Roadster, NADA, and Upwave partnered to take a close look at how digital retailing impacts ROI. The Dealer Impact Study examined areas like online car shopping and F&I. On today’s show, we’re pleased to welcome Michelle Denogean, Roadster’s Chief Marketing Officer and we’re also joined by Mike Lucki, NADA Academy Instructor to discuss the study’s findings.
Denogean kicks off the conversation by discussing the impacts dealers were facing after transitioning into digital retailing due to the pandemic and how consumers are navigating the online car buying experience.
In the last six months, Denogean and Lucki surveyed one thousand car buyers. In September 44% of consumers that had bought a car in the last 6 months had done some of the processes online. But since then that number has shot up to 89%. That also included if the consumer selected the vehicle.
Now more than ever, consumers are doing more transactions in the digital form, which Lucki says is causing the transaction time for both customers and dealers to significantly decline. It’s allowing more efficiency on both sides of the car buying experience.
When asked, why are so many dealers fighting the digital process, Lucki believes it because dealers are skeptical of new things. Although 89% of the respondents surveyed said, they are using digital retailing in their store, it’s just a matter of how they’re using it.
Denogean mentioned, even though it’s a small percent of people who purchased 100% online, 80% of them were guided through the deal-making process with somebody at the dealership. She says it isn’t a self-service but a guided digital experience.
Although the car buying experience varies from generation to generation, the future of car buying will possibly become an overall digital experience. Denogean believes it’s meeting the customer where they are and being as flexible as possible.
When asked what percentage of the car dealers would be doing everything predominately online, Lucki says about 30% to 35%, and that number will continue to increase. He thinks that digital retail will be built into every transaction in one way or form.
Denogean says, there are so many ways to use digital retailing, but you have to keep in mind how to use it at every touchpoint. When using it with every customer, the benefits are endless. It speeds up the transaction time, makes teams more profitable, and helps you in F&I.
Lucki ends the conversation by embracing the future of digital retailing and says, it’s coming and we need to embrace it.
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