- March 4, 2019
- Posted by: Kari Jones
- Category: Automotive Industry, Tips For Dealers
Dealers are currently running businesses in an environment which is constantly being disrupted, and this is not set to change any time soon.
Key developments will mean that change in automotive retail is only going to accelerate. Developments in the market, including a transition towards autonomous and electric vehicles and a shared mobility model will mean that the entire automotive landscape and the products that retailers will provide will start to differ.
The continuing digitisation of automotive retail is also likely to put increasing pressure on margins for dealers who have not adopted digital methods of marketing and retailing.
As forward-thinking competitors start to introduce new business models in response to these changes, this in itself will disrupt the automotive retail playing field. With this disruption, operating models will have to be continuously revised.
In order to maintain success in this rapidly changing environment, dealerships will need to adopt new business models and consider alternative revenue channels.
Customer-Centred Business Models
Customer-centred business models are important and working on improving the customer experience is a good place to start your dealership’s evolution. Introducing digitisation online and in-store can increase convenience for consumers.
More focus should be given to customer retention, as this could help you maintain healthy profit margins when competitors are evolving at a quicker rate. Personalised marketing and expanding your range of services to include servicing and repair are worth consideration to keep customers coming back for more.
Dealership staff should be trained on the management of digital leads. Data is incredibly valuable in any business and when it is not managed properly, sales opportunities can easily be missed. Implementing a digital lead management system should be made a priority.
Customer data should also be made readily available to the sales team, including a history of previous transactions so that interactions can be personalised.