Five Ways to Effectively Utilise Technology at Your Dealership
It is undeniable that over the last 20 years, technology has cemented an integral place into our businesses and everyday lives. Many dealerships however are still behind when it comes to using technology to gain a competitive edge. It is essential that car dealerships, on a global scale, adapt to the ever-changing environment of new technologies in order to maintain sales and stay in business. The following recommendations describe how your dealership can effectively use technology to build your brand and improve customer experience.
#1 Big Data and Data Analytics
Big data refers to the collection, processing, and analysing of large sets of data within an organisation. The use of big data means that business intel and larger trends can be monitored and actioned accordingly, allowing a dealership to grow and maintain a competitive advantage against other dealerships. Effectively using data and its analytic processes will mean that your dealership can identify and target customers that have a high inclination to buy a vehicle, and are in need of assistance. Being able to identify these opportunities within your dealership will allow senior managers to make informed decisions.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. For the automotive industry, a blockchain can mean highly secure sharing of vehicle data, shared mobility, and verification of a supply chain that can occur securely as a result. The addition of a blockchain to your dealership could lead to data that is autonomously self-guarded and the management of reliable and safe supply chain transactions.
Blockchain can revolutionise the way data is managed in the new era of smart vehicles. It has the potential to be a critical technology to our industry that enables secure financial information and makes shared vehicle ownership more trustworthy.
#3 Cloud Computing Models
The employment of cloud computing models within the automotive industry brings an array of benefits and new opportunities that are essential for a dealership to operate seamlessly. Cloud computing is the delivery of computing services such as databases, networks, software, analytics, and intelligence over the internet at super speed! Cloud computing is an essential tool that dealerships can use to provide innovation and flexible resources. This in turn increases productivity and security, all with minimal management or server provided interactions. In an industry that is constantly striving to adapt and innovate to a dynamic consumer environment, the implementation of cloud computing within your dealership could mean a wider reach to engaged customers, improved sales transactions and user experience, as well as enhanced services.
#4 Automation and Connectivity
The introduction of automation and connectivity within the automotive industry has proven to be a game changer in the way that dealerships operate around the world today. Connectivity has enabled the tracking of features such as safety, predictive maintenance and fleeted management to become a reality, allowing strong revenue opportunities and the growth of competitive advantages for dealerships. Furthermore, connectivity has greatly enhanced the customer-to-dealer experience by providing access to a range of seamless services and interactions allowing for better consumer engagement and future sales.
Automation has provided a level of sophistication to many dealerships and is proving incredibly important in efforts to remain productive and efficient. Physical automation of task such as ID and licence checks, as well as the legalities of paperwork are becoming a recognised routine, in dealerships around Australia. Automation of daily dealership activities has also meant that dealership processes can remain more secured and autonomised, providing peace of mind to new and existing customers and allowing an increase in sales.
#5 The Use of Virtual Reality
A surprising trend in the automotive industry is the use of virtual reality to provide a simulated experience of a real world situation. Through the impacts of COVID-19, our industry has completely reimagined how virtual reality can be used and further integrated into dealership’s operations, to prevent further disruption to consumers around the globe. Cyber-stores and sales videos have reinvented research and buying processes behind the purchasing of a motor vehicle, leaving the automotive industry relatively unscathed from the global events we face today. The use of virtual reality has provided a refreshing reminder of just how important the adaption to and integration of technology is for a dealership in creating comparable customer experiences and maintaining sales.
There are so many ways your dealership can utilise technology to transform the way you run your business. There’s no doubt that dealership digital transformation is often spoken about but it isn’t easy to implement. It requires collaboration between dealers, OEMs, technology experts, and customer insights to be able to effectively transform the retail experience digitally. Let’s start by looking at simple things that you can do to enhance the car buying journey for your customers.