3 Min ReadJuly 17, 2023

Adopting Digital Retail in the Showroom

Adopting Digital Retail in the Showroom.

Digital retailing tool use surged during the pandemic, and now 84% of dealers report using it in some capacity. But only 30% of dealers use the tools in the showroom to incorporate shopper preferences once they’re in the store. Yet, dealers using digital retail tools throughout the sales journey gain five more units on average per salesperson!

This is one of the most compelling insights CDK Global identified in our 2023 Friction Points Study. We worked with the NADA Academy to survey 335 dealers about their top strategies this year. Number one was “improving the customer experience.” Dealers who are using digital retail as a true retail tool, not just for lead capture, are making a big impact on that experience and winning more sales as a result.

The In-Store Opportunity

There’s a big opportunity to leverage the automotive digital retailing tools you already have to be more profitable. When we look at dealers who use their tools in the showroom as part of the presentation and desking process, unit sales per salesperson surge from 10.8 to 16 (per NADA data). And it’s more than just digital retail; it’s elevating all the points along the selling process to make the experience faster and easier.

A True Retail Tool

The problem with viewing digital retail as only a lead capture tool is that customer information and work done online often doesn’t translate in-store. Customers who’ve spent hours online researching vehicles and following the purchase steps show up in person to find the salesperson doesn’t have a record of all that work. That frustrates the customer, tanks the customer experience, and puts the sale in jeopardy.

When sales staff use the same tool in-store, they have instant access to the customer’s record. When the customer arrives in person, they can sit side by side and work the deal on the same screen the customer saw at home. This gives staff the ability to cut out wasted time, complete deals faster, and improve the experience so customers are more likely to recommend their experience to their friends and family.

Speedier Sales With Complete Control

Time spent completing a purchase is crucial to the customer experience. Digital retail tools adopted in the showroom have proven to cut time in-store. However, there’s still a concern that using the same tool online as in-store impacts the dealer’s control.

The truth: Dealers gain more control when everyone uses the same tool because the dealer can set deal parameters that staff can’t override. All vehicle pricing, incentives, and special offers can be customized by each dealer to best fit their business model. This gives salespeople the autonomy to work the entire deal with the customer in one place. It also frees sales managers from the desk so they can coach on the showroom floor.

The Modern Retail Flow

Digital retail is part of the modern retail workflow. To really modernize the car selling experience, look for areas where you can drive efficiency and productivity for your staff. And areas where you can shave time off the clock and complete deals faster. When you simplify selling into a single experience that’s easy to teach your staff and install the proper deal guardrails to ensure profitability, your staff can be more productive and deliver a terrific customer experience.

 

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Jen Miller
By Jen Miller
Lead Product Marketer, CDK Global

Jen Miller is a Lead Product Marketer for CDK Global. She is responsible for assisting the company’s sales, implementation, and success teams with go-to-market strategies for current and new product offerings. With over 15 years of experience in business development and marketing strategy, Jen has helped execute business strategies to maximize profitability and retention.

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