Digital Merchandising Tools for Car Dealerships​

The automotive industry is transforming from a traditional brick-and-mortar business to a more digitally-focused approach. Digital merchandising in car dealerships is becoming increasingly popular as it allows for a more efficient and personalized customer experience.


Digital merchandising is the process of leveraging technology to promote and sell products/services online. For car dealerships, it means the use of digital tools and strategies to promote and sell their cars. This includes using digital marketing techniques such as search engine optimization, pay-per-click advertising, and social media marketing to drive traffic to the dealership’s website. It also involves creating engaging content such as videos, blog posts, and interactive tools to engage potential customers. Additionally, digital merchandising in car dealerships provides an opportunity to use data analytics to better understand customer preferences and target them with tailored offers. Here are some digital marketing tools that dealerships can use:

Automated Inventory Management System

An Automated Inventory Management System for car dealerships helps streamline the process of tracking and managing vehicle inventory. It can provide real-time data on the number of vehicles in stock, their locations, and their condition, as well as information on the sales history of each vehicle, including the date of sale, the customer’s name, and the price. Besides, the system can be used to track maintenance and repair records, as well as customer service records, and provide detailed information about each car. This information helps dealers make informed decisions about pricing, inventory management, sales trends, customer preferences, and other data.

VDPs and Online Showroom​

Vehicle Display Pages (VDPs) are the most essential element of  digital merchandising in ca dealership. To ensure customers are engaged with all the vehicles, dealers should use high-quality images and videos. Incorporating 360 photos with embedded information like hotspots can increase engagement by 30%, which cannot be done with 2D or low-quality images. It is also important to optimize the online showrooms for mobile since a majority of people use their smartphones and tablets to browse the web.

Online showrooms for car dealerships enable customers to browse and purchase vehicles from the comfort of their own homes. Car buyers can search for vehicles based on their desired make, model, and year, as well as other criteria such as price, mileage, and features. Once a customer has found the vehicle they are interested in, they can view detailed 360 photos, video tours, and descriptions of the vehicle with the touch of a button. They can also request a test drive or schedule an appointment. Also, they can apply for financing, get a trade-in appraisal, and purchase accessories and parts. This takes the effort out of the car buying process and can result in more qualified leads for sales.

Digital Advertising

With the benefit of digital advertising, car dealerships can target potential customers through various digital channels. For example, Search Engine Optimization (SEO) enables car dealerships to appear higher in search engine rankings and makes them more visible to a larger audience, more qualified leads, and potential customers. By creating more engaging content and building relationships with customers on social media, car dealers increase brand awareness, customer engagement, and provide an easy way to showcase their inventory.

According to the Capgemini survey, 90% of consumers, who use social media for car purchasing, say it influenced their final decision. This is especially true for Facebook, making it a great marketing channel for car dealerships to engage new customers and re-engage existing ones. Social media is thus having a direct impact on the car-buying process.

Dealers using digital advertising, in general, will target customers who are actively searching for new cars, or who have expressed an interest in car-related topics. Besides, it allows them to create customized campaigns, and track the performance of campaigns in real-time. So, they can make the right decisions about their ad spending and optimize their campaigns for better results.

Automated Customer Relationship Management

Automated Customer Relationship Management (CRM) helps car dealerships boost sales by providing them with the tools to better understand their customers and their needs. It allows dealerships to track customer interactions, create targeted campaigns, and analyze customer data to better understand their buying habits. This is very useful to create more personalized and tailored experiences for their customers, which can lead to more sales. Automated CRM also allows dealerships to stay organized and efficient by streamlining processes and automating tasks. Thus, dealerships save time and resources, and can focus on providing better customer service.

Sean Toussi

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