The next phase of automotive industry disruption will be driven by data and analytics. This is already happening to a certain extent, with companies like Carvana using data to optimize their inventories and pricing in real-time. But the real game-changer will be when data is used to create a personalized car-buying experience for each individual consumer. This will require a massive investment in data collection and analysis, as well as the development of sophisticated artificial intelligence and machine learning algorithms. But the payoff will be a car-buying experience that is tailored to the specific needs and preferences of each customer–an experience that is truly unique.
E-commerce will revolutionize everything!
The electric car industry is fighting against rules which prevent them from selling directly to consumers. General Motors and Ford have started selling used cars online in new markets. The trend of buying cars online is expected to grow rapidly in the coming years, with more and more aspects of the process, from research to financing, taking place online. Even for those who prefer to finalize their purchase in person, a greater portion of the buying journey will occur virtually.
In today’s automotive market, many car companies are struggling to keep up with the changing times. With new technology and the internet, customers are now more informed than ever before and they have more options to choose from. This has made it difficult for automakers to keep up and adapt to selling online.
At present, only a quarter of automakers feel that they have successfully adapted to selling online. This means that the majority of car companies are losing out on potential customers. However, this is all going to change in the future. Automakers will need to completely change the way they interact with customers if they want to stay ahead of the competition.
Experiential retail will gradually render the traditional dealership model obsolete
Customers will do much of their research and financing online before ever setting foot in a dealership. With the benefit of digital merchandising, customers can evaluate a car from several angles virtually and make a well-informed final decision. As a result, they can expect a smoother, more enjoyable experience.
The future dealerships will be more focused on providing a great experience for customers, rather than just selling cars. This may include well-designed locations with plenty of space for test-driving and learning about features, as well as comfortable areas for completing paperwork. There will also be fewer dealerships overall, as they consolidate into larger operations. This will allow them to better control the overall brand experience.
More consumers will buy their cars built-to-order, selecting custom features and waiting for their vehicles to be delivered. Cars may not disappear from the lot altogether, but dealers will likely carry no more than 15 days of on-site inventory. This shift towards customization and less on-hand inventory means dealers will have the opportunity to explore new locations that were previously inaccessible due to size and facility restrictions as a way to increase their retail presence while providing more curated experiences.
The automotive industry will eventually be dominated by software!
Software will increasingly be used in automobiles. The full potential of technology has not yet been used in the automotive industry. Cars will become more software-based and connected, which will give carmakers a lot of data. This will allow them to improve cars and anticipate services before problems occur.
Dealerships will still play a role in servicing vehicles, but customers will be more informed about their car’s needs and will schedule appointments accordingly. In order to be successful in the new world, the automotive industry will have to make some changes. Automakers need to establish stronger relationships with customers and redefine their dealer partnerships. Dealerships need to become more focused on providing excellent service.
If dealerships want to survive in the digital age, they need to rethink the way they sell cars. They need to focus on the customer experience, not the sales process. The future of the automotive industry and the automotive sales process is online.
Sean Toussi
If you have any questions or comments regarding this article, please email Sean@Glo3D.com
Glo3D.com Content Team,
AI-based, Digital Merchandising.
Virtual tour, Video Tour.
