COVID-19 changed every aspect of our society, including the way dealerships operate and how consumers purchase vehicles. As states reopen and businesses return to normal operations, some key trends will continue even after the coronavirus is under control. Here is what you can expect to see post-pandemic and how to position your dealership for success in the long run.
Online Car Shopping and Purchasing
According to Haig Partners, 30% of new car sales last year in the U.S. were conducted online, compared to 2% pre-pandemic. Millennial shoppers, in particular, want to buy or lease through their smartphones and just come to the dealership to close the deal. To meet this demand, you can create a better car buying experience by creating a virtual sales manager role and invest in tools that streamline the online car buying process. This ensures customers efficiently go through the decision-making process and feel confident that your dealership is the best one from whom to buy their next car.
Telecommuting and Remote Operations
The lockdowns forced some dealerships to temporarily close their doors at a time when consumers moved away from ride-sharing to car ownership. Many dealers allowed their staff to work from home and continue helping customers through their buying journey to minimize disruption. Your sales staff can be more efficient in a remote environment by using your DMS to:
- Setup prospective deals and quickly offer different payment options on the fly
- Schedule appointments to test drive cars and have the vehicle delivered to their home
- Enable customers to complete most, or all, of their contracts and payments digitally
Mobile Service Drives
More vehicle purchases mean more cars that require maintenance. Many dealers continue to operate their service drives during COVID by offering mobile services, such as picking up the vehicle from the customer’s home and bringing it back after an oil change and tire rotation. What was once considered a concierge luxury service is becoming more popular. To do this effectively, you will need DMS that does not require VPN offsite, so your team can effectively deliver exceptional service at your customer’s convenience.
Consumers are more internet savvy than ever before, and COVID made digital advertising even more essential as people avoided high-touch surfaces such as print publications. Identify websites and social channels where your customers hang out and try to be present there.
Digital Marketing and Promotions
Consumers are more internet savvy than ever before, and COVID made digital advertising even more essential. Identify websites and social channels where your customers hang out and try to be present there. Leverage advanced social advertising capabilities to target specific audiences and get your dealership in front of people who may not know your brand or the special offers you are running.
Secure Virtual Payments
The days of handing cash and credit card to the cashier before picking up a vehicle are fading quickly. As consumers strive to avoid crowds, being able to pay for their car in advance – quickly and securely – has been vital during the pandemic and beyond. Ensure your DMS provides an easy way for customers to pay online and track it within the repair order for your records.
Cyberattacks
Cybercriminals often target automotive dealerships due to the high volume of sensitive data, which has increased since the pandemic began. With the rise in remote work and more car buyers on the market, this threat will continue. According to Blum Shapiro, dealerships that invest in cloud technology are well positioned due to higher security protocols. A cloud-native DMS, for example, can help protect your data through immediate security patches and updates. It can also backup your records in the cloud so you don’t lose critical information in the event of a hack.
Many of these dealership changes are long overdue and the COVID-19 pandemic accelerated the digital retail process. Despite the emergence of online used car marketplaces, such as Vroom and Carvana, dealers proved our industry’s ability to adapt and succeed under unprecedented circumstances. The goal now is to stay ahead of competitors for the long haul by implementing an agile workforce, robust processes and modern cloud solutions that enable you to maximize productivity, customer satisfaction and profitability.
Sharon Kitzman leads the launch and long-term growth of VUE DMS. Her expertise in DMS technology is key to helping VUE clients to optimize their operations with innovative solutions. Previously, Sharon managed the strategic direction and product development for Reynolds & Reynolds and Dealertrack. Her experience spans every area of dealership software development including sales, marketing, product lifecycle management, process re-engineering, OEM management, professional services and customer service.
Sharon is a recognized leader in the automotive industry and has received many accolades including Automotive News Top 100 Leading Women 2015 and 2020, Auto Remarketing Women in Retail 2021, and AutoSuccess Women at the Wheel 2021. She has a Bachelor of Business Administration from Ohio State University.
