8 San Diego Dealer Pandemic Dealership Trends That Are Here to Stay COVID-19 changed every aspect of our society, including the way dealerships operate and how consumers purchase vehicles. Now that states have reopened and businesses returned to relatively normal operations, some key trends that emerged during COVID will likely continue even after the coronavirus has subsided. Here is what you might expect to see in the post-pandemic world and how to position your dealership for success in the long run. Online Car Shopping and Purchasing According to Haig Partners, 30% of new car sales last year in the U.S. were conducted online, compared to 2% pre-pandemic. Millennial shoppers, in particular, want to buy or lease through their smartphones and just come to the dealership to close the deal. In fact, studies show that 40% of new car buyers visited only one dealership during their last vehicle purchase. To meet this demand, many dealers have produced a better car buying experience by creating a virtual sales manager role and investing in tools that streamline the online car buying process. It’s also important for dealers to invest in secure virtual payment options to ensure that customers efficiently proceed through the purchase funnel and feel confident about the service your dealership provides. Telecommuting and Remote Operations The lockdowns forced some dealerships to temporarily close their doors at a time when consumers moved away from ridesharing to car ownership. Many dealers allowed their staff to work from home and continue helping customers through their buying journey to minimize disruption. Many dealers realized that sales staff can be more efficient in a remote environment by using their DMS to: • Setup prospective deals and quickly offer different payment options on the fly • Schedule appointments to test drive cars and have the vehicle delivered to their home • Enable customers to complete most, or all, of their contracts and payments digitally Mobile Service Drives Even though the pandemic kept most people home for months at a time, vehicle maintenance and repair were essential services. Many dealers who began offering mobile service options, such as picking up and dropping off customer vehicles, continue to provide these options today. What was once considered a concierge luxury service is becoming more common and can give a dealer an edge over the competition. Digital Marketing and Promotions Consumers are more internet savvy than ever before, and COVID made digital advertising even more essential. Dealers ramped up efforts to identify websites and social channels where their customers were “hanging out” during the pandemic so that they could engage with them. Dealers need to leverage advanced social advertising capabilities to target specific audiences and get your dealership in front of people who may not know your brand or the special offers you are running. Cyberattacks As more dealer operations and transactions moved online during the pandemic, cybercriminals often targeted automotive dealerships due to the high volume of sensitive data. With the rise in remote work and more car buyers on the market, this threat will continue. According to Blum Shapiro, dealerships that invest in cloud technology are well positioned due to higher security protocols. A cloud-native DMS, for example, can help protect your data through immediate security patches and updates. It can also backup your records in the cloud, so you don’t lose critical information in the event of a hack. Many of these changes that were accelerated during the coronavirus pandemic were long overdue to improve the customer experience. And despite the emergence of online used car marketplaces, such as Vroom and Carvana, dealers proved our industry’s ability to adapt and succeed under unprecedented circumstances. The goal now is to stay ahead of competitors for the long haul by implementing an agile workforce, robust processes and modern cloud solutions that enable you to maximize productivity, customer satisfaction and profitability.
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