Listen up car dealers:
Most consumers today see immersive technology as a differentiator when shopping. According to a study by Accenture, 61% of consumers say it’s more likely they would buy from brands that invested in immersive technologies, including augmented reality, virtual reality, 3D content and 360 video.
“Brands need to understand how the rapidly accelerating area of immersive technology can help drive scale in this new era of online shopping,” said Rori Duboff, a managing director for strategy and innovation at Accenture Interactive, in a statement.
The Accenture study of 3,000 consumers comes during a time of rapid change in shopping. The pandemic of 2020 barred most customers from traditional shopping experiences, like visiting a dealership to buy a car or try on glasses at the eye doctor’s.
Out of necessity, trends shifted to accommodate a new landscape of sales and online shopping, digital experiences and brand awareness. What this means for car dealerships is this:
You can’t rely on customers to drop by and pick out a car. And when they do, it’s important to personalize it to them because nearly half of customers in the study say they would pay more for a product if they could customize or personalize it — cars included.
“Some of the best experiences people have in their lives are those that are customized and connected to them on a personal level,” writes co-author Dan Bolger, Principal, Deloitte & Touche LLP, et al, in Deloitte. “These days, people increasingly expect to have such experiences across all of their brand interactions, whether it’s paying for coffee, ordering groceries online, booking travel, or buying a car.”
Car dealerships must realize these three trends and begin creating a strategy for the digital age:
While the traditional sales approach still works, younger generations increasingly expect more streamlined, digital experiences. It’s best to remove friction wherever possible.
Immersive technologies will play a key factor in brand awareness, loyalty and sales. Consider how AR, VR and others can provide value to customers.
A personalized approach to car sales in the digital age (think artificial intelligence) will create a better experience for shoppers, serving up content that’s relevant and timely.
Customers Drive Demand: Car-buying Is (Finally) Making the Digital Transformation
Since many dealerships closed up shop during the pandemic, what were people to do if they wanted a car? An in-person visit could put people at risk. (It’s hard to social distance during a test drive.)
While Dealerships managed in spite of the headwinds, some saw an opportunity to change course toward fully online car sales.
Nissan, for one, launched Nissan@home, an online platform dedicated to digitizing the buying experience covering everything from signing paperwork to contactless home delivery. Add to that, studies show up to 60% of customers report that they would consider buying a car solely online, entrusting digital tools to research and buy a vehicle. That’s a big sum of the market that’s interested in a totally different kind of car sales. It’s hard to ignore.
But so what? Does this mean the in-person salesperson goes away completely?
Not a chance.
Most car shoppers have an affinity for the in-person car-buying experience. They want to see and interact with the car they’re committing to. Two-thirds of shoppers want to negotiate in person to lock in the best deal, according to Deloitte’s study.
While that might be good news for dealers, it also means there is opportunity for optimizing the in-person shopping experience with new digital tools and immersive technologies, especially as online alternatives become more popular.
Dealers Must Revamp the Customer Experience with Digital Tools and Immersive Tech
Part of the reason some dread the in-person buying experience has to do with time and antiquated practices, namely signing an enormous stack of papers one after the other with large sums that jump off the page to create anxiety for the customer.
Trends suggest digital alternatives would create a more comfortable experience for shoppers, including digital signing software. Signing digitally can be done anywhere, with devices that are familiar to younger generations.
The same notions can be applied broadly across car sales — from the research phase to closed sales.
Millennials and Gen Z trust digital channels far more than older generations. Whether it’s a dealer-provided tablet, an interactive kiosk, a VR headset, or simply their own phones, the digital means of finding a set of wheels is preferred. The sales professional and print brochures aren’t obsolete, but rather complement the buying process.
Bearing this in mind, how can dealers introduce digital technologies into the shop to create a more familiar, contemporary experience for buyers?
This is where the immersive experiences come into play. Some dealers have dramatically elevated the in-person experience.
Using high-resolution, commercial touchscreen displays, customers enter the dealership with the ability to build a completely customized vehicle inside and out. Augmented reality shows the exterior and interior, a detailed dashboard, allowing the customer to swap colors and features with a swipe of their finger.
Build with their own hands, they see the car they haven’t seen online — the one that’s all their own. It’s personalized, it’s customized, it’s what they identify with. And it’s in front of them on this beautiful 4K display. They could almost kick the tires.
Luxury dealerships have been more apt to advance digital experiences than non-premium dealers, implementing tools like tablets and other tools to help customers have a shopping experience like what was described earlier. And, it’s paying off.
Stay Competitive with a Modern Sales Process
The car sales process has been rife with outdated processes that add friction into the car-buying process. The manufacturers and dealers that continue to excel are those finding ways to reduce friction in the process for their customers. Making the process simple and relaxing not only encourages sales, but also promotes customer loyalty.
What more and more customers want today are digital solutions fit for the modern era. Younger buyers expect dealerships to catch up and offer digital solutions that meet them where they are; and while some dealers got the hint, many continue to scramble with how to implement the changes.
CommLink works closely with dealerships to understand their stage in the digital transformation, providing technical expertise for optimizing a showroom and enabling a better customer experience. Learn more about Our Services online. **Photo courtesy of https://www.relaycars.com/