Technology has touched every aspect of our lives, and the automotive industry is no stranger to it. To stay in the game and be a step ahead of your competitors, it is vital to integrate the use of different technologies in automotive retail.
How is technology transforming the automotive industry?
The automotive industry is now leveraging digital tools and technologies to increase efficiency in operations and get more customer engagement. Automotive digital transformation has allowed car retailers to give customers an innovative and interactive experience. Here are some current automotive industry technological trends:
Online Presence
With a strong online presence, it becomes easier for automotive retailers to reach out to a wider audience. Customers usually start their car buying journey by researching makes and models online, so a fully functioning website that provides detailed inventory, car financing options, 360-views of cars, etc. is a must.
Virtual Showrooms
With the onset of the Covid-19 pandemic, people had no choice but to stay at home. Even though restrictions have been long lifted, customers still prefer to buy cars online. That is why auto retailers are reaching out to customers virtually. Virtual showrooms have been a major application of technology in the auto industry as it unburdens infrastructural and overhead costs and enables retailers to offer competitive prices and lucrative deals. Thanks to these digital showrooms, customers can browse makes and models online, take virtual car tours, and so on.
Automotive Cybersecurity
Cybersecurity is one of the key aspects to focus on these days, in order to avoid breaches and attacks. Cybersecurity is being explored for more advancement across multiple segments to safeguard automotive businesses from malicious attacks, unauthorized access and unwanted manipulations. Now OEMs and their supply chains are integrating hardware and software for better cyber defenses. It involves the protection of electronic systems, communication networks, software, data, and users.
CRM or Customer Relationship Management
This refers to software that lets dealerships keep track of all communications with customers, while building relationships. An automotive CRM connects all the data from your sales leads and customers, all in one place, using tools like lead management, marketing campaigns management, and report management. The platform is used to support all sales and after-sales processes, which include revenue, expenses, product flow forecasting, and comprehensive vehicle accounting. An automotive CRM like Modera’s is exceptional when it comes to streamlining sales processes – it improves operational efficiency by ensuring you can connect with customers at every stage.
DMS or Dealer Management System
DMS systems are all-in-one solutions that offer diverse functionality from inventory and personnel management to customer management and monitoring operations across multiple dealership locations. They have a plethora of benefits such as centralization of data storage, generating sales forecasts based on inquiries and needs, providing data analysis and marketing management, capturing customer data, and simplifying workforce management. Most dealerships these days are using DMS to maximize service profitability and turn high volumes of industry information into actionable insights.
Vehicle as a Service
This is a relatively new trend on the automotive retail landscape. It is an improvement over the current leasing model of vehicles. In the conventional model of leasing a car, it is bound to the customer till the end of the lease period. With the “vehicle as a service” model, customers get to subscribe to their vehicle of choice for a short period of time and can upgrade the same at any point in time. The advantage is convenience, flexibility, and low subscription rates (cheaper than buying a new car). Vehicle manufacturers will soon implement this model on a large scale for customers.
The advent of technology in the automotive industry is happening at a rapid pace, so it is imperative that dealers and manufacturers keep up with current trends. If you want to retain and keep your customers engaged, you have to provide a unique experience, which is possible with various digital tools and technologies.
