Digital Transformation Changing the Face of Dealerships of Tomorrow
Enterprise Digital Transformation
The COVID-19 outbreak has had an intense impact globally, and the world was unprepared for what has transpired. The Automobile industry has equally been affected amongst all the industries.
While the previous global economic downturns held clues as to what will happen next, there are several aspects to this crisis without similarities to the other economic collapses that have affected the global industries. Dealerships are finding it challenging to market due to the crisis.
Global passenger vehicle (PV) sales declined by nearly 7% YoY in July, despite regions showing varied signs of month-on-month recovery from COVID 19 induced lockdowns. Overall, cumulative YTD global PV sales are down by 25% YoY through July.
Even though rapid technological innovation and investment are transforming the future of personal and commercial transport, the changed customer behaviour due to the crisis is affecting every manufacturer and car dealership.
Consumers today expect dealerships to provide extraordinary service; For instance, an in-house buying experience and home delivery of the automobile. Dealers are struggling to create digitally evolved experiences due to lack of expertise.
Digital consulting services empower dealers to create better experiences, provide superior customer service and drive incremental sales and revenues. Here are some of the areas consulting services can help dealerships with:
Showroom of the future!
An iterative innovation – From digital banners to the digital gallery of cars, to Virtual reality showroom – Feel your car (FYC) and the future sure does awaits for more!
Dealerships worldwide are transforming buying experience with technology and car-less showrooms. The bigger picture is for customers to experience all models, colours, specifications virtually (virtual reality).
For instance, MG motors have opened India’s first digital showroom using digital leveraging Immersive technology and AI-based Human Recognition – features synonymous with the MG brand.
Digital supply chain
Digital supply chain leads to cost-optimization, efficient consumer participation, data collection, and usage, leading to improved customer support and customer loyalty.
The processes start with OEM; as manufacturers strengthen the digital supply chain; car designs, built and assisting dealerships with vehicles that meet customer demand and expectation with precision.
Digital finance services
The right digital transaction management system helps by speeding up the process and improves capital efficiency. Further leading to an improved approval process, increased F&I requirements and reduced operations costs. Such efficient process helps lenders fund dealers in a comparatively shorter period and carry out loans in minutes.
Connected maintenance services
Predictive maintenance feature notifies about the vehicle service before its limit is exhausted, and defects, ultimately improving driving experiences and safety. It enables dealers to rely on the advanced automotive maintenance technologies and dealer management systems that connect the service and sales teams, helping provide better customer loyalty aftercare package.
Advanced customers service
Customers today are more aware than ever; they expect lightning-fast responses and 24*7 availability. Chatbots play an ever more critical role with the increasing role and responsibility of car dealers. Instead of just initiating questions, AI-empowered chatbots answer secondary and third party questions as well:
- Car trading value
- Discount inquiries
- Model comparison and suggestions
The responses of chatbots positively contribute to revenues stream for dealerships.
As a service model
In an increasingly competitive and diverse market, digital transformation helps the dealership to remain front-runners. Hence, mobility to tailor customer experience should be part of the value proposition.
Three things to build a stable base for a mobile future:
Enter into the mobility-as-a-service models, such as rental, car-sharing or even ride-sharing that follow a service-centred approach, from conventional car ownership
Emphasize on fuel alternatives and tap into the growing demand of customers for greener travel
Boost your after-sales by meeting new regulatory standards that offer numerous service and reparation solutions to consumers
A successful digital transformation initiative requires clearly defined strategic objectives – the efforts and ROI measurement depend a lot on the defined objectives.
At Alvarium, we help companies to go through a smooth transition and gain better digital transformation ROI. Through our digital consulting services, we integrate digital technologies into business processes and recommend data-driven business models for long-term business sustainability.
One of the Netherlands based clients, a comprehensive dealership company, approached us for digital transformation. With our design-led methodology – Alvarium workshop, we successfully analyzed parts and offerings that required digital advancements to provide a better customer experience. The process resulted in launching a unique offering for customers of all ages with mobility as service.
Let’s create the future together. Reach us at firstname.lastname@example.org