Car Dealerships Adapt New Practices

The consumer purchasing process in the auto industry has dramatically changed over the last decade. Consumers now have access to endless amounts of information online. Websites feature reviews, pricing, financing offers, comparison shopping, and much more. Certain websites make comparing models, filtering search criteria, and calculating trade-in values and monthly payment estimates quick and easy. In the past, customers would make multiple trips to showrooms to conduct research and to test drive different makes and models before signing a contract. Today, consumers do most of the research online. In order to promote brand awareness and to create a rich customer service experience, automakers have to adapt. Some are developing innovative retail strategies and new programs to stay abreast of a rapidly changing retail experience.

Cross-Industry Innovation

One manufacturer looked to brands in other luxury retail sectors to identify retail trends and inspiration. Drawing from a computer company, the manufacturer established a new system, called the Product Genius, at locations across the country. The non-sales position of this system serves to strictly educate consumers about the manufacturer and available makes, models, and technological features. This structure allows salesmen to focus on the transaction and financing aspects instead of guiding the customer through the vehicle's features and capabilities. Initially, the concept experienced some resistance from automobile dealership owners. But after receiving positive feedback and proven sales numbers, car dealerships are rethinking employee structure and hiring more than one "Product Genius" to meet the growing demand.

Digital Car Dealerships

On the other hand, another auto company took an entirely different approach by creating the world's first digital showroom. The showrooms, known as Cities, do not have any physical automobile displays. The test displays were built in London and Beijing. They are engineered and designed for large metropolises, like Berlin, Shanghai, and Paris, where a traditional car dealerships simply are not a practical option. The city displays the automotive fleet on wall-to-wall screens called power walls. The power walls operate much like smartphones, allowing visitors to swipe for viewing and exploring different options. This concept has an infinite inventory, allowing a brand to display every possible model, color combination, and style option. The experience also caters to the senses, because even the sound of the engine corresponds to the model on the power screen.

These two automotive companies approached the changing marketplace differently. Both avenues explore original and positive purchasing experiences. As technology continues to boom and the consumer shopping experience evolves, car dealerships will continue to reinvent the wheel by offering new services, creative displays, and convenient customer-driven experiences.