The days of lavish showrooms and competitive in-person bargaining are slowly becoming a thing of the past as the automotive industry’s digital transformation forces dealers to expand their e-commerce presence.  

Much of this change is due to online shopping alternatives streamlining the buyer’s journey, which has become a typical demand from modern, digital-centric consumers who now favor online sources of information when making decisions. 

However, not all dealers understand the need for such a paradigm shift or why it is a necessary move to keep pace in a tech-heavy landscape. This article discusses the benefits of an auto industry digital transformation and why dealers should welcome its arrival. 

4 Benefits of an Automotive Industry Digital Transformation 

While various manufacturing sectors are adopting digitization at different rates and for varying reasons, the auto sector is now setting the pace and accounting for a large chunk of worldwide digital spending. 

While the financial commitment is substantial, the increased online presence offers significant advantages to dealerships. Those benefits include the following: 

1. A Boost in Revenue Growth 

When it comes to increasing revenue, there is no replacement for solid e-commerce capabilities. Strong e-commerce positioning has competitive advantages, and its implementation and revenue growth go hand-in-hand due to society’s increasing demand for digital purchasing options. 

More specifically, recent research shows that: 

• The capability to search for nearby vehicles and determine whether a specific car is available is the leading driver of sales among dealership websites. 

• The availability and usability of a car dealership’s online features directly impact sales. 

• Email is the preferred method of communication for customers with dealerships, outpacing phone calls, in-person interactions, and text messages. 

• One of the main factors influencing the sale of new vehicles is the quality of a dealership group’s website performance (discussed in detail below). 
  
  

2. A Better Buyer Experience 

A large e-commerce market can help auto dealers provide more individualized and straightforward purchasing experiences, enabling customers to take advantage of many new possibilities.  

Those features include the following: 

• Inventory visibility in real-time 
• Online self-service options 
• Customized, VR-driven products 
• Simplified dealership interactions 

These options ensure car buyers are in the driver’s seat and own the process. 

3. A Reduction in Costs 

With the proper digital solutions, dealers can boost revenues while cutting expenses using relevant consumer data metrics.  

Dealers can access important actionable insights showing their repeat customers’ purchasing patterns and preferences with a unified interface that automates data-driven customer predictability modeling.  

Additionally, providing clients with the digital self-learning resources they require to conduct online research speeds up the sales process, increasing customer happiness and revenue potential. 

More specially, the benefits include (but are not limited to) the following: 

• Eliminating common customer pain points 
• Cutting labor costs 
• Reducing transaction window lengths 
• Saving substantial time for both parties 

Using the appropriate digital platform would allow car dealerships to consolidate data, streamline the product discovery process, and provide self-service capabilities as they reevaluate what a modern sales experience should include. 

4. An Expanded Customer Reach 

Furthermore, dealers may attract new prospects, grow their current client base, and boost brand loyalty at a time when it is most required by continuously delivering these memorable experiences that encourage informed purchasing decisions. 

Dealers must also remember that their website is a vital resource of data for customers to assess during the selection process, assisting them in focusing their considerations and identifying essential vehicle features and advantages. 

More specifically, the website should help visitors find the right content at the right time, which drives more foot traffic to the dealership’s showroom for the actual purchase.  

The specifics should include the following: 

• Customer-friendly navigation 
• Compelling images 
• Reliable operating speed 
• Information transparency 

These services will remain crucial for dealers to succeed in a highly competitive industry where omnichannel adoption is the norm. 

Begin Your Digital Transformation Now  

The entirely in-person car buying experience is coming to an end. If dealers want to remain competitive in today’s market, they must customize and simplify the consumer experience to reflect the automotive industry’s digital transformation. Dealers will need several data-driven marketing options to engage customers online, and these options become more accessible as e-commerce expands. 

However, while the industry provides dealers with a window of opportunity to prioritize digital innovation, that window quickly closes as more dealers adapt. Dealerships must now embrace digital transformation’s power to benefit customers and themselves. 

Contact us today and learn how Affinitiv’s propriety technologies can help you keep pace with the automotive industry’s digital transformation.