Consumers Demand Compliance and Transparency from Auto Dealers
The internet has changed the way consumers shop across all industries. In the past, businesses could rely on being better informed than their customers, and could assume that shoppers often didn’t have much choice in where to buy. Today, with limitless product information available online and the convenience of online shopping available 24/7, businesses must cater to an informed and empowered consumer.
This is true of all retail industries, including automotive retail. While the dealership business has resisted change more than other brick-and-mortar industries, be assured that the digital revolution is coming for car dealers, just like it has come for every other industry.
Dealerships can’t rely on knowing more than their customers anymore: many of today’s auto shoppers have researched their vehicle of choice extensively before even entering the dealership. Presented with above-market pricing or uninformed salesmen, customers can simply walk away. To compete in the modern market of informed customers, dealerships must offer transparency and compliance.
Being transparent means explaining to customers in honest and clear terms the vehicles available, the options, and the prices. Salesmen must see themselves as truly trying to help the customer make a good decision, and not just trying to close the sale at any cost. Though some automotive professionals may find this sentiment hard to accept, dealerships must move in this direction, or they will simply be replaced by large-scale online car dealers that adopt a modern approach to sales.
Being compliant means respecting the customers and the laws and regulations that govern the automotive industry. Consumers today are more savvy and more concerned about privacy, security, and financial terms than ever before. Dealerships that want to be around for the long-term must implement a robust, comprehensive compliance program. Doing so will ensure a transparent sales process that will increase customer satisfaction and retention - not to mention avoiding potentially crippling fines and penalties.
Ultimately, today’s automotive professionals must prepare themselves for a changing industry. Consumers have adapted to business models like Amazon and Uber, and expect consistent, convenient, reliable, and transparent service from retail business.
Car dealers can no longer hide in the shadows of unclear financing terms, inconsistent pricing, high-pressure sales tactics, and fly-by-night management teams. The digital revolution will force dealerships to raise standards and offer compelling alternatives to disruptive online car dealers. By focusing on transparency and compliance, established dealers can compete. However, failing to modernize quickly may prove to be a death sentence for many of today’s dealerships.