Pandemic Shutdowns Sped Up Online Commerce At Auto Dealerships - Forbes

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Car shoppers nowadays should find that auto dealerships are much better at dealing with customers who approach the dealership via online channels, and who may want to toggle between online and in-person interactions. That’s an area where auto retail is playing catchup, compared with other retail industries.

“From the last time they purchased a vehicle to the next time, there are going to be new capabilities. Almost every consumer is going to experience something new, as they go through the process,” said Kevin Filan, marketing vice president for Atlanta-based Cox Automotive.

Even small dealerships pretty commonly offer online improvements that sound modest but can significantly improve customer satisfaction, he said. For example, many dealerships allow customers to make their own service appointments online, and communicate with customers via text message and short videos, provided customers opt in.

Adoption is also starting to include what the industry calls “end-to-end” online purchases, without ever having to physically enter a dealership. That includes the difficult parts, like a trade-in, negotiating a new purchase, getting financing, signing documents, and taking delivery at home. Online customers can even get a car delivered for a test drive.

But Filan points out that according to Cox Automotive research, most people still want someone to walk them through the process, whether that’s in-person, or via online channels. That’s especially true at those difficult decision points, he said.

“First-time buyers, Millennials, have a reputation that they want to do all things digitally, all the time. But that can be a little bit misleading. Millennials, they have questions,” Filan said.

Online service has been slowly evolving and improving for years, but the pace of change is now much faster, because the coronavirus pandemic forced auto dealers to adopt online sales, and all forms of online customer interaction, much faster than the auto industry was moving, before the pandemic.

After all, for auto dealers in states that shut down showrooms last year, it was either go online or go out of business.

“There’s been a huge increase in adoption since COVID hit,” Filan said. “We’re seeing it across the board, from the large groups, to small rooftops, to independents.”

Cox Automotive subsidiaries include familiar names like Autotrader, Kelly Blue Book, and Manheim auto auctions. The company provides software and services for both consumers and dealers, covering pretty much every facet of new and used, wholesale and retail auto sales.

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