4 Min ReadMarch 11, 2022

How Trendsetters Are Showing the Way in 2022

car showroom floor

Moving past challenges to unlock opportunity

Our new study looked at the trendsetters that made car buying better for consumers through new technology and services.

The past two years have created a slew of challenges and opportunities for dealers across the country, leading many to look at new ways of doing business. At CDK Global, we wanted to learn what changes were successful, which weren’t and which are now here to stay.

That’s why we initiated a new study that looked at dealers of all sizes, luxury and non-luxury, urban and rural, to find what made a difference for “trendsetters.”

And while our study confirmed significant staffing and inventory challenges, it also uncovered new uses for technology and remote solutions that increased the overall consumer experience.

The results reinforce my belief that this is an extremely exciting time to be part of our industry.

Technology Is a Significant Driver

The preference for simplicity and convenience — powered by digital solutions — is not going to retreat now, and dealers are keenly aware of this trend.

Our research showed that nearly half of dealers introduced new digital retail technology over the past two years, whether it was an upgraded DMS, CRM or new tools for service.

The survey found that technologies like those that allow F&I paperwork to be completed on a tablet, or service photos, videos and repair orders that can be viewed on mobile devices were not only adopted but are also leading trendsetting dealers to invest in more tech over the next two years.

A tool, however, is only as good as the person using it, and an even higher number of dealers will be investing in training on new technology. Clearly, the focus on technology at the dealership level will continue to be paramount.

The Dealership’s Reach Expands to the Home

There is a theory that OEMs will look to generate direct-to-consumer sales in parallel as they increase the number of Electric Vehicle (EV) models on the market. But a leading global research firm found that franchise dealers will remain the dominant channel for 95% of all vehicle sales through 2026.

The past two years saw dealerships leading the way in selling power, and they were also able to extend their ties to consumers that have a desire for contactless services.

Whether it was contactless delivery of their new car or remote service pickups from their driveways, consumer feedback has been strong enough for a vast majority of trendsetters to keep them in place moving forward.

Cooperative Commerce

Global upheaval in the supply chain has put a new light on what buyers expect and look for when it comes to the basic purchase process. Whether it’s a new EV or rugged off-roader, shoppers are going to be just as comfortable ordering from the factory or asking what’s on a truck heading to the dealer as they are walking a crowded lot of inventory.

That will continue to help with profits but will require more transparency between OEMs and dealers. In fact, three out of four trendsetters told us they are looking to forge stronger partnerships with their OEMs to provide a more seamless shopping experience that transitions easily from digital to physical.

And CDK solutions can help connect these two ends of the delivery process.

Together with OEMs and dealers, we are persistently looking for disruptor opportunities that transform what the consumer journey looks like.

By leveraging data and insights and truly being an company that brings AI-powered intelligence to dealers, OEMs and the market in total, we have helped transform the buying and servicing experience for everyone.

Opportunities to Unlock

Seeing how trendsetters tackled the past two years and uncovered positive ways to impact their stores across their operations showed me there’s always something new to discover in this industry.

At the heart of what we heard, no matter what the dealer was trying to initiate, the key to fueling growth was always to put the consumer first.

So, keep sharp and embrace challenges as you look to become your own trendsetter.

Read the Trendsetter's Guide to Automotive Retail white paper.

Share This

CDK Global
By CDK Global
Staff

Recent Insights

It’s Time to Raise Your Sales Workflow Standards.

It’s Time to Raise Your Sales Workflow Standards

Dealership sales associates manage thousands of customer leads and close hundreds of vehicle sales every year. To do their job,...
3 Min ReadSep 22Amber Good
Dealership Desking Tactics to Win Over Modern Buyers.

Dealership Desking Tactics to Win Over Modern Buyers

Today, the ideal desking process is built around the modern retail experience that includes the work a customer does online,...
3 Min ReadSep 19CDK Global
EV Confusion Carries On

EV Confusion Carries On

As automakers continue to churn out electric vehicles (EVs) to compete with Tesla, the share of EVs keeps building. Yet,...
2 Min ReadSep 12CDK Global
Talking About a Different EV Bubble

Talking About a Different EV Bubble

The elevation of electric vehicles (EVs) to the top of the automotive food chain has been taking its time. On...
3 Min ReadSep 12Barb Edson
Plug in Hybrids Remain a Solid Bridge to electric vehicles.

Plug-In Hybrids Remain a Solid Bridge to EVs

Electric vehicles (EVs) are here and more are coming to get the world to a zero-emission future. But the slow...
3 Min ReadSep 12David Thomas
Buying a Car Gets Only Slightly Easier in August.

Buying a Car Gets Only Slightly Easier in August

July saw some of the biggest drops ever in our monthly Ease of Purchase Survey. Buyers were frustrated across the...
3 Min ReadSep 5David Thomas
Avoid Top Online to In Store Modern Retail Mistakes.

Avoid Top Online-to-In-Store Modern Retail Mistakes

Are your sales managers and employees fumbling with buyers who prefer to do some of the purchase steps online? Or...
3 Min ReadSep 1CDK Global
Modern Retail Benefits Dealers and Puts Customers in the Driver’s Seat Faster

Modern Retail Benefits Dealers and Puts Customers in the Driver's Seat Faster

Buying a vehicle is a big deal. Even the most routine car sale requires a series of steps including research,...
4 Min ReadAug 30CDK Global
How an Automotive CRM Can Enhance the Customer Experience

How an Automotive CRM Can Enhance the Customer Experience

The journey to purchase a car is ever evolving, and the spotlight is shining bright on customer experience. Believe it...
3 Min ReadAug 21Jessie Hammonds
Dealers Aren't Speeding Up Sales

Dealers Aren’t Speeding Up Sales

For the past year, CDK Global has been surveying car buyers each month to gauge how easy the car buying...
3 Min ReadAug 17David Thomas