When our team attended this year’s National Automobile Dealers Association (NADA) Show, one theme was clear: the industry is recalibrating. Traffic patterns are shifting, buyer expectations are climbing, and Gen Z is challenging dealerships to rethink how they operate. 

The dealers positioned to win are focused on reducing friction, proving value, and personalizing every step of the customer journey.

The Market Is Adjusting to New Audiences, New Technology, and New Expectations.

Together, these shifts represent a structural reset in how dealerships attract, convert, and retain customers. The conversations at the show made it clear that success in 2026 will depend on aligning digital discovery, in-store experience, and long-term service relationships into one cohesive strategy. We’re sharing seven takeaways that will define competitive advantage for dealerships in the year ahead and beyond. 

1. The Post-Pandemic Market Reset 

During the pandemic, dealerships operated in a world of limited inventory and urgency-driven decisions. Today’s environment looks very different. 

• Affordability pressures are real, especially for Gen Z buyers
• Used inventory conversations require more transparency
• Trade equity discussions demand clarity and proof
• Service departments have become primary drivers of retention 

As the market stabilizes, success is returning to the basics. Dealers who will thrive are refocusing on: 

• Lifetime customer value
• Relational selling over transactional wins
• Service as the proving ground for trust
• Operational efficiency that improves experience 

In this market, the stores that will succeed are the ones that communicate the most clearly and effectively. 

2. Traffic Is Down, But Intent Is Up 

One of the insights at the NADA show challenged the common panic around declining organic traffic. Instead of measuring success by volume alone, dealers must now evaluate traffic quality. 

• Organic clicks down 23%
• CTR down 23%
• Conversions up 183% 

Fewer shoppers are visiting dealership websites, but those who do are arriving with significantly higher intent. Even more notably, AI-referred visitors show stronger behavioral signals: 

• 33% shorter purchase journeys
• 76% more likely to take low-funnel actions
• 3x higher conversion rates
• Up to 4.4x higher value per session 

Discovery is increasingly happening inside AI-driven environments. Buyers are consuming summaries, recommendations, and generated insights before they ever reach a dealership’s website. The strategy is no longer about driving more traffic, but about showing up where decisions are forming. Dealerships that adapt to this AI-shaped discovery layer will capture higher-intent buyers earlier in their journey. 

3. Gen Z Is Redefining Expectations 

Gen Z was a recurring focus at this year’s show, and for good reason. Their expectations are reshaping how dealerships operate. 

This generation expects a buying and service experience that is transparent, self-directed, and digitally enabled. This includes: 

• Online tools for vehicle comparison and negotiation
• Clear pricing and transparent trade discussions
• Personalized communication
• A clear value exchange when sharing data 

The data reinforces this shift: 

• Over half of Gen Z prefer online tools for comparisons and deal negotiation
• 75% are comfortable with personalized video offers
• 58% are comfortable with location-based personalized offers
• For Gen Z, personalization and transparency are baseline expectations. 

4. Proof Is the Foundation of Service Retention 

At the NADA show, service departments emerged as one of the most powerful loyalty drivers, especially with Gen Z. A key insight: service recommendations fail when customers can’t see the “why.” In fact, 74% of Gen Z say they would approve repairs if shown video evidence, as compared to 53% of non-Gen Z respondents. 

Gen Z isn’t opposed to service recommendations. They’re opposed to unsupported ones. Digitized inspections with photos and video are becoming essential because they: 

• Turn subjective recommendations into objective evidence
• Accelerate approvals
• Shift conversations from persuasion to education
• Build trust at the most critical moment 

When customers can verify what they’re being told, trust becomes measurable and retention improves. Affinitiv’s Messaging and RO Tracker support real-time, mobile-first communication, enabling two-way text conversations while delivering proactive service status updates. By increasing transparency at every stage of the visit and outlining next steps, dealerships reduce friction and improve the overall service experience. 

5. Personalization is Not Optional 

Beyond proof, personalization was another clear theme: one-size-fits-all communication no longer resonates. Personalization now spans the entire journey: 

• Data-driven service recommendations at scheduling
• Contextual, location-aware offers
• Personalized video communication
• Messaging that reflects prior behavior and preferences 

AI-powered video solutions like Affinitiv SmartVideo allow dealerships to embed dynamic, personalized video into automated communications. Instead of generic follow-ups, customers receive messages that feel 1:1, whether commercial-style or avatar-led. When personalization feels intentional rather than templated, engagement rises. 

6. Operational Efficiency That Works for Customers is Key 

Another major topic: efficiency as a way to make the customer experience smoother and more convenient. Smart, incentivized scheduling models are helping dealerships: 

• Surface pricing and incentives during booking
• Shift appointments into underutilized time slots
• Automatically balance shop capacity
• Capture incremental demand without adding overhead 

When operational intelligence strengthens customer convenience instead of competing with it, both profitability and satisfaction improve. Affinitiv CapacityIQ supports this strategy by aligning operational intelligence with customer convenience. 

7. Loyalty Is Earned in Service 

One insight summed up the broader shift: trust is earned, and service drives loyalty. 

• 87% of Gen Z report a satisfactory service experience, yet two-thirds won’t return after a negative one
• 51% say excellent customer service is the best part of their visit
• 22% cite high costs as the worst aspect 

Price matters, but experience often determines retention. Gen Z buyers are significantly more likely to agree to data-driven service recommendations when context and transparency are present. They will accept tradeoffs, such as less convenient appointment times, if value is clearly communicated.

From Being Seen to Being Trusted

When you connect the themes that surfaced at this year’s NADA show (AI-driven discovery, proof-backed service, personalized communication, and operational intelligence), a clear pattern emerges: Traffic is fragmenting, intent is consolidating, expectations are rising, and Gen Z is informed. If the digital journey feels intelligent but the in-store or service experience feels opaque, the disconnect is immediate. 

Dealerships that reduce friction, prove value, and personalize every interaction will build loyalty long before the sale is complete and long after it’s signed.

Let’s Continue the Conversation

If we didn’t get the opportunity to connect with you at NADA Show 2026, we’d love to start the conversation now. Reach out to us today to see how our solutions can help apply these industry insights directly to your dealership to help drive growth, loyalty, and measurable results in 2026 and beyond.