Whether it’s the only option or the preferred choice for customers, the shift to digital auto sales is coming fast — ready or not. However, the speedy digital transition we’re experiencing has been happening gradually for years, and the dealers who do it right in the next few months could be well-positioned to succeed in the long term.
For years, dealership departments have operated in silos, sometimes leading co-workers to compete with each other instead of with the store across the street. Now, many dealerships are running with multitasking skeleton crews, and this streamlined sales process is appreciated by many customers who prefer dealing with just one person.
As dealers simplify operations, it’s smart to take a closer look at how digital resources can seamlessly link different steps of the sales process through a single point of contact. To successfully update your dealership’s approach, be sure to keep the following top of mind.
Think of your website as a kind of virtual sales lot. Would you let the vehicles sit crooked and unwashed? Make sure your online experience reflects the same clean, organized look a customer would expect from a physical dealership.
Conduct an online audit to get a sense of how your dealership is displayed virtually. A quick Google search will give you a good idea of how customers view your products and services. Verify that search results are accurate and up to date. Are your hours of operation and staff photos current? Do you have promotions listed on a “specials” tab? This is a good time to update it with service and finance and insurance specials.
Another critical step is making sure your website displays current inventory. Be creative with your approach, and tailor marketing to your community. Include a video option or a virtual walk-around of vehicles to keep your consumers engaged.
A successful digital sales program integrates all the pieces of the dealership experience. Traditionally, F&I was a specialized department, but to really move the needle, it’s better to integrate F&I with the sales and service process.
Income from F&I as a share of profit has been steadily rising as more dealers realize its potential. Data from the National Automobile Dealers Association shows that income from F&I departments accounted for 25.5 percent of total profits on sales in 2018, up from 24.9 percent in 2017. You may not be able to physically walk your customer over to the F&I or service departments, so it’s important for every salesperson to be comfortable explaining the benefits of financing and protection products. In fact, we’re hearing from several dealers who are seeing a lift in F&I results in the past month. Like vehicle inventory, F&I products should be promoted on your website for customers to research and compare.