

Social media and artificial intelligence have completely transformed the way dealers connect and interact with customers. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Gail Rubinstein, founder and CEO of Retail Resilient and long-time member of the dealership community, to learn more about the importance of having a robust social media strategy and how managers can best incorporate AI into that strategy.

Dealers can no longer afford to ignore their social media strategy, Rubinstein explains. The internet is where customers gather, converse, purchase and learn; by not integrating themselves into online communities, businesses put their brands at a disadvantage. Although most retailers have made significant strides towards upgrading their digital marketing practices, much progress needs to be made. “I think that dealers just are really not educated on what they can do with [social media],” she remarks, “and so I think it’s really important to get the word out to them that there is a whirlwind of opportunities…for organic social and paid social.”

One of the top social media strategies dealers should begin employing online is that of employee-generated content. Team members in the sales and service departments hold immense marketing power due to their personal networks of acquaintances, families and friends. By encouraging technicians and salespeople to post about their job and take on an “influencer” role, storefronts can grow their audience much faster than through typical digital marketing methods. “They’re allowing their staff to be an entrepreneur within the overall brand of the dealership,” remarks Rubinstein, although she cautions that businesses should be sure to create a best practices agreement with staff to minimize the risk of inappropriate behavior.

Today’s social media strategy is starting to rely more and more on artificial intelligence, which is why dealers must begin to integrate new technologies into their toolkits. Rubinstein notes that many of her clients have devised excellent uses for AI platforms such as ChatGPT. One of the biggest advantages to be gained from using these services is time. By allowing technology to speed up the process, dealers will free up time for outreach and content creation.

The post Enhancing dealers’ social media strategy with artificial intelligence — Gail Rubinstein | Retail Resilient appeared first on CBT News.

As today’s car buyers evolve, so must the technology within the dealership, which is why it is critical for managers to choose the right vendors. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Kevin Pitts, the general manager at BMW of Reading, owned by the Tom Masano Auto Group, to learn more about DriveCentric, a customer relations management platform that has helped improve response times, engagement, customer experience and the overall bottom line for his storefront.

As dealers know, it can be difficult to track website users and their communications with chatbots or customer representatives. The inability to keep up with these conversations means that storefronts could be losing out on business they may not even be aware exists. However, Pitts notes that the transition to DriveCentric helped boost engagement almost immediately. “I was watching just the engagement just fly through the roof,” he remarks, “the amount of leads we were getting was still the same, we didn’t change anything other than the CRM, but we got full insight into everything that we were doing, all the conversations that were going on, and it just exploded.”

DriveCentric drove so much engagement that Pitts and his team had to develop new ways of handling the influx of users. The platform’s ChatGPT plugin, called the “Genius Tool,” was able to start and maintain conversations with prospective car buyers at a far greater rate than normal sales teams and competing CRM software but still needed a human to take over for certain steps. To prevent these conversations from being dropped due to a lack of manpower, Pitts opted to create an “engagement center” staffed with employees that focused solely on progressing leads once ChatGPT had advanced the discussion as far as it could.

This proved to be much more effective than hiring additional staff in the sales department. “You look at a traditional sales funnel…a lot of the top of that funnel can be handled by anybody that has access to the data, so salespeople don’t necessarily need to be involved in that portion of it,” Pitts explains. While training for a traditional sales role in the dealership can take months, he notes that it only took two weeks for the engagement center’s new employees to finish training. The move turned the DriveCentric platform into a highly proficient assistant, which could boost sales numbers without removing the human touch needed to get customers in-store.

Pitts notes that the DriveCentric suite has also reduced the number of tools needed to grow his dealership’s business and take care of car buyers. “[My] background is in accounting, so I’m an efficiency aficionado…that was huge for me when we decided to do this,” he comments. The employees also benefited from the platform’s streamlined toolkit. “They talk about the prior places they worked at, it was four or five, six tools that they were using: DriveCentric does it all in one, and you can do it from our phone…”

Communication is key for keeping car buyers engaged. By working with vendors like DriveCentric, dealers can be sure they are using their leads to the fullest potential. The advantages, as Pitts notes, are “game-changing.”

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

The post How AI is helping dealers engage with car buyers — Kevin Pitts | BMW of Reading appeared first on CBT News.

While you may use mystery shopping to assess your dealership’s in-person sales, do you take the same measures for online car buying? Failing to do so could be costing you business.

Keep reading as we walk you through how to mystery shop your online operations and customer service. These tips can provide guidelines if you’re hiring an outside service or are recruiting among family and friends.

First impressions count: online chats set the tone

When prospective customers visit your dealership’s website, their interaction with your brand starts. It’s no different from when they first step into the showroom. So, those first impressions made by the online chat team and sales staff set the tone for the entire buying experience. Ensuring these encounters are positive and engaging is the first responsibility of mystery shopping.

What to look for…

At a minimum, your “chat squad” should make customers feel welcome and valued. Even if they’re just communicating by text, there are still opportunities to be friendly and approachable. Build on this by ensuring your team is knowledgeable about what your dealership sells, including how to respond to inventory questions.

Reducing response time: minimize waiting periods

Like it or not, people expect instant gratification, especially when online. Long waiting times are a turnoff and an invitation to shop elsewhere. So, being able to connect with a prospect immediately sends a clear message that your dealership is customer focused. And while your business isn’t likely to open 24/7, having coverage during off-hours (especially in the late evenings) can easily yield results.

What to look for…

Get a timer out to see how long it takes for an online shopper to receive an initial greeting from a live person (chatbots don’t count). See how the response times vary by time of day and day of the week. While speed is critical, quality matters, too. These customer inquiries should be handled in a friendly and helpful manner.

Streamlining appointments: the value of effective scheduling

All the efforts to be responsive to online inquiries will fall flat if setting an appointment isn’t equally as smooth. Car shoppers appreciate a hassle-free process for arranging a consultation or test drive.

What to look for…

Get a handle on what’s involved in setting up an appointment. Identify how many steps are required and how long it takes. Is the effort straightforward and user-friendly, or are there too many hurdles? How quickly is a confirmation message sent? See what happens when you throw a monkey wrench into the process by requesting a service appointment.

Website usability matters: the need for easy access to essential information

Your dealership’s online car buying process is only as good as your website. Customers visit to get model information, check out the inventory, check prices, explore financing, and other essential activities.

What to look for…

Determine the usability of your dealership’s website. Is it intuitive and easy to navigate? Is vital information easy to access or buried in obscure menus? How well does the search function work? Looking at website traffic reports can help you learn about visitor behavior, including the time spent on popular pages and the last page visited.

Embracing online shopping trends: the importance of aligning sales efforts with customer preferences

For dealers, the online car buying process is a fast-moving game. Trends and customer preferences are constantly changing. Successful car retailers have to be agile to remain competitive. It wasn’t that long ago that the idea of virtual test drives and home deliveries was far-fetched.

What to look for…

Take an inventory of what your website offers and what it’s lacking. Can a customer complete the transaction 100% online, or are there a few steps that are still old-school? See what the competition offers, and don’t hesitate to look at other industries for inspiration. ChatGPT and other AI platforms are revolutionizing the web experience. Can this and other technologies take your website to the next level of meeting customer preferences?

Personalized customer treatment: fostering engagement and satisfaction

Personalization separates all retailers, including dealerships; it’s a smart way to promote engagement and create happy customers. Your mystery shopping efforts should identify how much online customer service and the website reflects this.

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

What to look for…

Individualized customer attention begins with asking questions. Online staff can quickly learn about a prospect’s needs and preferences and direct them accordingly. In addition, website inventory search tools should be as detailed as possible. For example, quickly locating a car with specific features can turn a looker into a buyer.

Consistency drives success: uniform customer experiences build trust and loyalty

When it comes to car buying, no one likes surprises. A consistent experience throughout the online shopping process fosters trust, which leads to sales. Much of this goes back to the other aspects of your mystery shopping adventure.

What to look for…

Check that each step of the online car buying process is consistent. This includes ensuring the website design and navigation are uniform across all pages. Movements between functions should be seamless and feel very integrated. In addition, interaction with each staff member should be equally engaging and friendly. Just because there may be a hand-off doesn’t mean there should be a change in attitude.

The post It’s time to mystery shop your dealership’s online car buying process appeared first on CBT News.

Hyperbole aside, the debate between speed and quality is long-running, very real, and has become even more acute since the pandemic. Terms like digital transformation have taken on new meaning and in some cases, this helpful technology has been twisted into scenarios that remove the very core purpose of a dealership: to sell cars and build lasting relationships with customers. Make no mistake: Customers want to spend less time. They always do. According to the 2022 Cox Automotive Car Buyer Journey Report, overall customer satisfaction with the process fell five points, from 66% in 2021 to 61% in 2022. A key reason was time spent in the buying process: The typical buyer took over 14 hours to complete the transaction, with an hour more time spent online and 20 minutes more spent at the dealership.

Consider, also, the annual dealer survey from eLEND Solutions. In 2021, just as car buying was settling into that “new normal” business mode, we found that “Digital Retail-initiated” deals led to faster in-store transaction times: 53% said that times were reduced by up to one hour, and 21% said customers saved more than an hour.

The takeaway? Customers want efficiency, not speed. They crave quality done right. They simply do not want to waste their valuable time no matter where they are. They’re not satisfied with trading one hour in the dealership for one hour at home online; they want a streamlined process that answers their questions and gets them the vehicle they want. This is big because we used to think that customers were fine spending hours researching third-party websites but didn’t want to spend hours at the dealership. It turns out that they really aren’t okay with that.

This is where dealerships come in, because dealerships provide the car and the direct relationship that customers clearly need to speed up the transaction and save some of their precious weekend/evening time. After all, you’re selling a car and new cars cost on average about $48,000. Buyers will naturally have many questions about it; they’ll want a test drive and want to do business with people they know and trust. This is more so the case today than ever before. According to the CDK Global 2023 Friction Points Study, 76% of car shoppers surveyed said they wanted to take their time to understand their options, up from 67% in 2021. That’s not speed, but quality. Yet still, we can all agree that customers are loud and clear that they want to spend less time in the transaction process. So, what gives?

When dealerships use technology to speed the transaction and focus on the things that matter — like answering questions and respecting the customer’s time — it helps to improve relationships and thus increases profitability. We saw this as far back as 2019 in our survey of dealerships: 92% agreed that digital retailing has a positive impact on sales, 80% said the same on the customer experience and 68% saw a positive impact on profitability.

It’s not speed vs. quality. Customers want quality done right, the natural outcome of which is less time spent twiddling thumbs or staring at a screen:

• Speed and quality aren’t opposing factors. Digital retailing is about efficiency, which incorporates both elements to enhance the buying experience and builds stronger relationships inside the dealership. Speed and quality aren’t trade-offs, but rather interdependent elements that work to optimize the experience.
• Translate “speed” into saved time, found by an improved process driven by technology. That can manifest in many ways: From advanced vehicle search options and instant credit decisions to lender matching and digital contracting, speed in each step fosters an accelerated and streamlined digital path-to-purchase. That leaves more time for relationship building.
• Accuracy and transparency drive a “quality” experience. Quality is evident in the accuracy of a trade valuation, a fair and honest negotiation process, precision payment option quoting, and a seamless, non-redundant workflow. Quality is the foundation of trust and customer satisfaction in digital retailing.

Ultimately, customers want their time to mean something valuable. Don’t we all? That can never happen on a website but can — and does — happen at your local dealership. Technology like digital retailing helps dealerships eliminate wasted time and get right to the point: selling cars and building relationships.

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

The post Does speed hurt quality? Taking a closer look at digital retailing appeared first on CBT News.

COVID-19 changed everything, including how we shop. As a result, many industries have had to embrace online shopping. According to the National Library for Medicine, global retail e-commerce grew 26.4% to $4.248 trillion in 2020. It’s estimated that e-commerce accounted for 20.3% of sales in 2022.

A 2020 Digitization of End-to-End Retail report by Cox Automotive showed the automotive industry took a similar trajectory. Seventy-four percent of franchise dealers said their customers had used digital retailing tools more since the pandemic.

Shopping patterns driven by safety concerns, increased technological advances, and ever-changing consumer preferences have led to digital e-commerce sticking around. 

The rise of virtual tours and digital retailing

Customers have gotten a taste of online-only shopping processes, and it seems they don’t want them to cease. According to market research store, Research and Markets, the global automotive AR and VR market is expected to have a 79.5% compound annual growth rate (CAGR) by 2026.

Immersive technologies like AR and VR allow customers to experience and explore products digitally. A customer can sit inside a vehicle and look at the interface while exploring a showroom at home.

This, coupled with an online-only sales platform, can help you reach and keep customers and increase customer satisfaction. Through research, Cox Automotive found that 81% of consumers want to do at least part of the car purchasing process online.

Offering online-only sales opportunities can:

• Expand customer reach – You can increase your dealership’s reach and entice individuals further out to interact with your dealership. 
• Increase convenience – For individuals with schedule restraints due to childcare or work; this approach gives them an easier way to purchase from you. 
• Reduced physical interaction – Lingering concerns about the COVID-19 pandemic could keep individuals from entering public places. Online-only sales platforms allow them to get the service they need. 

Growing consumer preference for contactless interactions

Customers desire an online-only contactless process. A 2020 report by Cox Automotive found that 76% of shoppers are open to buying a car completely online.

Consumers are particularly interested in managing the pricing and paperwork process. For example, the percentage of individuals who wanted to either finalize a vehicle price or review and sign a final contract at home increased by 13% and 11%, respectively, between 2017 and 2020, according to Cox Automotive.

Contactless and online customer processes offer a variety of benefits for your dealership and the customers you serve. Not only do they increase safety, but they fulfill a significant desire by customers: saving time. Cox’s Automotive Digitization report found fewer individuals wanted to take their time at the dealership.

In fact, there was a 42-minute difference in time spent at the dealership for individuals who handled much of the purchasing process online versus those who didn’t. Also, customer satisfaction with dealers who used digital retailing tools for car buying stood at 72%. 

The significance of curbside pickup

Curbside pickup can be a win-win for your dealership and customers. In 2022, one-third of US online shoppers made their most recent purchase for curbside pickup, a 37% increase from the previous year.

Curbside pickup increases convenience for consumers, decreases the amount of contact, and is less taxing than vehicle delivery for auto dealers.

However, to pull this off effectively, dealers must provide clear communication about logistics, efficient and hassle-free scheduling, and sales team members who can provide personalized services.

Steps to improve digital retailing customer service

Data shows that digital retailing can positively and significantly impact customer service. But it’s more than just offering an online experience, including virtual tours and curbside pickup. There are some tangible ways you can ensure digital retailing improves customer service:

Establish effective communication channels – You can use digital tools to your benefit to communicate effectively with customers and meet them where they are. A great example of this is using a chatbot. Tidio, a customer experience solution company, found that 62% of customers would rather speak with a chatbot than wait for a human customer service agent. Whether you’re interacting with customers on Twitter, Instagram, or through an online chatbot, you want to ensure a streamlined process for communicating and responding to customers and letting individuals know that these channels are an option.

Respond promptly – Customer response expectations vary by channel. According to social media management company Sprout Social, 76% of individuals expected a company to respond to their inquiries on social media in under 24 hours. On the other hand, the average response times for live chat are 2 minutes, according to customer relationship management company SuperOffice data. Consider these benchmarks as you set up your digital retailing communication strategy.

Offer personalized interactions – Not only do people want rapid responses, but they want customized information. Ensure you use customer (demographic and purchase) data to create dynamic, personalized experiences. This particularly comes into play during email campaigns and ad retargeting. 

Be prepared for the new normal

Customers are ready for digital retailing experiences, partly due to the disruption by COVID-19 and technological advancements.

As a result, you and your dealership team can meet these new customer preferences by adopting digital tools, heavily investing in employee training to use these tools, and routinely auditing your online presence and digital retailing strategies.

Leaning into digital retailing can be a win-win for customers and your dealership.

The post Virtual tours and contactless delivery: how to embrace digital retailing appeared first on CBT News.

Digital retailing has created hundreds of new opportunities for auto dealers to interact with consumers. But in the age of texting, search engines and artificial intelligence, what do car buyers actually prioritize when communicating with retailers? On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Ted Rubin, CEO of ActivEngage, a people-powered, web-based live chat and communications solutions provider, to discuss the latest insights and trends in the dealer-to-consumer conversation.

As technology has changed the way we communicate, so too has customer preference. While consumers of the past may have wanted dealerships to engage with them in a more business-like manner, studies show that a majority of shoppers want to interact with brands the same way they engage with family and friends. “Dealers are starting to recognize that and they’re starting to look more toward how can they interact with these customers and give them that unified experience,” explains Rubin. Just as most people prefer to text rather than call, car buyers want the option to chat with their retailers in a convenient, efficient manner. Digital retailing makes this form of communication easy: unfortunately, however, not all forms of internet-based interaction are created equal.

An increasingly popular method for expediting conversations with consumers is to use AI-powered chatbots. However, Rubin notes that many companies employ these tools without paying attention to their weaknesses. While he admits that the technology is impressive, he believes it still has a long way to go before it can replace human interaction, especially in the areas of digital retailing and customer service. This is because computers still struggle to replicate empathy, pick up on nuance or troubleshoot issues with complete accuracy.

As such, AI is largely incapable of producing an authentic experience, meaning shoppers struggle to find any sense of connection with brands that use these platforms. “There’s no emotion with a computer,” Rubin explains. “I think that a lot of people are putting it…right in the front with the customer, and saying hey you can talk to this first, and they’re waiting for a point of failure before they transfer over to an agent.” This mistake can cause dealers to lose leads, as shoppers will often give up out of frustration once they are paired with an AI assistant. ActivEngage avoids this entirely by connecting clients with humans as soon as possible, something Rubin encourages auto dealers to do as well. This method ensures that customers get a personalized experience in their digital retailing journey without sacrificing convenience.

Rather than using AI chatbots as the first point of contact, worrying about whether their software tools are good enough or relying solely on technology to make communication more efficient, dealers should instead focus on making a solid first impression. “It’s really important that the first customer-facing interaction is a superlative interaction. Customers want to interact that way and they want to feel like they’re being accommodated, they want to feel like they’re empowered,” explains Rubin. The sooner retailers can accurately answer shopper questions, demonstrate their knowledge of the industry and show they care about their customers, the better they can connect with car buyers. In conclusion, digital retailing offers the ability to deliver a convenient, authentic shopping experience, but its effectiveness is vastly improved when auto dealers emphasize human-to-human interaction rather than human-to-computer.

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

The post AI chatbots and digital retailing: how do customers want to communicate? — Ted Rubin | ActivEngage appeared first on CBT News.

Today’s economic headwinds have forced dealerships nationwide to alter how they achieve customer satisfaction. On today’s Inside Automotive, we’re joined in studio by Pete Maclnnis, CEO of eLEND Solutions, to discuss how affordability impacts the Digital Retail process.

With the average costs of new vehicles approaching nearly $50,000 and interest rates doubling, Maclnnis notes, “The information has done a pendulum swing.” To further explain, Maclnnis highlights the most recent eLEND Solutions study, which surveyed dealerships around the county, and the results showed:

• 68% of dealers found the payment and cost of the vehicles, according to the consumer, are equally important.
• 46% said the payment was more important.
• 31% said that price was the most important. 

With these results, the study then follow-up with questions such as: How many dealers are offering payment calculators,s or how many offer penny-perfect payments? The results showed 52% of dealers’ quote payments could be up to $50 per month of the consumers’ actual costs. Whereas 53% of dealers said, online payment tools were inaccurate 80% of the time. Additionally, 85% of dealers said that accurate online payments could shave off 15 minutes of the F&I process.

The Disconnect

According to Maclnnis, “Digital retailing hasn’t matured yet, sales and finance are still complex, and the penny-perfect process isn’t perfect. This may ultimately be why there is a disconnect between payment quotes and digital retailing.” Maclnnis continues, “The problem with digital retail is the penny-perfect solutions.” The tools don’t account for the taxes and fees, nor do they get the consumers’ actual credit, “it’s all hypothetical.” Therefore, if dealers can establish a price tool before the consumer enters the dealership, they can get an accurate quote with jurisdictional prices, including taxes and fees.

Suggestions

Ultimately, Maclnnis emphasizes that “Dealerships need to examine the digital retail tool as more of an elegant online preconsumer’s “You need to find a way to bring the credit first, not last. Since that is where the consumer’s head is at.” He also encourages dealers to start thinking about pre-desking tools to aid in integrating lender programs. Lender programs will get those that are qualified to get their payments upfront- which will shorten the F&I process.

Back in the day, Apple started a program that put Apple Specialists in computer stores to educate customers on the benefits of their system. It may be time to have an EV specialist in your dealership.

The post How to secure lender-qualified payments upfront with digital retailing — Pete Maclnnis | eLEND Solutions appeared first on CBT News.