As customer expectations continue to evolve, Peter Cooper, President of Lexus of Lehigh Valley, says dealers need to focus less on copying disruptors and more on understanding what those companies do differently. Cooper joins us on today’s CBT Live segment to discuss transaction ease as an area where traditional dealerships can still improve.
During today’s discussion, Cooper said Carvana’s success highlights the importance of removing obstacles from the transaction rather than simply replicating its business model. He points to dealership websites, lead processes and employee responsibilities as areas where stores can create unnecessary friction. With customers increasingly accustomed to simple digital experiences, Cooper says dealers need to examine what employees and customers are being asked to do throughout the buying process.
Cooper also says strong sales should not discourage dealers from changing their processes. Lexus of Lehigh Valley recently recorded its best sales month ever, but he argues that strong performance is exactly when dealerships should look for ways to improve. He notes that customers often know what they want before entering the dealership, while the traditional buying process can still take four or five hours. At his store, about 70% of last month’s sales came from traditional walk-in customers, even though those shoppers did not necessarily have a recorded digital interaction with the dealership beforehand.
Similarly, Cooper says dealers need to rethink how they organize their people and technology as the industry evolves. He sees AI becoming part of the automotive retail process, but says dealers should not simply adopt new tools without first determining how their processes need to change. The franchise model and manufacturer support remain important advantages, but Cooper says dealers should continue building more consistent processes, simplifying employee responsibilities and developing a human-capital strategy that can adapt as technology and customer expectations change.
