Customer retention is the end game- it’s what all dealerships are looking to nail and this is becoming increasingly hard. Doug Van Sach, AutoLoop’s Vice President, put it perfectly when he said, “the hard truth for dealers is most consumers have redefined what it means to be loyal in the digital age.”
I recently wrote about how the UK sales of new cars has declined. But, it’s not all doom and gloom as Close Brothers has reported that 92% of car dealers are feeling confident about 2018. So, what’s the deal? Well, let’s consider the table below:
Feel like a king
Your dealership management system is the heart and soul of your dealership, this is something that every member of staff will be using every day. This is the communication and transparency you rely on. Your DMS should make you and your dealership feel like a King. It should give you power, control and ensure you are fully informed on the goings-on of your roost.
According to the SMMT 2.5 million cars were registered in 2017. This is a 5.7% drop from 2016. This may come as a surprise to many as the market has been growing year on year since 2012.
There are a lot of stages to the modern car-buyer journey. The majority of the process is now online, with customers coming into dealerships only when they have a clear idea of what they’re buying, at the end of their buying journey.
I know that your Dealer Management System is at the heart of your dealership so when it comes to thinking about switching your provider it’s no easy task. Your entire dealership will be comfortable with your current system and know it like the back of their hands, so the idea of new technology and change can often be met with some resistance and no doubt a bombardment of questions. Then you also have the anxiety of the whole process itself, will the data transfer correctly? What will the down time be? These are just a few common questions that will naturally spring to mind.
Before the digital age changed the way we shop, buying a car was a long process of more than five dealer visits and a lot of questions, answered mostly by the dealership.
Nothing stands still and neither does the customer landscape. Millennials are classed as people born between 1980 and 2004, and they are entering the car buying market at high speed. It’s been reported* that by 2020 Millennials are expected to capture 40% of the new car sales market.
I’ve got some questions…
Your DMS is there to measure, report, input jobs and provide clarity and transparency when it comes to your internal processes and communications, right? But, what about the customer?
It’s almost 2018. Everything’s digital, everything’s multi-channel. I’ve seen so many cases where car dealerships don’t seem to be able to keep up with this and eventually, this will catch up with them.