Three trends reshaping the future of automotive retail

The future of automotive retail is all about one thing - making transportation more convenient for customers.

The car buying process is now more about the buyer instead of the dealer, and automotive retail has moved to where customers are.

Virtual test drives and online car shopping are here to stay, and customers love it. Buying a car has now become a seamless process. Automotive retail is set to change even more with time, and these are the trends propelling it forward.

1. A more customer focused approach

For the longest time, people associated buying cars with pushy salespeople.

As car retailers adopt a customer focused approach, they are changing that mentality and making the car purchase process simpler. One approach they are taking is combining offline and online processes into one seamless journey.

Digital car-buying spaces are becoming commonplace. They eliminate the pressure associated with buying vehicles and classic sales tactics. A virtual shopping platform enhances the end user’s experience.

The customer gets genuine information to make an informed buying decision. They can shop online and complete the purchase at a physical store or complete the entire process online - finding the car, customising it, getting financing, and having it delivered.

The car showroom has moved online. More and more dealerships have online showrooms that offer virtual test drives, so car buyers never have to leave their homes.

2. Looking beyond the sale

The way people move around has changed massively in recent years and will change even more. To keep up with the times, car retailers now focus on selling an experience, not just selling a car. They try to form real connections with customers before and after a sale.

Retailers are getting closer to customers and becoming part of their lives long before they consider buying a car. This helps consumers know their offerings and pick them when the time comes to buy a car.

Some companies are creating car adverts that project a unique kind of lifestyle - a lifestyle car buyers can relate to, like tailgating or camping. To attract more customers, some dealerships are integrating coffee shops and partnering with other retailers to offer better deals.

As well as considering the lifestyle that a car represents, retailers should also think about what the customers are concerned about. Unfortunately, the rising cost of living means that more and more customers are looking for ways to save money.

But retailers can pivot to meet the changing needs of their customers. For example, Pink Salary Exchange offers a contract-based service geared towards business. This allows businesses to choose from a wide range of electric and hybrid vehicles, which helps them to keep an eye on the future and save money.

Rather than selling a product, car retailers can sell a service that keeps on giving dividends.

3. A digital ecosystem

Retailers are going beyond simply selling cars to selling ideas. They are creating a digital ecosystem that brings together various interconnected services.

Several car retailers are offering interconnected services such as in-car retail offers, cashless parking, and car sharing. While some of these offerings are limited to some car brands, many are becoming more universal by the day.

Retailers are now educating customers about auto tech, mobility, and cars of the future.

For example, Volkswagen has set up a community hub that acts as a hang-out space and provides in-store events, presentations, and car installations. It gives the company a way to collect and incorporate customer input into new services.

Tech will continue to be a primary component in automotive retail because it allows customers to shop the way they want. It also connects brands to customers and increases brand loyalty.

And as times change, so will the world of automotive retail. This is just the beginning.

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